andwhattheircompetitorsareupto.
It’snotallbeenpurebusiness.
2022hasbeen astellaryearof reconnectionforNewZealand businesses.Aftertwoyearsof multipleCovidlockdownsand toughborderrestrictions —which werenotliftedintheirentiretyuntil mid-year —therewaspent-up appetitefrombusinesspeopletoget outintotheworld,renewcontacts andforgenewopportunities.
Inparticular,2022hasalsobeen atimeforboardsofdirectorsfrom ourleadingcompaniestoassess whethertheirstrategiesarestillfitfor purpose.
Thathasnecessitatedlookingat thestateofmarketsinternationally
AirNewZealandtook abevyof chiefexecutivestoNewYorkontheir newdirectflighttoengagewithsome stellarthought-leaders;lookforTim McCready’stakeoutsintoday’s DynamicBusinessReport.
StephenJacobi —wholeadsthe InternationalBusinessForum— travelledtoIndia,wherehefoundthe timewasrightfor anewandurgent approachtoexpandNewZealand’s bilateraleconomicrelationshipwith thatfast-growingnation.
OtherslikeFonterra,have restructuredtohave arenewedfocus onglobalmarkets.Thedairycooperativehasappointedseasoned executiveJudithSwalestoleadtheir newfocusaswereporttoday. Butwhenitcomestoopening doorsforNewZealandbusiness, JacindaArderndeserves
considerablepraise.Shehasled businessmissionstoSingapore, Japan,theUnitedStates,Australia andmorerecentlyVietnam.
NewZealand’skeyagribusinesses havebeenrepresentedonvarious missions,alongwithtechcompanies, tourismplayersandevenfashion designers.
AsArdernwritestoday,2022has been ahugeyearforNewZealand’s freetradeagenda.“It’salsotheyear IrediscoveredthattheroleofPrime Ministercansometimesbe Cheerleader-in-Chief.”
TogetherwithTradeMinister DamienO’Connor,shehasseta crackingpaceforgingtradedeals withnewpartnersliketheUnited KingdomandEuropeanUnionand closingout(withothers)longstandingnegotiationssuchasthe RegionalComprehensiveEconomic Partnership(RCEP).Thephoto
montageaboverepresentsjustsome ofthemanymeetingsshehashad withworldleadersthisyear.
Intoday’sreport,weexplorehow digitaltradeandinnovationhas becomecentrestageforbusinesses wantingtokeeppacewithtechnologicalchange. Thisincludesmodels forthefuturesuchasToyota’sWoven City.And areminderfrom demographerPaulSpoonleythat NewZealand’sownpopulation makeupischanging.
FurtherinsightsfromOliver HartwichontheeconomyandDawn Freshwateronfreedomofspeech underlinetherewillbemuchtotalk aboutintheNewYear.
Finally,ithasbeen apleasureto onceagaincelebratethewinnersand finalistsofthe2022DeloitteTop200 awards.
Thisis amajorproductionfor Deloitteandthe Herald.
TheTop200sectionintoday’s reporthasstoriesonallcategory winnersandfinalists.Videosofprime winnerscelebratedatlastnight’s awardfunctioncanalsobefoundat: nzherald.co.nz/business.
AsDeloitteCEOMikeHornesays, thesewinnershavefoundwaysto reconnectwith achangedworld,truly embracingthethemeofthisyear’s awards —“theworldisours”.
Onbehalfofthe Herald’sBusiness Reportsteam:TimMcCready,Isobel Marriner,GrahamSkellern,Bill Bennett,TennessyWeir,RichardDale, TimWilsonandmyself,wewishall readers arestorativeholidayseason and afruitful2023.
We’llbebacknextyearwithour firstreport,ProjectAuckland. Enjoythereport.
Trademissionshavegivenusgreaterresilienceinturbulenttimes,writes
2022hasbeen ahugeyearfor NewZealand’sfreetrade agenda.It’salsotheyear Irediscoveredthattheroleof PrimeMinistercansometimesbe Cheerleader-in-Chief.
Andsoitwasearlierthisyearthat fromtheUnitedStates Ipromoted SilverFernFarms’NetCarbonZero Beefon TheLateShowwithStephen Colbert,watchedbyanaudienceof morethanthreemillion.Itseemedas goodanopportunityasanytooffer achillybagofprimesteaktothetalk showhost.Littledid Iknowsearches fortheproductwouldspike300per centoverthenextdayorso,highlightingthedemandforourclean, green,safe,Kiwi-made goods.
Oureconomyisonethatdepends ontrade,andsoasworldeconomies rampedbackupafterCovid,ourplan wastotakeourexportersdirectlyto markettocontinuetheimportant workofmaintainingpoleposition.
It’s aplanthatisworking.
Ihaveledfivesuccessfultrade missionsoverthepast12months, includingtothreeofourtopfour markets —Australia,theUnitedStates andJapan —aswellastotheSoutheastAsianmarketsofSingaporeand Vietnam.Wehaveconcludedtwo high-qualityfreetradeagreements withtheUnitedKingdomandthe EuropeanUnionthatwilldeliverup to$4billioninextraexportrevenue ayear.Oncebothagreementsarein place,76percentofourtradewill betopartnerswenowhave afree tradeagreementwith.Sixyearsago, thiswaslessthan50percent.
TheUKfreetradeagreement(FTA) wasourfastestnegotiationinovera decade,representingthesenseof
urgencyweplaceduponnew,high qualityagreements.TheEUagreementgivesourexportersaccessto theconsumersof27differentcountries.
Overthepast12monthswehave alsostrengthenedourtieswiththe Indo-Pacific, aregionofhugeeconomicandstrategicvaluetoNewZealand.InNovember, Iannouncedthe substantiveconclusionofnegotiationsofanupgradetoourFTAwith ASEAN(AssociationofSoutheast AsianNations)andAustralia.With over$7bofexportstoAseanlastyear, wenowtrademorewiththeblocin aweekthanwedidin ayearinthe early1970s.
It’sbeen arecordyearbutit’salso been arecordfiveyears.
Sincewetookoffice,wehave securedsixnewfreetradeagreementsandupgrades —theComprehensiveandProgressiveAgreement forTrans-PacificPartnership(CPTPP), theRegionalComprehensiveEconomicPartnership(RCEP),theChina FTAupgrade,theASEAN-AustraliaNewZealandFreeTradeArea (AANZFTA)upgrade,andtheUKand EUFTAs.
That’shelpedgrowourprimary sectorexportsbyanenormous39per centinthesameperiod,withlatest forecastsprojectingfoodandfibre exportrevenuewillgrowto arecord $55bintheyearahead.
Thesearethefruitsofourfree tradelabourandwewanttoseeeven more —becauseit’sclearthatgreater exportearningsprovideresiliencein aworldthatisgoingthroughdifficult times.
Theworld’s“poly-crisis”of aglobal pandemic,Russia’sinvasionof
Ukraine,anenergycrisis,climate changeand aglobalrecessionpresentsnewchallenges.As atrading nation,whenourtradingpartnersgo throughtoughtimes,thathasan impactonus.
profitablethanever.
Iwillalwaysproudlytelltheworld thatNewZealandishometosome ofthemostsustainablefoodproducersintheworld —and Iwillalso continuetosupportourexportersto backupthatbrandwithenvironmentalcredibilitytomaintaintheirpole position.
NewZealandhasalsobeenanadvocateoftradeas aforceforgood.
BoththeUKandEUFTAspromote labourrights,climateaction,reform ofenvironmentallyharmfulsubsidies,women’seconomicempowerment.Theysupportsmallandmediumbusinesses,anddelivermeaningfuloutcomesforMa¯oriexporters.
Theworld’s‘poly-crisis’of aglobalpandemic, Russia’sinvasionof Ukraine,anenergycrisis, climatechangeanda globalrecessionpresents newchallenges but ourworkontrade,our super-chargedapproach toreconnectingwith markets,hasgivenusthe strongestpossiblefooting tofacethosewavesas theyrollintoourshores.
JacindaArdern
Butourworkontrade,oursuperchargedapproachtoreconnecting withmarkets,hasgivenusthestrongestpossiblefootingtofacethose wavesastheyrollintoourshores.
Wehavelowunemployment,one ofthestrongestsetsofbooksinthe world,andtheuniquepropositionof ourexporterstoensurewecontinue fetchingtopdollarforwhatwesell totheworld.
Underpinningthisgrowthisour recordonsustainability,whichhas madeNewZealand’sexportsmore
MycolleagueDamienO’Connor spentcountlesshourshelpingto securethesefreetradeagreements. Hehasheardmorethanmostthe deafeningmarketsignalthatconsumerswantproductsproducedwith carefortheenvironment,forour climate.FonterraandNestle’sworld firstnetzerocarbonemissionsdairy farmlaunchedatFieldaysprovides theprooftheseconsumersarelookingfor.
Customersareseekingnotjustthe bestproductsintheworld,butthose thatarethebestfortheworld —and thatisexactlywhatourprimary producerscanoffer.Thatisourcompetitiveedge,andwewillcontinue workinghardtomaintainit,tostay aheadofthepack.
Sustainabilityis apropositionthat extendstoallofourreconnecting work —ourreturningtouristsare consciousoftheirtravelfootprints andwewelcomethembackwithan offeringtocareforourenvironment thewaywedo;whileatthesametime welcomingthelikesofbigtechcompanieslikeMicrosofttosetupcloud businesseshere —basedonourrenewableenergymarket.Sustainabilityprovidestheresilienceandsecurity acountrylikeoursneedstoface impendingglobalheadwinds.
Reconnectingisofcourseabout morethanjusttransactionaltrade.
NewZealandalsoremainsa staunchadvocatefortherules-based multilateraltradingsystem,withthe WorldTradeOrganisationDirector GeneralDrOkonjo-Iwealasayingduringhervisitlastmonththat:“New Zealandis asmallcountry,butit punchesaboveitsweightconsistentlyandislistenedto.”
Ourtrademissionsthisyearhave showcasedsustainable,high-quality andinnovativeKiwiexports,letting theworldknowthatNewZealandis openforbusiness,tourism,education andtrade.Theyhaveprovidedus greatereconomicresilienceinthe faceof aturbulentworld.Thisiswhy Ihopetolead abusinessdelegation backintoourbiggestmarketChina torenewandrefreshin-person connections,whenCovidprovisions theremakeitpossible.
I’moptimisticthiswillbringfurther opportunitiesforourexporters.I havealsosignalledourintentionto continuetomakeprogressinnegotiatingourfreetradeagreementwith thePacificAlliance —madeupof Mexico,Colombia,PeruandChile.
Amidthechallengesofglobal economicheadwinds,wehave aplan thatisworking —asournumber1 placinginthe2022SustainableTrade Indexhasshown —andit’s aplanwe willcontinuetopursueinto2023for thebenefitofeveryNewZealander.
TakingpartinAirNewZealand’sbusinessdelegationto NewYorkonthenewdirect Auckland-NewYorkCity flightwas agreatopportunitytocatch upontheUnitedStateseconomic environment,tradingconditions,geopoliticsandtrends.Assomeonewho hadn’tcrossedtheNewZealandbordersince2020(butpre-pandemic was afrequentlong-haultraveller),it wasalso achancetoget atasteof travelintheCovidera.
Morethan20ofNZ’smostinfluentialbusinessleadersjoinedthe delegation,includingtheheadsof MercuryEnergy,NZBeef &Lamb, Sanford,TheWarehouseGroup, SkyCity,Infratil,Spark,Beca,Nga¯i TahuandtheUniversityofAuckland. BetweentheCEOsanddirectorson boardNZ2,AirNewZealandwas responsibleforcarrying asizeable fractionofNewZealand’sTop200 businesses.
Thesedelegationsareoften predicatedaroundgovernment-togovernmentrelationssuchasbilateralandmultilateralmeetings,or freetradeagreements,butthistrip wasdifferent.
DespiteincludingDeputyPMand FinanceMinisterGrantRobertson andNationaldeputyleaderand financespokespersonNicolaWillisas partofthedelegation,oneofthe distinctthingsaboutthetripwasthat itwasn’tpoliticallyfocused.
AirNewZealandchairDame ThereseWalshdescribedthevisitas achancetonotonlyshowcasethe airline’snewflagshiproute,butto“get backtodoingwhatAirNZusedto do —beanimportantpartofNZInc
thinkingandNewZealand’seconomicdevelopment.”
AirNZCEOGregForan’sstatusin theUSwasevident(hewaspreviouslyCEOandpresidentofretail giantWalmartUS).Heusedhiscachet topullinhigh-profilespeakersincludingIndraNooyi —theformerchair andCEOofPepsiCoandoftentouted asoneoftheworld’smostinfluential women.
Thoughmeetingswereheldunder theChathamHouseRule,someofthe lessonsthatstoodoutfromthree daysonthegroundintheBigApple include:
FromNewZealandtoNewYork thechallengesremainthesame Themoodinmanymeetingswas sombre,astheUSgrappleswithmany ofthesameeconomicheadwindsas NewZealand. Aloomingrecession, geopoliticaltensions,constrained supplychains, ashortageoftalent, burgeoninginflationandinterestrate risesarecreatinguncertainty.
WhileCovidrestrictionshaveall butgoneinNewYork,thepandemic hasleft apermanentmarkonthecity. CompaniesintheUShaveembraced hybridworkingwhichisconsidered “heretostay”asemployeesdemand theflexibilitythatcomeswithit.
Covidtestingsitesarestillscatteredabout,anddespitenorequirementforfacemasks,theiruse seemedfarmorecommonthanin Aucklandonpublictransportandin publicspaces.
ESGunderstrain—butignoreitat yourperil
TheacronymESG —whichtakesinto account abusiness’seffortsonenvironmentalfactors,socialissuesand
Mostcommentatorsagree Indiaisbouncingback stronglyfromthepandemicandissettobeone ofthefastestgrowingeconomiesin Asia. Ahugedomesticmarket,new investmentsinmanufacturingandIT andadvancesinthedigitaleconomy areleadingthisnewwaveofgrowth.
Indiaisalsolookingoutwards,but onitsterms —havingpassedupthe opportunitytojointheworld’slargest freetradeagreement,theRegional ComprehensiveEconomicPartnership(RCEP),itisnegotiatingbilateral dealswithseveraleconomiesincludingAustralia,theUK,Canadaand eventheEU.NewZealand’sown relationshavebeengiven abigliftby thevisitofForeignMinister JaishankarinOctober,buttwo-way traderemainslow.Weneed anew strategyandconcertedactiontotake therelationshipto anewlevel.
Myownrecent,firstvisittoIndia wasaneye-opener. Iwasimpressed byIndia’svitalityandenergyaswell asitsconfidenceindealingexternally.Thiswasnot acountryslowly comingaroundfromtheafter-throes ofthepandemic,althoughCovid’s impactwasheavytobesure —it seemednearlyeveryone Imethad aharrowingtaleofloss.Rather,this is acountryfirmlyfocusedonachievingitsdestinyasoneoftheworld’s leadingeconomies.Withgrowth likelytonudgesevenpercentthis year,Indiaislookingtothetalentand consumptionbaseofitsvastpopulationanditsrichanddiversegeographytodrivethenextphaseofits development.
NewZealand’srelationshipwith Indiahastrodwaterinrecentyears andallcannotbeblamedonthe pandemic.WhiletheIndiancommunityhasneverceasedtoremind usofthesignificanceofthecountry oftheirheritage,wehavetriedto engageIndiaonourownterms.We
Thetimeisrightfor anewapproachto expandNewZealand’seconomic relationshipwithIndia,butmoreurgency isneeded,says StephenJacobi.
successfullylaunched afreetrade agreement (FTA)negotiation,which atfirstseemedpromisingandsoon gavewaytothelargerprizeofRCEP. Thattooultimatelyfloundered,at leastforIndia,leavinguswithout muchtohangonto.Indiaisnot interestedincomprehensiveFTAs whichofferacross-the-boardmarket accessincludingforwhatitregards assensitiveproducts.We’reusedto thatofcourse,butIndiawasnot willingeventogive afigleafofaccess fordairyandmeatastheEuropean Uniondidmostrecently.
Thetrafficisn’tallonewayhere: NewZealand,forreasonswhichare notentirelyrational,isequallyunwillingtomakeconcessionsonimmigration,eventhoughIndiaoffersthe solutiontomostofourlabourshortageproblem.NewZealand’sFTA strategyhasserveduswellacrossa rangeofmarketsandshouldnotbe abandonedlightly.Thatstrategyis justnotonethatwillworkforIndia. WhileanFTAwillalwaysbeofinteresttousandshouldnotbetaken offthetable,weneedtorethinkthe wayweapproachthisimportantpartner.Thatapproachhastobebased onunderstandinghowNewZealand canplay aroleinIndia’scontinuing developmentstory.
As Ipreparedformyvisitby speakingwithknowledgeablepeople includingintheIndiandiaspora,two themesveryquicklybecameprominent —technologyandyoungpeople. TechnologyisdrivingchangeinIndia aseverywhereandIndiaisatthe
nudge 7p year,Indiaislookingto thetalentand consumptionbaseofits vastpopulationandits richanddiverse geographytodrivethe nextphaseofits development.
StephenJacobi
forefrontofemergingITindustries. The“Indiastack”is acaseinpoint— itcombinesopensoftware,digital identitiesand adigitalpaymentsys-
temthatreaches asubstantialpartof theIndianpopulation.
NewZealand’snichetechnologies couldwellfind ahomeintherich Indiantechnologicaleco-system. Agriculturaltechnologiescouldhave specialrelevancein acountryaiming togrowitsagriculturaloutput,with whichNewZealandneednotcompetedirectly.Therearecommercially relevant,win-winavenuestoexplore here.
YoungpeopleareIndia’sfuture andalsotheirpresent —theireducationistopofmindforIndianfamilies. NewZealandeducationhas apatchy historyofinvolvementintheIndian marketandneedstodomuchbetter tomatchtheeffortsofcompetitors. Ourimmigrationsettingsandlabyrinthinevisaprocessesalsoneedtobe addressed.
YoungIndiansarealsowanting workandlifeexperience —wecould donobetterthanestablishanIndian youngprofessionalsschemetobring talentedindividualsforinternships andworkexperiences inNewZealand.
Fortunately,movesareunderway totake amorestrategicapproachto ourpartnershipwithIndia.TheIndia NZBusinessCouncilisrallyingthe businessside.ThefrequencyofMinisterialvisitsispickingupandthe HighCommissioninDelhiisengaging withagenciesthereondeveloping newthinkinginadvanceofofficials’ meetingsinNewZealandlaterthis year.Thisisallgood.Butisitfast enough?India’sdevelopmentwaits forno-oneandcertainlynotNew Zealand.
Wedoneednewstrategy.Wealso need aplan,moreactionandmore feetonthegroundtocatchthenew Indianwave.
● StephenJacobiistheExecutive DirectoroftheNewZealand InternationalBusinessForum(NZIBF)
continuedfrom B4
corporategovernance —hasrisento prominenceoverthepastfewyears. Butrecentlyithasbecomepoliticised inpartsoftheUS.Itsassociationwith liberalismhasseen abacklashamong someRepublicanofficialswhohave describedESGpoliciesas‘woke’.
Acronympoliticsaside,therewas alotoftalkinNewYorkthatUS investors,customersandemployees arecontinuingtofocusonwhether businessesareauthenticabouttheir purposeandleadership,andwhether theyaredoingwhattheysaytheyare doingwhenitcomestosocietyand theenvironment.
Thisismoreimportantthanever asGen Z(thosebornbetweenthelate 1990sandearly2010s)becomemore prominentintheworkforce.Many arechoosingnottoengagewithbusinessesorevenapplyforjobswith
employersthathave aperceived negativeimpactontheenvironment, oranorganisationthatlacksdiversity.If abusinesscanexplainwhyits activitiesareimportantnotjustfor commercialdifferentiationbutalso fortheplanetandsociety,itwillbe avaluablecompetitivedifferentiator.
Americadoesn’thavetimefor shortpoppies!
KirstenandCraigNevill-Manning,formerFacebookandGoogleexecutives whoareamongourmostsuccessful offshoreNewZealanders,hosteda receptionforthedelegationattheir spectacularmulti-levelBrooklyn apartmentcompletewith astainlesssteelslidetotraversethefloors.
There, apanelofNewYork-based KiwisspokeaboutthemanyNew Zealandbusinessesthataredoing greatthingsintheUS —butstressed thatwecontinuetobetoodemure
foranAmericanaudience.Togetcutthroughin acrowdedmarketthat movesquickly,businessesmustbe preparedtosharetheiruniquepoints ofdifferenceandaccomplishments asloudlyastheircompetitorsdo.
TheexpatcommunityinNewYork issmallbuttight-knit.Thosethatwe metonthegroundarekeentowelcomemoretothecityandpasson theirdeepexperienceandadviceto otherssothatNewZealandbusinessescanhitManhattanrunning andmaketheirmarkonthecitythat neversleeps.
Goodnewsfortourismand business
Despitebeingclosedtovisitorsfor twoyears,NewZealandcontinuesto have alotoffriendsoffshore.Everyonewhospoketothedelegationhad fondthingstosayaboutourcountry andthosewhohavenotyetbeeninn-
atelylikeusandhave adesiretovisit —eveniftheycouldn’tpinpoint exactlywhy.
Therewasanexpectationfrom businessdelegatesandthosewe spoketothatthedirectflightbetween AucklandandNewYorkwillhavea roleinshapinghowNZ’seconomy andfutureopportunitiesevolve.
OneUS-basedinvestorlikened NewYorkto a“multiverse”since thereissomuchgoingoninsucha diversecity.Hesaidtheneedto transitwhentravellingfromtheeast coastoftheUStoNewZealand previouslyput alotofpeopleoff comingtoAotearoa,andtheairlink willnow“connectMiddle-earthwith themultiverse”,bringingimmense opportunityalongwithgreatercapital,entrepreneurship,andtalent.
● TimMcCreadywas aguestofAir NewZealandonthedirectflighttoNew York.
TheCovid-19pandemicputpaidto NewZealand’splanstohosttheApec Leaders’meetingin2021.Itwas successfullyheldvirtuallywithPrime MinisterJacindaArderninthechair. ButAucklandwillfinallybeonthe Asia-Pacificagendain2023 —in person —whentheApecBusiness AdvisoryCouncil(Abac)hostsa meetingfromFebruary12-14.
Around200participantsincluding seniorbusinessleadersandofficials fromApec’s21economiesare expectedtoattend.ItisthefirstApec meetingbeingchairedbytheUnited Statesinits2023hostyearwhichwill culminateinApecLeaders’weekin SanFranciscofromNovember12.
Businessrepresentativeswillbeled byDominicNg,ChairmanandCEOof EastWestBank.Othersinclude: MichaelaBrowning,Vice-President andHead,GovernmentandPublic PolicyforAsia-PacificGooglebasedin Australia;JanetDeSilvaPresidentand CEOoftheTorontoRegionBoardof Trade;NingGaoning(Frank)Chairman ofSinochemHoldings(China),Hu HoukunDeputyChairman,Huaweiand RotatingChairmanHuaweiTechnologies(China)andWongWaiMeng, ChairmanSGTech(Singapore).
NewZealandisrepresentedby AnnaCurzon,chiefproductofficerat Xero;MalcolmJohns,incomingCEO forGenesisEnergyandRachelTaulelei Co-FounderofOhobrandingagency.
Apec(AsiaPacificEconomicCooperation)istheregion’sleadingintergovernmentalforumforeconomiccooperation.Twenty-oneeconomies fromtheAsiaPacificregionare members,representingover70per centofNZexports.Apecleadersmeet annuallytofreeuptradeand investment,promotesustainableand inclusiveeconomicgrowth,buildthe foundationsforthedigitaleconomy andsettheeconomicdirectionforthe region.
Apecseniorofficialswillmeetin Aucklandatthesametime,ensuring theeventwillbe auniquemeeting pointforgovernmentandbusiness. TheAbacagendawillfocuson economicintegration,sustainability andclimatechangeandthedigital economy,againstthebackgroundof adifficultenvironmentforglobal economyandtrade.
TheNZIBF’sStephenJacobi,an alternateNewZealandAbacmember, saystheeventtakesonparticular importanceafterthreeyearsofCovid disruptionandat atimewhenNew Zealandisactivelyseekingtodevelop furthertheeconomicrelationshipwith theUnitedStatesandotherAsiaPacific economies.
“Recenteconomictimeshavebeen hardformany,andparticularlysofor business,”saysJacobi.“Thiseventwill assistinhelpingchart acourseoutof currentdifficulties.”
NZtochairCPTPPcommission TradeMinisterDamienO’Connorsays NewZealandwilltakeoverasChair oftheCPTPPfromSingaporein2023.
“Thiswillprovideanopportunityto furtherhighlightourprogressive approachtointernationaltradeasset outinourTradeforAllagenda,aswell asourcommitmenttoopen,tradeand regionaleconomic architecture,”says O’Connor.
“Continuingtobuild onourexport growthis akeypart oftheGovernment’s economicplan.Our two-waytradewith theCPTPPbloc accountsfor27percentofourtotal trade,andgrowingthisfurtherwill bettersecuretheeconomicfutureof allNewZealanders.
“Itistheworld’spremieropen, multi-partyfreetradeagreement, signedby11economies,which representover13percentofthe world’sGDP.Around$20billion ayear ofourexportsgotoCPTPPpartners.”
Fonterraispushinghardfornew,emergingproducts,reports GrahamSkellern
DairygiantFonterraispresentlyidentifyingdifferent globalmarketsandnew productsforitsscienceand innovationstrategyto“drivemore valuefromeverylitreofmilk”.
NewGlobalMarketschiefexecutiveJudithSwales,whojoinedthecooperative10yearsago,saidtherewas awallofmilkthatgotbiggerand biggereveryyearbutnowproductionwasflat.
“Withcostsonfarmandenvironmentalconstraintscoming,staying flatwillbe agoodresultbutwehave todrivemorevalue.
“Bringing achoiceaboutwherewe putthemilktocreatemaximum valueistheroleofGlobalMarkets. Weneed aunitedorganisationtolook atthosemarketswherewearegoing tomakethemostmoneyforour shareholders.
“We’vegottheseamountsofgreat solids,proteinsandfat,andwheredo weputthem.Whodowepartner with?”saidSwales.
Fonterra,thesixthlargestdairy companyintheworldwith a30per centglobalexportingshare,distributesitsproductsintothreeregions —AMENA(Africa,MiddleEast, Europe,NorthAsiaandAmericas), AsiaPacific(includingNewZealand andAustralia),andGreaterChina.
NowithascreatedtheGlobal Marketsregion,forfuturedevelopments,madeupof5300people across27markets,83nationalities andhundredsofculturescutting acrossfourgenerations —Baby Boomers,GenX,MillennialsandGen Z.
Anewleadershipteamwas formedinOctoberundertheguidanceofSwales,whomovedfromthe roleofchiefexecutiveoftheAsia Pacificregion.Theteamhassofar metonce.
“Weneedtomapthemarkets,”said Swales.“Whovaluesinnovation,our sustainabilitystoryandlowcarbon footprint?Who’swillingtopayforit?
“ThelikesofUnitedStateshavea greatloveofprotein,andNorthAsia foodsecurity.Therearepocketsof veryhigh-valuemarkets,andwe reallyneedtoknowhowwepartner withbigcustomersinthosemarkets,” saidSwales.
Farmersarenowcollectingmore datatobackupFonterraandNew Zealand’ssustainabilitystory —what theyareputtingontheland,what theyfeedingtheircalves,howthe cowsarelookedafter;somaticcell counts,andhowmuchwaterisconsumed.
“Ourfarmersareworkinghardfor ustomakethesustainabilityclaims andweneedtomakesureweare commanding apremiumforthat,” Swalessaid.
ShesuggestedsomeofFonterra’s biggestcustomersmayswitchfrom EuropetoNewZealandfortheir dairy-basedsupplies,suchasingredients,totakeadvantageoftheirown sustainabilityclaims.
“Thereareopportunitieswithout doinganymorethanshiftingthe sourceofsupply.We’vegot anatural advantagegivenwefollowthegrass curve,andweneedtocontinuetodo moreonfarmtoreducegreenhouse gasemissions.Obviously,findinga waytoreducemethaneissomething of aholygrail,”saidSwales.
Fonterrahasbeenrunning atwoyeartrialinTasmaniatoseeifusing Asparagopsisseaweedas asupplementfeedfordairycowscan reducemethane.
InpartnershipwithSeaForest,one ofthefewlicencedproducersofthe seaweedforcattlefeed,thetrialand productionisbeingexpandedtomultiplefarms.Fonterrahasfirstaccess tothispotentialseaweedsolution.
AttherecentNationalFieldays,a jointventurebetweentheGovernmentandFonterra,SilverFernFarms, Ravensdownandotherswasannouncedtoinvestinnewtechnologyto
Fonterra’s biggestcustomersmayswitch fromEurope toNewZealandfortheir dairy-basedsuppliestotakeadvantageof theirownsustainabilityclaims.
reducemethaneemissions.Fonterra isalsopartneringwithNestleina carbonzerofarm.
Theco-operativehasalready teamedupwithVitaKeyInc,whose precisionnutritiontechnologycame outofMassachusettsInstituteof Technology.Theemergingareaof researchseekstodelivertheright nutrientsintherightamounttothe rightpartofthebodyattherighttime.
Fonterraislookingtodesigndairy productsthatincorporatetargeted andtime-controlledreleaseofspecificdairynutrients,startingwith probiotics,in awaythatlocksinthe freshnessforlongerandallowsthe nutrientstobemoreactiveandbeneficialinthebody.
Swalessaid“oneofthethings we’vedonewellisinnovatingwith thetimes.Musclehealthwas aproblem.Wedeveloped awholeprotein portfolio,withAnlenebeing aleader inthatfield,andnoweverybodyhas gotcalcium.”
Anlene,thenumberoneadultmilk brandacrossSoutheastAsia,was speciallyformulatedtosupport healthymuscles,jointsandbones.
“It’slookingaheadtothenext horizons,”saidSwales.“Peopleare concernedaboutimmunityanddigestion,andmentalhealthandwellness.Wehavegreatsolutionsinall thoseplaces.”
Fonterrahasjustlaunchedthe Biokodelabrangeofsupplementsto supportbrainperformanceofadults (mentalclarity),relievestress,and builddigestionandimmunehealth.
High-valueproteinsarealsoon Fonterra’sradar.“Whereasbeforeit wasbone,nowit’saboutproteinand stayingactiveforlonger.Overthe nextthreeyearstherewillbe1.6times more80-year-olds,”saidSwales.
ConsumersinAustraliacanbuy yoghurtthathas20gramsofprotein in aserve.Theprotein-loadingcan reducetheneedtobuyandeattoo muchmeat.
“We’vedevelopedtechnologythat allowsthat(yoghurt)producttotaste good.Itusedtobethatproteinwas reallyclaggyinyourmouthbutnow it’sgot agreatmouthfeel,”saidSwales.
“Wecontinuetopushintofrontiers ofwhereconsumersaregoingand whatisontheirmind.Ifyouproduce proteins,thenobviouslyyouhaveto producecheese.
“WehaveMainlandcheeseand BeaverbrandinAustralia.Wehave thatrealbalanceofhavingthecheese tosellintoourfoodservicebusiness —whichisbouncingbackafter ahard timeinCovid —andtheproteinto globalcustomers.“Eventhoughfood serviceshutdown abit,wewereable todirectproductstotheconsumers. Theywerecookingpizzasandpasta saucesathome.Wewentfrommaking5kgbagsofmozzarellato200g bagsforhomeconsumption.
“Wehavebenefitedinthelast threeorfouryearsfromtheoptionalityofourdifferentchannelsand ourabilitytomovebetweenthem dependingonwherethemostvalue canbecreated,”saidSwales.
