Ātihau-Whanganui Incorporation Annual Report 2023

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I HAU TRU

ST

ANNUAL REPORT 2023

ĀT

RĀRANGI KAUPAPA CONTENTS

Ko te mōrehu whenua kua waipuketia E Roimata, e hupe i te tau kua pahure atu nei.

Ka tangi kau, ka mōteatea kau Mō kautau kua riro atu nei.

Haere atu rā ki te iwi nui i te pō Heoti anō ki ngā mātua tūpuna i te rangi Haere, haere, e oki.

Hoki mai rā ki tātau te mōrehu tangata Tēnei te whakamānawa atu.

Nei rā ko ngā rongo o te tau, Te rārangi ake nei Me te aronga nui Kia toitū te whenua, Kia toitū te mana, Kia toitū te tangata.

E te iwi, haere mai rā ki tō tātau hui ā-tau.

E tau.

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2 He Mihi - Welcome 4 The Āti Hau Way – Our Way of Being 6 Our Whakapapa – Our Story 8 TE TĪMATANGA / INTRODUCTION FROM THE CHAIR 13 Ātihau-Whanganui Incorporation Committee of Management and Members 14 Āti Hau Group Strategic Intentions 2023-2033 16 WHAKAMAHI RAUTAKI / OUR PURPOSE IN ACTION 18 Toitū te Whenua 22 Toitū te Tangata 24 Toitū te Mana 26 WHAKATUTUKITANGA MAHI / OUR PERFORMANCE 29 Outlook 32 Financial Performance 36 Business Round-Up 50 TE ĀTI HAU TRUST REPORT 51 Te Āti Hau Trust Chair Report 53 Te Āti Hau Trust Trustees 54 Case Study 56 Grant Distributions 60 Grant Recipients 70 ĀTIHAU-WHANGANUI INCORPORATION GROUP FINANCIAL STATEMENTS 71 Contents 72 Shareholding and Committee of Management Disclosures 74 Consolidated Statement of Financial Performance 75 Consolidated Statement of Changes in Equity 76 Consolidated Statement of Financial Position 77 Consolidated Statement of Cash Flows 78 Financial Statements Notes 104 Auditors' Report 3

THE ĀTI HAU WAY - OUR WAY OF BEING

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Mōrehu whenua, Mōrehu tangata

Ohotu ki uta.

Ohotu ki tai

Caring for our place, caring for people.

Connecting to create strong relationships, understanding the impact we have on others.

Te Whanonga Pono – Values Our values are principles that will guide our waka as we work to achieve our purpose.

Kia Āti Hau te kōkiri Living and applying the Āti Hau lens to what we do, how we do it and knowing why it contributes to our legacy.

Mā te rahi Āti Hau Working together we can achieve the collective aspirations of Āti Hau.

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WHAKAPAPA - OUR STORY

Where we have come from.

As we look to the future it is important to reflect on the legacy left by our tūpuna, to appreciate that times were different and the sacrifices they made, and to remind ourselves of the responsibilities we have inherited.

1976-1986 1960

1902-1904

The way compensation is calculated is challenged in the courts.

Ohorea is resumed.

Whanganui Māori vest 115,000 acres into the Aotea District Māori Land Council.

2002-2006 1969/1970

1880 & 1890s

1955 16,800 hectares resumed.

Taitoko Te Rangihiwinui (Major Kemp) uses his authority to pursue means of increasing Māori control of their land.

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Morikaunui Incorporation is formed with Dr Rangitākuku Mete-Kingi as chairman.

ĀtihauWhanganui Incorporation formed, owners take over full administration.

38,500 ha

$5.4 M

$13.6 M

Total area resumed 1960-present

Provided for charitable purposes

Dividends declared (since 1970)

2022 2003-2008 2015

Redress negotiations undertaken with the Crown, settling for $29.8m in 2008, 48% of the full cost of the vested land regime.

50th anniversary and book launch.

ĀT

I HAU TR

U ST

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2009 Diversification into beekeeping.

Te Āti Hau Trust established.

2023

2017

2007 Appointment of first Chief Executive Officer / Pou Ārahi.

Signing of a long term honey supply agreement with Manukora.

2014 Establishment of Te Hou Joint Venture.

Awhi brand launched.

Awhiwhenua whare opens.

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TE TĪMATANGA INTRODUCTION FROM THE CHAIR

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"...what sets the Āti Hau Group apart is our perpetual commitment to grow and nurture the legacy left to us by our tupuna."

As Chair of the Committee of Management of Ātihau-Whanganui Incorporation, it is a pleasure to present our Annual Report for the financial year from 1 July 2022 to 30 June 2023.

This Annual Report is the first for the Āti Hau Group, which is the Ātihau-Whanganui Incorporation, Te Āti Hau Trust and the ĀtihauWhanganui Incorporation Forestry Trust combined. The Group was created as an extension of the “One Farm” approach we moved to 15 years ago in order to work in a collective and organised way toward a single, shared purpose: Toitū te whenua, toitū te tangata, toitū te mana.

It has been a year of significant challenge and change for the Group, as we adapt to the cost of living crisis and the global economic downturn that continues to affect many of our trading partners.

These impacts are reflected in our results this year. We are not alone in facing these challenges – every primary sector business in the country is in a similar position. But what sets the Āti Hau Group apart is our perpetual commitment to grow and nurture the legacy left to us by our tupuna.

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Board members

Strategic intentions

Investments / asset sales

In December 2022, we farewelled Mavis Mullins after 15 years of service to the Committee of Management from 2007 to 2022, seven of those – from 2014-2021 – as chair.

Your board and executive management have developed a refreshed strategy for the Āti Hau Group reaffirming purpose, values and goals and identifying seven priorities for the Group to work on over the next 10 years.

We capitalised on the Government’s Fixed Price Option (FPO) to create an early emissions return opportunity, releasing from the emissions trading scheme some carbon from Papahaua Forest and reinvesting the surplus funds back into the whenua.

We also farewelled Joe Hanita and David Nelson, who provided leadership as independent members on the Audit & Risk Committee and Farm & Environment Committee respectively.