“Whatliftsusupisthatthechanges happeningintheworldplayintoour strengths.There’stheriseinhealth andwellness,anddemographicshifts intermsofgrowingmiddleclass throughSoutheastAsiawherewe havelotsofpeopleontheground.”
Swalessaidtheurbanisationand digitally-connectedconsumersand theirneedforconvenienceandeatingoutplayedintoFonterra’se-commerceandfoodservicebusinesses.
“Wearealsoplayingintosustainablelivingandthat’soneofourthree pillars.Theunknownforuswill alwaysbethegeopolitical.Chinais areallyimportantmarkettousand willcontinuetobe.Butwewillbuild strongerbusinessoutsideChinaand thatistheroleofGlobalMarkets.”
● Fonterraisanadvertisingsponsor oftheHerald'sDynamicBusiness report.
Fonterra’sscientistshavepacked inplentyofresearchand developmenttoproduceofrange ofsupplementstosupportthe brainperformanceofadults.
Theaimistokeepbrains fightingfittotakeadvantageof infinitepossibilitiesinfrontof them,asFonterramovesdeeper intobecoming aworldleaderin dairynutrition,scienceand innovation.
Theissuethescientiststussled withwasthatpeoplespendeight hoursplus adaylookingatan illuminatedscreenona computer.It’showtheyconnect, workandunwind.Butittakesits tollontheirbrains,bodiesand eyes,particularlymacularor retinahealth,colourperception andvision.
So,thescientistswantedto solvetheproblemoftheblue lightfromdigitalscreensmessing withnaturalhormoneproduction andsleepcycles,andgettingthe bodyoutofsync.
Theywenttoworkandcame upwiththeBiokodelab supplementsinpillformtofight againsttheeffectsofbluelight.
UsingNewZealandpasturefeddairyastheplatform,with supportingessentialvitamins andplant-basedingredients,the Biokodelabrangeaimstosupport mentalclarity,stressresponse andimmunehealth.
Therangeisbasedonthree ingredientbundlestointroduce therightnutrientstosupport specificneedsofmodern-day brainperformance.
There’sthePhosphatidylserinenutrient —itisonlyinlow levelsintheaveragemoderndiet —incorporatedintheFocusPlus ThinkSharpsupplementfor alertnessandmentalclarity.This alsoincludes Bvitaminsand Pantothenicacid.
TheCalmPlusStresLes supplementincludesthe specialisedcombinationof vitaminC,riboflavinandvitamin B6tohelpwithmood,energyand stressmanagemen.
There’sProbioticPlusfor digestionandimmunehealthand Pro-Sightwhichcontainslutein andzeaxanthinnutrients, sourcedfrommarigoldplants,to helptheretinafilterblueand ultravioletlight.
Pro-Sightalsoincludesvitamin Aandriboflavin,essential ingredientsformaintaining macularhealth.
Thefutureisdigital,andnowheremoresothanintrade. Whilecross-bordertradein manytraditionalgoodsand serviceshasflattenedoverthepast decade,tradeindata,digitalservices, intellectualpropertyandeveninternationalstudents(despite abrief pandemic-relatedblip)isbooming.
Between2010and2019,trade flowslinkedtoalmostanythingtodo withknowledgegrewtwiceasfastas thoseoftraditionalgoods.Andsome areasgrewevenfasterduringthe pandemicthankstotheboominall thingsdigital,accordingtothelatest McKinseyGlobalInstitutetallyof globalvaluechains.
Thisisgoodnews —itiscrucial thatideasanddataflowacrossborders.Butitalsopresentsbotholdand newchallenges.
Intotheformercategoryfallsthe questionofhowtomakesurethat digitaltradedoesn’tbecome aglobal racetothebottomasmultinational companiesmovejobsanddatato areaswithcheaperlabourandfewer privacyprotections.Inthelattercategory,policymakers,labourleaders andbusinessesneedtoconsiderhow thisintangibletradeisdifferentfrom tradeintraditionalgoodsand services,andwhatthismeansfor economicsandpoliticsatboththe globalandthelocallevel.
Perhapsthemostfundamental wayinwhichtradeinintangibles differsfromtraditionaltradeisthat dataisn’tlike alumpofcoalora lengthofsteel —itcanbeusedby manypeople,simultaneously.Intheory,thisshouldcreate awin-win scenario,notonlyforbothsidesof anindividualtransaction,butalsofor thecountriesthroughwhichcrossborderdataflows.
Yetinpractice,informationhasa tendencytobemonopolised.The networkeffect —inwhichmore begetsmore —hascreatedsuperstars indata-richfieldssuchasBigTech andBigPharma.Theselargecompaniestendtocreatemuchmore linearsupplychains,becauseitis bothefficientandcosteffective.
Informationmustbefreetoflow,butmustnotbecome anotherarenainwhichthegainsreapedbycapital outweighthoseoflabour,writes RanaForoohar
AccordingtoMGI,tradeconcentrationismostpronouncedin knowledge-intensiveandintangiblesheavyglobalvaluechains.Thesix mostconcentratedvaluechains todaybelongtothisgroup —BigTech, electroniccomponents,pharmaceuticals,etc.
Policymakersarealreadyaddressingsomeoftheseissues,with strongerantitrusteffortsandnew waysofthinkingabouttheimpactof thebartertransactionsthatmakeup alargepartofdigitaltradeflows.In otherareas,suchassemiconductors, effortsareunderwaytoincrease regionalproduction,whichwillallow agreaternumberofcompaniesand countriesintothesector’ssupply ecosystem.Butinareaslike pharmaceuticals,verylittleprogress hasbeenmadetodiversifyflows(a 2021WhiteHousesupplychainreviewnotedextremeconcentrationin pharmaceuticalingredients).
Multinationalcompaniescontrol mostdigitaltrade,and —aswiththe traditionalequivalent —theyhavean incentivetomoveworkanddata whereverismostconvenientand profitableforthem.
WhilethemajorityoftradeinintangiblesisconcentratedinOECD countries,thereis atrendtowards outsourcingmoredigitalworkto placessuchasthePhilippinesor
India,wherelabourprotectionsare scant.“Ifwedonewtradedeals,like theIndo-Pacifictradeframework,
Shelton,headoftheCommunications
WorkersofAmerica,theunionthat representsroughlyhalf amilliondigitalworkers.
Theseconcernsarefurther exacerbatedbythefactthatwhile workingfromhomehasbeen aboon tomanyemployeesinrichcountries, ithasalsoshowntheextenttowhich white-collarknowledgeworkcanbe donefromanywhere —andthus potentiallyoutsourced.Asonechief executivetoldme ayearago,“Ifyou candothejobinTahoe,youcando itinBangalore.”Littlewonderthen
thattheCWAisfieldingmoreinquiriesaboutunionorganisingwithin thetechnologysector,healthcare, mediaandevenfinance.
Willdigitaltradeflowsmirror someoftheproblematicaspectsof traditionaltrade?Orwilltheycreate newgeographicdynamics?Partof thisdependsontheextentofUSChinatechnologydecoupling.Italso dependsonhowconnecteddigital flowsaretothematerialworld.The internetofthingsdramaticallyincreasestheflowofdatawithinand betweenbusinesses,mirroringthe boominconsumerdatathatfollowed thelaunchoftheiPhonein2007. “Digitaltradeisn’tdivorcedfromtraditionaltrade,”saysMGIdirector OliviaWhite,“butit’sunclearexactly whatthecasualarrowsbetweenthe twoareasofyet.”
Weneedbetterwaysofmeasuring knowledgeflows.Thiswasthetopic of arecentIMFannualmeetingon intangibles.Informationflowsarefar moreopaquethanthoseoftraditional goods.Thismakesitdifficulttotally, taxandregulatethembutitalso makesitdifficulttofullyunderstand theireffectsonmarkets,workersand productivity.
Knowledgeissomethingweas humanscreate,butitisalsosomethingthatwetrade.Thistruthliesat theheartofthedigitaleconomy. Informationmustbefreetoflow,but itmustnotbecomeyetanotherarena inwhichthegainsreapedbycapital outweighthoseoflabour.
Ifthathappens,wecanexpecta white-collarbacklashagainstdigital trade.
—Copyright:FinancialTimes
Sustainabilityhasnever been more important toNew Zealand,and Spark IoTtechnology couldhelp yourorganisationbecome moresustainable.
Withoverhalfa millionbusinesses connectedtomillionsofthings, New Zealandhasthepotentialfor amoresustainableandproductivefuture, andSparkIoTcanhelpmakeithappen. Findout howwecanhelpyourbusiness at spark.co.nz/IoT
Thefirstprincipleofmedicine is“donoharm”.Itshouldbe thefirstprincipleofeconomicpolicy,especiallyheading intoanelectionyear.
Eveninordinaryelectionyears, rationalandcalmpolicymakingisthe exception.Yetthesetimesareanythingbutordinary.
Inthecomingyear,NewZealanderswillfacethetoughestsetof economiccircumstancesin ageneration.Politically,wecanexpectthe Governmenttohaveitsbacktothe wall,facingnotonly adefeatbuta potentiallandslideloss.
ThecombinationofeconomicturmoilandtheGovernment’spolitical weaknessmaybe atoxiccombination.
TheGovernmentwillbetempted toengageinbriberyandpopulist gimmickrywhileavoidingtoughbut necessaryreforms.
Inflationandthefighttocontrolit, risingmortgagerates,fallinghouse prices,and ashortageofworkerswill dominateoureconomicdebatesnext year.
Theseissuesareallconnected. Youcanhardlyfixoneofthemwithouttacklingtheothers.Still,theGovernmentwillpromisetheimpossible in2023.Afterall,thisisanelection year.Whatwecanexpectarepolicies thatwilltacklesymptomsratherthan causes.
Cost-of-living-crisis?Giftanother cost-of-livingpaymenttohouseholds. Extendthefuelexciserebateand dictatepetrolprices.Forcethe supermarketstolowertheirprices withthreatsofexpropriation.
Shortageofworkers?Fast-track visaapplicationsforpreferredemployers(mostlikelygovernmententitiesandfavouredbusinesses).Pay
ifsoundeconomicswere aguide,theresponseto NewZealand’seconomic crisiswouldlookvery different.
DrOliverHartwich
subsidiestocompanieswhocannot findstaff.Maybeoffertaxcutsfor peopleworkinglongerhoursandpay peopletodeferretirement.
Risingmortgagepain?Forcebanks tooffermortgageholidays.Havea subsidyprogrammeforhouseholds sufferingmortgagestress.Allow KiwiSaverwithdrawalsforhomeownersfacingnegativeequity.Even rentcontrolscouldbeonthetable.
Tobeclear,noneofthosepolicies wouldmakeanysense.Buttheyare thekindsofpoliciesthat adesperate
Governmentmightconsider.
Notonlywouldsuchmeasuresbe unhelpful,buttheywouldalsoviolate the“donoharm”principle.Yes,itis possiblethattheymightprovidetemporaryrelief.Buttheywouldcause yetmoreeconomicdamageanddistortioninthemediumterm.
Ifitwasnotforelectoralconsiderations,andifsoundeconomics were aguide,theresponsetoNew Zealand’seconomiccrisiswouldlook verydifferent.Ratherthantreating symptoms,wewoulddealwiththe underlyingcauses.Yes,thatwouldbe painful,atleastfor awhile,butit wouldwork.
Attherootofourproblemliesthe failureofmonetarypolicy.Intrying tosupportandstimulatetheeconomyoverthepastyears,theReserve Bankhasoverdoneit.
Thisbringstomindtwofamous quotesbytwofamouseconomists.It
wasNobellaureateMiltonFriedman whotaughtusthat“inflationisalways andeverywhere amonetaryphenomenon”.
Hemeantthatpriceincreasesresultfromcentralbanksexpanding theirmoneysupplyfasterthan economicoutputgrows.
NewZealandisnowbearingthe consequencesofearliermonetary stimulus.Thisdoesnotonlyapplyto consumerprices.Assetpricesbecamemorevolatileaswell,heading upanddownwithmonetarymoves.
Thatbringsustothesecondquote, thisonefromAustrianeconomist LudwigvonMises:“Thereisnomeans ofavoidingthefinalcollapseofa boombroughtaboutbycreditexpansion.”
Inotherwords:whatgoesupmust comedown.Whenyoucreate amassiveboomoutofthinair(read:freshly createdmoneyand,inthecurrent case,highgovernmentdeficitsdespiteanoverheatedeconomy),then— soonerorlater —youendupwitha bust.
Again,wearewitnessingthisnow. Havingprintedmoneytospura boom,thatboomisnowendingin tears.Highinflation,negativeequity fears,andfallinglivingstandardsare allconsequences.
Therightthingtodowouldbeto reinininflationasquicklyaspossible, andindeedthatiswhattheRBNZnow saysitwantstodo.Anditistheright thingtodo.
Witheachmonththatpricesremainhigh,inflationexpectationsbecomemoreentrenched.Thoseexpectationsmakeitincreasinglydifficult totreatthecancerofinflation.
TheGovernmentshouldavoidall policiesthatwouldmakeitharderfor theRBNZtodoitsjob.
So,nosubsidiestohouseholdsor companies;noexpensivepetpro-
jects;noelectionbribes.Instead,the Governmentoughttoimplement policiesthathelptheeconomygrow andbecomemoreproductive.
Suchpolicieswouldincludeimmediatechangestoimmigrationsettings.
TheReserveBankacknowledges thatthelabourmarketisoverheated, makingtheunemploymentrate unsustainable.Thesepressurescould berelievedbybringinginmoreoverseasworkersandallowingthosewho arealreadyheretowork.Instead,the Governmentisproposingtomakeit evenharder.
Wewouldalsobenefitfromrapid changestoourforeigndirectinvestmentrules.
ItiswaytoohardforforeigncompaniestoinvestinNewZealand, cuttingusofffrominternationalvalue chains.Forthiscountry,overseas investmentruleshavebeen aspectacularowngoal.Weshouldabolish them.
Finally,wehavehurtourselvesby makinglandmarketsuncompetitive. Thisisespeciallytrueforurbanland markets.
NewZealandneedsproperplanningandinfrastructurereform.These wouldstrengthenpropertyrights, streamlineplanningprocesses,and providefinancialincentivestocouncilstogoforgrowth.Butwillwesee anyofthisnextyear?
Well, Ibelieve Ialreadymentioned thatitisanelectionyear.HaveturkeysevervotedforChristmas?No, andneitherhaveGovernments.
Whoevertakesoverfromthis prodigalGovernmentwillinheritan almightyeconomicmessin2023.Or anevenbiggeronein2026.
● DrOliverHartwichistheExecutive DirectorofTheNewZealandInitiative (www.nzinitiative.org.nz).
IfinNewZealand, we'regoingto increasinglymove publicservices, medicalservices, bankingandother thingslikethat online,wehave to make surethat everybodyinNew Zealandisableto accessthem.
LizBlythWeneedto capitaliseonthetechnologicalchangeacceleratedbythepandemic,LizBlythtells BillBennett
RussellMcVeaghpartnerLiz BlythsaysNewZealand jumpedforwardfiveyears inconsumerandbusiness digitaladoptionin amatterofeight weekswhenthecountryfirstwent intolockdowninearly2020.She says:“Nowit’saboutfindingwaysto leveragethattransformation,ithas openedupopportunitiesforour economy”.
LikemanyNewZealanders,Blyth experiencedthatenforcedrapiddigitaltransformationfirst-handinher owncompany,butshealsosawhow itaffectedothers.SheheadsRussell McVeagh’sTechnology,Digitaland StrategicSourcingPracticeinAuckland.Herrolemeansadvisingclients ontechnologyandstrategicsourcing matters.Sheisalsoco-chairofthe firm’srecruitmentcommittee.
ShesaysthatleapforwardleftNew Zealandingoodshape.
ThisisreflectedinCisco’sDigital ReadinessIndex, aglobalrankingof 146countriesmeasuringhowwell theyarepreparedtoreapthebenefits offuturedigitisation.Singaporetops thelist,butNewZealandcomesinat arespectableeighthplace.
“Twoyearsago,thelasttimethe indexwaspublished,werankedat15. WeleapfroggedAustralia,whichis nowat16.
“Theindexsurveyscountrieson theirabilitytoleveragetheopportunitiescomingfromdigitalinvestment. Wejumpedsohighbecauseofthe additionalinvestmentwe’veseen fromboththegovernmentandthe privatesector.Ifwearegoingtobe arealdigitalleader,we’regoingto needtocontinuethatinvestment,to stimulateandincentiviseorganisationstocontinuepushingahead”,she says.
“InthepastNewZealandhasfallen
behindinitsdigitalreadinessbecause ofourlowertechnologyadoption rates.SoCovidhelpingusgetpastthat isbrilliant,butthereneedstobe continuedincentivesfororganisationstoinvest.
“TheGovernmenthasearmarked fundsforthesoftware-as-a-service sectorandthereis alotofgreen energytechinvestmentaswellas governmentincentivesforothersto investinthatspace.”
Blythsaystherearestillbigissues toaddress,especiallywhenitcomes tothedigitaldivide.“Thisiswhere thereis arealopportunityforNew Zealand.
“Weneedtobringeveryone on thatdigitaljourney.OnereasonAustraliadroppedbehindinthereadinessindexisitsdigitaldivide,which isthecaseinregionalAustralia.We sawsomeofthatinNewZealand duringthepandemicwherethere werestudentswhodidn’thavethe devicesorconnectivityneededfor remotelearning.”
Thedigitaldivideisnotrestricted togeographiclocation,itcanrun acrosssocio-economiclinesandeven acrossculturallines.
Therehavebeensomegoodresponsestothis.Blythsinglesout Spark’sSkinnyJumpbroadband,a low-costwayforfamilies,seniorsand otherpeopleinneedtogetonline, alongwiththegovernment’scontinuinginvestmentsinruralconnectivity.
Shesaystheseinitiativesarecritical aswecontinuetoinvestindelivering keyservicesonline.
“Thegovernmentcertainlyhas improvedandcontinuestoimprove thedigitalinfrastructure.Initiatives likeSkinnyJumpsubsidisebroadbandtohelpfolkswhootherwise maynotbeabletoaffordthoseplans, accessthemandaccessconnectivity.
Increasingly,accesscanbeseenas abasichumanright.AndifinNew Zealand,we'regoingtoincreasingly movepublicservices,medical services,bankingandotherthings likethatonline,wehavetomakesure thateverybodyinNewZealandis abletoaccessthem.
“Nowthattheinvestmenthasbeen made,weneedtoleverageand amplifyit,”shesays.“Thegovernmentistargeting ahighwage,low emissionseconomy.Thereare afew stringstopulltogether.Supplychain issues,shipping delays,increasing fuelpricesandtheimpactofthewar inUkraineallimpactourexport potential.
“Weneedtothinkaboutexports thatcanbedelivereddigitally,somethingthat’shugefor acountrylike NewZealandthatisgeographically isolated.Thispresents acompelling opportunitythatleveragesthe changesthatwewereforcedtomake anditdiversifiesoureconomy.We’ve seenstronggrowthinthetechnology sectorofaround10percentinthe lastyearwhilesectorssuchastourism,whichwehavetraditionallyreliedon,havedeclined.Anotheradvantageisthatitismorefocusedon marketslikeEurope,theUSorAustraliaandlessontraditionalexport marketslikeChina,whichhasbecomemoreof arisk.”
OneareaofspecialinteresttoBlyth isgreentechnology,and,morespecifically,greenenergytechnology.
“ThisisanareawhereNewZealandisalreadyconsidereda leader internationally.We’retradingoffthe clean,greenimagethatwehelpfully builtuparoundourtourism,butit translatesnicelyintodigital.Ithelps thatweareblessedwithincredible
naturalresourcessothatrenewable energycomestousquitenaturally. We’reataround85percentrenewableenergynowandthegovernment targetistogetthatto100percent by2035.Whichmeansyouaregoing tosee alotofinvestmentinthegreen energyspace.”
Whiletechnologywillgo along waytowardhelpingNewZealand meetitsemissionstargets,Blythsays anotherdevelopmentwillplayan importantrole.“TheadventofESG (environmental, socialandgovernance)reportingis akeydriverfor organisationsglobally.Around90per centoftheS&P500companiesnow havevoluntaryESGreporting.Weare nowseeing alotofitinNewZealand too.RussellMcVeaghhasbeenvoluntarilyreportingfor acoupleof yearsnow.
“Inordertodothat,youneedtools thatmonitorandtrackyouremissions.Theygiveyouinsightsaround whereyoucanreduceemissionsand technologyisneededtosolvethose issuesastheyarise.Thereis ahuge globaldemandaroundthis,whichis anotherrealopportunityforNew Zealand.Wearewellpositionedto commercialiseourexpertisebecause wearealreadyfurtheralongthe renewableenergypaththanother countries.”
MuchofthedemandforcommercialcompaniesusingESGreporting comesfrominsidetheorganisation. Employeesareinterestedinknowing theiremployershavevaluesaround matterssuchasclimatechangethat alignwiththeirown.Blythsaysithas becomecriticalforattractingand retainingtalent,whichisnowmore importantthanever.
Atthesametime, acompany’s clientsandbusinesspartnersneedto dobusinesswithotherfirmsthatcan
supplyESGinformation.In aconnectedworld, acompanydoesn’tjust needtobecarbonneutralinternally, itneedsitsentiresupplychaintobe onthesamepath.Blythsaysthat wouldn’tapplytoeverycompany, butitisincreasinglyimportant.
ForBlyth,having acohesive, nationaldigitalstrategyiscritical.The countrythatconstantlytopsany tableorindexlookingatdigitalleadershipisSingapore.Itdidn’tgetthere byaccident.Shesays:“Foryears Singaporehashad asolid,governmentledandbackeddigitalstrategy. Itscohesiveinitiativesarealigned withthatstrategyandithasbeen incrediblysuccessful.
“Wehavenowgot adigitalstrategy inNewZealand,butthereis alotgoing oninthisspace.
“We’vegotthedigitaltrustframeworkandtheconsumerdataright. Thereis acybersecuritystrategy.The governmentislookingatoverhauling thePrivacyActandsoon.Thecriticalityisgoingtobearoundaligning alltheseandthentakingstockand lookingatwherethepotentialbig winsmightbeinthenextfewyears beforelookingattheopportunities.
“Theyneedtobecohesive,sowe aren'tendingupwithconflictinglegislativeframeworks.Weneedtocreate asingledigitaleconomyor asingle dataeconomythatworks.
“Thedriverforuswhenweare helpingclientsthinkaboutnewlegislation,newgovernmentinitiativeswe thinkabouthowthisisgoingtofit witheverythingelsegoingon.Isit cohesive,oristhisreallyfighting otherinitiatives,otherlegislationthat we'vealreadygotinplace?”
● RussellMcVeaghisanadvertising sponsoroftheHerald’sDynamic Businessreport.
Digitaltechnologies canboostefficiency andhelpreduce carbonemissions, writes BillBennett
“Wearereachingthe pointwherewe areseeingfast risingInternet-ofThings(IoT)adoptioninNewZealand,”saysMicheleWong,Spark’s headofIoT.
LastmonthSparkconnectedthe onemillionthnew“thing”toitsIoT network.
Therateatwhichnewconnections arebeingaddedisaccelerating.Wong saysifyouweretoplotthenumbers, you’dsee aclassichockeystick growthchart.
Earlierthisyear,SparkIoTwas singledoutasoneofthe2022financialyear’shighlightswithrevenueup 22percentonthepreviousyear.
Wongsayscustomersreportthey quicklyseetangiblebenefitfromtheir IoTinvestment.“Itmeanstheycan runtheiroperationsmoreefficiently andsafely,butitalsodrivesmore sustainableoutcomes”.
OneareawhereIoTisalready havinganimpactisonreducing carbonemissions.
Wongpointsto arecentreport SparkcommissionedfromthinkstepANZ(asustainabilitybusiness)that saysdigitaltechnologieslikeIoT couldhelpreduce7.2milliontonnes ofgreenhouseemissionsby2030. That’saround42percentofthetotal emissionsreductionNewZealand hastargetedforthatyear.
Theresearchfocusesonthreekey areas:Transport,energyandindustry,andagriculture.Itlooksatopportunitiesinthesesectorswheretechnologycanmakethegreatestdifference.Havingpeopletravelless thankstoremotemonitoringisone case,anotherismakingiteasierfor peopletoswitchtoelectricvehicles. IoTcanhelpwithruralconnectivity andcreatingsmartcharginginfrastructure.Thetechnologyalsohasa rolebuildingintegratedtransportsystemsandwithcongestionchargingin cities.InagricultureIoTcanhelpplan andoptimisewaterorfertiliseruse.
Toillustratehowthismightwork, Wongusesthesimpleexampleof usingIoTforassettracking.
“AcompanycanuseanIoTsolutiontolocateassetswhereverthey areinthecountry.Itcanremotely monitortheutilisationandtheactual position.Thishasanimmediatebenefitforcostsavingsandforcarbon emissionsbecauseuntilnowthat companywouldhavehademployeesdrivingaroundlookingfor theassets.”
AnotherexampleisWestpac Mussels,whichexportslocallygrown mussels.“We’vedeployed aremote databuoyintheoceantomonitorthe watersalinity.Thatinformationis neededtounderstandthebesttime toharvestthemussels.
“InthepastWestpacneededto sendboatsouttocleanandcheckthe buoyonce aweek.WithIoTremote monitoringitonlyneedscleaning eighttimes ayear.There’sanimmediatecostsavingandagainitreduces carbonemissions”.
Successstoriesarepercolating throughthewiderbusiness.Wong saysatfirsttheIoTgrowthcamefrom aselectbandofanchorcustomers, butnowsheisseeingconnection growthacross awiderangeofuse cases,sectorsandindustriesasbusinessesrealisewhatIoTisaboutand thebenefitsitcandeliver.
TheIoTsceneisfastmoving.
Duringitsearlyyears,mostofthe applicationsrequiredrelativelysmall amountsofdata.Theyusesensors reportingbackontemperatureor moisturelevelseveryhourorso,in effect atrickleofdata.
Thesearestillcommonplace,but therearenowmoredata-intensive applicationsthatmightstreamhighdefinitionvideoandaudio.
AwholenewsegmentofIoTis emergingaroundcomputervision andvideoanalytics.
Thetechnologylinksconnected remotecamerastoartificialintelligencesystemswhichusealgorithms tomonitoranareaand,forexample, determineiftherearepeopleinview whoshouldnotbethere.
Sparkoffers arangeofIoTnetwork optionstocaterforthedifferentuse cases.Wongsaystheinnovationin theIoTspaceisconstant,notjustin thedevices,butalsointhesoftware
space.Allthismeansanexpansion intheavailableoptions.
Atypicalcompanyjourneywith IoTmightstartwith astraightforward application.Onepopularstarting placeisfororganisationsthatneed tomanageassetson acampus.
Wongsaystheymightstartwith sensorsmonitoringfridgesorsimilar, thenmoveontoassettracking,from therethepossibilitiesareendless.
Toeasethepath,Sparkoffersa rangeofpre-builtend-to-endIoTproductsandservices.
“Ourcustomersincludegovernmentdepartmentsandenterprises, buttherearealsomanysmallbusinesses.
“We’recustomer-ledintermsof ourproductdevelopmentandinnovationroadmap.Welistentowhatthe customerssayandfind awaytohelp them.
“Wehavecustomerswhowantthe connectivityandcanself-service.The smallercustomersoftenhave aneed thatcanbefilledbyanend-to-end solution.Sothatiswhywehavefleet trackingsolutionsthathelpthem monitorandoptimisetheirbusiness fleet.Wehaveassettrackingsolutionsandsoon.Theybundleconnectivity,hardwareandsoftware togetherforthecustomerin away theycanimmediatelystartgathering dataandmeasuringthingsbutcan alsohavethetoolstomakesenseof thedataandactonit.”
Withthefleetmonitoringsolution, customerscanlogonto adigital portalandknowstraightawaywhere theirvehiclefleetisandgetsome informationtostartoptimisingperformance.
“Theseareoursolutionsthatcan applyinmultipleverticalmarkets. Theyenablethoseproductivityand sustainablebenefits.
“Wehave alotofsolutionsfor environmentalmonitoringbecause that’sanareawhereIoTcanmake ahugeimpact.Wehavesolutionsfor monitoringwaterflowandwater quality.Therearewatermetering solutions.We’vegot asolutionthat monitorssoilconditionsandothers thatkeep awatchonweather conditions.”
AtWaita¯kiriBottleLakeForest Park,SparkworkedwithChristchurchCityCouncilandFireand EmergencyNewZealandtobuildan environmentalIoTsensingandearly firedetectionnetwork.Thetechnologyprotectsmorethan800hectares.Thesensorsareabletodetectthe earlysignsof afireandtrigger afast emergencyresponse.Wongsaysthe projectdemonstratesanotheraspect ofIoTprojectswhichareoftencollaborationsorpartnerships.
“Togettransformationalchange youneedtogeteveryoneworking togethereitherwithinthesamesectororacrosssectors.Weknowthat eachbusinesscanmakeanimportant,butsmallchangeincarbon emissions,buttherealimpacthappenswhenpeopleworktogetherand applysolutionsacrosstheboard.”
● Sparkisanadvertisingsponsorof theHerald'sDynamicBusinessReport.
Toget transformational changeyouneedto geteveryone workingtogether eitherwithin the samesectoror acrosssectors.
MicheleWongFromtop:MyEnvirois aruraldigitaldatacompanypoweredbySpark; aremotedatabuoyintheoceanforWestpac Mussels;firemonitoringatWaita¯kiriBottleLakeForestPark.
Airlineislookingto positionitselfasa digitalleader,writes BillBennett
AsAirNewZealand’schief digitalofficer,Nikhil Ravishankar’sroleisto drivetheorganisation’s missiontobecometheworld’sleadingdigitalairline.
ForRavishankarthemissionisa clearstatementthattheairlineno longerviewstechnologyasa standaloneITdepartmentusedto supportoperations.Itisnowembeddedattheverycoreofthecompany.
“Ourbiggervisionistocreatethe world’sgreatestflyingexperience,”he says.“Wehavethepurposeof connectingNewZealanderstoeach otherandconnectingNewZealandto theworld.Forustobringthattolife, weneedtobecometheworld’sleadingdigitalairline.
“Muchofthatvisionmeansembracingtechnologyasanenabler,but itisalso akeyingredientinmaking thedish.Atthesametime,itacknowledgesthefactthat,likeitornot,we arealready adigitalbusiness”.
Relegatingdigitaltothebackroom isnolongerthebestwaytoextract fullvalue,heunderlines.
AirNewZealandhas aproudtrack recordofdigitalinnovation.
Itwasthefirstairlinetointroduce automatedcheck-inkiosksandan earlyadopterofcloudcomputing.
Thiswasinthebackgroundwhen CEOGregForanandthecompany’s leadershipteambegan astrategy review.Themissiontobecomethe world’sleadingdigitalairline emergedfromthatprocessaspartof digitaldexterity,oneoftheairline’s sevenstrategicpillars.
Ravishankarsaysthedigitaldexteritystrategyisbasedonthepremise thecompanywasdoing agoodjob
ofbeinganairlinewith adigitaldepartmentthatsupportsprovidinga bettercustomerexperience,making servicesrunmoreefficientlyand improvingsafety.“Thenweasked ourselves:‘Whatifwestartedthinkingofourselveslessasanairlinewith adigitaldepartmentbutas adigital businessthathappenstobeinthe aviationsector’?”
AirNewZealand’smid-sizedstatus helpshere.ExplainsRavishankar: “Wehaveallthecomplexityof afullservicecarrier,butwe’renotsobig thatyoucan’twrapyourarmsaround thecompany.Wehaveanabilityto bemoreagileandtodelivernew capabilitywhileotherpeoplearestill talkingaboutit.
“We’veshownovertheyearswhat
Whatifwestarted thinkingof ourselveslessasan airlinewith adigital departmentbutasa digitalbusinessthat happenstobeinthe aviationsector?