Following the 2022 hui ā-tau, we welcomed Sarah Bell to the Committee of Management, along with two new Associate Directors, Jason Ashford and Charles Chadwick. We also welcomed Pania Winterburn as an independent member of our Audit & Risk Committee.

A list of changes for Te Āti Hau Trust is summarised on page 52.

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We have been deliberate in our choices and will be focussed on delivering the greatest impact within a complex and challenging environment.

More detail on where we will be focussing strategically over the near term is included in the Outlook section on page 29.

Ahu whenua – farm, apiary, forestry A wet summer provided good conditions for farming but made honey production on the whenua challenging. Difficult economic conditions were met with a focus on our priorities, prudently managing spend and delivering greater value.

Taiao and climate change A highlight of the year has been our achievement in reducing our greenhouse gas emissions. We have reduced emissions by 2.2% percent, working to finish cattle earlier and complete land use changes.

This year we have taken the first steps to incorporate an environmental tool “the Mauri Compass” into our environmental initiatives across the whenua. Our initial work has been to understand and learn how to use the tool to monitor water quality.

"We have been deliberate in our choices and will be focussed on delivering the greatest impact within a complex and challenging environment."

Our people Rolling out our Āti Hau Group values framework, the Āti Hau Way, has been a significant focus over the year. Our people leaders have also undertaken an extensive programme of leadership development.

Over the past two years, the Trust has been working to support and build a greater relationship with marae. A significant focus has been connecting with all 47 marae in the rohe and providing a one off Awhi marae grant of $3,000. The aim in the future is to continue this kaupapa by providing our marae putea every three years, along side the infrastructure grants available.

An important decision made by the board this year was to review the Awhiwhenua cadet programme with the aim of developing an onthe-job training programme.

Financial Performance This year the Āti Hau Group has returned a net loss after tax of $6.7 million (2022: $1.2 million net surplus). The Group has contributed to a shareholder net equity position of $293.0 million, up $60.5 million from $232.5 million last year.

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"We must not stand still and miss the opportunities presented by the times to review and strengthen each part of our business operations."

An operating loss of $0.8 million was also reported, which led to a recommendation by the Board of a $0.80 per share dividend distribution and no distribution to the Te Āti Hau Trust due to sufficient cash reserves within the Trust.

Future challenges Over the coming 12 months we are expecting continued inflation, high interest rates and suppressed pricing on some of our products.

The economic outlook for the next two years is one of slow recovery.

Despite this outlook we remain steadfast, focused on delivering our refreshed strategic intentions and those priorities which will help us to deliver our purpose.

We must not stand still and miss the opportunities presented by the times to review and strengthen each part of our business operations. We will continue to make each necessary adjustment and to be more resilient, while keeping an eye on the need to prepare for and invest in our future together.

Acknowledgements After another challenging year, I want to take this opportunity to recognise the commitment and hard work of our chief executive, Andrew Beijemen, together with his senior

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leadership team and our kaimahi on the ground across the motu.

I would also like to acknowledge my fellow board members for their tautoko and dedication in helping to drive this organisation to greater success and ever-improving outcomes for our shareholders, our whānau whānui, our communities and our whenua.

Finally, my sincere thanks to you, our shareholder whānau, for your

tautoko and manaaki as we work collectively to build upon the legacy left to us by our old people.

Tēnā tātou. Mauri ora.

Dr. Brendon Te Tiwha Puketapu Chairperson

Ātihau-Whanganui Incorporation BOARD MEMBERS

Dr. Brendon Te Tiwha Puketapu

Che Wilson

Shar Amner

Chairperson

Deputy Chairperson Chair, Te Ohu Tātari

Chair, Te Ohu Mana Whenua

Sarah Bell

Keria Ponga

Whatarangi Murphy-Peehi Chair, Awhiwhenua Committee

Dr Rāwiri Tinirau

Jason Ashford

Charles Chadwick

Chair, Te Āti Hau Trust

Associate Director

Associate Director

Sully Alsop

Pania Winterburn

Independent Board Member Te Ohu Mana Whenua

Independent Board Member Te Ohu Tātari

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ĀTIHAU-WHANGANUI INCORPORATION

ĀTI HAU GROUP STRATEGIC INTENTIONS 2023-2033

Te Kaupapa | Purpose Toitū te Whenua, Toitū te Tangata, Toitū te Mana Our purpose, our legacy is to look after the whenua, so the whenua can look after us.

Whanonga Pono | Our Values Our values are principles that will guide our waka as we work to achieve our purpose.

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Mōrehu whenua, Mōrehu tangata

Ohotu ki uta.

Ohotu ki tai

Kia Āti Hau te kōkiri

Mā te rahi Āti Hau

Caring for our place, caring for people.

Connecting to create strong relationships, understanding the impact we have on others.

Living and applying the Āti Hau lens to what we do, how we do it and knowing why it contributes to our legacy.

Working together we can achieve the collective aspirations of Āti Hau.

Ngā whāinga | Strategic Goals We aspire to further the work of our tūpuna, to add to their legacy. We will do this by focusing on the following three strategic goals.

Toitū te Whenua

Toitū te Tangata

Toitū te Mana

Ko te pae tāwhiti, whāia kia tata, ko te pae tata, whakamaua kia tina.

Huriwhenua: Te mōrehu whenua, te mōrehu tangata.

Toitū te kupu, toitū te mana, toitū te whenua e.

Draw the distant horizons closer and utilise well those resources already at your disposal.

The remnants of the land must care for the survivors of our race.

The permanence of our culture is reliant on the permanence of our authority and land.

We will utilise the resources available to us to improve our intergenerational wellbeing and prosperity. We will do this by:

We will ensure that the remnants of our land care for our uri and empower and uplift our people, whānau and communities. We will do this by:

We will uphold the permanence of our authority, whenua and culture.

We will do this by:

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protecting and reclaiming our whenua.

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connecting our people with our whenua.

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making wise use of our resources to generate wealth.

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uplifting the aspirations of uri of Whanganui-nui-tonu.

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producing high quality products and services.

•

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applying high standards of care toward the whenua and kararehe.

ensuring our kaimahi are treated as whānau, and are fully engaged, safe and thriving.

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embracing tikanga, tūpuna knowledge and te reo o Whanganui.

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enhancing the mana of our uri, customers and key stakeholders.

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collaborating with those who share our values.

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building strong partnerships to strengthen our contribution to local and national economic development.

Ngā Mahi Matua | Priorities We will achieve our strategic objectives by focusing on seven priorities.

1. Whakaora i te taiao.

4. Enable connection.

2. Grow ahu whenua performance.

5. Data-driven outcomes.

6. Thrive through partnerships and collaboration.

7. Embrace our culture.

3. Diversify toward income assets.

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WHAKAMAHI RAUTAKI OUR PURPOSE IN ACTION

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“Our purpose, our legacy is to look after nature so nature can look after us.”

This section of the Annual Report is strategically focused and future oriented. It highlights the value the Āti Hau Group places on the taiao, our people, and how our tikanga and the way we work can help us farm better. It focuses on how we create value through relationships with others, extending beyond merely preserving or preventing the erosion of the values on which we base our business.

This section provides an organisational overview, setting the context in which Ātihau operates, including external factors such as economic conditions, the global pandemic and climate change.

It reports on how governance is supporting Ātihau to create value and details our strategy and resources before, finally, examining the risks and opportunities of the year ahead.

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TOITŪ TE WHENUA “Ko te pae tāwhiti, whāia kia tata, ko te pae tata, whakamaua kia tina."

Draw the distant horizons closer and utilise well those resources already at your disposal.

Nā Whakaari Rangitākuku Mete-Kingi

Key Strategic Projects

Hyperspectral mapping In the winter and spring of 2022, hyperspectral imaging was completed at Waipuna, Te Paenga and Papahaua Stations in conjunction with Ravensdown and Hyperceptions. The agricultural mapping model has been researched, tested and developed at Ohorea and other farms over the past 10 years.

The technology is used for precise farm analysis. Using a plane with a hyperspectral imaging camera to capture data, the technology produces a profile of the whenua providing information such as soil fertility, ground cover (mānuka, pasture, or other native bush) and potential productivity.

This type of analysis will be significant for the future good management of our farms and their performance. For example, measuring and locating all stands of mānuka will enable Ātihau to stock hives appropriately for the area and manage mānuka into the future.

In addition, having more accurate farm areas will help ensure we are feeding stock correctly.

Initial analysis has been undertaken on all the farms to measure and map pasture, mānuka, scrub, bush and the effective area of each farm, supporting us to grow ahu whenua performance. Further analysis will happen as funds allow to better understand soil fertility and other data.

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"Initial analysis has been undertaken on all the farms to measure and map pasture, mānuka, scrub, bush and the effective area of each farm, supporting us to grow ahu whenua performance."

Creating a sustainable honey business mapping We received Ministry for Primary Industries funding under the Sustainable Food and Fibres (SFF) Futures programme. This funding was to investigate how our mānuka resource can best be managed in the long-term. Mānuka is a primary plant which colonises an area, allowing for other plants to establish. This secondary growth eventually overtakes and eliminates the mānuka. To maintain an intergenerational mānuka business, our resource will need to be

managed as a crop, if left alone, the mānuka will disappear.

The SFF Futures programme will also consider how to minimise the reliance on sugar which is used as feed in winter and spring by using the nectar of other flowering species. However, it may be challenging to eliminate sugar feed altogether in our climate.

During the last year, the research monitored flowering at Papahaua to understand the nectar profile of the

area. The next step is to model this and identify what other plantings are required to reduce reliance on sugar feed and lower apiary business costs.

The research opens the way for potentially planting specific species in specific places for flowering and nectar, and for targeted management of pests such as possums and deer.

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TOITŪ TE WHENUA “Ko te pae tāwhiti, whāia kia tata, ko te pae tata, whakamaua kia tina."

Draw the distant horizons closer and utilise well those resources already at your disposal.

Nā Whakaari Rangitākuku Mete-Kingi

Key Strategic Projects

Exploring diversified investment opportunities Wind power An initial exploration of the potential for wind farming on our whenua was made at Tawanui Station, using a LiDAR system for measuring air speeds. Analysis based on current pricing for power showed the wind speed was not sufficient to justify further exploration of wind power at Tawanui Station at this stage.

Investigations into wind farming potential have therefore been put on hold for now. Other sites with stronger wind may be explored in the future, and discussions about Tawanui could re-open if the right partners are identified.

Forestry Work on planting new forest at Waipuna Station has begun, with preparation completed and planting scheduled. The new forest is being grown for carbon and rotational timber as part of our land use change programme, this is in line with our Statement of Investment Policy and Objectives (SIPO). The Waipuna Forest is the first tract of 1400 hectares of new forestry set to be planted across the breeding farms during the next five years as we look to make wise use of our resources, and to support future diversification towards income assets. The pines are being planted in areas that can be harvested.

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Some of the carbon generated from the new forestry will be sold over the next 10 to 20 years, creating a source of funds that will be invested off-farm into cash-generating assets – an important part of rebalancing our asset base and delivering greater cash returns.

At this stage, no perpetual forest is being planted but this could be considered in the future, depending on how far the carbon market develops over the next three years following the central government consultation in 2023.

"The Waipuna forest is the first tract of 1400 hectares of new forestry set to be planted across the breeding farms during the next five years as we look to make wise use of our resources, and to support future diversification towards income assets."

Release of carbon The Government’s Fixed Price Option (FPO) announced two years ago created an early emissions return opportunity. To capitalise on this opportunity, an internal forestry trust was established and we removed some of the 400 hectares of Papahaua Forest from the emissions trading scheme.

The above exercise resulted in a surplus of 77,000 obligation-free carbon credits. Some were sold and the surplus reinvested into the whenua to continue priority work required to lift the farms’ performance. About 30,000 credits remain to be released at a later stage.

Tourism There has been further investigation into the opportunity for tourism.

We have developed a business case and we know that a farm walk and hunting operation across our whenua would be profitable and help to create opportunities for uri.

Work will be done over the coming years to define the business case further and identify investment partners. Applications for funding support to establish a tourism venture are in progress.

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TOITŪ TE TANGATA “Huriwhenua: Te mōrehu whenua, te mōrehu tangata."

The remnants of the land must care for the survivors of our race.