NikhilRavishankar
wecandowhenweputourminds toit.”
Thereareotheradvantages:“We operatein amarketwherewehave agoodworkingrelationshipwiththe airportcompaniesandwiththe regulators.Weareinanecosystem wherewecanmovefasterthanrivals inotherjurisdictions.AndourexperienceduringCovidbroughtuscloser togovernmentagencieslikeCustoms,theMinistryforPrimaryIndustriesandtheDepartmentofInternal Affairs.ThenthereistheuniqueNew ZealandIncopportunitytoreimagine thewholetravelexperience.”
There’sanothermotivationfor movingfastdownthepathtobuilding adigitalairline.AirNewZealandcan positionitselfasaninnovationtest-
TheAirNewZealandchiefdigital officerjoinedtheairlinefrom Vectorin2021wherehewasalso theCDO.
Whileinthatroleheledthelines company’sdigitaltransformation programme. BeforejoiningVector,hewas managingdirectoratAccenture NewZealandandTelecomNew Zealand’s(nowSpark)headof technologystrategy.
bedwherenewideasget areal-world trialanddevelopintellectualpropertiesairlinesandorganisationsaround theworldcouldfindcompelling.
TheCovidpandemicwasbrutal fortheaviationsectorwithservice cancellationsandotherrestrictions. Ravishankarsaysduringthatperiod andthepost-Covidrebuild,thoughtfulapplicationoftechnologyhelped makeAirNewZealandmoreresilient. “Thecompaniesthatsurvivearenot necessarilythestrongestorthefittest, buttheonesthatcanadaptbestto change.Technologycertainlyincreasesouradaptability”.
Lookingforward,theairlineis askingwhatthefutureofsustainable aviationlookslike.Ournation’srelativegeographicisolationmakesthis disproportionatelymoreimportant thaninothercountries;youcan’t,for example,catch afasttraintoNew Zealand.RavishankarsaysClimate ChangeCommissionchairDrRod CarrsuggestedthatsustainableaviationcouldbetothefutureNew Zealandwhatrefrigerationwastothe early1900s:“adisproportionatevalue creatorforthecountry”.
Otherinnovationsinthepipeline include afullypaperlessflightdeck. AirNZplanstobringthatplantolife earlyintheNewYear.Itwilldigitise thepilotexperiencethatintegrates withwhattheplaneprovidesand whathappensontheground.
● AirNewZealandisanadvertising sponsoroftheHerald'sDynamic BusinessReport.
MeetingsintheMetaverse NikhilRavishankarsaysAirNew Zealandhasfoundthatit’spossible tolose alotofcollaborationwhen there’s ameetingwithpeopleinthe officeconnectingwithotherswhoare remoteorworkingfromhome.Toget aroundthis,theairlinehasbuilta Metaversecopyofthecompany’s newbuildingnowbeingremodelled atAucklandAirport.Theideaisto create alevelplayingfieldfor employeesaseveryoneadaptstothe newhybridworkenvironment.
Hesaysthatfornow,theairline isexploringtheideaof aMetaverse workspace.“Atthemomentwedon’t knowifthisistheanswer,butwe’re tryingtofigureoutifitcouldbethe answer”.
AirNewZealandgeneralmanager digitalRichardHollebonsaysthe airlineseespotentialforthis technologyinmaintenanceand engineering.Thebusinessalready usesvirtualrealityinitstraining centres.
AirNZmobileapp Earlierthisyear,theAirNewZealand mobilephoneappwentthrougha completerebuild.Thereisanupdated userinterface,butwhilethelookis refreshed,theappstillfunctionsina familiarway.Thenewbuildmeans theairlinecanrolloutnewfeatures withoutrequiringuserstoreinstall newversionsoftheapp.This illustrateswhatdigitaldexterity meansfromthecustomer’spointof view.
ProductmanagementspecialistIlya Zharenikovsays:“It’sallaboutspeed tomarket.Ourdeployment frequencyisalmostdaily,theymay
besmallfixesthatarenotvisibleto theuser,butwewanttogetnew thingstocustomersreallyquickly.”
LukeCoxhead,whoisalsoa productmanagementspecialist,says: “We’vestrippedoutsomeofthelogic fromthefrontendinto amobile experiencelayer,whichgivesusthe opportunitytobemoreresponsiveto customerfeedbackandoperational feedbackarounddeployingnew changesandfeatures”.
Coxheadsaystheairlineknowsthe appismuchloved,butuntilnowthe focushasallbeenonthedayoftravel withcheck-in, aboardingpassand notifications.“Butforustomeetour ambitions,itneedstogobeyondthe dayoftravel,weneedtolook holisticallyatthecustomerjourney throughtheentireprocess,preparing fortravelandsupportingpost-travel
requirements”.Atthetimeofwriting thedevelopmentteamispreparing afeaturethatletsflierscheckthe statusoftheirbaggageonanyAirNZ orStarAllianceflight.Itwillprovide precisedetailsofthelasttimethe baggagetagwasscannedasitmoves throughthesystem. Biometricboardingpass PassengerstravellingviaLosAngeles Airportcannowboardplaneswithout needing aboardingpass.Automated airportkiosksandboardinggatescan nowusefacerecognitiontoverify passengers.
Theairlineusesthesameface recognitiondatathatisusedbythe UnitedStates’CustomsandBorder Protectionagency.AirNZsaysitis indiscussionwithotherauthoritiesto extendthebiometrictechnologyto otherairports.
Automated,paperlessflight planning
AirNewZealandusedthesameflight planningsoftwarefor25yearsand whatA320pilotCaptainMatt
Harringtondescribesitas a“highly manualprocess”.Whenthecompany behindthatsoftwareannouncedit wassunsettingthedespatch manager,AirNZsetaboutdeveloping areplacement.
Harringtonsaysthenewflight planningsystemautomatesmanyof themanualprocesses,“itassessesthe airportforsuitabilityandituses businessrules.Itwilldetermine whethertheairportissuitabletobe usedandthenitdoesthewholeroute, producing aflightplanwithoutany interventionfrom aflightplanner.” Alongthewayitwillcreate adynamic routebasedontheweatherand
windsforthatflight.Ifthereisa restrictedarea,itwillautomatically routearoundthat.Itcan automaticallycalculatethefuel requiredfor aflightbasedonthe windsandtheroute.
Todaypilotsstillgetpaperflight plansdeliveredtothecockpit.If there’s achangetotheplan,they mustwaitfor anewone —insome casestheycanprintnewplans onboard,butthatstillmeans adelay. Soonthatwillchangetodigital deliverywithpilotsusing acustommadeiPadappwithcolour-coded informationhighlightingthingsthat needspecialattentionsuchasroutes aroundairturbulence.
Untilnowflightschedulinghasbeen donemanually.It’s acomplexjobthat meansjugglingplanes,crews,gates andotherresources.Thereareshort timewindowsbetweentake-offsand landingwhereplanesneedtoload passengersandbaggage,change crews,refuelanddealwithcatering. Onebrokenlinkinthechaincan ripplethroughthesystemcausing delayselsewhere.
MikeParsons,generalmanager digital,saysthebettertheairlinecan forecastandreacttochange,the morechanceithasofreducing delays.Itisnowusingartificial intelligencetohelpstreamlinethe speedandqualityofscheduling decisions.
“It’s acomplex,interrelated networkwherefactorscome together.Ifthereisonethingwe knowcomputersaregoodat,itis sortingthroughthesethingsand makingcalculations.”
Intermsofdemography,thelast decadehasbeen arollercoaster.
In2012,thecountrywasinthe doldrumsintermsofmigration —wesawnetlosseswith53,800 leavingtolivepermanentlyinAustraliainthatoneyearalone.
TheBabyBoomers(bornbetween 1945-1964),oneofthelargest-ever generations,werebeginningtoreach theageof65 —althoughmanystayed onintheworkforce.
Attheotherendofthelifecycle, fertilityrates(thenumberofchildren bornperwoman)werestillabove replacementfertility(2.1birthsper woman)at2.2.
WhenCovidstruckin2020, avery differentscenarioemerged.Those agedover65numbered800,000, withabout aquarterstillinpaidwork. Fertilityhaddroppedtowellbelow replacementat1.6birthsperwoman. Butimmigrationwasmorethanmakingupthenumbers.
Inthe12monthstoJune2020(so includingaboutfourmonthsoflockdown),thenetgainfrompermanent migrantarrivalswasjustshyof 80,000, asignificantleapfromthe previoushighestannualgainforNew Zealand.Andthereweremorethan 300,000migrantsontemporary workandstudyvisasinthecountry.
TheresultwasthatNewZealand hadanannualpopulationgrowthrate of2.1percentin2020,muchhigher thantheaverageforthatyearof0.6 percentfortheOECD,andwellabove Australia(1.5percent)andCanada(1.4 percent),theotherhighimmigrant countries.NewZealandwasonly pippedforthehighestspotbyIceland (2.2percent).
ThenCovidcame.
NewZealand’sannualpopulation growthiscurrentlyattheOECDaver-
ProfessorPaulSpoonley
age.Andthemuchreducedmigration numbersmadeitabundantlyclear howmuchthecountryhadcometo relyonmigrantskillsandlabour. Whatofthefuture?Whatcanwe expectinthenextdecade?
Ma¯oriwillmakeupanincreasing proportionoftheworkingagepopulation.TheMa¯oripopulationgrowth isstillgrowingat arateof 2percent perannumandbythe2030s,about oneinfiveNewZealanderswillidentifyasMa¯ori.Becauseoftheirstill relativelyhighfertilityandtheir youngerageprofile,theywillmake
up aquarteroftheworkingage populationandmorethan athirdof theschoolagepopulation.
ThePasifikapopulationwillalso growfrom 8percentto10percent, withanageprofilesimilartothatof Ma¯ori.MoreoftheworkingagepopulationwillbePasifikaandtheywill makeupmoreofthecompulsory schoolpopulation.
Asiancommunities(wemustfind amoreappropriateandrespectful wayofreferringtotheseverydiverse communities)willbethefastestgrowingandwillmakeup aquarterofNew
Zealand’stotalpopulationand around38percentofAuckland’s.But likeMa¯oriandPasifika,theywillbe youngerthanPa¯keha¯.
Asiancommunitieswillmakeup 7percentofNewZealand’sover-65 populationcomparedtothe75per centwhowillbePa¯keha¯. But30per centplusoftheworkingagepopulationwillbeAsian.These proportionsare alittleconfusingbecauseoftheNewZealandpracticeof allowingpeopletomultiple-identify withdifferentethnicities.Butthatis aproductofwhathappensaspartnerscomefromdifferentethnicities —andtheybequeaththesedifferent ethnicitiestotheirchildrenand grandchildren.Thesemultiple affiliationsandidentitieswillcontinuetogrowinthefuture.
Pa¯keha¯havealreadybecomea majority-minorityinAuckland.They makeupthelargestethnicgroupbut
With72sitesacrossAustraliaandNewZealand,we’vegrown from an ambitious start-up to successfully listing on the ASX andNZX.Oursustainedgrowthis aresultofourdedicationto continuously improving every facet of our business –and this alwaysstartswithpeople.
Wehave aculturewhereeveryoneisencouragedand empoweredtomaketheirowndecisions.Thiskeeps ourbusinessagile,whilepromotinganenvironment whereemployeesfeeltrusted,valuedandfulfilled.
Ifthissoundslike ajourneyyouwouldlike tobepartofpleasevisit vulcan.co
NeerajLalaispromoting Toyota’s WovenCityconceptasthemostadvanced testtrackfor amobility companyintheworld.
Theproject —a newcityinJapan —couldbeadoptedhere,hesuggests.
“Peoplewillhavetheopportunity tolive,work,andplayaspartners,and allowresidentstocreateandtestnew inventions,”saysLala. “Developing andutilisingsustainableenergyis partofthemission,includingnew hydrogentechnologyas apromising optiontowardscarbonneutrality, thatwillcombinewithnewmobility innovationstobecomethefuture fabricoflife.”
LalaisthefifthlocalToyotaNew Zealandchiefexecutivesincethe company’sestablishmenthere50 yearsagoas awhollyownedsubsidiaryofToyota.
Hefleshedouttheconceptatthe recentInfrastructureNewZealand summitBuildingNations2050in Wellington.
NewZealandisfamiliarwiththe conceptofthiscountrybeing atest bedfornewtechnologiesandpilot trials. ArecentexampleisAmerican companyWiskwhichwasgranted CivilAviationAuthoritypermission toextenditstrialsofautonomousair taxisinSouthCanterbury.
Toyotabrokegroundonitsown JapaneseprojectinFebruary2021.It isnowinconstructionon70haof Toyotaland.SaysLala,“ironicallyit isbeingbuiltonthesiteof aformer combustionenginecarmanufacturingplantthatclosedin2020.The advantageofhaving alivinglaboratorycity,thatisself-containedon privatelandisthatwecantestnew technologiesatspeedandscale.
“Wewillbetestingautomateddriving,automatedpackagedelivering, cleanenergysystemsandrobotics.
“WhydowecallitWovenCity?It isnotintendedtobe aToyota-only testtrack,butwearepartneringwith manyothercompaniestotestnew ideas.
“Partnershiphasbeen amajorfactorintheprogresssofaratWoven City.ItalignswithGoal17ofthe SustainableDevelopmentGoals, whichfocusesonglobalpartnerships.”
Toyotahaspartneredwithleading energycompaniessuchasIneosto develophydrogenproduction,refuellingstationsandreticulatedhydrogentohomes,andwithRinnaito collaborateonnewapplicationsfor hydrogenfordomesticcooking.The city’senergysystemwillbepowered bycleanenergy —solar,hydrogen andgeothermal.
“Soundslike agreatsolutionfor Taupo¯?”suggestsLalareferringto thatcity’shugegeothermalresources.
Thegoalistohavearound2000 residents,manyofthemresearchers andtechnologists,livingpermanentlyinWovenCitywheretheywill testanddevelopnewtechnologies, suchasautonomy,robotics,and software.
InhisaddresstoInfrastructureNZ, Lalaunderlinedtheconceptisdriven bythreeprinciples:
● “Human-Centred”,focusingon therespectandprioritisationof people’sneedsandpreferences.
● “LivingLaboratory”toenable
Toyota’sWovenCityispioneeringresearchintoaffordable, mobile,andsustainableliving,writes FranO’Sullivan
thewayofthefuturewithfewerof usowning acar,insteadpreferringto subscribeto acar-sharingschemeor simplyrentingmobilitybythehour. Thisisalreadyavailablethrough Toyota’sCityHop —NewZealand’s largestcarsharecompany.
Toyotaistriallingthreeadditional mobilityschemesinNewZealand— twoinAucklandandoneinNelson, tailoredforuniquecustomers,enablingthecompanytogatherdata, testtheconceptandimplementmore widelywithpace.
Itisalsorunning ahydrogenproject(acommercialcar-sharing schemeinAuckland)launchedwith thePrimeMinisterinJapanthisyear.
Lalasaysitisalsoaboutmaking thecompany’sfuelcelltechnology availableinNewZealandtohelp decarbonisetheeconomythrough innovationinareasotherthanautomotive,suchasthemarineoreven theconstructionsector.
Toyota’sfirsthydrogengenerator wasduetoarriveinNewZealandthis monthandtheuseofhydrogen canistersisbeinginvestigatedtosupportcleanenergytoremoteareas.
‘“WiththepartnershipofMitsui, ToyotaNewZealandhasbeenapprovedas afuelcelldistributorfor theOceaniaRegion,soourambition ismassive,andwebelievethiswill begreatforourhydrogeneconomy potential,”headds.
technologyincarparksintheUSis averygoodidea.
“Wethinksafeautonomousdrivingisonlyachievableifyoumakea human-centredcityandtestitwithin acontrolledenvironment.Thatwas akeymotivationbehindWovenCity.”
InnovativemobilityforKiwis Lalaispassionateabouttheopportunity astrongfocusonmobilitycan deliverforallKiwis.
“Webelievetheinfrastructurein NewZealandneedstobe amore connectedandseamlessecosystem, with arangeoftechnologysolutions partneredwith asmartdesign,”Lala says.“Thiswillactivate alowemission,highlyinnovativemobilityserviceforallofNewZealand.”
vicewillbeavailable.
Buttherearehurdles.Lalapoints outitisextremelydifficulttoelectrify itsfleetifinfrastructureisnotdevelopingatthesamepaceasdemand orsupply.Thereareotherlarger challenges:NewZealand’sgeography demands amobilitysystemthatis accessible,affordableandsafeforall Kiwistoengagewith,orrelyon,for receivinggoodsorservices.
Themetricsarecompelling:New Zealandisabout97percentthesize ofJapan,withjust 4percentofthe population,highlightingthatthis countryhasconsiderableun-utilised realestate.
ThesecondtrialinSouthAuckland is apartnershipwithAkinaandthe ManukauUrbanMa¯oriAuthority where20familiesarepaying asetfee of$95 aweekfor athree-yearlease of aCorollahybridwagonincluding costs,exceptfuel.Thisscheme,Waka Aronui,ispartof amovetoensure affordablemobilityisavailableto everyonesotheycanalsojointhe transitionto anetzerocarbonfuture.
Thethirdscheme,inNelson,isthe trialof asubscriptionservicethat harnessestheirstoredemonstrator fleetandToyota’scar-sharetechnology.ToyotacustomersinNelson, includingthecitycouncil,canaccess avarietyofdemonstrationvehicles heldbytheToyotastoreforshort periods —bythehourorday —or astheyneed.
seamlessreal-worldtestingofnew technologies;and
● “Ever-Evolving”approachso thattechnologiesandservicescontinuouslygrowandimprove.
“ItiswhattheJapanesecall kaizen,”hesays.“Whenitcomesto testingnewtransporttechnologies, wealsowanttoensurethesafetyof vehicles,theroadsonwhichthey’re beingdriven,andthepeople.
“Unlikesomeofourcompetitors wedon’tthinktestingautonomous
ToyotahasbeenexploringmultiplewaystodecarboniseNewZealand’smobilityeco-systemforthe pastdecade.“Wehaverecentlyheard announcementsfromGovernment towardsinnovativecarleasing schemes,andcarsharesolutions,and wehavesupportedthoseprojects,” headds.“Wearemovingtowardsa worldwhereaccesstomobilitywill beequallyvaluableasownership.”
Toyotaispositioningitselfasthe PowertrainDepartmentStoreinNew Zealandwhereeverylow-emission solutionandinnovativemobilityser-
“UnlikeJapan,wearespread acrossourbeautifulcountry,andour primarymodeoftransportisthe humblecarorute —not ahigh-speed railsolutionthatrunsthelengthof thecountry,”hesays.
“Ourfleetisoldat15years.Not becausewedon’tlikenewcars,but becausethatiswhatmostKiwiscan afford,althoughelectricvehiclesand hybridownersarenowbenefiting from avarietyofsubsidiesand choices.
“Wealsohavethemostcarsper householdthatenableustoenjoya uniqueKiwilifestyleormobilityfor alloccasions.”
Lalapredictsmicromobilitywillbe
Existingcustomerscanpay asubscriptionfeeandrentbythehouror dayandhaveaccesstomorefunctionalvehicleswhenrequired.
“Thebeautyofthisschemeisthe rightvehiclefortherightjobatthe righttime,anditspeaksto afuture oflesscarownership,lesscongestion, moreflexiblemobilityandfewercarbonemissions,”Lalasays.“Or,more legitimateuseonlywhenneeded.
“Ourambitionistoexpandthis servicequickly,soourcustomers whotravelaroundthecountrycan accessthedemonstrationfleetfrom anyToyotaStore,ultimately,providingaccesstomobilityanywhere.”
● Toyotaisanadvertisingsponsorof theHerald'sDynamicBusinessreport.
continuedfrom B12
areoutnumberedbytheotherethnic groupscombined.Theyareageing muchfasterthanothersandtheir fertilityisdroppingmoresignificantly asMillennialandGen ZPa¯keha¯ womenarehavingfewerchildren— ornone —andhavingchildrenmuch later,intheir30sor40s.
Oneofthereasonsfortheseshifts infertilitychoiceisthatmanymore womenaregoingtouniversityand polytechnics(theycurrentlyoutnumbermen)andtheyare amuch moresignificantpartoftheworkforce.In2020,1.5millionmenwere inthelabourforcebutwomenwere notfarbehindat1.4million.
Issuessuchaspayparityand conditions,flexibleorhybridworking options,recognitionandpromotion,
orpositivefemalerolemodelsand support,becomeevermoreimportant,bothinrelationtorecruitment andretention.
Recognitionoftheageingworkforcealsobecomes amoreimportant issue.
Asoneofthosewhoconductsthe annualsurveyofemployerattitudes andpoliciesforDiversityWorks,it continuestopuzzlemeastowhya majorityofemployersrecogniseageingasanissue,yetmostdonothave policiesinplacetorespondtoan ageingworkforce.
Thenthereistheneedtounderstandandrespondtothechanging ethnicdiversityofthefutureworkforceofNewZealand.
Partofthisconcernsimmigration andmigrants.Oneoftheparadoxes isthatthoughemployersandsectors
havebecomeevermorerelianton migrants,thesemigrantsstillreport thattheyexperiencevariousforms ofracismanddiscriminationinthe NewZealandlabourmarket.
Thereisstillroomforimprovementintermsofhelpingmigrantsto adjusttoNewZealandorinacknowledgingwhattheycontributetothe workplace.
Whiletheethnicdiversityofthe workingagepopulationandthe workforcecontinuestochange —and tochangesignificantly —asthisdecadecontinuesandthe2030sarrive, theabilityofemployerstorecruit Ma¯ori,migrantsandethnicminorities —andtoretainthem —willdistinguish thosewhoaresuccessfulfromthose whowillstruggletofilltheirlabour andskillneeds.
Alongsidethisistheongoing
AsianNew Zealanders 1/4 ofNewZealand’stotalpopulationby the2030s
incomecountriesastheglobalfinancialcrisisrecededafter2012,but Covidhasput abigexclamationmark behindthischallenge.
Thedemographyofhigh-income economiesmeansthegapbetween supplyanddemandwillgrowover comingdecades.
AstheProductivityCommission madeclearearlierthisyear,immigrationispartoftheanswerbut attentionneedstobepaidtoimprovingproductivityandtheeducation andtrainingoptionsfortheNew Zealandresidentpopulation.And,I’d add,toaddressingtheever-growing issuesofworkforcediversity.
“labourcrunch”;thegapbetween laboursupplyasdecliningfertility, combinedwithageing,doesnot matchdemand.Thisbeganinhigh
● DistinguishedProfessorEmeritus PaulSpoonleyistheauthorof“The NewNewZealand:Facing DemographicDisruption”(2021).
We believe the infrastructurein NewZealandneeds tobe amore connectedand seamless ecosystem,witha rangeoftechnology solutions partnered with asmartdesign.
NeerajLala
Ithasbeen challengingfor evidence-based thinkerstoconfront opinionsshapedby confusionand conspiracy,writes DawnFreshwater
As2022drawsto aclose organisationsandbusinessesendtheyearwith moresocietalissuesto navigatethaneverbefore.
TheCovid-19pandemicoverthe lastthreeyearshasposedchallenges forusall.Alongsideit,andinpart becauseofit,wehavewitnessedthe riseofmisinformationanddisinformation.Emergencyrestrictions,lockdownsandvaccinemandatesina socialmediaagehavecreated afastmoving,polarisingandconfronting environmentforcommunityleaders.
Nooneforesawthisyear’sprotest onthegroundsofParliamentmorphingintoanoccupationthatextended to24daysandconcludedwithfire andpoliceforce.
Nordidweforeseetheimpactsof mandatesandevenmask-wearingon employmentcultures.
Thepandemicandresponsestoit reachrightintoworkplaces.Sotoodo theopinionsandviewsthatcome withthem.Ithasbeenchallengingfor evidence-basedthinkerstoconfront opinionsshapedbyconfusionand conspiracy.InAotearoaNewZealand freedomofexpression,orasitisalso
described,freedomofspeechorfree speechiscentrestage.
Thisis agoodthing.Byexamining anddebatingwhatfreedomofexpressionis,itsvaluetosocietyand itsfundamentalimportancetoa functioningdemocracywecanreflectontherisksposedtosocietyif thosefreedomsarecurtailed.Wedo notneedtolookfartoseethoserisks inaction.
AtWaipapaTaumataRau,theUniversityofAuckland,weareengaged in adialogueandconsultationona FreedomofExpressionpolicyandan associatedpolicyonAcademicFreedom.
Alongwith alegalrequirementfor universitiesto performtheroleof criticandconscienceinsociety,we haveexaminedthenexusofthese threeinterrelatedbutnotinter-
changeablerightsandresponsibilities.
Withintheuniversitycontext,academicfreedomandcriticandconscienceestablishanenvironment providingforinstitutionalautonomy andfor amandatedandpreserved roleforacademicstoexercisefreedomofinquiryandresearch,teachingandexpertpubliccommentary. Ouruniversityis alargeanddiverse institutionthatbyitsverynatureis richinknowledge,opinionand viewpoints.Onourcampusesideas andopinionsareargued,testedand freelyexpressed.
IntheUnitedStates,wehaveseen someuniversitiesdeveloppoliciesto “protect”studentsfromwhatareseen ascontroversialissueswhichsome describeasharmful.AttheUniversity ofAuckland,werejectthisapproach.
Wehavea responsibilityto encouragedebate onalltopicsand toteachstudents tobeableto considerand debate controversial issuesbothwithin theuniversityand inembracing freedomof expressioninour wider community.
DawnFreshwater
Academicfreedomis afundamental tenetoftheuniversity.Further,we upholdtherightsofstaff,students andcitizenstofreespeech —thatis, therighttoexpressone’sopinion. Wehave aresponsibilitytoencouragedebateonalltopicsandto teachstudentstobeabletoconsider anddebatecontroversialissuesboth withintheuniversityandinembracingfreedomofexpressioninour widercommunity.Universitieshave adutytotheirstudentsandcommunitiestoadvancelearning,developintellectualindependenceand debateknowledgeandideas.We believethereismuchtolearnin debatingideasandinhearingopposingviews.
As asociety,wemustsafeguard therighttofreedomofexpression. Forthisreason,whiletheGovern-
menthaschosentoextendthe HumanRightsActtoincludereligious belief,itishearteningtheGovernmenthasalsoaskedTeAkaMatua oteTure —theLawCommission— toundertakeanindependentfirst principlesreviewoflegalresponses tohate-motivatedoffendingand speech.
Oftenissuesandideasthatpeople wanttodiscusstouchonourcore beliefsandidentities.Debatesand discussionsfocusonthecontroversialandtheunpopular.Discussion anddebatemayoffendpeople.The conceptsof“harm”or“intenttoharm” arenotoriouslydifficulttoassess,and constrainingspeechbasedonthese canbeeasilymisused.Wemustbe vigilantwhenassessingharm.
NewZealanddoesnothavea strongtraditionofpublicdebatenor ofdiscussingseriousissuesatlength. Weerrtowardspragmatismandour smallsocietycanquicklycoalesce around asingleviewpoint.Wemust moveonfromthis,challengingourselvestoembraceopinionandlisten toideasthatwedonotshare.We muststrivetocreateanenvironment wherepeoplearewillingtoexpress acounterviewandwheretheywill notbeattackedinsocialmediafor doingso.
WaipapaTaumataRauwillnext yearhostpubliclecturesbyleading thinkersontopicalissues.Weexpect themtobechallengingandweexpect somewilldisagreewiththeviews expressed.Ideally,thelectureswillbe followedby arespectfulandrobust debate.Forourdemocracytoremain strong,wemustdefendandpromote freedomofexpression.Ouruniversityiscommittedtothis.
● ProfessorDawnFreshwaterisViceChancelloratWaipapaTaumataRau UniversityofAuckland
Let’simagineafuture ofmobilityforall ofmobilityforall.
Weseeafuturewheremobilityismoreavailableandaffordableforeveryone. Andwe’llgettherethroughcontinuousinnovation.Fromautonomousshared transporttoempoweringpersonalsolutions,thepossibilitiesareinfinite.
TheDeloitteTop 200awards recognise outstandingresults despite ongoing challenges
VulcanSteelhastakenout thetopawardasCompany oftheYearinthe2022 DeloitteTop200Awards, recognisedforitsrecentexceptional performanceforboththecompany andshareholders.
WinnersfortheDeloitteTop200 awardswereunveiledatAuckland’s Shed10lastnight,showcasingthe verybestofNewZealandbusiness andbusinessleaders.Nowinits33rd year,thehighlyanticipatedblack-tie dinnereventwasbackatfull-scalefor thefirsttimesincethepandemic.
Anearliercelebrationin2020was limitedto100guestsduetopandemic restrictions.InFebruarythisyear,a celebrationoflastyear’swinnerstook placeonline.
Thisyear,theawardsrecognise outstandingresultsdespitethe ongoingchallengesresultingfrom supplychainconstraints,skillsshortages,inflation,andtheongoing pressuresresultingfromthepandemic.Companiesandindividuals havebeenrecognisedforshowing commercialstrength,leadershipand agilityduringchallengingtimes.
VulcanSteel thrivedas aprivatelyownedsteeldistributioncompanyforover20years.Sincelisting in2021ithasdeliveredtotalshareholderreturnsof32percent.Operatingprofithasincreasedbyanexceptional82percentandnetprofit by119percent.
Thepanelofhigh-profilejudges— convenedbyNZMEHeadofBusiness ContentFranO’Sullivan —saidthat VulcanSteelstoodoutinitscategory duetoitsrecentperformance.
“Theyare along-termNewZealand successstory,ledbyanoutstanding andcommittedleadershipteam,”say thejudges.“ThisyearVulcanSteel alsosuccessfullyacquiredUllrich Aluminium,whichhasaddedtotheir rangeandhelpedtounderpinfurther
growth.Althoughthesteelandmetals marketshavebeenbuoyant,helping toliftpricing,Vulcan’sperformance hasbeenexceptional.”
ApreviouswinneroftheTop200 ChiefFinancialOfficeroftheYear award,Spark’s JolieHodson hasthis yeartakenouttheawardforChief ExecutiveOfficeroftheYear.
InhertimeatSpark,Hodsonhas played apivotalpartintransforming thecompanyfrom alegacytelcoto agrowingdigitalservicecompany. BecomingCEOin2019,sheishighly regardedinthemarketandhas stronglypositionedSparkwithina highlydisruptiveandcompetitiveenvironment,particularlyat atime whencorelandlinerevenuesaredeclining.
“Sparkhascontinuedtobe amarketleaderontheNZXwithshareholderreturnsof12percentoverthe pastyearendinginSeptember,and 17percentperyearoverthelast10 years,”saythejudges.
“Joliehas astrongviewontherole
thatdigitisationcanplayindecarbonisationandhelpingNewZealandto meetitsclimategoals,becomingthe convenoroftheCEOsteeringgroup fortheClimateLeader’sCoalitionin June2022.”
TheVisionaryLeaderawardisthe onlyonegivenwithoutfinalists.This year,theawardwenttopowerhouse siblingsinthewineindustry, Jimand RosemariDelegat.
ThejudgesrecognisetheDelegats fortheirvisionofNewZealandasan exporterofsuper-premiumwineto theworld’smostdiscerningmarkets.
Theresultis acompanythattoday sellsmorethan3.3millioncasesof wine,predominantlyoverseas. Delegatsisnow a$1billionpublic companywhich,sincelistingin2006, hasdeliveredanannualisedtotal shareholderreturnof16.5percentper annum —a remarkablesuccessstory thatisreflectiveofthevisionand leadershipJimandRosehave broughttothecompanybearingtheir familyname.
ChairpersonoftheYearwas awardedto MarkVerbiest.Verbiest, whochairsMeridianEnergyand SummersetGroupHoldings,isa highlyesteemedchairpersonthatis knowntooperatewith arespected andtrustedgovernancestyle,taking onroleswithorganisationsthatinvolveboth achallengeandwillalso make ameaningfuldifferencetothe country.
ThejudgessaythatatSummerset andMeridianEnergyheistackling someofNewZealand’sgreatest issues.Heiscommittedtoproviding qualitycareforourageingpopulation andishighlysupportiveofMeridian’s cleanenergyaspirations,whichwill significantlycontributetoNewZealand’sgoalofachievingnetzero greenhousegasemissionsby2050.
Infratil’s PhillippaHarford has beenawardedChiefFinancialOfficer oftheYear.
ThejudgessayHarfordhasbeen recognisedbymanagement,the boardandthemarketas aleading
CFOand akeyexecutivebehind Infratil’ssuccessandsuperiorreturn toshareholders.
“Shehasmadekeycontributions tothecompany’sacquisitionsand divestmentssuchasVodafone,Tilt Renewables,andLongroadenergy, allofwhichhavehelpedtodrive valueforInfratil,”theysay.“Phillippa hasalsobeenaneffectiveteamleader forthefinancefunction,andhasbeen centraltodevelopingjudgements andstrategiesoncomplexinternationaltaxandaccountingissuesand financingstructureslinkedto Infratil’sinternationalinvestment footprint.”
Fonterra tookouttheMost ImprovedPerformanceawardthis year.Thedairycooperative,owned by10,000farmers,paidcloseto$14 billiontoitsdairyfarmersuppliers thisyear.Thejudgesnotepositive improvementsacrossthebusiness drivenby arefreshed,localmanagementteam.
“Fonterrasometimesfacesvocal oppositiontotheirindustry,”the judgessay.“Buttheyhavemade movestobecomemoresustainable andhaverecentlyintroducedabovineemissionsreductionplanalong withtriallingseaweedas asupplementalfeedfordairycows,and areworkingwithGovernmenton reducingpermanentagricultural emissions.”
ScottTechnology hasbeenrecognisedwiththeBestGrowthStrategy award.Thejudgessaytheautomationandroboticscompanyhas continuedtocarveitspathglobally, nowgenerating over$220millionin revenue,comparedwith$133million in2017.“Theworldhasnowcaught upwiththecompany’sforwardthinkingandinnovativeapproach,” theysay.“ScottTechnology’stime hascomeasmorebusinessesare investingintechnologyandautomation.ItisgreattohaveScottTechnologywavingtheNewZealandflag insuch afuture-focusedindustry.”
AirNewZealand’sTribeLeadLoyalty, KateO’Brien,hasbeen awardedthetitleofYoungExecutive oftheYear.Shehasforged aremarkablepaththroughdifferentsections oftheAirNewZealandbusinessand judgessayshehastheabilityand insighttocontinuetogrowhercareer andleadershipinfluence.
“Kateimpressedwith astrong worldviewand apassionforbusiness improvement,”theysay.“As aleader, Kateissensitivetotheimpactshehas onherteam —sheunderstandsthe importanceofstayingcalmandpositivetosustainconditionsthatare conducivetoothers’success.”
Wearewellset uptocapitaliseon opportunitiesdrivenfromglobal insecurities,says Mike Horne
Theworldisopenonceagain, butnotasweknewit.
Re-connectingwithinternationalmarketsandopportunities,andre-engagingourpeople iscrucialbutevenwiththepandemic behindusforthemainpart,westill face amorecomplex,uncertainand ambiguousworld.
Technologyhascomeleapsand boundsinrecentyearsandallowed ustooperateasborderlessbusinesses.
We’vechangedthecoreofhowto dobusiness,changing business models,organisationaldesignandthe wayweattractandretainpeoplein arestrictedtalentpool.
Butnowthepulltojointogether againinpersonisstrongandprovides thechancetoenhanceandmaximise futureopportunities.
Furthertothedigitaltransformation,thepastfewyearshavealsoseen organisationsneedtore-evaluate whatmatteredtothemandassess howtheyremaincompetitive,evolve whilestilldeliveringunderlyingfundamentalreturns.
Vitaltodeliveringsuccessfulfinancialoutcomesistheneedfororganisationstoprioritisepeople,technology,andknowledge,allwhilestaying truetovalues,businessculture, diversityandinclusion,and increasinglyaroundsustainability andclimate.
Astrongsenseofpurposecoupled withthecouragetochangehas alwaysbeencentraltobusinesssuccess.Itisthosecompaniesand leaders,manyofwhomfeatureonthe 2022Top200index,whotookthe timetotakestock,resetorreaffirm theirdirectionorpurpose,andare nowseeingthebenefitsastheycontinuetodobusinessduringthis periodofglobalvolatility.
NewZealand’seconomy,while takingsomehits,remainswell positionedtoensurewe’resetupto weatherthechallengesofinflation, geopolitics,andotherinternational impacts.
Weknowtheseissueswon’timpactallbusinessequallyandit’s
thereforeimportantthatbusiness leadersfocusonwhattheycancontrolandthatthereisstillrealopportunitiestobeleveragedinanuncertaineconomicenvironment.
As acountrybuiltuponanddependentonbeingabletotradewith theworldandalwayslookingfornew markets,wearewellsetuptocapitaliseondemanddrivenfromglobal insecurities.
Weknowhowtodiversifyour exportbaseandinvestmentoptions particularlywhenitcomestofood security,sustainabilityandclimate, anddigitalenhancements.
IfNewZealandbusinessescan jumpontheseopportunitiesthennot onlyarewepositionedtosucceed throughtheadversityofcurrent economicconditions,buttoalso showcasewe’recontinuingtoleadon theworldstage.
Butevenwithopenborderswe continuetoface anumberof challenges.
NewZealand’sbusinesssentiment hasreachedlowsnotseensincethe 2009globalfinancialcrisis,andthe limitedtalentpoolandsignificant staffshortages,alongwithinflation rates,supplychainconstraints,and accesstofinancearealsotopconcerns.
Exacerbatingworriesaboutthe talentpoolisconcernaboutNew Zealand’seducationsystemandthat we’renotgettingthebasicsrightwith ourchildrenandinturnnotensuring theirfuturesuccessordevelopingthe talentweneedforAotearoainthe decadestocome.
Furthermore,wearestillrecoveringfromtheperceptionthatNew Zealandhasbeenclosedforbusiness. Butthisissomethingwhichcanbe overcomethroughmeasurestoshow weareverymuchopenfortrade, internationalstudents,investment, andskilledworkers.
Itisimportantsuchmeasures showcaseanintegratedapproach betweengovernmentandtheprivate sectortoensuretherecoveryand futureeconomicsuccessofour country.
Thebusinessesfeaturedonthe Top200indexhaveallshownthe leadership,innovationandresilience tosucceedinrecenttimes.Theyalso understandthepoweroftheeconomicheadwindsthatstilllieahead.
Congratulationstoallofour2022 winnersandfinalists,itistheoutstandingleadersandpeopleofthese organisations,andthestrategic choicesandbolddecisionsthey make,thatcontinuestopowerNZInc forward,forthewidereconomic benefitofAotearoa.
● MikeHorneisCEOofDeloitte
continuedfrom B16
Spark hastakenouttheDiversity andInclusionLeadershipawardfor itsCloakofGrowth,BeyondBinary, MahiTahiWellbeingandBlueHeart conceptsthataredrivingallformsof diversityandinclusionacrossthe company.
“Initiallyledbymanagement,the culturalframeworkisnowvery muchledbyitspeopleandhas becomepartofthecompany’sDNA,” thejudgessay,notingthattheprogrammehasachievedimpressiveresults.“Sparkhasreached aworldleadingnetpromoterscoreof84for ‘bringingyourfullselftowork’, they’vesignificantlyreducedtheir overallgenderpaygap,achievedjobto-jobpayequity,andtheirboardand widerleadershipgroupisnowmade upof47percentwomen.”
ThejudgesbelieveSpark’sbroad andhorizontallyembeddedapproachtodiversityandinclusionis market-leading —setting afantastic exampleforotherbusinessesin Aotearoa.
Forthesecondyearin arow, KMD Brands wontheSustainableBusiness
Leadershipaward,whichrecognises businessesworkingtowardthe creationoflong-termenvironmental, socialandeconomicvalue.
ThejudgescommendKMDBrands foritswell-establishedandevolving sustainabilitypoliciesandpractices thatarecentraltoitsoperationsand businessmodel.WithKathmandua certifiedB-Corp,andObozandRip Curlalsomakingstridestowards BCorpcertification,KMDBrands’approachtosustainabilityisstrong, holistic,andgenuine.
TheDeloitteTop200awards includes aspecialJudges’Award. ThisawardenablestheTop200 paneltohighlightperformancethe judgesfeelisofimportancetothe businesscommunity.
TheychoserenownedtaxspecialistandMa¯orileader SirRobMcLeod astherecipientthisyear.Hehasheld notableseniorleadershiprolesincludingCEOofErnst &Young Oceania,chairofthe2001governmenttaxreviewandeightyearsas chairoftheNewZealandBusiness RoundTable.ChairofSanford, QuaysideHoldingsandNgatiPorou HoldingCompany,anddirectorof
PortofTauranga,SirRobwas awarded aKnighthoodforhis servicestobusinessandMa¯oriin 2019.
“Throughouthisglitteringcareer, SirRobhaschampionedgender equalityandindigenousengagement,”thejudgessay.
“AretiredmemberoftheBusiness CouncilofAustralia,includingmembershipoftheIndigenousEngagementTaskforce,SirRobalsoserved ontheHuiTaumataTaskforcein 2006toincreaseMa¯oriparticipation, leadershipandgovernanceinthe workforce.SirRob’simmense contributionstodate,alongsidethose stilltocome,willcontinuetoleave alegacywellintothefutureforNew ZealandandAustralianbusinessand ourwidercommunities.”
TheDeloitteTop200Indexconsists ofNZ’slargestentitiesrankedby revenue.Theseincludepubliclylistedcompanies,largeunlistedentities,NewZealandsubsidiariesand branchesofoverseascompanies,and thecommercialoperationsofMa¯ori entities.Italsoincludesproducer
boards,co-operatives,localauthority tradingenterprisesandstate-owned enterprises.
AnoverviewoftheTop200Index aswellasNZ’sTop30financecompanieshavebeenincludedtoward thebackofthisreport —showing revenue,profitability,efficiencyand more.Thesenumbersofferaninsight intohowthebiggestcompaniesinNZ operateandareaccompaniedby explanationsandinsightfromthe Herald’steamofbusinessreporters.
Thehigh-levelviewoftheTop200 thisyearshowstotalrevenuesfor increasingby9.8percent.This comparesto a0.5percentincrease in2021.Underlyingearnings(ebitda) increased16.8percent,andtotal profitsaftertaxalsoincreased54.6 percentyear-on-year.
Year-on-yearassetgrowthforthe Top30financecompaniesmatched lastyear’sfigureof5.7percent,with cumulativeprofitsincreasingby34.0 percent.
ANZcontinuestobethelargest bankwithassetsof$185b,aheadof second-placedASBby$63b.ANZalso outpacesallotherbanksintermsof profitandequity.
FranO’SullivanONZM,Judgingpanel convenor
FranisHeadof Business(Content)for NZMEand ahighprofilebusiness columnistwitha stronginterestinNZ’s internationalbusiness success.FranwasmadeanOfficerofthe NewZealandOrderofMeritintheNew Year’shonourslistin2019forher contributiontobusinessandjournalism. ShechairstheNZUSCouncil’sAdvisory Board,is amemberoftheChinaCouncil andhoststheChinaandUSBusiness Summits.FranchairstheMetropolis bodycorporate.Sheis aFellowofthe InstituteofFinanceProfessionalsNZ (INFINZ)andhasanaward-winning trackrecordinfinancialjournalism.
Neilhasover30years’ experienceinvarious rolesinNZcapital markets.Heis ManagingDirectorof ForsythBarrLimited,a leadingNZX sharebrokingfirm, wealthmanagerand investmentbank.Neilis adirectorofThe NewZealandInitiativeandhas previouslyhadvariousgovernance rolesincludingChancellorofVictoria UniversityofWellington,ChairoftheNZ RegulatoryBoard,directorofChartered AccountantsAustraliaNewZealandand NZXLimited.Heis aFellowofthe InstituteofFinanceProfessionalsNZ. Neilwasaninauguralrecipientof aSir PeterBlakeTrustLeadershipAwardin 2005.
RossisManaging
DirectorofDirect Capital, aleading privateequityfund whichhasinvestedin 79companiesinNZ andAustraliaoverthelast27years.He hasplayed akeyroleinestablishingNZ’s privateequityindustry,foundingDirect Capitalin1994following astintas directorandshareholderoftheBKW GroupinHongKong.Rosshasbeen involvedintheprivateequityindustry acrossAsia,AustraliaandNewZealand since1987.Heis adirectorofcompanies includingBayleys,ClimateCoatings, Beca,QestralandMondiale.
HinerangiRaumatiTu’ua,MNZM Hinerangiisan experiencedgovernor with afocusonpostsettlementiwientities andMaoricommercial entities.Sheisthe chairofTainuiGroup Holdingsandtheiwiinvestment companyofNgatiMutungaandrecently retiredchairofNgaruahineiwi investmentcompany.Hinerangiison theboardofWatercareServices,Genesis Energy,theReserveBank,TaranakiIwi HoldingsandTePuiaTapapa(theMaori DirectInvestmentFund).Sheis afellow ofCharteredAccountantsAustraliaand NZand amemberoftheNZOrderof Meritandwas amemberoftheTax WorkingGroupin2018.
JonathanMason Jonathanhasover30 yearsofexperiencein financialmanagement rolesintheoil, chemicals,forest products,anddairy industrieswithan emphasisonemergingmarkets.Hewas CFOofFonterraCooperative,CFOof CabotCorporation(aBostonbased chemicalcompany),andCFOofCarter HoltHarvey.Jonathanalsoservedin seniorfinancialmanagementpositions atUS-basedInternationalPaperfrom 1990-2000.Jonathanis adirectorof largeorganisationsincludingChairof VectorandHonoraryAdjunctProfessor ofAccountingandFinanceatthe UniversityofAucklandBusinessSchool.
Judgingnote Thefinalofseveraljudgingsessionsfor the2022DeloitteTop200Awardstook placeonNovember3.Companiesand individualswerejudgedonthebasisof performancesin2022andfinancial informationavailableatthattime.Writeupsofwinnersandfinalistcompanies intoday’s DynamicBusiness reporthave beenupdatedtoincludelatestfinancial results.Severaljudgesdeclaredconflicts ofinterestandsteppedasideduringfinal judgingforparticularawards,including JonathanMason(MostImproved Performance)andSimonMoutter (DiversityandInclusionLeadership).
Astrongsenseof purposecoupled with the courageto changehasalways beencentralto businesssuccess.
VulcanSteel’sfirstcontact withthepublicmarketshas beenexceptionallygood, allowingittoboldlyenter newterritoriesandmakeinroads acrosstheTasman.
ButlikeitsnamesakeinStarTrek, Vulcanhashadtodealwithadversity,inparticularthechallenges posedbyCovidandthesupplychain issuesandsoaringinflationthatfollowed.
Strongleadership,teamworkand aneffectivegrowthstrategyhas helpedbreakthroughthosebarriers anditsperformancesincelisting madeit alogicalchoiceforthisyear’s DeloitteTop200awardforCompany oftheYear,despitestrongcompetitionfromfellowfinalistsEbosGroup andBriscoeGroup.
“It’sbeenanexcitingtime,”chief executiveandmanagingdirector RhysJonessaid,reflectingon Vulcan’sduallistingontheNZXand ASXinNovember2021.
“Goingthroughthefloattherewere massivechallengeswithCovidbut overallit’sbeen afantasticjourney forourteam.”
Vulcanis arelativenewcomerin thesteelindustry,startinglifein1995 in agarageinEastTamaki,withtwo trucksand aPortacom.
FoundedbyPeterWells,thecompanyhasgrownsignificantlyoverthe past25years,bothorganicallyand throughacquisitions,emerging asa meaningfulthirdplayerinanindustrypreviouslydominatedbySteel andTubeandFletcherBuilding.
Vulcanisnowworthmorethan$1.1 billionbasedonitsmarketcapitalisationandhasaround1500employees servingalmost12,000customers across72sitesinNewZealandand Australia.
Havingsuccessfullyintegrated threemajoracquisitionsbetween 2014and2020,Vulcanannouncedin JulythisyearthepurchaseofUllrich Aluminium,oneofAustralasia’s majoraluminiumproductdistributors.
Thebuyout,completedinAugust for$165million,addssynergiesand givesVulcantheopportunitytoexpandintothealuminiumdistribution marketwith awell-establishedplatformandscaleinbothcountries.
Vulcan’sperformancesincelisting hasexceededexpectations.
Themostrecentfinancialyearsaw revenueclimb33percentfrom $732min2021to$973m.
Earningsbeforeinterest,tax,depreciationandamortisation(ebitda) jumped68percentfrom$133mto $224mandnetprofitlept91percent from$65mto$124m.
Earningspershareof94.4cwas alsoupby91percentfrom49.3cin 2021andwas117percenthigherthan the43.5cforecastinthecompany’s IPOprospectus.
DeloittejudgeNeilPaviour-Smith saidVulcanoperatesas akeylinkin thevaluechainbetweenmetalproducersandend-users,distributing steelandaluminiumproductstoa diversifiedcustomerbaseincluding thoseinvolvedinengineering,manufacturing,fabricating,transport, miningandothersectors.
“VulcanSteelhasbeenthrivingas aprivatelyownedsteeldistribution companyforover20years, convertingto apubliclytradedcompanyinNovember2021.Thecompanyhascontinueditslongrecord ofsuperiorperformanceforshareholderswithtotalshareholder returnssincelistingat32percent.
“Althoughthesteelandmetals markethasbeenbuoyant,helpingto liftpricing,Vulcan’srecentperformancehasbeenexceptional.
“Theyare along-termNewZealand successstory,ledbyanoutstanding andcommittedleadershipteam.”
Thatleadershipisexemplifiedby RhysJones,whohas16yearsof experienceatVulcan,andanexecutiveteamhavinganaveragetenure of10years.
Jones,himself afinalistinDeloitte’s CEOoftheyearcategorythisyear, joinedVulcanin2006havingpreviouslyheldseveralmanagement positionswithinthesteelindustry, includingatFletcherEasySteelNZ, PacificSteelandWiremakers.and withCarterHoltHarveyatthetime oftheRankGrouptakeover.
Thisexperiencehashelpedhim dealwiththerecentchallenges sweepingtheglobe.
“Welookaftereveryoneinthe Vulcanteam,”Jonessaidinaninterviewwiththe Herald lastmonth.
“WithintheCovidperiodwedidn’t layanyoneoffandwemaintained everyoneonfullpay.
“As awholeteamwesaid‘rightwe aregoingtofacethischallenge together’andthathasledto awhole lotofloyalty.So,ourstaffturnover islowerthanmostcompaniesand thathasbeen amassivebenefittous.”
Highinflationis aproblemhe acknowledgedandonenoteasily solved.
“Asanindustryit’sbeenverychallenging.Thepriceofourmaterialshas goneupsignificantly.
“It’sbeen areallytoughjourneyfor ourcustomersandwearefacingthat headon.
“Mypersonalviewisthatit’sgoing tobe averydifficultperiodinthenear futurewithrisinginflation.”
Whatheandthemanagement teamhavebeendoingisgettingout ontheroad,visitingsitesandstaff.
“Wecallitourprinciplesandethos. Whatwetrytodoispaint apicture ofthenextyearto18monthssoall ouremployeesfullyunderstandwhat wearefacingandwhattheirroleis andhowas ateamwecanembrace
ourwholeteamto understandwe havetowinnew businessandfocus onbeingsmarter.
RhysJones,CEO
it.Inthecurrentsituation,weare goingtoface aproductivitychallenge wherecostsaregoingupanddemand couldpotentiallyreduce.
“So,wearepositioningourwhole teamtounderstandwehavetowin newbusinessandfocusonbeing smarter.”
Staffwellbeingishighonthe agendawithCovidaffecting alotof peoplein alotofdifferentways,he said.
“Whatwetryanddoisbuddyup withpeople,talktothemandallow peopletounderstandandtalkabout anyissuestheyhave.
“Youhavetobefarmoreflexible, allowpeopletoworkfromhomeand listenandtalkwitheveryone.It’s aboutcreatinganenvironment wherepeoplecanspeakfreely.”
Joneshasbeenassistedbyan experiencedboardnowchairedby RussellChenu,whowasthechief financialofficeratJamesHardieIndustriesfor adecadeuntil2013.
FounderWellsissteppingdown fromtheboardafter27yearsbuthas saidheintendstokeepallofhis14 percentstakeinthecompanywhen hissharescomeoutofanescrow periodnextyear.
“I’vegot110percentconfidencein themanagementandwherethecompanyisheaded,”hetoldthe Australian FinancialReview inSeptember.
WellsisVulcan’slargestshareholderthroughtheTakutaiTrust, operatedbyhimselfandwifeMary.
Thetrust,whichalsohaslargescaleinvestmentsacrossotherindustries,isinvolvedinphilanthropic ventures,includingschoolsanda SalvationArmyadventurecamp.
Itisalso abackerofWaihekeIsland
wineryPassageRock, atourismand horsetrekkingbusiness,andthe DunsterfarmintheNorthCanterbury regionofNewZealand.
Vulcan’spathto abillion-dollar companyhasbeenbuilton asuccessfulgrowthstrategyanditspublic listinghasdevelopedthatfurther.
Wellstoldthe Herald’sJamieGray inaninterviewearlierthisyearthat itwasnot a“blackorwhite”decision tolistthecompany.
“Onbalance,itwasthenextthing todo,”hesaid.
“Ithastaken alotofwork —more than Ihadanticipated Imightsay— butlike alotofthingsitpaystodo itproperly.
“Wehaveaccomplisheditand havecomeouttheotherside —so mostofthatnoisehasgonenow.”
TheIPOcomprised aA$371.6 million($386.8m)sell-downby existingshareholders.
ThesharesdebutedontheASXat $7.20 —10centsovertheirA$7.10 offerprice —beforesurgingto ahigh ofA$15.74.
Thestockhassinceeasedback closertothelistingprice,butinvestorshaveenjoyedstrongdividendsalready.
Theboarddeclared afinaldividendofNZ37.5c ashare,bringingthe totaldividend(excludingpre-listing specialdistribution)forthe2022financialyearto65cpershare.
Jonessaidthemainthinglisting hasdoneisgivethecompanygreater visibilityinthewidermarket.
Thathashelpedretaintalent,providecredibilityandattractnewopportunitiessuchastheUllrichacquisition,hesaid.
“Thefactiswewere amore crediblepartytoenterintothattransactionbecauseweare aknownpublic entity.
“AlsoweareverybiginAustralia andsoitgivesusmoreleverageto growquickeroverthere.
“Overall …[thelisting]hasbeen veryhelpfulandwearepositioning thecompanyforthenext25years soweneed awideraudienceto understandus.”
Vulcanhashadsometailwinds, despiteallthechallenges,butithas hadtotaketheopportunitiesthat havearisen.
“Firstlytherehasbeenpent-up demandsovolumesintheindustry havebeenhigher.Secondly,prices haveincreased,”heexplained.“So that’s atailwind.
“Butunderneathitallwehave beenverysuccessfulbecauseour businessmodelcarries alotofautonomywithemployees,it’s averyflat structureandverycustomer orientatedandthathasallowedusto growourmarketsharerightacross Australia.
“Weare averydiversifiedbusiness —frommininginPerthtoagriculture incentralNSWtoconstructionin NewZealand —andthatwidevariety andwideeconomiccoveragegives usanopportunitywhichwehave donewelltoexploit.”
SpeakingatVulcan’sannualshareholders’meetinginOctoberJones wasabletoreaffirmthecompany’s full-yearebitdaguidanceofNZ$215m toNZ$235m,whilenotingthatthe companyexpectedthetrickytrading conditionsexperiencedinthefirst quartertocontinueduetotheimpact ofrisinginterestratesongeneral economicactivity.
LastmonthJonestoldthe Herald thattheoutlookwasmixed.
“MysenseisthatrightacrossAustralasiawehave amixedoutlookbut agricultureandmininglookssolid. Constructionactivity,particularly residential,isgoingtoslowonboth sidesoftheTasmanand Ithinksome businessinvestmentinNewZealand willslow.
“Aussiebusinessconfidenceisbetterthough.”
Basedonthecompany’strackrecord,there’severyreasontosuggest Jonesandhisteamshouldbeable tosuccessfullynavigatetheirway throughthenext12-18months.
Finalist:EbosGroup
NZXandASX-listedEbosGrouphas been aperennialstrongperformer, oftenfeaturedbybrokersasoneto watchintheirannualstockpicking competition.
Thecompanyis aleadingAustralasianmarketer,wholesaleranddistributorofhealthcare,animalcare andpharmaceuticalproducts,today generatingmorethan$10billionin revenueannuallyandservicingthousandsofcustomers.
Thisyearthecompanyreported a21.3percentjumpinunderlyingnet profitto arecordA$228.2millionin theJuneyear,its100thyearofoperation.RevenuehitA$10.6billion— breakingthroughtheA$10bmarkfor thefirsttime.
DeloittejudgefortheCompanyof theyearcategoryNeilPaviour-Smith saidEboshashadanoutstanding long-termrecordof23percenttotal shareholderreturnsannuallyover thepast10years.
ThecompanyhasfeaturedregularlyattheDeloitteTop200awards.
“Nowintotheir100thyear,the companyreached$10billioninsales forthefirsttime,up17percentfrom theyearprior,andwereoneofonly afewlistedcompaniesreturningpositiveshareholderreturnsoverthepast 12months.
“Ebosisledbyanimpressiveand well-regardedleadershipteam [headedbyCEOJohnCullity]whohas successfullyguidedthebusiness through arecentacquisitionof LifeHealthcareinAustraliaand managedtosustainperformanceand growththroughoutCovid-19.”
Finalist:BriscoeGroup
With a150-yearhistoryinNewZealand,BriscoeGroupisknownforits twoiconicbrands:BriscoeHomeware andRebelSport.Managingdirector andmajorshareholderRodDukehas carvedout apopularnicheinNew Zealand’sretailspace.
Thecompanyrecentlypostedan interimprofitof$45.6millioninthe sixmonthstoJuly31,followingon fromitsfullyearprofitof$87.9mfor theperiodendedJanuary2022.
Thebusinessincreasedwagerates foritsin-storehourlypaidteamby 7percentfromApril.
“BriscoeGrouphasconsistently been atopperformerintheretail
sector,delivering18percenttotal shareholderreturnoverthepast10 years,”Paviour-Smithsaid.
“Ledby astrongCEORodDuke, BriscoeGroup’sstrategicfocuson people,storenetworkandsupply chainhashelpedtoeasepressures causedbystaffshortages,costincreasesandsupplychainissues.”
Forthefirsthalf,revenuefromthe Briscoeshomewarebrandincreased by2.7percentto$228.7million,while RebelSportsalesrose2.5percentto $139.2m.
“DespiteCovid-19’sheavyimpact ontheretailsector,Briscoehas managedtocontinueitsgrowthtrajectory.
“Boostedbyheightenedonline sales,itslatestsalesnumbersareup 21percentrelativetopre-Covid-19 levelsanditsnetprofitforthelatest periodis61percenthigher,”PaviourSmithsaid.
Thecompanyisforecastingfullyearprofittobeaheadofthe$87.9m itreportedlastyear.
“Asproudlong-term sponsors ofthe DeloitteTop 200Awards, NewZealandMedia& Entertainmentispassionate aboutcelebrating the success andhardworkof NewZealand businesses.We congratulateall those recognised andthank youfor your ongoing support ofourbusiness mediaplatforms, includingHeraldPremium andBusinessDesk.
NZME remains committedtodeliveringcomprehensive andtrusted business journalism to engage,informandsupportNew Zealand’sbusiness community. We look forwardto continuingto deliveronthisand workingwithyou in the future.”
From the teamat NewZealand MediaandEntertainment.
MichaelBoggs, CEO, NZME
Spark’sJolieHodsonalways hadhereyeson atopchief executiverole.
Nowshecanclaimthetitleof DeloitteTop200ChiefExecutive OfficeroftheYear.
Hodsonwasn’tshyoftalkingabout herambitionin2016whenshewon theDeloitteTop200awardforChief FinancialOfficeroftheYear.
“Itwassomethingthatreallyexcitedme,”shetoldthe Herald attheTop 200finalists’event.
“ShortlyafterwinningtheCFO award, Ihad achatwithSimon [Moutter]whowastheCEObackthen aroundthedesiretomoveinto moreoperationalroles.”
AfterthreeyearsaschiefexecutiveofSparkDigital,shewas appointedtothetopjobinAugust 2019.That,ofcourse,meantjustsix monthsinthehotseatbeforeCovid19tippedtheworldupsidedown.
Thepandemicpresentedchallengesandopportunitiesforcompanies inthetechnologyspace,shesaid.
“MostofmytimeasCEOhaseither beeninCovidorrecoveringfromit. Soifyoulookatthechallenges— whetherit’shigherinflationorthe labourskillsshortageorevenclimate change —it’sreallyallaboutthe people,”shesaid.
“They’retheoneswho’vehadto adapttodifferentwaysofworking. IfyouthinkaboutwhenNewZealand prettymuchwenthomeovernight, ourbusinesswascriticaltomaking surepeoplecoulddothat.”
Hodsontakesthebroadersocial responsibilityofleadingNewZealand’slargesttechnologycompany veryseriously.
“When Ithinkaboutthechallenges we’refacing,I’moptimisticaboutthe rolepeoplecanplaybutalsothat technologycanplayinsolvingthose challenges,”shesaid.
“We’vethought alotaroundthe convergenceoftechnology —the cloud,yourdataandAI.”
Shehighlightsnewtrendslikethe “internetofthethings”and“smart sensorsthatcanreallyknowwhat’s happening,whetherthat’swaterquality,orwhether afridgeisshut”.
“We’vethought alotabouthow thatconvergenceoftechcanhelp solveproblemsforNewZealand. Ultimatelywe’re abusinessthatisall aboutsupportingothersandenabling themtodowhattheywant.”
Spark’schallengeistomakesure itstaysrelevantastechnologyshifts andmoveswithit,shesaid.“What [drives]mefortheperiodaheadis howwehelpdosomethingbigger thanforjustourownorganisation.”
Forallthat,thepurefinancial performanceofthecompanyis somethingHodsonclearlyhasa stronghandleon.
HodsonjoinedSparkin2013from LionNathaninAustraliawhereshe spent12yearsworkingherwayup thefinanceranks.
Priortothat,shespenteightyears atDeloitteworkingasanauditor.
HerarrivalatSparkmarkedthe endof atough10-yearperiodforthe companyasittransitionedfromthe legacydaysofTelecomandshifted itsfocustobecome a21st-century communicationscompany.
Sincethenhertenurehasbeen notablefornotonlysoundfinancial performancebutherskillas atop leaderwithin alargeorganisation.
Onthefinancialfront,thehighlight ofthepastyearhasbeenthesaleof Spark’scelltowernetworkfor$900 millioncash —inwhich70percent
ofSpark’spassivenetworkwenttoa Canadianpensionfund,withSpark retaining a30percentstake.
Itconsolidatedwhatwasalready likelytobe averysolidfinancial performance.
TheTop200judgesnotedthat Sparkcontinuedtobe amarket leaderontheNZXwithshareholder returnsof12percentoverthepast yearendinginSeptember,and17per centperyearoverthelast10years.
Thatisnosmallfeatinthecontext ofthebearishlocalandglobal marketsofthepast12months.
Initsfull-yearresulttoJuly30, Sparkannounced a$350millionreturntoshareholdersviaanon-market buyback.