Nā Taitoko Te Rangihiwinui (Major Kemp)

Key Strategic Projects

Awhiwhenua Apprenticeship Programme A review of the Awhiwhenua Cadet Programme has resulted in a decision by the Board not to continue the scheme in its current form for the 2024 calendar year.

Some of the challenges identified included higher costs relative to the number of cadets transitioning into fulltime employment.

The programme will be paused while decisions are made about how it can be redeveloped to deliver on-the-job training programme and better value for money. The aim is to find a solution that continues to develop kaimahi for the farms and opportunities for rangatahi and uri on the whenua.

Responding to the survey: He aha ōu whakaaro mō te koporeihana o Ātihau-Whanganui?

The staff engagement survey, carried out in the previous year, focused our efforts on responding to the feedback from our kaimahi as we look to ensure staff are fully engaged and thriving.

As a result, salaries have this year have been benchmarked externally to ensure we are paying fairly.

We have also concentrated on increasing connection between the various teams across the Group.

This has included meeting socially to

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create more connections within and between teams, and spending more time aligning our team goals and how we measure success.

The leaders of all teams, including the senior leadership team, have undertaken extensive leadership training. The training has included leaders completing personality tests and working through an externally facilitated programme of leadership development.

"The staff engagement survey, carried out in the previous financial year, focused our efforts on responding to the feedback from our kaimahi as we look to ensure staff are fully engaged and thriving."

Kaimahi housing An audit of kaimahi housing was completed as part of the Taiao programme requirement to bring all of our houses up to standard.

The first stage has involved an audit against the Healthy Homes New Zealand standard and any weathertightness issues.

We have more than 40 houses, and while these were all insulated more than a decade ago some now require re-insulation.

The focus for the year ahead is to bring insulation, ventilation and heating up to Healthy Homes standard.

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TOITŪ TE MANA “Toitū te kupu, toitū te mana, toitū te whenua e."

The permanence of our culture is reliant on the permanence of our authority and land.

Nā Ārama Tinirau

Key Strategic Projects

Honey supply agreement We have been working this year to develop long-term supply agreements with industry partners for our honey. The year has focussed on exploring new relationships with potential buyers, building on existing relationships, and securing potential sales through some long-term suppliers.

The development of a long-term supply agreement with our main honey buyer, Manukora, will see us committed to selling honey to Manukora every year at a fair price, and a corresponding commitment from Manukora to purchase honey.

This is an exciting, high-value partnership in development. It is focussed not only on a commercial relationship but a partnership

approach which includes an interest in how the bees are cared for, and working together for the betterment of both parties, Manukora and Ātihau.

An immediate benefit of the developing partnership was the purchase by Manukora of all our stockpiled 2019, 2020 and 2021 honey at book value. This leaves honey stores in a good position, with stocks from this year and last year only – none older than 18 months.

This year's discussions have identified other potential strategic partners, and growing these relationships may eventuate in further long term supply agreements.

Winding down direct-to-market sales channels Direct-to-market sales of Ātihau meat and honey products are being wound down this year. The decision to withdraw Ruapehu Angus and Awhi Honey from direct sales reflects escalating cost-ofliving pressures on consumers and ongoing cost pressure on the business.

Domestic sales of Ruapehu Angus, supplied to New Zealand’s

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hospitality industry through our partner Foodchain, could not compete with the prices our processing partners were able to generate in international markets. In contrast, the cost of securing sales through online advertising made the sale of Awhi Honey through Amazon unprofitable.

"This year's discussions have identified other potential strategic partners, and growing these relationships may eventuate in further long term supply agreements."

Taiao Workplan A significant workstream this year has centred on the Mauri Compass framework, an environmental assessment tool for measuring the quality of our waterways. The Mauri Compass incorporates both mātauranga Māori and western science.

state of the waterways. The measurements include a range of indicators such as water quality, tuna and kōura populations, other life in the stream and an assessment of cultural indicators. Capturing baseline data is expected to be a three-year project.

Mauri Compass co-designer Ian Ruru has been training our staff to apply the cultural monitoring tool to waterways at Waipuna and Te Pā Stations. The initial focus is learning how to use the Mauri Compass effectively before eventually rolling the programme out across other catchments.

The work is being led by our Taiao Manager Courtney Haywood with designated staff at Waipuna and Te Pā Stations responsible for water quality monitoring at their properties, including counting and weighing tuna and kōura. Engaging our farm staff in this way is already leading to new thinking about how changes in practice could improve water quality and habitat.

At the same time, the team has started to use the Mauri Compass to gather baseline data that will present a picture of the current

The next 12 months will refine the use of the Mauri Compass on the

Waipuna and Te Pā Stations. The tool is expected to be rolled out to other catchments over four years.

Efforts ramp up to reduce greenhouse gas emissions We have been successful in our efforts over the past 12 months to accelerate the rate of cattle finishing to avoid wintering cattle for their third year. A concerted effort by our finishing farms means we will end the year in review with only 200 cattle wintering over for a third year compared to 800 the previous year. Getting this age group off our finishing farms earlier will reduce our

methane gas emissions by a very significant 5%.

This approach will also make parts of our finishing farms available for alternative uses. With funding from the Ministry of Primary Industries, a consultancy group was engaged to consider alternative land use. After an extensive search, two options recommended were wheat and barley cropping.

A small trial of barley will be planted next year. Although it provides lower return than wheat, barley grows faster and therefore carries less risk.

Wheat may be trialed the following year. The cropping trial will focus on feed grain, potentially saving on the cost of grain we buy in for feeding on the dairy farm.

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WHAKATUTUKITANGA MAHI OUR PERFORMANCE

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"We have responded to significant climate and economic challenges this year, focusing on our priorities, prudently managing spend and delivering greater value."

The climatic impact on our sheep and beef farming was positive overall. Spring was very wet, which meant production was slow to get started but this was compensated for by favourable conditions for good grass growth through summer, resulting in pleasing sheep and beef production. The farms were able to keep stock on to add weight and carried more feed into the winter than usual.

In comparison, our apiary business struggled compared to previous seasons, with cold and wet weather giving our bees fewer opportunities to get out and collect honey. As a result, honey production of 60 tonnes was about half that of a normal season.