Itsaiditwouldinvest afurther $350millioningrowthareaslikethe InternetofThings,mobileand anew healthunit.
Sparkalsohelditsfull-yeardividendat25centspershare(forthe sixthyearin arow,inlinewith guidance),butwithanincreased profitpayoutto27cps,1caheadof whatanalystswerepicking.
Italsounveiled anewlong-term dividendpolicythatwillsee80to100 percentoffreecashflowpaidout individends.
Ebitdawas$1.15billion(atthetop endofitsforecast,asperitsmid-year update).Netprofitincreased7.6per centto$410m,withSparkcrediting gainsinmobileplus alargehealth contract.
Totalrevenueincreasedby3.5per centto$3.72billion.
Mobilerevenuewasup5.5percent to$899masSparkmadegainsintotal pre-payandpay-monthlymobile connections.
Averagemonthlyrevenueper useralsocontinuedtorise,which Hodsonputdowntoincreaseddata use.Speakingatthetime,shesaidthe focuswasnowonsmartinfrastructure.
“Thatshouldpayoffinthelong term.
“WithmanymoreNewZealanders workingfromhome,broadbandand connectivityareevenmoreimportant.
“Customersnowvaluetheir connectionsmorethanever.When thetimecomes,manywillinvestin biggerandbetterbroadbandplans.”
HodsonpointedtoNewZealand’s lowproductivitysayingthiswasthe timeforthenationtostandbackand thinkaboutmakingtheinvestment intheinfrastructureneededtosupporteconomicrecovery.
”Weneedtobethinkingabout buildingfuture-proofinfrastructure. Wedon’twanttospendbillions,then comebackin adecade’stimeandsay; ‘IwishwedidX, YandZ’.
“Wealsoneedtoinvestintheskills sothatpeoplecanoperatesafelyand moreproductivelyin amoreconnectedworld.”
Shesaidthecompanyhadseen hugebenefitsfromtheshifttomore flexiblewaysofworking.
“Wewanttobuildonthisandfind our‘newnormal’,somewhere betweenhowweusedtobeandhow weworkduringthelockdown.”
“Wewillcontinueinvestingbehind ourpeople’slearninganddevelopment,helpingthempivotto afuture ofworkwheretheyneedtobemore adaptablethaneverbefore.
“Andwewillmaintainourfocus ondiversityandinclusion —soour peoplefeeltheycanbringtheirwhole selvestowork.”
Speakingtothe Herald beforelast night’sTop200awardsceremony, Hodsondescribedherleadership
I’moptimisticabouttherolepeoplecan playbutalsothattechnologycanplayin solvingthosechallenges.JolieHodson
styleasbeingaboutempowering othersaroundhertobesuccessful.
“It’saroundbeingclearaboutwhat we’regoingafter,”shesaid.
“Theotherthingforme,thething I’mreallyproudofinthepastthree years,is ashiftto alotmorediversity andinclusion,notonlyinourbusinessbutthinkingaroundthecommunitieswesupport.
“Forallofus,equityis abigissue.”
JudgeJonathanMasonnoted Hodsonhas astrongviewontherole thatdigitisationcanplayindecarbonisationandhelpingNewZealand meetitsclimategoals,becomingthe ConvenoroftheCEOSteeringGroup fortheClimateLeader’sCoalitionin Junethisyear.
Anotherareaofpassionfor Hodsonissupportingandmentoring womeninbusiness.
Sheishighlyconsciousofbeing oneofjust ahandfuloffemalesat theCEOlevelontheNZX50.
“I’mreallypassionateaboutsupportingwomeninbusiness.I’mone ofthefoundingmembersofOnBeing Bold.”
That’sanorganisationwhichaims toinspirewomeninthecorporate worldfemalebybringingthem togetherforeventstohearfrom differentleadersandnetwork.
Sheisalsoinvolvedwith agroup focusedoninspiringYear13girls.
“Weneedtofaceintothechallenges,whetheritisCovid,climate changeorwhatarewedoingtosolve thatinequitythatexists,”Hodsonsaid.
“Butwecan’tdothatindividually. We can only do it collectively and I thinkNewZealandis aplacewhere wecandothat.”
Finalist:RhysJones,VulcanSteel Goingpublicinthepastyearhas meantmuchgreatervisibilityfor
VulcanSteelandforchiefexecutive RhysJones.
Jonesjoinedmetalproductdistributorandprocessor,VulcanSteel,in 2006.InitiallyintheroleofExecutive Directorbeforehewasappointedas ManagingDirectorandCEOin2011, Rhyshaspresidedoverseven acquisitionsandseveralgreenfield expansionsduringhistenureat Vulcan.
ThejudgesnotedJoneshadgrown thebusinessfrom$7millionebitda to$200millionandcreatedsuperior shareholdervaluethroughsolidorganicgrowthintheAustralianand NewZealandmarkets,supportedby incrementalandtargetedacquisitions.
Vulcan’sannualshareholder returnshavebeenover35percent annuallyleadinguptotheirsuccessfulIPOinNovember2021.
Jonestoldthe Herald thatoneof hisproudestachievementsinthepast
fewyearshadbeengettingthrough thepandemicwithoutlayinganybodyoffandmaintainingallstaffon fullpay.
“Wesaid,rightwe’regoingtoface thischallengetogetherandthathas ledto alotofloyalty,”hesaid As aresult,staffturnoverhadbeen lowerthanmostothercompanies andthathadbeen amassivebenefit.
Jonessaidoneofhisprioritiesas aCEOwasgettingontheroadand talkingtostaffandoutliningthe challengesfacingthecompany.
“Whatwetrytodoispaint apicture ofthenextyearto18monthssoall ouremployeesfullyunderstandwhat we’refacing,whattheirroleisand howas ateamwecanembraceit,” hesaid.
“Intermsofinflation,that’ssomethingwe’refacingasanindustry.It’s beenverychallengingandtheprice ofourmaterialshasgoneupsignificantly.
“Mypersonalviewisthatit’sgoing tobe averydifficultperiodinthenear future.”
Thekeywastorecognisethat therewas aproductivitychallenge, hesaid.
“Costsaregoingupanddemand couldpotentiallyreduce.So,we’re positioningourwholeteamtounderstandthatwe’vegottowinnew businessandreallybefocusedon workingsmarter.”
“It’saboutpainting apictureofthe futureandmakingitrealistic.”
Ultimatelyoneofthebigreasons forVulcan’ssuccesshadbeen aflat managementstructurewhichallowedplentyofautonomyforstaff, Jonessaid, Thatandbeingcustomer-focused hadenabledthecompanytogrow marketshare.
Finalist:RossTaylor—Fletcher Building RossTaylormanaged aturnaround atFletcherBuildingwhilstnavigating demandandcost-baseworriesduring Covid-19.
Hehasalsosteeredthecompany throughthesubsequentchallenges createdbyhighdemandand aproblematicsupplychain.
ThejudgesnotedTaylor’scalm andstrategicapproachhadseenFletcherBuildingachieve a42percent increaseinnetprofitinthe12months toJune,from$305millionto$432m.
Alldivisionsofthecompanywere reportingpositiveebitand asolid pipelineofcommittedworkinthe business’sendmarkets.
FletcherBuildinghadbeenona journeyforthepastfiveyears through areallyhardperiodforthe company,Taylorsaid.
“Moreenjoyably,inthelastyear, we’vehadtheluxuryofbuildingon
thatwith anumberofgrowthinitiativesandwe’vereallylookedforward withthebusinessratherthanjust dealingwiththehereandnow.”
Taylordescribedhisleadership styleasoneofconsistencyandmakingsurehisteamhadthetoolsto makegooddecisionsanddrivethe successofthebusiness.
“With alargebusinessyoucan’tdo itfromthecentre,youcannotdoit allandbethecentreofalldecisions,” hesaid.
“You’vegottogetyourteams doingthat.Itisabouttheteamaround you -whetherit’stheboardorthe executive.”
Likeallbusinesses,FletcherBuildinghadfacedCoviddisruptionsbut ultimatelythepastfewyearshad beenaboutdealingwithmorestructuralissues,Taylorsaid.
“Covidaddedcomplexitybutour challengeswereaboutgettingourrisk andpositionandbalancesheet sorted.”
Therehadbeen anumberofsafety challengesandithadbeencriticalto getontopof,hesaid.“We’vereally shiftedthedialonthat.”
Lookingaheadto apost-pandemic environment,itwasimportantto remembertherewasnosuchthing as“normalconditions.”
“Weshouldexpectmorechop, turbulenceandmoresurprises.You dohavetobe abitdynamic,fightingfitandbeabletomovequickly. Ithink wearewellpositioned.
“We’vegotourselvesin agood position,notonlytodealwithissues buttogetontheoffensiveaswell,” hesaid.
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e’reproud to elcome Natalie Steur to the partnership.
PhillippaHarfordbelievesthe keytobeing agreatchief financialofficeriskeeping youreyeonthelong-term goalswhilealsobeingmindfulofthe short-termchallenges.
It’ssomethingHarford,whoisCFO ofInfratil,hashadtokeepontopof whilethecompanyhascontinuedto investthroughtheCovidpandemic whilemanagingitsportfolioofcompanies.
“ThethingI’mproudestaboutis obviouslywehavegotquite adiverse portfolioandbusinesseswerebeing impactedbyCovidquitedifferently. Wehadfromoneendofthescale— arepeoplegoingtobeabletopay theirpowerbillstoTrustpower,and theotherendofthescale,arewe goingtohaveresidentsinourretirementvillagedying?”
AswellasbeingCFO,Harfordis ontheboardofWellingtonAirport andRetireAustralia —twoofInfratil’s investmentcompanies.
Harfordsaysshehadtobecalm andmakesurethecompanydeliveredregularandtimelyinformation toinvestors.
“Thelastcoupleofyearswehave beennavigatinghowyoukeepthe marketabreastofwhatisgoingon. Whatwefeelaretherisksandopportunitiesaswell.
“Wegotreallygoodfeedbackon thewaywecommunicatedtoallof ourstakeholdersandthatincluded theportfoliocompaniesbecause alot ofthemwouldhavebeensaying;‘Oh, wedon’tknowifwearegoingtobe abletopaydividends’ —wellokay, weprobablyneedtohave abitmore detailthanthat,acceptingthatweall don’tknowhowCovidisgoingtoplay out.”
HarfordbecamedeputyCFOin 2013andCFOin2015.
Covidhasn’tstoppedthecompany fromdoingbigdeals.
“That’sourDNAin away.Weare veryfocusedonwhatwethinkwe canachieveforInfratilshareholders andweseeopportunitiesoutthere. Wehaveprogressedwithour renewablesplatformsinbothAsia andEurope —afascinatingtimeto bedoingthatgiveneverythingthat isgoingonatthemomentwithsupply andenergysufficiency.
“That’sonethingaboutInfratil— IhavebeenworkingatMorrisonand Cofor14years —itdoesn’tstop. Ithink wehavegrownfrom amarketcap ofabout abillionto$6.4billionnow. Bydefinitionthat’s alotofactivity.”
Vodafoneisitslargest,mostrecent investmentbutit’snotthemostvaluableinvestment —that’sCanberra DataCentres.
“Weacquiredthatsixyearsago now.ButVodafonedefinitelywasthe biggestacquisitionandgoingbackto thatitwasallaboutmanagingthe financingofthatacquisition —that’s beenthelargestone.Butintermsof theportfolio,wealsohaveLongroad whichwedid acapitalraisefor.”
ShesaidCovidhadmaderaising capitaltrickier.“Wedid acapitalraise inJune2020sothatwasrightinthe midstofCovid.Wewentouttosay thisiswhatwearegoingtoraise capitalforandwewanttobasically havereservecapitalsowecandeployit.Andthat’sexactlywhatwe wentaboutanddid.Wehave agood trackrecordwiththemarket.Weare verymindfulofwhenwegotothe marketandwhatwegotothemarket for.”
Harfordsaysbeingnominatedfor thisawardismoreaboutrecognition
ofMorrison &CoandInfratilthanany gratificationforherself.
“I’mreallyproudofwhatwehave achievedandourteamanditgoes fromtoptobottom.Wehavegota boardthatchallengesandsupports managementatthesametimeand weareallinvestedingiving,trying toprovidereallygoodoutcomesfor shareholders.”
JudgeJonathanMasonsaid Harfordhadbeenaneffectiveteam
havebeenrunningatpace,operating in acrisismodeduetothepandemic and Ithinkfrommyperspective— notjustdowntomyroleasCFO— butseeingFoodstuffsas acooperativeandas ateamcome togetheranddeliverforNewZealanders —ensuringwehavegotfood onshelvesandabletolookafterNew Zealandersthroughwhathasbeena prettychallengingperiodacrossthe board.
Weareverymindfulofwhenwegotothe marketandwhatwegotothemarketfor.
leaderforthefinancefunctionand hadbeencentraltodeveloping judgementsandstrategiesoncomplexinternationaltaxandaccounting issuesandfinancingstructureslinked toInfratil’sinternationalinvestment footprint.
“Phillippahasbeencalledoutby management,theboardandthemarketas aleadingCFOand akey executivebehindInfratil’ssuccess andsuperiorreturntoshareholders. Shehasmadekeycontributionsto thecompany’sacquisitionsand divestmentssuchasVodafone,Tilt Renewables,andLongroadEnergy, allofwhichhavehelpedtodrive valueforInfratil.”
Finalist:JoAllan—Foodstuffs
NorthIsland JoAllansaysthewayFoodstuffsstaff steppeduptoensuretheco-operative couldkeepsupplyingfoodduringthe pandemicisoneofthethingssheis mostproudofaschieffinancial officer.
“Overthelastcoupleofyearswe
PhilippaHarford
“Itwas areallycooltimetofeel likewewerecontributingtosomethingthatwasreallyimportanttoour customers.That’ssomethingI’m reallyproudof.”
Allansaysthedemandwassuch thatevensheandherfinanceteam wereropedintounpackcontainers, stockshelvesandpackordersfor onlineshoppers.
Shesaysbeing agoodCFOisabout having areallystrongcustomer orientation.
“Itstartswithknowingyourcustomer,ensuringinvestmentsare basedonwhatourcustomersare wantingandthataregoingtocreate aclearoutcomeforthecustomer.It’s easywhenyouworkinfoodretail becauseweareallcustomers.”
It’salsoabouthaving agrowth mindset,Allansays.
“It’snotjustaboutthenumbers, lookingbackwardsandmakingsure thenumbersareright,buttheCFO hastohavetheabilitytostepaway fromthatandfocusonthebroader strategicissuesthatthecompany is
facingandmostimportantlytosupporttheexecutionofthecompany’s strategicobjectives —that Ithinkis critical.TheCFOhas auniqueview, abirdseyeviewoftheorganisation.”
Allanhasbeenwiththecompany since2017butbeganhercareerasan engineeratGlenbrooksteelmillbeforemovingintoanalysisandfinance rolesinthefast-movingconsumable goodssector.
“Youdon’tneedtobe aqualified accountanttobe aCFO.Comingback towhatmakes agoodCFO,yesyou havegottomakesurethenumbers arecorrectbutit’smuchmoreofa strategicrolenowthanithasbeen andso IthinkifyoulookaroundCFOs ofbigorganisationsnowtherearea lotmorepeoplewhoarefromdiverse backgroundsthanthereeverhave been.”
ThejudgessaidAllanwas awellrespectedCFOthatishighlyintelligent,competentacrossthenumbers, butwith athoroughunderstandingof keystrategicissues.
“Sheisalsoseenas agiftedteam leader,operatingwith ademanding yetcompassionateapproach.”
TheysaidAllanalsohad asignificantimpactinsteeringFoodstuffs through aparticularlychallenging regulatorylandscape,includingthe CommerceCommissionreviewofthe retailgrocerysector.
“Sheis aleadingexampleof aCFO whodeeplyunderstandsfinanceand strategyandstronglysupportsthe CEOandmanagementindrivingsignificantvalue.”
Finalist:MarcRivers—Fonterra MarcRiversisproudthatheisleaving Fonterraingoodshapeafterfive yearsofhardgrafttoturnthecompany’sfinancialsaround.
Rivers,whobeganasFonterra’s chieffinancialofficerin2018after spending12yearsatpharmaceutical companyRoche,saidsomeofthe toughestmomentswerethelosses theco-operativemade.“Iwasthefirst CFOtopost alossatFonterrainmy firstyear,then Itoppedthatoffwith havinganevenbiggerlossinthe secondyear.Thatwasdefinitelythe low.”
Buthealwayshadconfidencethat thingswouldgetbetter.“Youknow inyourdarkesthourthat’swhenthe dawniscoming.Thehighestmomentshavebeenprobablytheearnings releaseforthispastyear.Itwasgratifyingtoseethefruitsofallthatpain
andeverythingwewentthrough.”
Riverssaidoneofthethingshewill takeawayfromtheexperienceisthe importanceofbeingreallyclearon yourpurpose.
“WhydoesFonterraexist?Itisa farmer-ownedNewZealanddairycooperativeandsothebiginsightthere wasourpurposetocollecttheirmilk, processitandmakeitvaluableand bringthemoneybackhome.Once youstarttodriftawayfromthatcore purposethat’swhenyoustarttoget intotrouble.And Ithinkthatiswhat hadhappened —allwithgoodintention. Idon’tthinktherewaseverbad intention.”
Thatledtothesaleof anumber ofnon-corebusinessesitowned whilethenusingtheproceedsto improvetheco-operative’sbalance sheet.
Riverssaidanotherlessonwasthe importanceofculture.“Something [FonterraCEO]Milesreallybrought that Itriedtobringisatleasttohave anatmospherewherepeoplefeel safeandthattheycansaywhat’son theirmindbecausetherealityisthe teamhadalltheanswers,theyknew whatwasneeded.Theyjustneeded tofeelcomfortabletobeabletosay whattheythinkandthenwecould haverealconversationsandsuddenlythelightshinesandyouknow howtogo.
“Thenumbersbitiskindofthe easypart.Theseotherbitsarethereal lessons.”
Riverssaidbeing agoodCFOwas aboutsettingthetonefromthetop.
“Therealityoftheproblemsweall facenowistheyaresocomplexthat there’snoproblemthatcanbesolved byoneindividualorbyonefunction. Alltheproblemswefacearecomplex andrequirecross-functionalcollaborationtosolvethemandsoit’s allaboutteameffort.
“Ithinkthemostimportantthing financecando,theCFOtherefore,is advocateabsolutetransparency,just shine alightoneverythingandhold amirroruptoeverythingsothatwe knowwhatwearedealingwithand thenyouhavethebestchanceof beingabletosolveanissue.”
Riversdoesn’thaveanotherjobto goto,butwillchairtheauditand financecommitteeofTeWhatuOra orHealthNewZealand.
Thejudgessaidhewasregarded as ahighlypopularandrespected CFObymanyemployeeswithin Fonterraandhadhighcredibility amongtheco-operative’sfarmers.
“Marchasbeeninstrumentalinthe strategyofsellingnon-strategicand underperformingassets,andloweringleverageinthebusinessto achieve astrongbalancesheet, improvedcreditratingoutlookand financialflexibility,with arenewed focusonexcellenceinthedairymilk andingredientsbusinessesthatare mostimportanttodairyfarmer returns.Thesuccessofthisstrategy hasbeenapparentinthelastsix monthsasFonterraposted arecord milkpricealongsideimproving, strongearningsinboththe2022and present2023years.
“MarcalsohadanimpactonimprovingmoraleandrestoringconfidenceintheFonterrafinanceteam.
“Heisregardedas ahighlypopular andrespectedCFObymanyFonterra employeesandhashighcredibility amongtheco-operative’sfarmers.”
TheChiefFinancialOfficerofthe YearawardissponsoredbyTax Traders.
MarkVerbiest’srespected andtrustedgovernance style,alongwiththesuccessofthecompanieshe chairs,iswhatdistinguishedhimas theChairpersonoftheYearinthis year’sDeloitteTop200awards.
VerbiestischairofMeridianEnergyandSummersetGroupanda directorofANZBankNewZealand. HepreviouslychairedSpark, Transpower,FreightwaysandWillis BondCapitalPartners,andwasa directoroftheFinancialMarkets Authority.
“Heoperateswith arespectedand trustedgovernancestyle, ahighly collaborativeapproach,andclearly relishesthediversityofthoughtthat comesfromworkingaspartofa team,”saysDeloitteTop200judge HinerangiRaumati-Tu’ua.“ThecompaniesMarkisinvolvedinareall quitedifferent,andareallperforming well.”
Verbiestsaysheis agoodlistener andhasalwayshad averykeeneye andeartothewiderstakeholderset.
“Thatisreallyimportant,”hesays. “Iamnotonetoshutpeopledown inconversationorsteerpeopleina particulardirection.”
Thejudgesrecognisethatitspeaks tothewaysomeoneisregarded aroundtheboardtablewhenthey becomethechairofmultipleboards asVerbiesthasdone —especially sincetheworkloadof achairis multiplesofthatof adirector.
Meridian’snetprofitaftertaxrose 55percentintheyeartoJune,with thecompany reportingcustomer salesvolumesgrowingsixpercent. SummersetGroupdeliveredan underlyingprofitof$82.5millionfor thesixmonthsended30June2022, a9.2percentincreaseonthefirsthalf of2021.
Verbiestsaysitisimportanttohim thattheroleshetakesonnotonly make ameaningfuldifferencetoNew Zealand,buttheymustalsoinvolve achallenge.HepointstoSummerset Group,oneofNewZealand’sleading retirementvillageoperators,asan organisationthatfulfilsboththese requirements.
Likemanycountriesaroundthe world,NewZealandhasanageing population,anditisprojectedthatby 2034therewillbe1.2millionpeople aged65andover.Withthis,itis expectedthatdemandforagedcare serviceswillalsoincrease.
“Iamveryconsciousthatweneed facilitiesthatprovidecarenotonly forourresidents,butalsoforpeople thatcomeinfromoutside,”says Verbiest.“Thathasbecome achallengingspacegiventhedearthof people,includingagedcarenurses, thatarecurrentlyavailable.Itisa problemthatisbecomingprogressivelyworse,withtheburdenfalling moreandmoreonthepublicsector whichisalreadystretched.”
ForMeridianEnergy,Verbiestsays theboldclimatechangeandclean energyaspirationstheboardand managementteamhaveagreedis anotherbigchallengebutwillalso makeanimportantdifferencetoNew Zealand.
AspartofMeridian’srefreshed ClimateActionPlan,thecountry’s largestrenewableenergygenerator planstotakeambitiousactionon climatechangetoachieveits‘Halfby 30’target,halvingitsFY21baseline emissionsbyFY30 —includingall scope1, 2and 3categories.Meridian isalsosupportingNewZealand’s effortstoachievenetzeroemissions
forallgreenhousegasesby2050, whichVerbiestsaystheentireorganisationfromtoptobottomiscommittedto.
“Givenweproduce30percentof NewZealand’sneeds,thereis amassiveamountofcapitalinvestmentwe needtocommittoover alongperiod oftime —thesearenotshort-dated assets.”
Meridianrecentlyannounceda targetofbringingsevennewlargescalerenewablegenerationprojects intooperationaroundNewZealand inthenextsevenyears.“Wefocuson this alot,eventhoughsomeinvestors mightsaywecan’tbecertainon returnsbecausethepolicyisn’tclear atthemoment,”Verbiestsays.
successfullynavigatingtheelectricity generatorandretailerofelectricity, gas,broadbandandmobileservices throughsignificantchangerecently.
“Flackshasoverseensomeofthe mostchallengingaspectstheroleof chaircarrieswithitoverthepastfew years,whiletheorganisationcontinuestodeliverforshareholders,” saysDeloitteTop200judgeRaumatiTu’ua.
carefullymanaged.
“Havingtherightpeoplewiththe rightskillsaroundthetable,and balancingthatwithexperienceand personalitiesiseasiersaidthandone,” shesays.“Itrytocreateanenvironmentwhereeveryonefeelstheycan contribute.”
personthroughoutthepandemic.
WalshalsochairstheChapterZero NZsteeringgroup,partof aglobal networkofdirectorscommittedto takingactiononclimatechange.She is adirectorofAntarcticaNewZealandandOnBeingBold —acollaborationofbusinessleadersinspiring womenatallstagesoftheircareers.
Walshwaspreviouslychairof TVNZandPro-ChancellorofVictoria UniversityofWellingtonandwas made aDameCompanionoftheNew ZealandOrderofMeritinthe2015 Queen’sBirthdayHonoursforher contributiontosportsadministration.
DeloitteTop200judgeRaumatiTu’uasaysWalshhasanengaging andinclusivestyle,andhasdefined herselfassomeonewhoexcelsinthe role.
Walshlikestooversee a“slightly moreextrovertboard”,bymaking suredirectorsgetoutoftheboardroom.
“Idon’twanttobehiddeninthe boardroomtheentiretime,”shesays. “Itisreallyimportanttounderstand whatyourcustomers,staffandother stakeholdersaretrulyfeelingabout thebusiness.”
Thisis,inpart,whyWalsh convenedtherecentAirNewZealand businessmissiontoNewYork.
Shesaysthattrip,ledonthe groundbyDeputyPrimeMinister GrantRobertson,was achanceto remindsomeofNewZealand’stop businessleaderswhattheyhadbeen missingoutonasAirNewZealand getsbacktodoingwhatitusedtodo: “being areallyimportantpartofNZ Incthinkingandthecountry’s economicdevelopment”.
Iamnotonetoshutpeopledownin conversationorsteerpeopleina particulardirection.
“Butwearegoingtogoforit anywaybecauseitneedstohappen, andwearemakingsomeassumptionsthatthethingswecan’tcontrol willworkout.”
Finalist:PrueFlacks
PrueFlackshaschairedMercury since2019,havingbeen adirector since2010.Shewaspreviouslya directorofChorus,BNZandchairof QueenstownAirport.
TheDeloitteTop200judgesapplaudtheroleFlackshasplayed
In2020,Mercury’schiefexecutive FraserWhinerayleftafterfiveyears aschiefexecutiveand11yearsservice withthebusiness.Thejudgesnotethe transitiontoVinceHawksworth,previouslychiefexecutiveofTrustpower,isanexampleof agreatCEO transitionwhichhasgonewell.“We wereluckytogetVinceonboard,one ofthemostexperiencedchiefexecutivesintheindustry,”saysFlacks.“He has averyclearunderstandingofthe expectationsandprioritiesofthe boardand Isupporthimtodowhat thecompanyneedstodeliver.We operate averyhightrustmodel, whichhasbeenveryeffective.”
ThejudgescongratulatedFlacks foroverseeingmeaningfulacquisitions.TheNewZealandoperationsof TiltRenewableswasacquiredinlate 2021,followedbyTrustpowerthis year.ThelatterhasdoubledMercury’stotalcustomerconnections andaccelerateditsentryintothetelecommunicationsmarket.
AirNewZealandwashithardby thepandemicandhadtoreactswiftly tothecurveballsofCovidwhichsaw internationalbordersclosedand severelyrestricteddomestictravel.
MarkVerbiest
“WearenowNewZealand’sbiggest electricityretailerbycustomermarketshare —thatistheopportunity Trustpowergaveus,”Flackssays.
“Itisnotthatbeingbiggestisbest, butscaledoesmatter.Trustpower andMercuryweretwocomplementarybusinessesbutputtingthem togetherhasgivenusscaleanda goodplatformtoinvestfurther.”
Flackssaysthatthechallengefor gentailersisfulfillingthecriticalrole theyplayinthetransitionto alow carboneconomy,whilealsobeing mindfulofthecurrenteconomic climate.
Walshoversawtheairlinethrough theturmoil,including asuccessful $1.2billionequityraise,whichwillbe usedtorepayitsgovernmentloan andstrengthenitsfinancialposition forrecovery.
“ThiswasfundamentaltotheongoingabilityforAirNewZealandto operateandsupporttheeconomy— itwasmissioncritical,”shesays.
Raumati-Tu’uasaysthatalongside AirNewZealand,Walshhasalso competentlyledASBBankthrougha periodofdeepglobalanddomestic financialandeconomicuncertainty.
Shedescribestheroleofchairas providinganimportantbridge betweentheboardandmanagement andsaysthecompositionofthe boardissomethingthatmustbe
“WeneedtoensureMercuryis abletocontributetothesignificant investmentthatwillbecriticalifthe countryistoachieveits2050carbon objectives,butatthesametimewe acknowledgethatelectricityisan essentialutilityandtheelectricitybill is alargecomponentofsomehouseholdbudgets.”
ShesaysMercuryhasbeenprovidingsupporttocustomersfacingfinancialdifficulties,workingalongside Ka¯ingaOra,budgetingagenciesand communityorganisations.
“Wearetryingdifferentwaysto makesureourcustomersaren’tleft behindaswealsoinvestinthenew generationthatisrequired,”shesays.
“Itis adifficultchallenge.Wetend toattract alotofcriticismthat Idon’t thinkisalwaysdeserved.”
Finalist:DameThereseWalsh TheDeloitteTop200judgessaythat aschairofbothAirNewZealandand ASBBank,DameThereseWalshhas demonstratedhermettleas achair-
Walshsaysuncertainty,and“pickingwhatneedstobedoneandthe righttimetodothem”hasbeen somethingthatunitesherroleas chairofASBBankandAirNewZealand.
“Thebroadanddeepglobaland domesticfinancialandeconomicuncertaintymeansthatASBiscontinuingtoidentifywaystoassistand supportitscustomerstoprosperand makefinancialprogress,”shesays.
Despitehercorporatesuccesses overthepast12months,Walshsays whathasbeenmostrewarding has beentheabilitytoreconnectinpersonwiththeteamsacrosstheorganisationssheisinvolvedin.
“Ithasbeentheabilitytohave thembackintheoffice,interactwith themandhearwhathasbeenhappeningintheirlivesandhowpassionatetheyremain.Peoplehaveendured alot.Itisthosesmallermoments fromreconnectingthathavebeenthe realhighlight.”
TheChairpersonoftheYearaward issponsoredbyForsythBarr.
irRobert(Rob)McLeod,renownedtaxspecialist,governmentandiwiadviserand boarddirector, canstraddle Ma¯oriandPakehaworldswithease.
McLeod,the65-year-oldchartered accountantandtaxlawyer,was selectedbytheDeloitteTop200 awardsjudgingpanelforthisyear’s specialJudges’Award.
JudgingpanelconvenorFran O’SullivansaysSirRob’saccomplishmentsreachfarandwide,from advocatingforMa¯oriinterestsand entrepreneurshipthroughtoplaying aroleshapingpublicpolicyanddrivingoutstandingbusinessoutcomes.
“Thejudgesconsiderhisimmense contributionstodate,alongsidethose stilltocome,willcontinuetoleave alegacywellintothefutureforNew ZealandandAustralianbusinessand ourwidercommunities.”
McLeodhasbeeninthevanguard ofsignificantchange.Operatingwith theBeehive,hechairedtheGovernmentTaxReview2001 —which receivedhighpraiseinNewZealand andinternationally —andearlierwas ontheMinisterialTaskforceonTertiaryEducation,resultingintheTodd fundingreport.Herepresentedthe InstituteofCharteredAccountantson theorganisationalreviewoftheInlandRevenueDepartment,andwas amemberoftheestablishmentteam fortheMa¯oridevelopmentagency, TePuniKo¯kiri.
McLeodwasalsoontheHui TaumataTaskforcethatchampioned increasingMa¯oriworkforceparticipation,entrepreneurshipandenhancingMa¯orileadershipand governance.
Hewas acommissionerwiththe TreatyofWaitangiFisheriesCommissionchargedwithdistributing fishingassetstoMa¯ori.Anadvisorto TeRunanga oNga¯tiPorou,thesecond largestiwiinNewZealand,McLeod wastheleadnegotiatorforthesuccessful$110milliontreatyclaim whichresultedintheNga¯tiPorou ClaimsSettlementAct2012.TheEast CoastNga¯tiPorouhasmorethan 72,000memberswith58hapuand 48marae.
LawyerMatanukuMahuika,a treatysettlementnegotiatorand previouschairmanofNga¯tiPorou HoldingCo,saidMcLeodhasmade anenormouscontributiontotheiwi.
“Hewasourleadnegotiatorforthe
treatyclaimssettlementandhehas helpedsupportthetribeinother wayswithhistax,accountingand commercialexpertise.
“Hehasalwaysgivensupport whenrequestedandhehasn’tturned anythingdown,notasfaras Iknow.”
MahuikasaidMcLeodhasstayed veryloyaltohisNga¯tiPorouroots andhasgivenhistimegenerously andfreely.Hehasbroughthisvariety ofskillstobear.
McLeodiscreditedbyfriendsas having afantasticmindthatcan accommodateallmannerofcommercialissuesandotherthings.
“HehasthattraditionalMa¯orilong memory,”saysclosefriendSir RoderickDeanewhoinvitedhimto jointhethenTelecomboardwhen Deanewasexecutivechairman.
“I’veheardhimtalktoaudiences inTeReoandEnglish,andhe participatesinhui,”hesays.“Robis afinepersonwithhisstandardsand generosityofspiritandwillingnessto helpothersespeciallyiwiandcommunitygroupsandiftheycan’tafford it,hewilldoitforfree.”
Aftercompleting ajointlawand commercedegreeatOtagoUniversity,McLeodbecame apartnerofone ofthebigfourinternationalaccountancyfirmsPeatMarwick(nowKPMG) inthemid-1980sattheageof27.
Hesetuphisowntaxandbusiness advisoryfirmandthenmovedto Ernst &YoungNZaspartnerand
chairman.HechairedtheNewZealandBusinessRoundtable(nowthe NewZealandInitiative)from2002-10 whileDeanewasvice-chairman.
HeispresentlychairofSanford, Nga¯tiPorouHoldingCompany, QuaysideHoldings, ETipu ERea,and adirectorofPortofTauranga.
McLeodhasbeentheprincipaltax advisortoleadingcompaniessuchas CarterHoltHarveyandFonterra.He isalsothetrustedtaxadvisortosome ofNewZealand’swealthiestfamilies andindividuals.
Heis afrequentspeakerontax subjectsatconferencesandseminars, haslecturedpost-graduateclassesat universityandhasbeen ajointsupervisorof aPhDintaxationlaw.
Hehaswrittencountlesspaperson taxation,includingthe1998book Andersen’sIncomeTaxCompanion Deane,whohelpednominate McLeodforhisknighthoodin2019, saysfrom averymodestfamilybackgroundontheEastCape,hehas forged asuccessfulbusinesscareer.
“ThekeyfeatureenablingRobert tomake amajorcontributiontoNew Zealandhasalwaysbeenhisability tomoveeffortlesslyfromthemarae totheboardroomtotheBeehive.“He broughtthethinkingofthebusiness worldtothemaraeandthethinking ofthemaraetotheboardroom.
“Forcolleagues,clientsandMinistersacrossthepoliticalspectrum,he wasalwayssomeonetotrustand
receiveintellectuallyrigorousadvice from.Forstaff,hewas amentorand someonetoemulate.Fortheorganisationshehasworkedfor,hewas aleader.ForMa¯oridom, arolemodel,” saysDeane.
“ToalltheseendeavoursRobhas broughtanincisivemind, athirstfor workandengagingsocialskills,Spanningsuch adiverserangeofour society —fromtaxationtoeducation anddefence —whilestayingsuccessfulinthebusinessworldhasalways stretchedRobert’savailabletime.
“Hehasprovidedhistimeand energygenerously.Andhehasbeen aleadingadvocateforMa¯orisocial andeconomicdevelopment.”
McLeod,whoalsohasScottish heritage,hasalwaysbeenstrongon Ma¯orieducationwithsupportfrom stableandnurturingwha¯nau,buthe hasmellowedonsuccessorachievement.“Iusedtothinkthatthemore Ma¯origoingtouniversitythebetter. Butthere’s apartofmenowthat thinksuniversityisn’ttheholygrail,” hetoldE-Tangataonlinemagazine.
“SuccessisfortheindividualMa¯ori tohavethefreedomtochooseand theabilitytogodownthepaththey defineassuccessful.Thekeythingis weshouldfocusonhowwefacilitate thatchoice.
“Ma¯orimustlearn askillset —be itplumberorcarpenter —thattakes youofftheminimumorlowwage.”
Frompersonalexperience —he wastheyoungestoffivesiblingsand felthisbrothersandsisterswerefar brighter —McLeodsaidMa¯orihave nothadhighenoughaspirationsand confidenceintheirownability.
“It’s aself-confidenceissueand aspirationiscrucial.Andparentsplay amajorroleinthisinthesensethey havetoaffirmandencouragetheir children.”
HelatertoldRadioNewZealand themainfocusoftheMa¯orieconomy shouldbeonhumancapitaland labour —notonthegrowthofasset valuesas aresultoftreatysettlements.
“There’splentyofrawtalent amongstMa¯oriandtheycanquickly adapttonewtechnology.Oneofthe constantthemesisthat‘wecan’tstart abusinessbecauseweareblocked byaccesstocapital’.Buttheycan performservicessuchasartsand craftorget atrade.
“Servicesbusinessesdon’tneed capital —I’msureHowardMorrison didn’tneedit —andtheimportant
● ChairoftheGovernmentTax Review2001
● MemberofHuiTaumata TaskforcetoincreaseMa¯ori workforceparticipation,promote entrepreneurshipandenhance Ma¯orileadershipandgovernance
● MemberoftheCapitalMarkets Taskforcein2008
● LeadNegotiatorforTeHaeata (NgatiPorouTreatySettlement Committee)
● Memberofestablishment teamforMa¯oridevelopment agencyTePuniKokiri,and organisationalreviewofIRD, representingInstituteof CharteredAccountants
● MemberofIndependent MinisterialAdvisoryPanelforthe DefenceReview;National InfrastructureAdvisoryBoard; Ministerial(Todd)Taskforceon TertiaryEducation;Maori EconomicDevelopment MinisterialTaskforce
● PastCommissionerofthe TreatyofWaitangiFisheries Commission
● AdvisortoTeRunanga oNgati Porou
● ChairNZBusinessRoundtable 2002-2010
Awards
● 2010,inauguralwinnerofthe MaoriLawSocietyAwardforTax, BankingandFinance
● 2019,wonOutstanding ContributiontoFinance& BusinessawardattheannualNZ ChiefFinancialOfficerawards
● 2006,AucklandUniversity BusinessSchoolMaoriBusiness LeadersAwardforoutstanding leadershipandeconomicpolicy development
● 2019,KnightCompanionof TheNewZealandOrderofMerit
thingistodiversifyyourskillssothe demandforyou(humancapital)is higher,”McLeodsaid.“Skillsinarts andcraft,forinstance,arehighly marketable.”
McLeodandhiswifeJoanne,a formerBellGullytaxpartner,livein WestAucklandbuttheyspendtheir leisuretimeonthe36hafamilypropertyatKennedyBay,along agravel roadfromCoromandeltownship. Theirthreesonshavehousesthere.
McLeodis akeenfisherman,an excellentpianistand acollectorof hard-to-findmusicalrenditions.Heis fascinatedbythegenealogyofhis Nga¯tiPoroudescentandhasmore than8000entriesforhisfamily whakapapaonhispersonalcomputer,goingbackhundredsofyears.
DYNAMIC BUSINESS isoneof aseriesofsevenpremier Business Reports publishedannuallyintheNewZealandHerald.
These reports arepremier,business-to-business publicationsprovidingcriticalsector insights alongside robustinformed contentand commentaryaboutissuesthatmatter to NZbusinesses. The reports canvastheviews of CabinetMinisters,business leaders,and business organisationchiefs.
Thissitsalongside expertcommentaryfromrespectedthought-leadersthrough interviews andin-deptharticleswritten by theHeraldBusiness Reports team.
The reports aredistributedwithintheHeraldandtheeditorial content is carriedonlineat nzherald.co.nz/business.
culturewithhighengagement.
Fonterra,morethanmany,has toweatherprevailingglobal marketconditions —theoutlookfornextyearissoft —but thedairygiantisn’tworriedasit continuestorollout aresilientand sustainablegrowthstrategy.
Aspartofits2030plan,Fonterra isfocusingonthevalueofNew Zealandmilk,achievingnetzerocarbonemissionsin2050,leadingdairy innovationandscience,including newproducts,andreturningabout$1 billiontofarmershareholders.
Fonterraoperatesthreedivisions —consumer(milk),ingredientsand foodservice —anditisexpandingits creamcheeserange.Ithasdeveloped theMinIONgenomesequencingdevicewhichprovidesdairyDNAfaster andcheaper,andtheWheyProtein Concentrateusedtocreatedifferent texturesinyoghurt.
ChiefexecutiveMilesHurrellsaid “wecontinuetobelievethatNew Zealandmilkisthehighestquality andmostsought-afterintheworld. Ourmilk’scarbonfootprintisone thirdtheglobalaverageformilk productionduetoourgrass-fedfarmingmodel.
“Justover ayearagointhemidst ofCovid-19weresetoutourambitionswherewe’dstrengthenedour balancesheetandshoredupour foundations.WebelievethefundamentalsofNewZealanddairyare strong.
“Weseetotalmilksupplyhere likelytodeclineandflatatbest.This givesustheopportunitytomaximise thevalueofourmilkthroughthree strategicchoices —focusonthemilk pool,leadininnovationandscience, andleadinsustainability.
“Whileouroperatingenvironment hassignificantlychanged,wehave shiftedfromresettogrowthandwe aredeliveringforourcustomers, farmershareholdersandNewZealandas awholebydrivinggreater valueandmeetingtheincreasing demandforsustainabledairying.
“Thisistestamenttotheresilience andthefocusofourpeople. Iam reallyproudofwhatwe’vebeenable toachievetogether.”
TheDeloitteTop200Awards judgesthoughtsoaswell,naming FonterrawinneroftheMost ImprovedPerformancecategory aheadoffellowprimaryproducer andglobalexporterSilverFernFarms and70-year-oldSteel &Tube.
JudgeRossGeorgesaidas a$20b companyownedby10,000farmers, Fonterraplaysanimportantrolein theeconomy,“particularlyformany ruralcommunities”.
Fonterrapaidcloseto$14btoits dairyfarmersuppliersthisyear.The judgesnotedpositiveimprovements acrossthebusinessdrivenbya refreshed,localmanagementteam.
“Fonterrasometimesfacesvocal oppositiontotheirindustry.Butithas mademovestobecomemoresustainableandhasrecentlyintroduceda bovineemissionsreductionplan alongwithtriallingseaweedasa supplementfeedfordairycows,and workingwithGovernmentonreducingpermanentagriculturalemissions,”saidGeorge,managingdirector ofDirectCapital.
FortheyearendingJune,Fonterra deliveredrevenueof$23.4b,up11per cent,mainlyduetohigherproduct prices;earningsbeforeinterestof $991m,up 4percent;andnormalised profitof$591m,anincreaseof 1per cent.Milkcollectionwasdown 4per centto1.478bkgofmilksolids(MS).
ThebiggestmarketofAfrica, MiddleEast,Europe,NorthAsiaand Americas(AMENA)took$8.6bofthe sales,Asia-Pacific,includingNewZealandandAustralia,$7.87b,and GreaterChina$6.6b.
Theco-operativereturned$13.7b totheeconomythrough arecord farmgatepay-outof$9.30/kgMSand adividendof20c ashare —making atotalpaymentof$9.50/kgformilk supplied.Fonterra’searningsper sharewas35c,up1c,andithas estimated45-60cforthepresentfinancialyear —with afarmgatemidpointpriceof$9.25/kgMS.
Its2030forecastsareearnings beforeinterestandtaxof$1.325b, earningspershare55-65c,anddividendof30-35c ashare.
Upto2030,Fonterraisplanning toinvest$1binsustainability,$1b movingmoremilktohigher-value products,$160m ayearinresearch anddevelopment,anddistributing $1btoshareholdersafterassetsales.
Thatmaycomesoonerthanlater. LastmonthFonterraannouncedthe
constrainedregionshavereduced andarenowbelowthe2018baseline, and71percentofshareholdershave afarmenvironmentplan.
Fonterraistransitioningaway fromcoalandiscontinuingtoreduce greenhousegasemissions.
Somepeoplearestillsaying Fonterraisthewrongindustryinthe wrongcountry,withdairyoperations aroundtheworldbeingin-market andclosetotheconsumer.Ifthat’s thecase,Fonterrahasbridgedthe distancethroughsingled-mindedness,innovationandquality,andhas doneprettywell —being avery importantingredientoftheeconomy.
LeadingmeatprocessorSilverFern FarmshasmasteredtheartofadaptationinthefaceofCovidandsupply chainchallenges —theresultisa recordfinancialyear.
“We’vegotallthreepartsofthe businessactingcohesively —thesales andmarketing,operations(14plants and7000staff)and13,000farmers whosupplyus.Thishasn’treally happenedinthepast,”saidSimon Limmer,SilverFernchiefexecutive.
“Thethreepartsareworkingwell together —thecohesionandcapabilityarethekeystooursuccess.
“Wehavemanagedtofind pathwaystomarketin avolatile, disruptiveenvironmentandchangingdemandinChinaandUnited States.Wearegettinggoodmarket returns.
“Wewillkeepadaptingtowhat Covidthrowsatusintermsoflabour andsupplychainchallenges.
to$2.75billionandnetprofitroseto $103m,from$65m.Thistimearound —SilverFern’sreportingisthecalendaryear —revenueisexpectedto surgewellover$3bandprofitto double.Itisoneofthetop10companiesinthecountry.
ThejudgessaidSilverFernhasperformedreallywellinwhatcouldhave been adifficultownershipstructure —split50/50acrossitsfarmercooperativeandChinesefirmShanghai Maling.
“SilverFernhasbeenworkingon thebrandingandstrategicpositioningofitsvenison,lambandbeef productsandfocusingonitsenvironmentalpositions.Sustainabilityisbecoming acorepartofitsdecisionmakingwith acleargoaloftransitioningthecompanyto anature-positive meatbrand,”thejudgessaid.
Lately,capitalexpenditure reached$250mwithinvestmentin infrastructure(suchasautomated processinglines),farmerandmarketingrelationships,newproducts (premiumnetzerobeef, afirst,recentlylaunchedinNewYork),and digitaltechnology.
“Threeyearsagowedidn’thave anyoneinChina;nowthereare30 salesandmarketingpeopleoperating outofourShanghaioffice,”said Limmer.“It’simportanttohavedirect connectionswithcustomers —they don’twanttojusteatthemeat;they wanttoknowwhereit’sgrownand whatistheenvironmentalimpact.”
SilverFernispartof ajointventure withFonterra,Ravensdownand otherstodevelopnewtechnologyto reducemethaneemissionsandimprovefarmingpractices.
Ithasbeenmakingrewardpaymentstofarmersforoffsetting carbon ontheirfarms.“Wesetprocurement priceseverytwomonthsaheadand whenwe’vehadbettermarket returns,we’vesent asignaltoour suppliersthatwearepreparedto sharetheriskandreward,”said Limmer.
saleofitsChileanbusinessSoprole toGloriaFoodsfor$1.055b.“Weare nowattheendofthedivestment processafterdecidingnottosellour Australianbusiness,”saidHurrell.
Onthesustainabilityfront,water usebymanufacturingsitesinwater-
“Wewillcontinueourfarmerfacing,market-ledstrategy,keep investinginourbrand(grass-fedNew Zealandmeat)andgetclosertoour customersoffshore,”Limmersaid. LastyearDunedin-basedSilver Fernincreasedrevenue10percent
TheturnaroundforSteel &Tubeis completeandnowthe70-year-old companycancontinuetoconcentrateongrowthandreinforcingcustomerrelationships.
“We’vehadsomegreatfewyears drivingthetransformationofthe businesswith averygoodteamand seasoneddirectors,”saidchiefexecutiveMarkMalpass.“It’sallabout peopleandwehavebuilt astrong
“We’vestrengthenedthebalance sheet,madesomeacquisitions,introduceddigitaltechnology,madesure ouroperationsareleanandefficient, andgotunderthebonnettoclearly understandourcustomerbaseand whattheyneed,”hesaid.
AdecadeagoSteel &Tube,which listedontheNZXin1967,felloffthe radarunderAustralianownership and“becamecorporatised”.Thecompanyrackedup$140mindebtwhile newplayersenteredthemarket.
“Steel &Tubehadtodo alotof financialrestructuringandraisecapitalunderpressure,”saidMalpass. “Everyonewasoutforus,andittook ayearortwotogetupandpumping again.Overthelastthreeyearswe havebeenbuildingthecustomer valueproposition.”
SteelandTube’sreturnisimpressive.FortheyearendingJunethesteel processoranddistributorreported revenueof$599.1m,up24.6percent; operatingearnings(ebitda)66.9m,up 77.9percent;netprofit$30.2m,up 96.4percent;andearningspershare 18.3c,up96.8percent.Itsannual volumelifted5.7percentto167,000 tonnes,upfrom158,000tonnes.
Steel &Tubeis along-timeplayer andthepublicfaceinanimportant industryforNewZealand,thejudges said.Overthepast12monthsin challengingeconomiccircumstances,ithasbeenamongthehighest performingstockswith atotalshareholderreturnof48percent.
“Steel &Tube’sboardandmanagementinherited atoughsituationbut havemanagedtotransformthebusiness,andhavecommunicatedwell throughoutthatprocess.They’vealso respondedstronglytobothAustralianandimportedcompetition,managingtoholdtheirowninanincrediblycompetitiveindustry,”saidthe judges.
Steel &Tube,withstaffof850, reduceditsoperatingplantsaround thecountryfrom50to27andsaved 20percentincosts.Itinvestedinnew equipmenttoexpanditsplateprocessing,anditboughttwocompanies toincreaseitsoffering —FastenersNZ andKiwiPipeandFittings,nowcontributingtothegroup’sincreased earnings.
Steel &Tubehasprocessedcoilfor thecompositedeckflooringinthe AucklandCommercialBayshopping centre,anditsstainlesssteelcladding is afeatureofthenewChristchurch ConventionCentre.
Thecompanyhas12,000customersonitsbookandithas“built atightrelationship”withthetop800 makinguptwo-thirdsoftherevenue. “We’vedeveloped adigitalplatform sotheycanorderefficientlyand receivethe(testingandquality)certificationquickly,”saidMalpass.
“Werun awarehousesystem whereweforecastsixmonthsahead onthecustomerdemandandmake surewehavetherightproducts positionedfortheprofitmargins.”
Steel &Tubehas amarketcapitalisationof$215mandisaboutthe60th biggeststockonthesharemarket. Malpass’ambitionistoclimbabove nineor10companiesandenterthe NZXtop50.
“Thatwillgivethestockmore liquidityandanalystcoverage. Liquidityisimportantandweneed another$100minmarketcap.”
TheMostImprovedPerformance awardissponsoredbyHobson Leavy.
GrahamSkellernWeresetoutour ambitionswhere we’dstrengthened ourbalancesheet andshoredupour foundations.MilesHurrell SimonLimmer MarkMalpass
ScottTechnology,specialising inautomationandrobotic systems,maybetuckedaway inDunedinbutoverthepast fouryearsithasbecome atrueNew Zealandglobalmanufactureranddistributor.
Forsome100years,Scotthas quietlyoperatedas askilfulengineeringfirmmakingbespokedesignand buildsystems.Itbranchedoutin2018 andboughtbusinessesaroundthe worldincludingEuropeandtheUS, acquiringdifferenttechnology,skills andcapabilityalongtheway.
Scottidentifiedthreecoresectors forgrowthinproductionlinesand processes —meatandproteinprocessing,mining,andmaterialshandling andlogistics(warehousingautomation) —andestablishedahigh performance2025strategy.
Thepublic-listedcompany —it joinedtheNZXin1997 —is18months intoitsnewstrategyandhasbooked arecordpipelineof$190million worthofnewprojects —withmost oftheorderscompletedwithin ayear andreplenishedeverymonth.Scott hasnearlydoubleditsrevenueover thepastfouryearsorso.
Resetanddeliveryhasearnedthe establishedandinnovativecompany topplaceintheBestGrowthcategory oftheDeloitteTop200awards.
ChiefexecutiveJohnKippenbergersaid“thegrowthhascome fromproductswherewehave provenexperience,andinsteadof designingandbuildingfromscratch, weselltrustedtechnologytolarge marketsmultipletimesover.
“Whatwecall aproductis a$15m to$20mautomationsystem,andof coursewewillstilltailortosuitthe client’senvironment.Alllargeautomatedsystemshave ahighlevelof complexitywithx-raymachines, visiontechnologyandrobotics.And thesystemneedstodealwithso muchdataatspeed.
“Wehaveincreasedoursales effortsanddrivenefficiencyinthe manufacturingoperations —same product,sametechnology,more timesover.We’vebeenabletoexpandourEuropeanmaterialshandlingbusinessintothehigh-growth NorthAmericanmarket.”
ScotthasestablishedfullmanufacturingfacilitiesinQingdao(China), Belgium,CzechRepublic,Charlotte (UnitedStates),MelbourneandSydney(Australia),aswellasinDunedin, Christchurch,andAuckland(through Rocklabs,whichitboughtin2008for itsautomatedsamplepreparation equipmentintheminingindustry).
Ithassalesandservicingofficesin France,Germany,UK,Chile,Perth andBrisbane.
Scottoperatesinthebigleagueand hascompletedlogisticsandwarehouseautomationprojectswith McCain,Danone,PepsiCo,Cargill, Bosch,Electrolux,GEAppliancesand Pfizer;creatingtransportationfor largetyresaroundBridgestone’s plants;andautomatedminelaboratorysystemsforRioTintoandBHP. ThisyearScottsigned aUS$37m (NZ$59m)projectwithJBSFoods Canadafor afully-automatedwarehousewith10,000cartoncapacity.
There’salsoanagreementwith Caterpillar,theworld’sleadingmanufacturerofconstructionandmining equipment,todevelopanautomated connectiontosupportstationary chargingofelectrifiedmachines. ScottwillbemodifyingitsRobofuel product,whichautomatestraditional dieselrefuellingofminingvehicles.It hasdeliveredautomatedprocessing
Wehave increasedoursaleseffortsand drivenefficiency in the manufacturing operations —sameproduct,same technology,moretimesover.
(LambPrimal)systemsforNewZealand’sleadingmeatprocessorsSilver FernFarms,AllianceGroupand AnzcoFoods,aswellasThomas FoodsInternationalinAustralia.
Forthepastfinancialyearending August,Scottrecordedrevenuefrom continuingoperationsof$221.75m,up 8percent;operatingearnings(ebitda) of23.9m,up14percent;andnetprofit of$12.65m,anincreaseof50percent.
ThejudgessaidScottwas alongstandingDunedinsuccessstory,and hascontinuedtocarve apathglobally,nowgeneratingmorethan $220minrevenuecomparedwith $133min2017.
Theworldhascaughtupwiththe company’sforwardthinkingand innovativeapproach.“Scott’stime
ScottKippenberger
hascomeasmorebusinessesare investingintechnologyandautomation,orroboticsasyouand Imay knowit,”saidjudgeRossGeorge, managingdirectorofDirectCapital.
“WithimpressiveoperatorJohn Kippenbergeratthehelm,Scott created astrategyofdrivingmore revenuefromrepeatableproducts andservices.Itstwo-yearannualised totalshareholderreturnsare28per cent.”
ItwasgreattohaveScottwaving theNewZealandflaginsuch afuturefocusedindustry,Georgesaid.
SinceFreightwaysisintoexpress delivery,it’snosurpriseitdoesn’t intendtostandstill —alwayskeeping
aneyeouttogrowitsbusiness. FreightwayschiefexecutiveMark Troughearsaidthecompanyhad bought47businessesinAustraliaand NewZealandoverthepast18years. “Somemayhavebeen asingleman andtruckdoingdocumentdestructioninregionalVictoria.Wemight lookat50businesses ayearandbuy fouronaverage —anythingfrom $100,000to$200millioninrevenue.”
Listedin2003,Freightwayshas implemented a“threehorizons” growthstrategybasedonfouroperatingdivisions:Expresspackageand businessmail(NZCouriers,PostHaste andothers);temperature-controlled delivery(BigChillDistribution);informationmanagement;andwaste renewal(documentdestructionand recycling).
Freightwaysisleveragingitsassets byaddinginnovation,efficiencyand servicestowhatitalreadyhas.
“We’vetried31differentideas,”said Troughear.“Welookfornewways thataddvalue.Youtrialthem;ifthey don’twork,youshutthemdown.”
Threeoftheideasareupand runningandearninggoodrevenue. There’sKiwiExpressOversizefor packagesmorethan25kg,suchasflat packfurniture;newwarehouserackingandITsystemsforcouriersto “pickup,packanddespatch”andtake advantageofthegrowinge-commercetrade;and anewonlinetool, MyChecks,thatcompletesbackgroundchecksthroughMinistryof Justice,NZTA,ACCandotherson potentialemployees.
RecentlyFreightwaysboughtAlliedExpress,oneofAustralia’slargest independentlyownedcourierand expressfreightproviderswith450 staffand1750clients,forA$160m (NZ$172.6m).Thispresented asignificantentrypointintotheAustralianmarketforFreightways’express packagedivision.
Thecompanynowoperates asales teamof200,outoftotalstaffof6000, inNewZealandandAustralia,looking forbusinessopportunitiesandmanagingexistingcustomers.Itruns1200 couriers,200refrigeratedtrucks,250 posties(DXMail)and50document destructionandarchivevehiclesin NewZealand;and700couriers,200 wastecollectionvehiclesand80archivevansinAustralia.
InthefinancialyearendingJune, Freightwaysgrewitsrevenue9.1per centto$873.09m,operatingearnings (ebitda) 1percentto$130.2m,andnet profit4.1percentto$73.9m.
JudgeRossGeorgesaidFreightways’trackrecordofsustainedperformancecontinuedagainthisyear.
“Freightwaysredefineditsbusinessmodelseveralyearsagoand positionedthemselveswith afocus onlast-miledeliverytoourfront doors.Therecentrapidgrowthof onlinepurchaseshasrewardedthis wellthoughtoutstrategy.”
“Thecompany’slong-timefocus onsystems,innovation,efficiency andfuturescalabilityhasseenlongtermgrowthintotalshareholderreturntoanannualised14.5percent overthelast10-years,”thejudgessaid.
Finalist:Toyota Fouryearsago,ToyotaNZmadea boldstepbychangingthewayitsells itsnewvehicles,andintroducedthe DriveHappyProject.
Themoveworkedwonders.
Toyota,oneofthetopthreetrusted consumerbrandsinNewZealandfor sometime,changedtoanagency modelwiththesametransparent, haggle-freepricing —considerably lowerthanpreviousrecommended retailprices.
BasedinPalmerstonNorth,Toyota invested$40minitsnetworkof67 stores,includingintegratedmanagementsystems(there’sevenanonline carebuilder),andsalespeoplewere re-trainedasvehicleconsultants,productexpertsandstoreconcierges.
Itwas anewwayofdoingbusiness withprivate,business,fleetandlease customers.
Thedriveawaypriceincludeddeliverycosts,numberplates,registration, afulltankoffuel,floormats, 1000kmofroaduserchargeson dieselvehiclesand aseven-day moneybackpolicy,ifrequired.
EverynewToyotacamewithfive yearswarranty,warrantoffitness coverage,roadsideassistance,and cappedpriceservicing.
Customershavemoreoptionsto gettheexactmodelinthecolourthey wantfrom apoolofvehiclesheldin Auckland,WellingtonandChristchurch.
“We’vebeenonthejourneyforfive yearsandifyoutake ahardlookback throughthelensofthecustomer,the carbuyingexperiencewasawful,” saidToyotaNZchiefexecutiveNeeraj Lala.
“Wewantedthecustomertofeel comfortableandrespectedinour storesandnotfeel‘cheated’inthe negotiatingprocess.
“Theissuewasthatourbiggest competitorswereotherToyota dealers,”hesaid.“Itwas alotteryon whatyoupaidfor acarandwecan’t havethatlevelofconfusion.”
Lalaisdelightedtoreportthat50 percentofcustomershavepaidfor thefirstthreeyearsofservicingup frontand91percentofthemhave stucktothescheduleforthefirst service.
Thecustomersarealsobetter servedwithToyotabasedinPalmerstonNorthasitistheonlycitywith a24-hourairportandpartscanbe deliveredanywhereovernight.
DuringtheheightoftheCovid pandemic,Toyotalost30percentof itsnewcarand35percentofitsused carbusiness.Thecompanyisnow dealingwithlargeback-ordersanda waitinglistofuptosixmonths.
“We’vehad18consecutivemonths wherewehavetakenmoreorders thandeliveredvehicles.It’sanincrediblepositiontobein —ourbusiness wasnotdesignedforthatlevelof (supplychain)disruption,”Lalasaid. Fortypercentofthesalesarehybrid vehicles.
“Let’sbehonest,”saidjudgeRoss George,“we’veallowned aToyotaat somestage.”
ToyotaNZhasmorethandoubled itsprofit,increasingto$81mfrom $37min2021,andrevenueroseby awhopping$172moverthepastyear.
ToyotawithstoodCovidborder closures,increaseddemandfor vehiclesand adifficultsupplychain, thejudgessaid.Thecompany’s innovativeagencybusinessmodel NewZealandpaidoffhandsomely.
“Toyotahas astrongfocusonsustainablebusinesspractices,dominatingthetaxiandfleetmarketbecause there’s alowertotalcostofownership,andmaking ameaningfulimpactonpassengerdecarbonisation(it has ascience-basedgoalofreducing tailpipeemissions46percentbynext year).
“Thisyear,ithasalsopartnered witheightNewZealandbusinesses trialling acarsharingfleetofhydrogenToyotavehicles,”thejudgessaid.
TheBestGrowthStrategyawardis sponsoredby2Degrees.
MarkTroughear NeerajLalaAirNewZealandwasina periodoftransitioninearly 2020whenKateO’Brien tookchargeofitsAirpoints loyaltyprogramme.
Thecompanyidentified“lifting loyalty”as akeytovaluecreationin itsKiaMaustrategy.Shewasgiven thegoaloftransformingtheprogrammefromitstraditionalroleinto aprofitablehighgrowthbusinessthat resonateswithcustomers.
Thismeantdeveloping afive-year strategyalongwith aroadmapfor deliveringandimprovingfinancial performancebysettingupAirpoints as astandaloneprofitcentrewithin thewiderbusiness.Doingthisgave AirNewZealandfreshinsightintothe valueofitsloyaltyprogrammeand abetterunderstandingofhowto improveperformance.
Herteamsoughtoutnewsources ofgrowth,developed anewwhite labelcreditcard,expandedthe AirpointsStoreandrecruitednew partners.
“It’sallaboutexpandingandgrowingtheAirpointsprogrammetomake iteasierformemberstoearnpoints andeasiertospendthepoints”,says O’Brien.
Amongotherinitiatives,herteam introducedFlexipay,whichallows customerstopaywith acombination ofpointsandcash.SheaddedprestigiousnewbrandslikeAppleand Samsung.Duringthepasttwoyears therangeofproductsinthestore increasedfrom3000to10,000.
Allthistookplaceastheeffectsof theCovidpandemichitAirNew Zealandhard.Theairlinecutcapacity,suspendedroutesandcutcosts inanefforttoemergefromthecrisis inthebestpossibleshape.
O’Briensaysthiswas atoughtime atAirNewZealand:“I’mproudofhow wemanagedit.Wepivotedquickly toensuretheprogrammeremained relevantformembersbyfocusingon expandingthenon-airelementsof theprogramme.Wehadtomake somedifficultdecisionsintermsof cuttingcostsandlettingstaffgo,of course,thatwasheart-breakingto do.”