Despite challenging market conditions for honey, we sold all our older honey at valuation, holding honey harvested in 2023 and 2022 in storage.

General economic conditions however – including falling commodity prices and significant inflationary pressures – made for a challenging year. The results will reflect that. Revenue fell for our main product lines including honey, lamb and milk, with the exception being beef revenue. We have responded by focusing on our priorities and working to prudently manage costs and deliver greater value.

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AHU WHENUA AT A GLANCE

63 tn

90,085

$1,934

$2.4 mil

90,289

$1,885

of honey from 3559 hives

of honey sold

per head steer price

lambs born

per head the year before

in the previous year

$130

$3.2 mil

lambs price per head $137 the year before

the year before

95,418

2019

Lambs born

2020

88,568

2021

89,317

2022

90,289

2023

90,085

3,584

2019

Beef calves born

3,606

2020 2021 2022 2023

3,396 3,280 3,607

249,172

2019

Milk Production (kg of milksolids)

2020

(kg Ātihau hives)

2022

240,988

2023

238,535

40,302 74,041

2020

87,993

2021

103,254

2022 2023

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252,008

2021

2019

Honey Production

241,006

63,024

OUTLOOK FOR NEXT 12 MONTHS

We expect the year ahead to be challenging as we lean into the persisting economic headwinds.

Markets/Pricing We do not anticipate a significant recovery in pricing over the 2023/2024 financial year. Our main international markets remain on a slow recovery path in the aftermath of the Covid-19 pandemic, while at home we will continue to be impacted by inflation and high interest rates.

As a result, the consumer demand we have previously enjoyed for our product lines has been slow to rally and we are expecting to see suppressed pricing across most of our main sales items. We may see a slight easing in the year ahead as inflation comes down, but pricing is unlikely to recover until the following financial year.

Production Production in the year ahead will track much the same as the year in review. We will deliberately focus efforts on areas that promise immediate returns; this means lifting ahu whenua performance – both farming and apiary – and considering ways to generate additional value within those businesses.

Honey sales We are forecasting an increase in honey sales in 2023/2024 to approximately 60 tonnes or $3.5 million. In addition, a long-term supply agreement with a key trading partner has progressed to deliver us greater value and certainty around our future honey sales.

Forestry

Legislation

Planting will continue at Waipuna next year and we will complete preparations for the remainder of the 1400 hectares of new forestry set to be established over the next three years, subject to obtaining consents.

The government is consulting on the Emissions Trading Scheme and its permanent forestry category and we expect to see some impact on pricing in the year ahead following the deterioration in the carbon price through 2022/2023. We are monitoring developments closely.

We expect to sell 50,000 carbon credits next year to fund capital improvements on the whenua, including the new forestry initiative and farm development.

2023 is an election year and, as always, this creates some uncertainty around likely central government priorities in the coming year. However, there should be some relief for labour shortages in the primary industries if net migration increases, as is forecast.

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Strategic Initiatives Outlook

Toitū te whenua Further work will be completed on the programme to investigate how best to manage our mānuka resource into the future. In the year ahead, the first trial work will test the best way to remove existing stands of mānuka to evaluate which method results in better recovery and regrowth.

A framework or model for nectar production among non-mānuka species will also be undertaken and the work may be followed by the development of a planting plan.

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We have commissioned an independent review of the sheep and beef farms to identify how each farm could potentially be improved, supporting management to identify new opportunities as well as a realistic benchmark for each farm.

We will prioritize growing our ahu whenua performance over the next 12 months and progressing our diversification aspirations e.g. tourism, through collaborations and partnerships. Our financial strategy will remain prudently focused on

meeting our treasury requirements, repaying borrowings and securing a cash dividend payment for shareholders in 2023/2024.

We will review and prioritize our Taiao work programme. Our aim over the next year is to develop a system for measuring and reporting on the health and wellbeing of te taiao to provide a better understanding for uri and partners.

It will take several years to establish a system and build the picture but preliminary work in the year ahead will help shape the direction.

Toitū te tangata The Trust will reach out to whānau with a roadshow during 2024 to understand how to better support hapū, marae and uri. Alongside this work, we also intend to increase the number of whānau-focused events held on the whenua.

We will work on delivering business intelligence dashboards to support decision-making across the Group.

Our initial focus is providing all levels of the business with better financial information in real-time, as well as integrated information on our apiary business and sheep and beef farming. Over time, the project will grow to support a greater connection for uri to the whenua through online dashboards and information sharing.

Toitū te mana Our plan to improve cultural competency across the Āti Hau Group will be finalised and we will begin to implement this work over the next 12 months, including a way of measuring and reporting improvements in the use of tikanga, tūpuna knowledge and te reo o Whanganui.

We will also focus on providing better information about wāhi tapu and wāhi tūpuna across our whenua. We have received funding to identify and record the oral history and location of these special places with the aim of ensuring our significant sites can be protected.

31

FINANCIAL PERFORMANCE

Overall Results & Distributions This year the Āti Hau Group has returned a net loss after tax of $6.7 million (2022: $1.2 million net surplus). The Group has contributed to a shareholder net equity position of $293.0 million, up $60.5 million from $232.5 million last year. An operating loss of $0.8 million was also reported this year, which led to a recommendation by the Board of a $0.80 per share dividend distribution and no distribution to the Te Āti Hau Trust due to sufficient cash reserves within the Trust.

Revenue This year revenue was $22.6 million compared to $26.3m million in 2022. We recognised a loss from the sale of emission trading units of $1.6 million. Carbon credits were sold during the year to fund capital improvements on our whenua helping to generate additional value in the future.

Apiary revenue of $3.7 million was down $169,000 on the previous year. Livestock revenue of $15.6 million was on par with last year.

Other income of $1.9 million is $0.4 million lower than last year mainly due to fewer forestry logs being harvested.

Expenses and Non-Operating Revaluations We delivered our work programme through operating expenditure of $23.4 million compared to $24.7 million in 2022, a savings of $1.3 million. Farm and apiary expenses of $11.0 million were $2.8 million lower than the prior year due to the impact of poor weather on fertiliser application at some of the stations.

32

Employee expenses, repairs and maintenance and other expenses of $12.4 million were $1.5 million higher than last year mainly due to inflation.