AnotherinitiativeO’Brienworks oninvolvesreplacingthetechnology usedtoruntheloyaltyprogramme. Itmeansmovingto acloud-based, software-as-a-serviceproduct.Itisa significant,$30million-plusinvestmentandthelargestdigitaltransformationtheloyaltybusinesshad everundergone.“Itwillgiveusmuch moreagilityandimprovethecustomerexperience.”
O’BrienhasbeenwithAirNew Zealandfornineyears.Shegrewup inAucklandandstudiedmechanical engineeringatAucklandUniversity beforerealisingthatwasn’ttheright careerpathforher.Despitelovingthe mathsandphysicsaspectsofthe disciplineshegravitatedtowardsthe businessside.
ShemovedtoAustraliawhereshe workedinmanagementconsulting beforeworkingforQantasasstrategy managerthenreturningtoAuckland in asimilarroleforAirNewZealand.
Intheircomments,thejudgesfor theYoungExecutiveoftheYear awardsaidO’Brienimpressedthem withher“strongandclearlyarticulatedworld-viewandherpassionfor businessimprovement.
“Shehasalreadyforged aremarkablepaththroughdifferentsections oftheAirNewZealandbusinessand hastheabilityandinsighttogrowher careerandleadershipfurther.”
Finalist:NickFlack—Christchurch Airport NickFlackgrewupin asmallrural communityinSouthland.
HestudiedeconomicsandaccountingatOtagoUniversitybefore embarkingon acareeratportsand airportsaroundNewZealand.
HesayshemovedtoChristchurch immediatelyaftertheearthquakes becausehewantedtobeinvolvedin rebuildingthelarge-scaleinfrastructureinthatcity.
Hisfirstjobinthecitywasatthe LyttletonPortCompany.Flacksays beingpartoftheearlyrebuildwasan incredibleexperience.After acouple
ofyearsanopportunityopenedat ChristchurchAirport.Hehasworked thereeversince.
“Istartedasaninfrastructureplanner,thenmovedinto aplanning managerrolelookingaftertheinfrastructure”,hesays.
It’s alargejob,theairportisona 1000-hectaresiteanditownsallthe roadsandwatersystems.
Fromtherehetookon arole managingalltheassetsincluding terminals,runwaysandcampus propertyaswellastheinfrastructure.
Inthatrolehewaspartof aproject tochangethecultureofassetmanagementintheorganisationbymovingfromwheretheairport’sstaff lookedaftereverythingtoan outsourcedmodel.
“Iliketoseeitas amodelwhere wedothethinking,theydothedoing. It’sdriving aculturewhereweare moremindfulaboutourassets,tobe moreplannedandtobemorestrategicwiththemoneywespend.
Today,astheairport’sGeneral Manager —PlanningandSustainability,Flackhasaddedresponsibility forsustainabilityandplanningtohis assetmanagementrole.
Overthepasttwoyearsthishas growntoincludeKowhaiPark, a400 hectarerenewableenergydevelopment;anenergytransitionrole,the jobofcreatingpartnershipsaround theworldandtoworkonsustainable aviation.
Hislong-termgoalistopreparethe wayfordecarbonisedairtransport andtoprovetheconceptforothers aroundtheworldtofollow.
Aspartofthis,Flackhasformed relationshipswithelectricandhydro-
gen-basedaircraftmanufacturers.
Intheirnotes,thejudgessay:“Nick clearlyarticulatesthechallengesand potentialsolutionsaroundclimate changeandsustainabilitythatwill makehimanassettohiscompany andthewiderindustryintheyears ahead.
“Hehascoachedandmentored otherairlinesonreducingScope1 emissionsandleadsChristchurch Airport’srenewabletransition.
“Nickisskilled,organisedanddetermined.Hehas astrongorientation tosucceedathischallengesand breadthofviewtoapplythese strengthsacross arangeofrolesand sectors.Itishardtoimaginehimnot attaininghisgoals.”
Finalist:VictoriaLam—Fonterra NowbasedinSingapore,VictoriaLam managestheglobalmarketingteam forFonterra’sActiveLivingbusiness units.Herroleincludedestablishing Nutianias anewglobalbrandforthe business.
ActiveLiving’sfocusisonhealth andwellnessproductsthatthecompanysellsbothtoconsumerslooking forhealthbenefitsandtomedical patientswhomighthaveveryspecificandhighnutritionalneeds.
Whilemanyexecutiveshave learnedtomanageremotestaff,Lim’s roletakesthisto anewlevel.She manages adiverseteamacrossNew Zealand,Singapore,China,Amsterdam,FranceandtheUS.
Itisimpossibletogathereveryone togetherforanall-handsmeeting,so meetingsrotatethroughtimezones with amemberdroppingoutand catchinguplaterwith arecording.
Shehaslearntimportantskills throughmanagingthisway:“The skills IamdevelopinginremotegloballeadershipwilldefinefuturebusinessleadersandbecriticaltoNew Zealand’ssuccessinanincreasingly globalisedenvironment.”
There’s arolefortechnologyin this.“Wehave alotofvirtual environmentswherewe’recoplanningtogetherasifin aroom,or weareeditingdocumentsforcommunicationsandmedialive,”says Lim.
“Butwehavepeoplefromall acrossthetimezonesworkingonit.”
It’shardwork,butshesaysthe diversityintheteam“enrichesour abilitytocross-checkandmakesure thingsarereallyrobust”.
Puttingtogetherthisteamina pandemicwas achallenge.Shesays shehadtorecruit,interviewand onboardteammembersvirtually.“I actuallyhaven’tmetallofmyteam, whichis astrangesituationtobein aftertwoyears.And alotofmyteam membershavenotmeteachother.”
WhenLimsteppedintoherrolein 2020,thetimelinesfortheNutiani productlaunchhadalreadybeen established.Theoriginalplanwas goingtodrive alotofproteiningredientpromotion,asthiswasevolving shesawanopportunitytotackle immunityneeds.Shesaysitwas somethingpeoplewereinterestedin, especiallywithCovidinthebackground.Sotheteampivoted,droppingtheproteiningredientpromotionandswitchingtoimmunity.
Lim’sdetailedunderstandingof thetechnicalandscientificrequirementsforthedevelopmentofnew productsimpressedtheawardjudges whoalsowarmedtoherenthusiasm forpromotingNewZealandfood technologytotheworld.
This,theynoted,“willmakehera highlyvaluablebusinessleaderasher careerprogresses.”
TheYoungExecutiveoftheYear awardissponsoredbyMeredith Connell(MC).
I’mproudofhow wemanagedit.We pivotedquicklyto ensurethe programme remainedrelevant formembers.
KateO’BrienNickFlack VictoriaLam
Forthesecondyearin arow, KMDBrandshasbeenacknowledgedforitsrelentless focusonsustainability,taking outtheDeloitteTop200Sustainable BusinessLeadershipaward.
Theglobaloutdoor,lifestyleand sportscompany,formallyknownas KathmanduHoldings,istheparent companytothreeiconicbrands— Kathmandu,ObozandRipCurl.
KathmandugainedB-Corpcertificationin2019,becomingthelargest Australasianretailertobecertified throughthestringentprocesswhich recognisesthehigheststandardsof environmentalandsocialperformance.Thecompanycontinuesto pushforsustainablepracticeswith bothsurfwearbrandRipCurland hikingfootwearbrandObozalso workingtowardgainingB-CorpcertificationinFY23.
KMDBrands’consistencyand leadershipinputtingsustainabilityat theheartofitsstrategy,alongwith itsstrongtargetsandtransparent approachwaswhytheDeloitteTop 200judgesawardeditinthiscategoryagain —a companytheysay othersshouldcomparethemselvesto aspartoftheirownsustainability journey.
“KathmanduhassignificantlyinfluencedObozandRipcurlandthe threebrandscombinedaremaking realevolutionarystrides,”saysTop 200judgeHinerangiRaumati-Tu’ua. “KMDBrands’focusonsustainability isbroaderthanjustthemselves— theyalsoworkcloselywiththeir suppliers.ItisclearthatKMDBrands isfocusedonbeing agloballeader inenvironmental,socialandgovernance(ESG).”
ChiefLegalandESGofficeratKMD Brands,FrancesBlundell,saysthat loveofandconnectiontotheoutdoorsis afoundationforallthe company’sbrands.“Wearevery awareofourresponsibilitytoprotect andpreservethenaturalenvironmentandthecommunitiesaroundit —otherwisetherewon’tbeanywhere leftforourcustomersandourproductstogetoutthereandenjoy.”
Thejudgeswereimpressedwith KMDBrands’actiontowardsits science-basedtargetstoreduce emissionsinlinewiththeParisClimateAgreement goals.Itaimstoreduce absoluteScope 1and 2emissionsby aminimumof47percentby2030 from aFY19baseyear,andabsolute Scope 3emissionsby aminimumof 28percent.
Lastyear,KMDBrandssecured whatwasthenNewZealand’slargest sustainability-linkedloan.TheA$100 millionloanistiedtoESGtargets.In thefirstyear,itsemissionsreduction targetwasachievedforKathmandu, triggering adiscountedinterestrate.
KMDBrands’transitionto acircularbusiness modelwillseeiteliminatewhatitcalls a“take-make-waste” approachtobusiness.Theconcept nowforms acorebaseforitswork, includingboostingtheresponsible materialcontentinitsproductsfrom materialsthatareregenerative,recycledorrecyclable,bio-based,biodegradable,responsiblyfarmedor grown.
Blundellsaysthestartingpointfor circularityisdurabilityandmaking productsthatlastmanyyearsand canbeusedfor alongtime.
“Wewanttoavoidresourcesbecomingwasteandendingupin landfill,”shesays.“Thisis ahuge industry-wideissue.Eachofour brandsaresettingtheirownspecific goals,includingusingmaterialsthat canberegenerated,thatcomefrom recycledsourcesorcanberecycled.”
Aspartofthiscommitmentto circularthinking,KMDBrandsis workingonrepurposingand recyclingitsownwasteproducts. TakingneopreneoffcutsfromRip Curl’sfactoryandrecyclingtheminto carpetunderlayhasdiverted133 tonnesofneoprene fromlandfillin thepastyear.
RipCurlalsointroduced aworldfirstwetsuittake-backprogramme acrossAustralia.Itacceptswetsuits fromanybrandandrepurposesthem intosoft-fallmattingforplaygrounds andoutdoorgyms.Theprogramme isnowbeingexpandedintotheUS, France,SpainandPortugal.
Toensurerecognitionoftheinterdependencebetweenpeopleand planetisembeddedintothemindset andexpectationsofemployees,KMD Brandshasamendeditsgroupcode ofethics.ESGresponsibilitieshave beenaddedtojobdescriptionsforall KMDBrandsemployees,andESGrelatedobjectivesarenowpartofits employeegoalsettingandperformancereviewprocess.“Theteamis engagedwithoursustainability valuesandmotivatedbythe conversationshappeninginthebusinesstoembedESGwithindecisionmaking,”Blundellsays.
“Mostpeoplenowknowthatthey have aresponsibility,andtheywant tocontribute.Beingpartofsomething biggerthanyourselfis areally empoweringfeeling.”
Finalist:MeridianEnergy
NewZealand’slargestrenewablegenerator,MeridianEnergy,generatesits electricityfrom100percentrenewablesources —wind,hydroandsolar.
Top200judgeHinerangiRaumatiTu’uanotesMeridianhasdonea significantresetonitssustainability strategythathasdrivenambitious targetsandmeaningfulactionsthat areshiftingthedial.
“Itisgoodtoseethemembracing theirroleinNewZealand’slowcarbontransitionoverandabove‘businessasusual’andcommittingcapital in awaythatisfocusedondelivering atpacegiventheurgencyofclimate change,”shesays.
AspartofitsrefreshedClimate ActionPlan,Meridianplanstotake
ambitiousactiontoachieveits“Half by30”target,reducingitsgrossoperationalemissionsbyFY30froma FY21baseline —includingallscope1, 2and 3categories.
Meridianhasrecentlywidenedits focusfromcleanenergytobringa lenson“afairerandhealthierworld”, whichisdriving amoreholisticapproachtoitssustainabilityefforts.
Beingpartof somethingbigger thanyourselfisa reallyempowering feeling.
FrancesBlundell,ChiefLegalandESG officer,KMDBrands.
Thisincludestheadoptionofthe updatedGRI(GlobalReportingInitiative)standardsthatmoveawayfrom evaluatingmaterialitybasedon issuesthatimmediatelyinfluence stakeholderdecision-makingto actualandpotentialpositiveand negativeimpactsontheenvironment,economyandpeople —includinghumanrights.
HeadofcorporateaffairsandsustainabilityClaireShawsaysthisispart ofthecompany’seffortstofutureproofitsapproachtosustainability.
“Wehavetoactwithintegrity— whichmeansdoingallthebigthings reallywell,butalsothinkingaboutthe impactsonothers,”shesays.
“Youmakedifferentdecisions whenyouputpeopleattheheartof thetransition.Thisispushingusto thinkmorebroadlyaboutESGbeyonddeliveringondecarbonisation.”
Since2019,Meridianhasachieved netzerocarbonacrosstheoperations ofitsbusiness.Whereitcan’tcur-
rentlyreduceitsoperational emissions,Meridianhaspurchased andsurrenderedgoldstandard,verifiedemissionreductions.
Meridian’sForeverForestsprogrammewillseeitdisplacethisby creatingitsowncarbonsink, investinginpermanentforestsin NewZealandandtransitioningthem tobe100percentnativeovertime.
ThejudgeswereparticularlyimpressedwithhowMeridianisleaning intoitsroletosupportNewZealand’s netzeroby2050targetsanditstransitionto amoresustainable,low-emissionseconomy.
Meridiancontinuestodevelopits renewableenergydevelopmentpipelinetogrowgenerationcapacity, whichwillhelptheGovernmentmeet itstargetof50percentoftotalfinal energyconsumptiontocomefrom renewablesourcesby2035.
Meridiancontinuestoworkwith customerstoaccelerateelectrificationofindustrialheatawayfrom coalandoftransportation,andis exploringtheeconomic,environmentalandenergysecurityopportunitiesofgreenhydrogenproduction.
ShawsaysthatMeridian’ssizeand scalemeansitthinkscarefullyabout theimpactofthesystemsthatit operatesinasitgrowsrenewable energyforthecountry.
“Wecontinuetorespectourrole askaitiakioftheassetsweareresponsibleforandwechallengeourselves tocreatelongtermpositiveimpact forNewZealandas awhole.Ifwedo itwell,we’llunlock afuturethat’s goodfortangatawhenua,goodfor ourcustomers,goodforcommunities andourshareholders.”
bilityandsustainabilitytobeinextricablylinkedtothewayitdoesbusiness.
Thehealthequipmentmanufacturer,designerandmarketerhasa strongfocusontheenvironment, responsiblesourcingandefficientuse ofmaterials,wastereduction,and modernslavery,andhasarticulated itsintentionsintheseareasin anew environmentalandsocialresponsibilitypolicy.
“WehavealwayshadwastereductionoptimisationinourDNA,” saysJontiRhodes,vicepresident— supplychain,facilitiessustainability.
“Butmorerecentlywemadea strongcommitmenttoleaving apositivelastingimpactonsocietyandthe environment.Notonlythroughthe productsweprovide,butalsothe environment,thecommunity,and ourcarbonfootprint.”
FPHrecentlyformed agovernance groupwithrepresentativesfrom acrossthebusinesstoprovidelongtermstrategicdirectiononhowthe businesswillcontinuetomakeprogressinthemostmaterialareas.
TheTop200judgesnotethatthere isrealevidenceofthecompany’s sustainabilitycommitmentsanda clearintentiontoembedtheminto thenatureofthebusiness.
Theywereparticularlyimpressed withthesustainabilityandsocialresponsibilitycoverageinFPH’sannual report,andthebalancedreporting thatdiscussesthetrade-offsbetween doingwhatisrightforthepatientand themanychallengestotheenvironmentthisbrings.
“FisherandPaykelHealthcarehas undergone asignificantrampupin sustainabilityinitiativesinthelast fewyearswithkeyeffortsonengagingwithpeopleacrossthebusiness andmakingrealchange,”saysTop 200judgeRaumati-Tu’ua.
“Thereis arealfocusonkey initiativesthatcanaffectwiderindustryandnotjustitsownoperations, includingeco-design,sustainable packaging,bio-basedandcircularmaterials,andenvironmentallifecycle assessment.”
DuringtheCovid-19pandemic,demandforsomeofFPH’skeyproducts increasedbyfourtofivetimes.This necessitatedtheneedtowork24/7, resultinginhigherelectricityuseand otherdirectemissionsduringthe 2021financialyear.
Butinthelong-termasCovid-19 diminishes,FPHiscommittedtodecouplingcarbonemissionsfromproductionlevels.Ithasbeenpilotingan internalcarbonpriceduringFY22to factorcarbonimpactintoitsbusiness decisions.
FPHhasbeenmeasuringitscarbon footprintsince2012,andsince2019 hassetambitiousscience-basedtargetsforScope 1and 2carbonemissions,alongwith aScope 3supplier engagementtarget.
Itwilllaunch anewsustainable procurementframeworktosuppliers inFY23andFY24,selectingandcollaboratingwiththosethatalignwith itsvalues,whilealsoprovidingeducationandsupportonrelevantstandards.
“As alargecompany,wehave someresourcesthatothersdon’t,” saysRhodes.“Youcan’tjustexpel thosecompaniesthataren’tmeeting yourstandard —weareengagingthe supplynetworkandbringingthemup tospeedwithwhatisneeded.”
ThejudgesalsocommendFPH’s effortstonurture apositiveandinclusiveculturebasedontrustand respect.
Aspartofthis,ithasestablished employeegroupsformedaround sharedidentitiesandexperiences andthejudgesrecognisetheimprovementinthecompany’sdiversityandinclusionstatisticsoverthe lastyear.
TheSustainableBusiness Leadershipawardissponsoredby TheAotearoaCircle.
Sparkwonthe2022Deloitte Top200DiversityandInclusionLeadershipAwardon thebackofitsbroadstrategic approachembeddingchangeinthe businessratherthan aspecificprogramme.
TheawardjudgessaidSparkdemonstrates“realleadershipinNew Zealandwithitscomprehensiveand highlyembedded,employee-ledapproachacrossthefullspectrumof diversityandinclusion”.
Theysaytheoutcomesofthisare “impressive”todateandthereis“a sophisticateddata-drivenstrategyfor furtherenhancementofoutcomesin theyearsahead.”
HeatherPolglase,Spark’sdirector ofpeople,cultureandwaysofworking,saysthecompanysetoffonits currentpathaboutsixyearsago,with anorganic,bottom-upapproachto diversitywheretheorganisationalloweditspeopletodecideanddefine what acommitmenttoinclusion mightlooklike.
Thisgrassrootsactivityledtothe startofSpark’sBlueHeartprogramme whichfocusedoncelebratingcultural differences.Thousandsofpeople made aBlueHeartPledge, apersonal commitmenttodiversityandinclusion.Thatprogrammestillruns today.
In2019therewas astocktake.“We didthemeerkatthingwithoureyes upandout,lookingatwhatwas happeningthenandwhatmight eventuate acoupleofyearson,” explainedPolglase.“Welookedat whatwasworkingwellfromtheBlue Heartmovement.ThoseBlueHeart valuesandbehaviourswereintegratedintothingslikeourremunerationandperformanceframework.
“Wefeltwehaddone agoodjob, butwestillhadbigambitions.
“Womenandleadershipwas abig focus.Anotherwasunderstanding moreabouttheethnicityandcultural intelligencethatexistedinourbusinessandhowthatmightlookinterms oftalentinthefuturefrom abroader NewZealandsense.
“Weaskedourselvesdidwereally reflectthecommunitieswhichwe
participateinandifwewerecreating asustainablefutureforallthesedifferentgroups.”
Atthispoint,Spark’sleadership teamrealiseditneededtocomplementthebottom-upapproach.
Polglasesaysthatintheareaofits gendergoalsithaddonewellwhen itcametothegendersplitamong seniorteammembersandthecompany’sboardbutneededtodomore furtherdownintheorganisation. Thatmeantworkingtoeducate, upskillandsetsomestandards.“Withoutthesegoalsandprovidingthis datatoourleaders,theyareprobably fumblingaroundinthedark.So,at thispointitbecame adataandinsight game.”
Spark’sambitionwas a40:40:20 genderbalanceacrossthebusiness. Thatmeans40percentmen,40per centwomenand20percentofany gender —Polglasesaysthiscanincludenon-binarypeople.
Atthesametime,itaimstoreduce themediangendergapto18percent by2025.Itwas28percentwhenthe goalwassetin2019.
Polglasesaysthecompanytracks progressonthesemeasuresona quarterlybasis.Shesayssettlingon specificgoalswas apivotalmoment.
It’s astructured,data-ledapproach toembeddingdiversityandinclusion acrossthebusiness.Givingleaders datahelpsthemmakebetterdecisions.Theyhavetargets.Eachdepartmentnowhasanactionplantomeet itsrepresentationgoals.Atthesame time,thecompanyprovidesspecialistsupporttohelpleaders,andthere arepracticaltoolsandtrainingtogive themtheskillstomakethiswork.
Sparkishard-headedaboutdiversityandinclusion.It’stherightthing todobutit’salsosmartbusiness.
Polglasesays“youneedtoshow acrediblereturnontheinvestment. Itdoesn’thavetoshowupas adollar line,butleadersneedtoshowthe outcomeofmakingthatmoveis generatinggoodnessforpeople,the company,customersandthe country.”
Aboveall,itisnowanintegralpart ofSpark’sbusinessDNA.
“We’vetakendiversity,equityand inclusionfrombeing averticalwork stream,”saidPolglase.“Whichiswhat youhavetodowhenyou’resetting itupbecauseyouneed aplacefor ittocomehometo.Youneedtoknow you’vegotsomeoneenergisedand focusedonit.Thenextphaseisactuallytoweaveitas ahorizontalinto howweworkandhowweshowup.”
Finalist:LionNewZealand LionestablisheditsGenderBalanced Teamsinitiativethreeyearsago.
Thecompanywasclosetogenderparityacrosstheentireworkforce andhadmadeprogresswithbalancingitsleadership,butforwomento thriveandforthebusinesstogetthe fullbenefitsofinclusionitneededto gofurtherandfocusonfemaleinclusionattheteamlevel.Inpractice, theinitiativemeansthatanywork teaminthebusinesswithfiveormore peoplewillinclude aminimumof40 percentrepresentationforboth womenandmenby2030.
JacquieShuker,Lion’schangeand culturedirector,saysthejourney towardsthisinitiativestartedmore than adecadeagoasthewider communitybecamemoreinclusive. “Welookedatourcustomerbaseand weknewthatthebestwaytoserve themwouldbeifourteammembers reflectedthat.”
Todaythecompany’ssenior
Weasked ourselves didwereallyreflect thecommunities whichwe participateinandif wewerecreatinga sustainablefuture forallthese differentgroups.
HeatherPolglase,Directorofpeople, cultureandwaysofworking,Spark
leadershavebalancedteamsaspart oftheirobjectives.
Therewereimportantearliersteps onthepathtomorebalancedrepresentation.Thecompanyintroduced flexibleworkingin2015and2016. Shukersaysitwas asignificant changeinthewaypeopleworked. Thenin2017,Lionmovedtoclosethe genderpaygap.
Between2018and2021Lionmade progress,femalerepresentation acrossthecompanyclimbedfrom 47.1percentto51.4percent.Yetthe businessrecognisedwomenwerenot sowellrepresentedinkeyfunctions suchassalesandthesupplychain.
Shesays alotofpeopleunderstand what agenderbalancedorganisation lookslikeandmanyorganisations target a50:50genderbalance,but Lion’sapproachismorenuancedas itaimsforgender-balancedteams. “Thismakesyoubreakdownthe biasesthatmightexistwithincertain functions.”
Shukeraddsthecompanywanted toget arealcut-throughwithdiverse conversationshappeninginthose teams.“It’sproductive.Theideaisto getto apositionwherepeopleknow theyaredifferentfromothersonthe teamandthatmeanstheyneedto listenhardertowhattheotherssay.
“Atthesametime,theyaskbetter questionsbecausetheyarenottaking mentalshortcuts.”
Thereare anumberofinitiatives tospeedprogress.Shukersaysthat Lion’sapproachtorecruitmenthas changed —thecompanynowusesa genderbalancedinterviewpanelfor newapplicants.
Thereisalsocapabilitybuilding. Lionhasbuiltspecificprogrammesto helpandsupportwomentoprepare forleadership.Atthesametimepoliciesinareassuchasparentalleave havebeenupdated.
TheawardjudgespraisedLionfor itssingularfocusandtremendous progressongenderdiversitywhich hasmade asignificantimpact.
TheDiversityandInclusionaward issponsoredbyBarfoot& Thompson.
GrahamSkellern
Whateverwasthrownat them,Jakov(Jim)and Rosemari(Rose)Delegat maintained astrongbeliefinproducingpremiuminternationalwinesandtheyhaveexecuted theirplansanddreamsperfectly.
Theyarecelebrating75yearsof contributiontotheflourishingNew Zealandwineindustry —nodoubt with aglassoftheirrenownedDelegat OysterBayMarlboroughSauvignon Blanc,BarossaValleyEstateShirazor CrownthorpeTerracesChardonnay.
OverthattimeDelegatGrouphas becomeoneofthecountry’sleading andbiggestwinecompanieswithan eyetoexportingsuperpremium brands.ItsOysterBaybrand,withthe gold-rimmedlabel,hasputNewZealandwineontheworldmapand maintainedlongevity.
LeadingLondonwinewriter MichaelKimedescribedOysterBay as“prettyclosetobeingtheelusive stuffofdreams”afteritwonthe covetedMarquisdeGoulaineTrophy forBestSauvignonBlancintheWorld in1991—thevariety’sveryfirstvintage.
Thirtyyearslater,OysterBayis Australia’sfavouritewhitewineand wasofficiallyrecognisedbyDrinks Internationalmagazineasthe25th mostadmiredbrandintheworld.
OverthelasttwodecadesDelegat hasgrown22-foldandhaspassed threemillioncasesinglobalsales— theequivalentof200millionglasses ofwine.
Fromthehumblebeginningsofthe four-hectarevineyardinWestAuckland,Delegathasspreadtomorethan 3500hainHawke’sBay,Marlborough andBarossaValleynortheastof Adelaide.
JimandRosehad aclearand deliberatestrategyandplentyof innovation.
Theypioneeredthefermentation ofchardonnayinFrenchbarrique barrelsinthe1980s;introduced anew vineselectionClone 6Chardonnay fromCalifornia;wereamongthefirst toplantvinesontheGimblettGravels inHawke’sBay;anddevelopedstateof-the-artwineries.
Delegathascarved apathforNew Zealandcoolclimatevarietalwines ontheworldstage.Thewineexporter,publicly-listedsince2006, sold arecord3.36mcasesinthe 2021/22financialyearendingJune, andrecordedrevenueof$325.6m,up from$255.8min2018,andnetprofit of$63m,upfrom$46.7m.
Delegat’stotalassetsarenearing the$1billionmarkat$967.3m,increasingfrom$779.8min2018,and thegroupplanstoinvest$51.9mnext yeartohelpmeetitsnextplanned stage —reachingsalesof4.08mcases by2025,with21percentgrowthin NorthAmerica.
JimandRoseDelegat,thesinglemindedanddynamicbrotherand sistercombination,wererecently awardedFellowsoftheNewZealand WinegrowersAssociationfortheir outstandingcontributiontotheindustrywhichnowproduces$2.8b worthofwine.
Theyhavebeendescribedas“industryarchitects.”Theirdrive,determinationandachievementhasalso earnedthemthetitleofVisionary Leadersinthe2022DeloitteTop200 Awards.
DeloitteawardsjudgeNeil Paviour-Smithsaidrightfromthe outset,JimandRosebackedtheir visionofNewZealandasanexporter ofsuper-premiumwinetotheworld’s
mostdiscerningmarkets.
Fortwotwenty-somethingsthis was aboldambition.Jimwasthe plannerandbusinessbuilder.Rose themarketingsupremo.Together theywere apowerhouse.
Paviour-Smithsaiditwasn’tall plainsailing.Theyhadtosellcontrol ofthecompanytoavoidreceivership when awineglutinthemid-1980s forced amajorindustryrationalisation.Butthreeyearslateritwasback infamilyownership.
By1990,theirpioneeringethoshad takenthemtoMarlboroughwhere theirfirstvintageofOysterBay SauvignonBlancwongoldandthe covetedMarquisdeGoulaineTrophy atinternationalawards.
“Keytotheinternationalsuccess ofDelegatanditscomparativeadvantageoverotherwineexportingcompaniesliesinitssinglebrand(Oyster Bay)strategytargetingthesuperpremiumcategory.Thishasenabled
Delegattomaintainrelativelystable exportpricesinkeymarkets,”said Paviour-Smith.
“JimandRosealsodetermined thatDelegatshouldcontroldistributionandmarketinginexport marketsratherthanworkingthrough agents,anapproachrelativelyrarein theNewZealandwineindustry.Ithas beencreditedashelpingDelegatsustainbetterrelationshipsandhigher marginsovertime.”
Delegatisnow a$1billionpublic company —JimandRosehold66per cent —andsincelistinghasdelivered anannualisedtotalshareholderreturnof16.5percent ayear.
“Quite aremarkablesuccessstory butreflectiveofthelong-termvision andleadershipJimandRosehave broughttothecompany,whichbears theirfamilyname,andtotheNew Zealandwineindustry,”saidPaviourSmith.
Jimhassteppeddownaschair-
manofDelegatGroupandisnowan executivedirectorandspendingless timeintheoffice.Buthestillworks alongsidechiefexecutiveSteven Cardenonstrategyandmonitoring performancetoensuresuccessfuldeliveryofboard-approvedbusiness plans.
Hewas adirectoroftheNew ZealandWineInstitutefor13years andthenNewZealandWinegrowers, whichwasestablishedin2002followingtheamalgamationoftheWine InstituteandNZGrapeGrowersCouncil.Heis amemberoftheInstitute ofDirectors.
BothJimandRosearestillboard membersofDelegatGroupandare only ahandfulofsecond-generation familywineproducersinthecountry.
Rosewasresponsibleforinitiating thegroup’sdriveintoexportmarkets inthe1980sandwastheinaugural chairperson(1987-90)ofthespecial UnitedKingdonExportingGroup, partoftheNZWineInstitute.Sheis also amemberoftheInstituteof Directors.
DavidBabich,chiefexecutiveof rivalBabichWinesbut aclosefamily friendwiththeDelegats —Jimand Rosecametohiswedding —saidthe wineindustryhasalwaysbeenvery co-operative“for alotofthechain supply.”
Babichexplains:“For90percent ofthesupplychain,youarecooperativebutthelast10percentis gettingyourbrandsontheshelfand youareinswinging.
“Atthatlevelyouarecompeting withOysterBay.”
Jimwasalwayshelpful,said Babich.“Ourfamiliesgoback100 years,andJimwasalways aphone callaway.Itmighthavebeenfor someadviceorweneedtocrush 1000tonnes,canyoudoit?‘Yes, Ican’ Jimwouldsay.
“Itmightbesomethingminorlike borrowing apump.Butwhen Ifinishedmywinemakingdegreein1990, Ihadthetheoreticalknowledgebut notthepracticalexperience.
“JimgothiswinemakerBrent Marristoinvitemeoverandfortwo tothreehourshewentthroughtheir two-yearchardonnayoaktrial.He didn’tneedtodothatbutitwas completelyopenbook,”Babichsaid.
“Ithought‘goodonJimforthinking thatBrentcandothat’.Jimhasbeen prettygivingand agreatguytohave inthewineindustry.”