In addition, our costs of finance this year increased by $550,000 to $2.1 million due to higher interest rates. We recognised nonoperating losses of $4.1 million due to changes in the value of livestock. Commodity pricing has been a key challenge this year.

Taxation Income tax losses from current and deferred tax have been recognised in both the current and prior year. We anticipate paying provisional tax next year.

Capital Spend We delivered our capital works programme with capital expenditure of $2.4 million consistent with our planned priorities for farm development, environmental works and staff housing.

Shareholder Equity Total shareholder equity increased $60.5 million, from $232.5 million in 2022 to $293.0 million this year.

Assets Property, plant and equipment increased $79.5 million from $197.6 million to $277.1 million, mainly due to land and buildings being independently revalued to fair value. Emission trading units held at 30 June 2023 were valued at $8.7 million. Revaluations accounted for a decrease in our intangible assets of $15.9 million.

We expect to receive 180,000 units (or $7.5 million) once our early emissions return / forestry right is accepted by central government.

We also anticipate a more stable carbon market following the review of the ETS and post central government elections in late 2023.

Liabilities We have a term debt facility of $39.1 million, of which $38.2 million was drawn down as at 30 June 2023 (2022 $37.7 million).

We have a seasonal facility of $6.5 million which was not utilised. The value of our stock and biological assets, which is used as security, has reduced in value by $4.3 million to $39.6 million, mainly due to the price of sheep and cattle at the year end. The value of our stock and biological assets exceeds total debt by $1.4 million which means our whenua is protected.

Outlook As we move forward together, we are mindful of the need to repay our principal loans and increase our distributions. These strategic goals will be achieved by continuously improving our ahu whenua performance, diversifying our asset base over time and making wise use of our resources to achieve our purpose.

Details of revenue and expenses by business activity are summarised in the following sections of our annual report.

FIVE YEAR CONSOLIDATED PERFORMANCE For the Year Ended 30 June 2023

2019 Actual

2020 Actual

2021 Actual

2022 Actual

2023 Actual

Restated Group

Group

Revenue

$23.9m

$27.3m

$23.4m

$26.3m

$22.6m

Operating Expenses

($20.7m)

($19.9m)

($19.9m)

($24.7m)

($23.4m)

Operating Surplus (Deficit) before finance costs, non-operating revaluations and tax

$3.2m

$7.4m

$3.5m

$1.6m

($0.8m)

Finance Costs

($1.7m)

($1.8m)

($1.6m)

($1.5m)

($2.1m)

Profit / (Loss) from Equity Accounted Investments & Other Adjustments

($1.0m)

$0.2m

$0.2m

($0.4m)

($0.1m)

Profit / (Loss) from Price Changes on Livestock

($0.6m)

($4.0m)

$4.0m

$0.9m

($4.1m)

Less Income Tax Movement (Expense)

$0.2m

($1.3m)

($0.8m)

$0.6m

$0.5m

Net Surplus / (Deficit) After Income Tax

$0.09m

$0.5m

$5.3m

$1.2m

($6.7m)

Other Comprehensive Income

$1.2m

$18.3m

$37.4m

$12.2m

$68.0m

Total Comprehensive Income

$1.3m

$18.8m

$42.7m

$13.5m

$61.4m

Total Revenue

Total Expenses

$22.6m

$23.4m

(2022: $26.3m)

(2022: $24.7m)

Operating Surplus (Deficit)*

($0.8m) (2022: $1.6m)

* before finance costs, non operating revaluations and tax

33

BALANCE SHEET HIGHLIGHTS For the Year Ended 30 June 2023 Assets 2019

$207.7M $227.6M

2020

$272.4M

2021

$287.0M

2022

$344.3M

2023

Liabilities $47.6M

2019

$49.5M

2020

$52.6M

2021

$54.4M

2022

$51.4M

2023

Equity 2019 2020 2021 2022 2023

34

$160.1M $178.1M $219.7M $232.5M $293.0M

TOTAL BORROWINGS VS VALUE OF LIVESTOCK AND STORES ON HAND

46 44 42

Millions

40 38 36 34 32 30 2018

2019

Biological Assets (Current only)

Total Equity

$293.0m (2022: $232.5m)

2020

2021

Stock on Hand

2022

2023

Borrowings

BUSINESS ROUND-UP Intended to give shareholders a deeper understanding of Ātihau business activities, the following summary provides key statistics, highlights and challenges of the year, and at-a-glance financial and non-financial information for each of our business units.

35

Ohotu and Tohunga

Key Stats

2,690

hectares

2,400 effective hectares FINISHING FARMS

5 staff across Overview

the two farms

The focus of any finishing farm is growing young stock as fast as possible and producing high-quality products – and the team really delivered this season. By selling at a slightly lower weight than usual, the goal of reducing the number of three-year-olds on hand was exceeded with a 72% reduction in the number of older cattle on the farm at the end of the year. The lower weight did not affect the quality of the meat, with more than 90% of animals achieving the required marbling score. The development of the farms was prioritised with subdivision and reticulated water schemes being extended. This has allowed for improved pasture management, resulting in improved weight gain rate in both cattle and lambs.

32,434

lambs finished

465 heiffers 2,398 steers

finished

Surplus per hectare

Financial Performance $1.0 million surplus (2022 $1.0 million surplus) before finance costs and non-operating revaluations and tax.

Revenue

2022

$381

$384

Expenses

2023

$3.2m

2023

$2.2m

2022

$3.3m

2022

$2.3m

Other

$457,271 (2022: $342,732)

Beef

$1,631,282 (2022: $1,748,140)

Wool

Sheep

36

2023

$35,401 (2022: $48,008)

$1,146,333 (2022: $1,201,836)

Operating

Depreciation

Employee Costs

$1,719,845 (2022: $1,759,236) $126,471 (2022: $146,267) $397,906 (2022: $402,363)

Te Pā

Key Stats

5,730

hectares

4,200 effective hectares BREEDING/ FINISHING FARM

6 full time staff 2 first-year +

Overview

apprentices

16,500 ewes 16,000 lambs

Finishing rates were high this year with minimal tail end lambs sold store and 80% of two-year-old steers finished before their third winter, with good marble scores achieved.