BabichsaidOysterBaycontributedtotheestablishmentoftheNew Zealandwineindustry —itissucha strongandlargebrand.Itcommands apresenceoverseas.
“Youhave a2.5millioncasebrand sittingasaninternationalleaderand NewZealandownedandgrown.All twomillioncasebrandsinNewZealandareinternationallyownedexceptOysterBay.
“JimandRoseconceivedand executedOysterBayfromnothing. Thatwasanaudaciousthingtodo andtherewasn’t aprecedentforus aswinegrowers.
“Twenty-fiveyearsago,Jimand Roseputeverythingonthelineto makeOysterBay abigbrandandthat takes alotofhorsepowerwith alot ofassociatedrisks.
“Itwas acalculatedriskbuilding aprofilethatwouldproduce areturn. Idon’tthinktheywererollingthedice —theyplannedandexecuteditina textbookfashion.
“Jimwasalwayswillingtobringin astrongteamtodeliverhisconcept.”
TheDelegatssignedupBoston ConsultingGrouptocompletea strategicplan.Theyhad alotofwine
volumecomingonstreamandthey hadtodevelopmarkets.
Theyengagedthengovernment viticulturalscientistDrRichardSmart —now aglobalconsultantreferredto as“theflyingvinedoctor” —toestablishtheScottHenrytrellissystemin theirvineyards.
Henry,anOregonwinegrower,developedthesystemwhichprovides moregrapeyield,lessdiseaseand betterwine.(Delegatnowhasthe largestareaofScottHenrytrellised vineyardsintheworld).
TheDelegats’chiefwinemaker BrentMarris,responsiblefordevelopingtheOysterBaywinestyleofzesty flavoursandfragrance,travelledthe worldtolaunchthebrand.
DelegatwenttoAustralia,theUK andthentotheUS.
“Theycreated ateamof25 —they probablyhave40now —onthe groundintheUnitedStatestogetthe attentionofthedistributorswhohold thebalanceofpower,”saidBabich.
“WewereintheUSbeforethem buttheyknewhowtogetgood distributionandwe’dseetheirwine stackedprominentlyintheretail stores.”
Ittookfiveyearsofplanningto executetheexportdrive.“Iknowhow JimandRosewouldhavesweated overit —itwas abigcalland abig return —andthesuccessprobably exceededtheirexpectations,”said Babich.
DelegatGroup,whichhasnine winevarieties,nowhasin-market salesteamsinNewZealand,Australia (Botany),UK(London),UnitedStates (SanFrancisco),Canada(Toronto) andChina(Shanghai).
NorthAmericaisthebiggestmarketwith48percentofthegroup’s salesor1.6mcases;UK,Irelandand Europe32percentor1.06mcases; andAustralia,NewZealandandAsia Pacific20percentor692,000cases. The2022grapeharvestwas44,861 tonnes,up20percentonlastyear.
Growingappetiteforwine ItallbeganwhenJimandRose’s CroatianparentsNikolaandVidosavaDelegatplantedvinesontheir newWestAucklandpropertynear theWhauRiver,anarmoftheWaitemata¯Harbour,in1947 —afterworkingon adairyfarmintheWaikato tosavemoneyfor avineyardand winery.
Nikoladiedin1973,andJim(then 24)andRose(22)joinedforcesto driveDelegatforward,recognisinga growingappetiteforwineinNew Zealand.
Vidosavadiedin2014aged92.
By1978JimandRosehadestablishedvineyardsinHawke’sBayand theyboughttheirfirstGimblettRd propertyin1986.
TheysettheirsightsontheheadlandsoftheMarlboroughSoundsand plantedtheirfirstOysterBayvinesin 1988.
Inthemid-1980stheindustrywas inthegripsof awineglutandwas suffering.Babichrecalled:“Therewas atradewargoingonwithCorbans andMontanafightingforsupremacy andotherbrandswerecaughtinthe skirmishandsellingwineforno profit.
“Thenthe(Muldoon)Government unexpectedlyincreasedtheexcise taxonwineandvirtuallypaidyou
topulloutgrapevines.Therewasbig productionand abigtaxwhich screwedtheindustry.”
Delegatwassoldtoentrepreneurialhospitalityandtechnology groupWilsonNeillwhichalsoowned Cobb &Co,ParnellIguacurestaurant andthewirelessinternetcompany Radionet.WilsonNeillwentintoliquidationin2002.
BabichsaidWilsonNeillpoured moneyintheDelegatproduction processwithnewstainlesssteeland improvedinfrastructure.Delegatwas
putonthemarketandJimandRose boughtitbackandregainedcontrol.
“IrecallJimsayingit(thereceivership)wasthebestthingthathappenedandhewasreallyhappyafterwardsgettingback abetterassetand beingabletomakebettermoney,” Babichsaid.
JimandRoseexpandedagain. TheyboughtthefinanciallydistressedHawke’sBayStonyBayWines andMatarikiWines, apioneer developerintheGimblettGravels,in 2013and a800hadairyfarmbeside
Fromtop:The DelegatWineryin OrmondRd, Hastings,2016, picturedfrom EvendenRd, Hastings;Jim Delegatwithan artist’simpression oftheCompany's newMarlborough Wineryin2004; RoseandJimatthe floatingofOyster Baywinesonthe NewZealand sharemarketin 1999.Jimwitha certificate presentedtohimby NZXafterthewine companywaslisted onthestockmarket in2006.
Inits75thyearDelegatGroup celebratedwinningtheNew ZealandInternationalWine Show’sChampionCommercial WhitetitlewithCrownthorpe TerracesChardonnaywhichwas judgedinFebruarybecauseof theCoviddelay.
Atthesametime,OysterBaywas againnamedAustralia’sfavourite whiteandwasofficially recognisedby Drinks International magazineasthe 25thmostadmiredbrandinthe world.
Theawardshavecontinuedto flowforDelegatGroupsince OysterBaywongoldandthe covetedMarquisdeGoulaine TrophyforbestSauvignonBlanc intheWorldattheInternational WineandSpiritscompetitionin Londonin1991.
Herearesomeofthelatest accolades: 92Points
DelegatMerlotGimblettRoad 2019attheInternationalWine Challenge2021 GoldMedals
DelegatPinotNoiratNew ZealandInternationalWineShow 2021 MerlotGimblettRoadatNew ZealandInternationalWineShow 2021 TrophyforChampion CommercialWhiteWine, DoubleGoldand96points DelegatChardonnayatNew ZealandInternationalWineShow 2021 GoldMedals CrownthorpeTerracesHawkes BayChardonnay2018atSydney InternationalWineCompetition. AwatereValleyMarlborough PinotNoir2016atMundusVini (German-basedwineacademy) SpringTastingin2018
CrownthorpeTerracesHawke’s BayChardonnay2015atNZ InternationalWineShowin2016 CrownthorpeTerracesHawke’s BayMerlot2015atNZ InternationalWineShowin2016 andGoldChampion CrownthorpeTerraces Chardonnay2015in2016New WorldWineAwards CrownthorpeTerraces Chardonnay2014at2016 DecanterWorldWineAwards AwatereValleyMarlborough SauvignonBlanc2015atSan FranciscoInternationalWine Competitionin2016 CrownthorpeTerracesMerlot 2014atNZInternationalWine Showin2015 CrownthorpeTerraces Chardonnay2014atNZ InternationalWineShowin2015
LastyeartheDelegatBarossa ValleyEstate’s2019Shiraz, CabernetSauvignonand GrenacheShirazMourve`drewere allawarded90pluspointsin competition,withtheiconicE&E BlackPepperShirazawarded90 plusfor10yearsrunningbyWine Spectatormagazinewhichalso recogniseditasoneofAustralia’s Top25benchmarkwines
itsCrownthorpevineyardtwoyears later.
ThereweretwomoreMarlboroughpropertiesintheAwatere Valley,andtheycrossedtheTasman tobuythe5000-tonnewineryand 41haBarossaValleyEstate(inreceivership).
Jimsaidatthetime:“TheacquisitionoftheBarossaValleyassetsis anidealfitwiththegroup’sportfolio ofhigh-qualitywine.”
Thesheerqualityandconsistency ofsuccessofDelegat’swinebrands
—OysterBay,CrownthorpeTerraces andBarossaValley —haslivedon. JimandRoseneverwaveredfrom theirfour-pillarstrategy:Leadingglobalsuperpremiumbrands;vineyards inthreeoftheworld’sgreatwine regions;uncompromisingsuper premiumquality;anditsglobaldistributionnetwork.
TheVisionaryLeadershipawardis sponsoredbyHobsonNow.
Thehigh-levelviewofthe 2022DeloitteTop200Indexshowstotalrevenues forTop200companies increased9.8percentfrom $187,418min2021to$205,764min 2022.Thiscomparesto a0.5percent increasebetween2020and2021.
Underlyingearnings(ebitda) increasedfrom$25,139min2021to $29,370min2022.Thisisanincrease of16.8percent,comparedto a6.3 percentincreasein2021.
Theebitdamargin,anassessment ofoperatingprofitabilityas apercentageoftotalrevenue(total ebitda/totalrevenue)increased slightlybetween2021(13.4percent) and2022(14.3percent).
Totalprofitsaftertaxhave increasedfrom$6802min2021to $10,518min2022.Thisis a54.6per centincreaseyearonyear,comparedto a21.6percentincreasein2021. Netprofitmargin(profitaftertax/ totalrevenue)increasedbetween 2021(3.6percent)and2022(5.1per cent).
TotalAssetshaveincreasedfrom $257,470min2021to$280,602min 2022 –a 9.0percentincrease, comparedto a4.5percentincrease in2021.
ThenumberonespotintheTop 200IndexhasbeenheldbyFonterra sinceitsformationintheearly1990s. Thiscontinues,withFonterra’s revenueincreasing11.6percentduringtheyeartoreach$22,953m.This increaseismainlyduetohigher productsaleprices.
The200thrankedentityonthe Top200indexin2022is anewcomertotheIndex —StraitNZ —with revenueof$208m.Lastyear’s200th rankedcompany,Aurecon,had revenueof$189m, a10.1percent increaseinrevenuebetween200th rankedcompaniesyear-on-year.
TranstasmanhealthcareandanimalcareproductssupplierEbos
(452)
(82)
(35)
(NZX:SKC) (34)
#Name %
1OjiFibre Solutions 4,375.5
2Powerco 833.3
3Ballance Agri-Nutrients 617.2
4Genesis Energy(NZX:GNE) 600.0
5BlueSky Meats 368.6
6AllianceGroup 364.6
7Mercedes-Benz NZ 364.2
8Philip Morris 356.7
(21)
(20)
(10)
(6)
9Z Energy 327.0
10 BP NZ 323.2
11 WeyvilleHoldings 308.0
12 Ravensdown 273.0
13 Millstream Equities 272.0
14 ManawaEnergy(NZX:MNW) 251.6
6Summit Forests 49.3
7Sumitomo Chemical 47.9
8Mainfreight(NZX:MFT) 47.3 9Z Energy 42.1 10 BMWNZ 39.1
11 KiaMotors NZ 38.4
12 PacificAluminium 36.0 13 CB Norwood 34.6
14 BallanceAgri-Nutrients 33.3 15 Vulcan Steel(NZX:VSL) 33.0 16 ChinaForestry 30.7 17 ExxonMobil 30.6 18 Ravensdown 29.8 19 Xero (ASX:XRO) 29.2 20 Blue Sky Meats 27.7
(NZX:PCT)200
Groupmaintaineditsnumbertwo rankingintheTop200Index,increasingitsrevenueby15.7percent from$9,886min2021to$11,439min 2022.EBOScontinuedtoexpandand diversify,withseveralacquisitions completedduringtheyear,which havecontributedtorevenuegrowth.
Therevenuegapbetweenthetop twocompanieshasremainedfairly constant,slightlyincreasingby7.8 percent,asFonterrahad arevenue increaseof11.6percent.
FletcherBuilding(rankedthird) revenueincreasedby4.7percent from$8120min2021to$8498min 2022.
Thetop10intheIndexhasseen somemovementin2022,with Mainfreightmovinguptosixthplace (10thplacein2021)and ZEnergyreenteringinseventh(fifthplacein 2020and11thin2021).
Zesprihasmoveddowntoeighth placefromseventhin2021, FoodstuffsNIhasmoveddownto ninthplacefromeighthplacein 2021,andMeridianEnergyhas moveddownto10thplacefrom sixthplacein2021.
Thesemovementsinthetop10 seeSparkmovingdownfromninth placein2021to11thin2022.
Thetopprofitfor2022was$693m, reportedbyretirementvillageoperatorRymanHealthcare(91stinthe Top200Index).Rymanwasranked fifthforprofitin2021with aprofit aftertaxof$423m.Fair-valuemovementofinvestmentpropertiesof $746mcontributedtoitsstrong profitin2022.
Lastyear’stopprofitwasheldby Fonterra(rankedfirstinthe2022 Top200Indexon arevenuebasis), reporting anetprofitof$532min 2021.Fonterraalsoincreasedits profitaftertaxin2022to$661m, whichseesitinsecondplaceinthe profitsranking.Theoveralltotalof top20profitsfor2022hasincreased by30.3percentyear-on-year.
Furthertothis,averageprofit aftertaxacrossall200companies hasincreasedfrom$39.5minFY21 to$52.6minFY22 –a33.2percent increase.
Mercury(21st)hasmovedupto
thirdplacein2022,from24thin2021. Itsprofitaftertaxincreasedby232.6 percentfrom$141min2021to $469min2022.
MeridianEnergy(10th)has maintaineditspositionoffourth placein2022,withprofitaftertax increasingby5.4percentfrom $428min2021to$451min2022.
FletcherBuilding(3rd)hasmoved uptofifthplacein2022,fromeighth in2021.Itsprofitaftertaxhas increasedby38.5percentfrom $317min2021to$439min2022.
F&PHealthcare(24th)andAucklandAirport(135th)havemovedout ofthetopfiveprofitsfor2022,but remaininseventhand18thplace, respectively.
Thebiggestlossfor2022wasreportedbyAirNewZealand(ranked 17thintheTop200Index),witha lossof$591m.
AirNewZealand’slossislarger thanits2021lossaftertaxof$292m, movingtheairlinefromreporting thethirdbiggestlossin2021tothe biggestlossin2022.
AirNewZealandalsoincurredthe biggestlossin2020,reflectiveofthe challengesfacedbytheairtravel industrycausedbyborderrestrictionslimitinginternationaltravelin responsetotheCovid-19pandemic. ChannelInfrastructure(174th) andKiwiRail(54th)respectively holdthesecondandthirdbiggest lossesin2022.ChannelInfrastructurewaspreviouslyknownas RefiningNZandoperatedtheMarsdenPointrefinery.Itslossisdueto thechangeinoperationsfroma refinerytoanimportterminalbusiness.
KiwiRailwasprofitablein2021 buthadthesecondbiggestlossin 2020.
CPBContractors(98th)andWestlandDairy(63rd)respectivelyhold thefourthandfifthbiggestlossesin 2022.Thisisreasonablyconsistent withthelosspositionstheyoccupiedlastyear —CPBContractorswas ranked8thandWestlandDairywas 12thfor2021.
In2021,hydrocarbonproducer OMV(78th)reportedthebiggestloss ($567m).Thishasbeenturned aroundin2022with aprofitof $123m.
PacificAluminium(43rd)hasalso movedoutofthetopbiggestlosses, frombeingplacedsecondin2021 (reporting alossof$366m),tohaving aprofitin2022of$140m.
Mostimprovedprofit OjiFibreSolutions(ranked34thin theTop200Index)recordedthe mostimprovedprofitoutofallthe entitiesontheTop200index,with a4375.5percentincreasefroma $0.8mlossin2021to$34.1mprofit in2022.
EnergydistributorPowerco,in 99thplacehasthesecondmost improvedprofit,recording aprofit
continuedfrom B32
of$44.5min2022comparedtoa $4.8mprofitin2021.Thisisan increaseof833.3percent.
BallanceAgri-Nutrients(35th) holdsthirdplaceformostimproved profit,withanincreaseof617.2per cent.Inthecurrentyear,Ballance Agri-Nutrientsrecorded aprofitof $55.8m,comparedto a2021profitof $7.8m.Theonlyoverlapinthemost improvedprofitlistin2022relative to2021isagriculturalcooperative Ravensdown(50th)in12thplace. Ravensdownwastopofthemost improvedprofitrankingsin2021and hascontinuedtogrowin2022, reporting aprofitof$57.3m —an increaseof273.0percent.
Commoditymerchandisingand supplychainmanagementcompanyWilmarGavilon(ranked90th intheTop200Index)reportedthe mostimprovedrevenuefor2022.Its revenueincreasedto$513minthe currentyearcomparedto$267min 2021.WilmarGavilonwasalso secondonthe2021listofmost improvedrevenue.
SecondformostimprovedrevenueisMitsubishiMotorsNZ(58th). MitsubishiMotorsNZhadreported revenueof$429min2021,increasing to$795min2022 —an85.6percent increaseinrevenue.
JohnDeereNZ(168th)hasalso seen astrongincreaseinrevenue. Itreportedanincreaseof63.3per centfrom$151min2021to$245m in2022,placingthirdformost improvedrevenue.Thisincrease hasmeantJohnDeereNZenterthe Top200indexforthefirsttime.
ChinaForestry(40th)istheonly othercompanytobeincludedon thisindexfortwoyearsin arow.
SummitForests(154th),TetraPak (164th),SumitomoChemical(165th), BMWNZ(182nd)andBlueSkyMeats (199th)arealsonewentrantstothe DeloitteTop200Indexin2022that havefeaturedonthemostimproved revenueindexin2022.
ZEnergy,BallanceAgri-Nutrients, RavensdownandBlueSkyMeatsare companiesincludedinboththe mostimprovedprofitandmost improvedrevenueindexin2022.
TopReturnonAssets
Returnonassets(ROA)providesan indicationofhowefficiently acompanymanagesitsassetsinorderto generateearnings.Itiscalculatedby measuringprofitagainsttotalassets reported.TAB(ranked112thinthe Top200Index)holdsthetopspot forreturnonassetshavingpreviouslybeeninsecondplacein2020 and2021.TABhasmaintaineda
119, 8485.9 0.9 10,204 11.0 1,05 7Sep-21 44 BNZ119,1226.1 1.19,881 14.3 1,322 Sep-21 55 Kiwibank 31,547 11.8 0. 42,202 6.7131 Jun-22 66 Rabobank 13,295 4.51.1 1,906 7.9144 Dec-21 77 TSBBank 8,960 2.10.4 723 5.338Mar-22 88 HSBC 7,5406.4 0. 513163.8 36 Dec-21 911HeartlandBank (NZX:HBL )7 09024.91.5 809 12.1 95 Jun-22 10 9AMPLife 6,5960.0 0. 8754 7.153Dec-21
TheTop30FinancialInstitutions
Indexseesonenewadditiontothe index,FidelityLife(ranked27th).
TheTop30haveonceagaingrown theirtotalassetbases,thisyearby $36,244mfrom$635,617min2021to $671,861min2022.Thisis a5.7per centincreasewhichisconsistentwith theincreaseseenfrom2020to2021.
ThetopbankisonceagainANZ, holdingassetsof$184,769mwhich hasincreasedby2.8percentfrom its2021totalassetvalueof $179,744m.ANZsitscomfortablyat thetopspotwith a$63,247mgapin totalassetvaluesbetweenfirstplace andsecondplace(ASB).
Furthermore,ANZalsooutpaces allotherbanksintermsofprofitand equity.
ThesecondspotintheIndexis nowheldbyASB,movingupfrom thirdplacein2021,withtotalassets of$121,522m —anincreaseof7.9per centfromthepreviousyear.
strongROAof81.4percentin2022 comparedto94.5percentin2021. Twonewcomersoccupysecond andthirdplaceforreturnonassets. SumitomoChemical(165th)isin secondplacewith aROAof34.2per centandBlueSkyMeats(199th)is inthirdplacewith aROAof31.8per cent.
TopReturnonEquity
Returnonequitymeasureshow effectively acompanycangenerate incomerelativetotheamountof moneyshareholdershaveinvested inthefirm.
Itis ausefultoolforinvestors,particularlywhencomparingfirms withinthesameindustryandis calculatedbymeasuringthe revenueearnedagainsttheaverage equityheldoverthepasttwoyears —topreventchangesinshareholder contributionsskewingtheresults.
EssentialservicesproviderVentia (ranked105thintheTop200Index)
Westpachasdroppedtothird placein2022fromsecondplacein 2021,withtotalassetsof$119,848m.
BNZhasstayedinfourthplacein 2022,withtotalassetsof$119,122m.
Allofthebigfourbanks —ANZ, ASB,WestpacandBNZ —haveseen anincreaseintheirtotalassetsinthe currentyear.
Ofthebigfourbanks,ASBhasboth thehighestreturnonassetsratioat 1.3,andthehighestreturnonequity ratioof15.4.
Kiwibankhasretaineditsfifthplacespot,withtotalassetsof $31,547m.Kiwibank’stotalassetshas increasedby11.8percentfrom $28,229min2021.
CumulativeprofitsfortheTop30 financialinstitutionshaveincreased by34.0percentfrom$5200min2021 to$6969min2022.
Allofthetopfourfinancial institutionshavehadanincreasein profityear-on-year.
hastakenthetopspotforreturnon equity.Ithasmovedfrom197th placein2021,with areturnonequity percentageof2454.6percent. HarveyNorman(33rd)hasmoved upfromsixthplacetosecondplace foritsreturnonequityof564.8per cent.
Bunnings(26th)maintainedits thirdplacewith areturnonequity of355.9percentfor2022.TAB(112th) hasdroppedfromsecondplaceto fifthplaceforitsreturnonequityof 243.6percent.
TheNewcomers Thisyear,16companieswereadded totheDeloitteTop200Index.This comparestolastyearwhen22companieswereaddedtotheIndex.
InvestmentholdingfirmOregon GroupenteredtheIndexatthehighestrank(85thintheTop200Index) withrevenueof$532m.
AlsoenteringtheTop200Index withinthetop150isenergydistri-
ANZreportedanincreaseinprofit from$1373mto$1939m(41.2per cent),ASBreportedanincreasein profitfrom$1321mto$1471m(11.4per cent),BNZreportedanincreasein profitfrom$762mto$1322m(73.5per cent),andWestpachasincreased profitfrom$681mto$1057m(55.2per cent).
Cumulativeequityhasincreased by10.0percentfrom$56,248min 2021to$61,870min2022.
Thetopeightfinancialinstitutions haveremainedthesameeight entitiesfrom2021to2022.
HeartlandBankhasmovedupto ninthplacefrom11thplacein2021, pushingAMPLife(10thplace)and MUFGBank(11thplace)downone spoteach.
● Itisnotedthatcertainfinancial institutionsmayhavereleased unauditedearningsannouncements thatarenotreflectedintheindices orcommentaryabove.
butioncompanyHorizonEnergyat 144th.
JustMissedtheCut UnitedSteel(ranked201st)just missedthecutintheTop200Index by$2m,withthe200thrankedcompany(StraitNZ)achievingrevenue of$208m.Mediaworks(202nd), ArvidaGroup(203rd),CablePrice (204th),PrecinctProperties(205th) andSealedAir(206th)werecloseto breachingintotheIndexinthecurrentyear,allachievingrevenue aroundthe$200mmark.
PrecinctPropertiesandSealed AirhavefallenoutoftheTop200 in2022,previouslyholding189th and194thplacesin2021,respectively.
Ma¯oribusinessactivityhas traditionallybeencharacterisedbyengagement withthethree“F’s”:fishing, farmingandforestry.Thisisnotsurprising —thewhakapapathatbindsMa¯ori totheirlandsandwatersimbues kaitiakiobligationstoprotect,preserve andmaintaintheresources.
Whilstthelistof‘F’shasexpanded morerecentlytoincludethelikesof food,filmandfashion,thegrowthand diversity(acrosssectorsandindustries) iswhat,inthemaininformsthispiece.
Since2020we’veseen24percent growthacrossthetotalassetbaseof Ma¯orientitiesonthe2022DeloitteTop 10BusinessMa¯oriBusinessIndex. Thoseonthe2022indexcollectively represent$8.41billioninassets.
Nga¯i Tahu,Waikato-TainuiandNga¯ti Wha¯tuaOra¯keihavemaintainedtheir topthreepositionsagainonthe2022 index.AlthoughCovidandotherevents havelikelyinfluencedperformance, thoseorganisationshavenonetheless
continuedtogrow25percent,38per centand24percent(respectively) between2020and2022.
ManyMa¯oribusinesses,including thoseontheTop10Ma¯oriBusiness Indexcontinuetofocusheavilyon primarysectoractivityandinvestments. A2021snapshotofMa¯orisector showedagriculture,fishingandforestrystillheldthetopspotwithassets
of$23.4b.However,realestateand propertyservicesassetswerenotfar behindat$16.7b,whilemanufacturing, transport,andconstructioncombined todeliver$12.2b.Illustratingthisisthe continuingheavyinvestmentinagriculture,seafoodandforestrybyTe Ru¯nanganui oNga¯i Tahu(viaNga¯i Tahu Investments).Thetribeisactivelycreatingportfolioresilienceandgrowing
tribalwealthbyseeking newinvestmentopportunities.RecentinvestmentsinFidelityLife, HiltonHaulageand RymanHealthcarespeaktothis,as doesneweconomyinvestmentinactivitiessuchasenergytransition,automationandartificialintelligence.
TainuiGroupHoldingsmanages Waikato-Tainuifishingquotaandutilisesitsownershipofover4000 hectaresofWaikatolandtosupport dairy,sheep,beefandforestryoperations.However,withproperty
investmentsintheRuakuraSuperhub (alogisticsandindustrialhub connectingallofAotearoa),TheBase, NovotelTainuianddirectandequity investments, diversification away from thethree‘F’sisevident.
ThoughthetribaldomainofNga¯ti Wha¯tuaOra¯keidoesn’tlenditselfas naturallytoprimarysectorbusinessas itdoesforsomerurallydomicilediwi orhapu¯, theirextensiveinvolvementin propertydevelopment,commercial property,wha¯nau,papaka¯ingaandkaumatuahousingspeakstodiversification,and adesiretomaximisereturns forthebenefitoffuturegenerations.
Thisunderpinsandis aconsistent driverforMa¯oribusinessinterestsirrespectiveofgeographicallocation.
AidedbytheemergenceofcommerciallyandculturallyastuteMa¯oribusinessleaders,buildingresiliencebybalancingtraditionalandnewbusiness activitieswillhopefullyserveMa¯ori businessgrowthaspirationswellasthe economicheadwindsgatherpace.
● AnthonyRuakereisaconsultingand HouruaPaeRaupartneratDeloitte
BarbaraisChairofNZMEandGenesis Energy, adirectorofFletcherBuilding andBankofNewZealand,andisthe deputychairofTheNewZealand Institute.Sheis aformerCEOofASB andservesaspatronoftheNew ZealandRainbowTickExcellence
Awards.Barbarawas NewZealand Herald BusinessLeaderoftheYearin 2017andtheinauguralINFINZ DiversityandInclusionLeaderin2018. Shewasawarded aCompanionofthe NewZealandOrderofMerit(CNZM) forservicestobusinessinthe2019 NewYearHonoursList.In2021 BarbarachairedtheAPECCEO Summit.
LiamDann
LiamDannisBusinessEditoratLarge forthe NewZealandHerald.Hehas been ajournalistnearly30years, coveringbusinessformorethan20. Hewritesnews,opinionpiecesand commentarycoveringmarkets, economicsandpolitics.Heishostof the MarketWatch videoshowand MoneyTalks podcastseries.Hehas alsoworkedinthebankingsectorin Londonandtravelledextensively.
RobCampbell
RobischairofTeWhatuOra (HealthNZ),AraAkeLimitedandNZ RuralLandCompany.HeisChancellor atAucklandUniversityofTechnology.
Robhasmorethan30years’ experienceincapitalmarketsandhas been adirectoroforadvisorto arange ofinvestmentfundandprivateequity groupsinNewZealand,Australia, HongKongandtheUS.
In2019,hewasawarded aCompanion oftheNewZealandOrderofMerit2019 (CNZM)andreceivedthe DistinguishedAlumniAwardfrom VictoriaUniversityofWellington.He holds aBachelorofArtswithFirstClass HonoursinEconomicHistoryand PoliticalScienceand aMastersof PhilosophyinEconomics.
DiversityandInclusion
LeadershipAward RanjnaPatel Ranjna,withhusbandKanti,setupthe EastTamakiHealthcareBusinessin 1977.
TamakiHealthhas50clinicsserving over260,000registeredpatients,and isthelargestPrivatePrimary healthcareproviderinNZ.
In2014RanjnafoundedGandhiNivas,
aFamilyHarminitiativethathasseen amazingresults.Ranjnahasextensive involvementincharitableand communitygroupsforwhichshe received aQSMin2009andONZMin 2017.
Shesitsonmanyadvisoryboards— DiversityWorksNZ,MentalHealth FoundationMiddlemoreFoundation, CoofWomen,GlobalWomen,NZ PoliceNationalEthnicForum,CM PoliceadvisoryBoardandDirectorof BankofBaroda.Shewaspastchairof theNZCIAWomen’sGroup,President oftheManukauIndianAssociation, Lotteriesdistributioncommittee,vicechairofNZALandministerial committeeofNACEW.
RoyalReed RoyalReedis aPartneratMeredith ConnellandFounderofPrestigeLaw. Sheisanentrepreneur,publicspeaker, and asocialmediainfluencerandOn BeingBoldfounder.Royalcompleted legalstudiesinNewZealand, internationalpolicystudiesinChina, andnegotiationskillsandprofessional servicefirmmanagementinAmerica.
Shealsoqualifiedas amediatorvia LEADRNZ,ArbitratorinRepublicof China,legalinterpreter,and aCertified AgileCoach.
ShehasbeenthesourceofAsian marketinsightfororganisationssuch asKeaNewZealand —whereshe servesontheGlobalBoard.Shealso advisesLuxuryNetwork,AucklandArt Gallery,LandInformationNew Zealand,andmanyotherprivate companiesbothlocallyand internationally.
Sheis awellknownfaceandnamefor mostChinesemigrantsinNewZealand throughherpublicspeakingand mediainfluencercareer.Hervlogs, socialmediaplatforms,andlivestream appearanceshave ahighvolumeof loyalfans.
SimonMoutter SimonwasManagingDirectorofSpark NewZealandfrom2012-2019.Hewas responsiblefortheoverallleadership andstrategicdirectionofSpark, throughitsvariousbusinessdivisions andbrandswhichprovidedigital servicestoNewZealandersandNew Zealandbusinesses. HeledthereinventionofTelecomto Spark,tobetterreflectthefastchangingnewworldofdigitalservices inwhichthebusinessnowoperates. TodaySimonworksasBoardMember andOperatingPartnertothree privatelyownedcompanies —Smart
EnvironmentalLtd,AgilityCISLtdand IntellihubLtd.Hesteersthe ManagementTeamsofthese companiestohelpacceleratetheir growth.Inaddition,heis aDirectorof theCommonwealthBankofAustralia andChairmanoffashionstart-up, DesignerWardrobe.
KatieBeith
KatiejoinedForsythBarrin November2021astheHeadofESG. KatiewaspreviouslywiththeNew ZealandSuperFundas aSenior InvestmentStrategistforResponsible Investment.
Inthatroleshewas akey contributortodrivingtheFund’s ClimateChange,revamped SustainableFinanceStrategyand internationalengagement programme.
Inaddition,Katiehasextensive experienceintheinternationalESG community.
ShecurrentlyservesontheExternal ReportingBoard’sStakeholder AdvisoryPanel(XRAP)andisa memberoftheNZNationalAdvisory BoardforImpactInvesting.