Faster finishing and a good season enabled the purchase of lambs from other Ātihau farms to finish, not a normal Te Pā practice. A total of 180 heifers and 4000 ewe hoggets were mated. The station was also the venue for an Angus Pure field day entitled ‘What’s The Beef?’.

finished

90 heiffers 370 steers finished

1,000 cows

Financial Performance

Surplus per hectare

$1.65 million surplus (2022 $1.0 million surplus) before finance costs and non-operating revaluations and tax.

Revenue

2023

2022

$289

$176

Expenses

2023

$4.2m

2023

$2.5m

2022

$4.2m

2022

$3.2m

Other

$38,410 (2022: $47,455)

Operating

$133,905 (2022: $219,131)

Employee Costs

Wool

$172,851 (2022: $184,542)

Beef

$1,253,503 (2022: $715,679)

Apiary Sheep

Depreciation

$1,813,921 (2022: $2,576,572) $234,720 (2022: $211,522) $527,828 (2022: $498,586)

$2,636,236 (2022: $3,129,062)

37

Tawanui

Key Stats

2,360

hectares

1,750 effective hectares BREEDING/ FINISHING FARM

3 staff Overview

9,000 ewes 8,000 lambs

The team at Tawanui are working smarter at their mahi, with improvements to farm infrastructure lifting efficiency. A fenced laneway running alongside Oruakukuru Road up to the woolshed has made it a safer and a more straight-forward task to get the sheep in. Upgrades to the board and catching pens once inside has helped make shearing less arduous. An extension of the water reticulation system to include some of the external lease blocks is also in the works. A total of 1800 ewe hoggets were mated.

finished

110 steers

finished

400 cows

Financial Performance

Surplus per hectare

$0.5 million surplus (2022 $0.8 million surplus) before finance costs and non-operating revaluations and tax.

Revenue

2022

$246

$375

Expenses

2023

$2.1m

2023

$1.5m

2022

$2.3m

2022

$1.5m

Other

$11,609 (2022: $6,903)

Operating

Apiary

$155,503 (2022: $242,892)

Employee Costs

Sheep

$1,477,107 (2022: $1,665,571)

Wool Beef

38

2023

$72,528 (2022: $138,095)

$416,738 (2022: $346,429)

Depreciation

$1,131,010 (2022: $1,081,930) $124,553 (2022: $137,981) $296,255 (2022: $294,701)

Ohorea

Key Stats

5,630

hectares

3,850 effective hectares BREEDING FARM

7

staff

Overview

16,000

Despite the challenge of staff shortages at Ohorea Station, several key projects have been completed on farm. These include 3 kilometres of riparian fencing, the installation of water supply to paddocks along the Mangawhero River, and further renovations to staff housing. A total of 120 heifers and 3000 ewe hoggets were mated.

ewes

950 cows

Financial Performance

Surplus per hectare

$1.6 million surplus (2022 $1.3 million surplus) before finance costs and non-operating revaluations and tax.

Revenue

2023

2022

$292

$236

Expenses

2023

$3.4m

2023

$1.8m

2022

$3.6m

2022

$2.2m

Other

$13,883 (2022: $8,359)

Operating

$414,347 (2022: $439,895)

Employee Costs

Wool

$138,420 (2022: $174,047)

Beef

$880,129 (2022: $498,724)

Apiary Sheep

Depreciation

$1,200,404 (2022: $1,635,448) $153,287 (2022: $158,015) $498,976 (2022: $497,827)

$2,047,228 (2022: $2,501,296)

39

Te Paenga

Key Stats

3,500

hectares

2,530 effective hectares BREEDING FARM

5 Overview

staff

An increase in the weaning weights of both lambs and calves was achieved this year and is the result of improved grazing management during the calving and lambing periods. All steer calves were sold at weaning in a change to the farm system to allow for a slight increase in breeding cows and the mating of heifers as yearlings. By selling steer calves early we will be able to priority feed weaner heifers, so they achieve the weights required for mating. Some capital fencing was completed at Te Paenga during the year and the construction of a three-bay shed also started so that farm machinery can be stored under cover.

10,500 ewes

750 cows

Financial Performance

Surplus per hectare

$0.43 million surplus (2022 $0.57 million surplus) before finance costs and non-operating revaluations and tax.

2022

$125

$163

Revenue

Expenses

2023 $2.1m

2023

$1.7m

2022 $2.2m

2022

$1.6m

Other

$20,294 (2022: $2,319)

Operating

$260,614 (2022: $511,387)

Employee Costs

Wool

$117,243 (2022: $60,917)

Beef

$607,111 (2022: $467,315)

Apiary Sheep

40

2023

$1,188,679 (2022: $1,180,183)

Depreciation

$1,305,272 (2022: $1,215,901) $71,696 (2022: $75,938)

$378,374 (2022: $359,822)

Papahaua

Key Stats

6,280

hectares

1,900 effective hectares BREEDING FARM

4 Overview

staff

The cause of high losses during lambing was identified as the presence of toxoplasmosis in the one-year-old (two tooth) ewes, despite a vaccination programme. We are working with the veterinary team to address the issue, the source of which may be a high feral cat population on the station. New pastures delivered improved lamb growth rates, and both the calving percentage and weaning weights also improved. The construction of an on-farm home kill facility was completed to a high standard, achieving compliance with farm assurance auditing standards.

8,500 ewes

480 cows

Financial Performance

Surplus per hectare

$0.03 million surplus (2022 $0.49 million surplus) before finance costs and non-operating revaluations and tax.

Revenue

2023

2022

$5

$78

Expenses

2023

$1.7m

2023

$1.7m

2022

$2.3m

2022

$1.8m

Other

$17,250 (2022: $11,656)

Operating

$329,346 (2022: $1,012,782)

Employee Costs

Wool

$105,672 (2022: $79,879)

Beef

$353,957 (2022: $273,553)

Apiary Sheep

Depreciation

$1,225,481 (2022: $1,359,127) $156,215 (2022: $166,423) $346,806 (2022: $367,458)

$952,317 (2022: $1,005,901)

41

Waipuna

Key Stats

5,210

hectares

1,100 effective hectares BREEDING FARM

3 Overview

staff

The benefit of fencing off gorges on the property is being realised with recorded stock losses reduced. The amount of grass in designated ‘safe’ paddocks was allowed to build up so cows could calve there, which improved the calving percentage. A big focus this year has been on cost control, with a change in cropping policy reducing the chance of failure. The team installed a reticulated water system on the Tower block instead of contracting the work out, and at the same time subdivided the area into smaller paddocks to improve cattle growth rates on the area. Around 70 hectares of the less productive pasture has been prepared for forestry planting, with more to come.

6,000 ewes

250 cows

Financial Performance Surplus per hectare

$0.05 million surplus (2022 $0.17 million deficit) before finance costs and non-operating revaluations and tax.

Revenue

2022

$10

-$34

Expenses

2023

$1.2m

2023

$1.1m

2022

$1.2m

2022

$1.4m

Other

$12,011 (2022: $50,032)

Operating

$747,934 (2022: $992,703)

Apiary

$329,731 (2022: $502,153)

Employee Costs

$271,130 (2022: $274,746)

Sheep

$564,345 (2022: $530,885)

Wool Beef

42

2023

$38,213 (2022: $58,136)

$287,939 (2022: $140,539)

Depreciation

$163,141 (2022: $190,207)

Hapuawhenua

Key Stats

415

hectares

395 effective hectares DAIRY UNIT

6

staff

Overview An extremely wet spring led to badly damaged farm races which caused increased instances of lameness in the herd. Efforts to reduce the Somatic Cell Count (an indicator for mastitis) resulted in a 195,000 average for the season, down from 224,000 the previous year – proof of success. Water quality was improved for both cows and humans, with a change of water source for paddocks, dairy shed and farmhouses. New cattle yards have been constructed in the middle of the farm meaning calving paddocks can be used away from the effluent area and pastures more prone to being water-logged. A new manager’s house was completed and a full complement of six team members saw out the season.

680 cows

Financial Performance Surplus per hectare

$0.35 million surplus (2022 $0.87 million surplus) before finance costs and non-operating revaluations and tax.

2023

$862 Revenue

2022

$2,117

Expenses

2023

$2.2m

2023

$1.8m

2022

$2.5m

2022

$1.6m

Other Milk

Livestock Dairy

$55,443 (2022: $71,975)

Depreciation

$108,572 (2022: $90,739)

$166,356 (2022: $200,169)

Operating

$1,346,099 (2022: $1,140,014)

$2,023,123 (2022: $2,235,916)

Employee Costs

$432,412 (2022: $398,816)

43

AWHI Miere Overview Honey production across the country was exceptionally low this season, with many beekeepers producing little or no honey due to poor weather in mānuka-producing regions. Although only half of last season’s record mānuka crop was produced, 53 tonnes of mānuka honey and another 10 tonnes of other honey varieties was a good result for the team. Our partners Oha and Central Plateau Honey experienced similar impacts producing 31 tonnes of honey from close to 2,000 external hives on our whenua.

While the challenging season saw many beekeepers leave the industry and, combined with the poor crop and falling hive numbers nationally (down by 20% from 2019 to 2022 with another drop likely in the past 12 months), this does help to address the recent oversupply of honey. An expected subsequent rise in demand will mean our stored honey inventories will start to reduce. In addition, a long-term supply agreement with our key trading partner Manukora has progressed to deliver greater value and certainty around our future honey sales.

Ongoing issues with pests and disease added to the beekeepers’ challenges. An outbreak of American

Te Hou Farm Overview The purchase of the farm next door to Te Hou Farms and the installation of an underpass has seen the dairy platform increase by 100 hectares. A new shed has also been constructed to reduce milking times and allow the herd to grow to 1600 cows. The blueberry operation on the farm is being wound down after failing to deliver the yields expected, and a small area of forestry will be harvested.

44

Foulbrood (AFB) brought in with the introduction of new externally sourced colonies added to ongoing issues with varroa mite during the autumn. AFB is a notifiable disease requiring destruction of the hive within seven days. In response, changes have been made to the mite treatment programme and externally sourced colonies will no longer be brought in, reducing the risk of importing disease.

We expect to make health and productivity gains from producing our own locally bred Queen bees for the first time this spring, to replace ageing or unhealthy matriarchs. This provides greater control over key determinants of hive health, temperament, and production, as well as reducing costs.

Key Stats

Financial Performance $0.8 million deficit (2022 $1.8 million deficit) before finance costs and non-operating revaluations and tax.

Revenue 2023

$2.0m

2022

$0.9m Other

HONEY BEES

$17,048 (2022: $11,675)

Apiary

$2,053,348 (2022: $923,218)

almost 3,600 Ātihau hives on mānuka flow

Expenses 2023

$2.9m

2022

$2.7m Operating

$1,230,896 (2022: $1,250,397)

Employee Costs

$1,118,507 (2022: $1,033,513)

Depreciation

63,024 tonne of honey produced

11 people across 3 apiary teams

$585,368 (2022: $507,026)

The above figures exclude AWHI Miere income and expenses attributed to the stations that the honey is sourced from.

Share of total investment 2023

$9.9m

2022

Key Stats

$9.6m

ARABLE, DAIRY, FINISHING STATION

Share of (deficit) / Surplus 2023

($0.9m)

1100

2022

$0.3m

1225

hectares

22 ha

dairy unit to increase to

timber milled

1300

7 ha

cows

replanted

dairy cows

700

beef cattle

33.3% Ātihau Ownership 45

Forestry and Carbon Farming

Overview Timber harvesting at Ohorea was completed, and the land replanted for the next crop. The preparation for new planting at Waipuna was also completed with a resource consent granted and spot spraying done.

Work was done to take advantage of a fixed price option within the Emissions Trading Scheme. This required an early emission return to be triggered, filled using a mixture of credits and the fixed price option.

Because the carbon price is higher than the fixed price option, this created a surplus of carbon credits which can be sold for a profit. Some carbon credits were sold and the surplus reinvested into the whenua to continue priority work required to lift the farms’ performance. About 30,000 credits remain to be released at a later stage.

Key Stats

475.3 hectares part of Papahaua joint venture

253 hectares at Ohorea, Tawanui, Te Paenga and Waipuna

Shareholder Engagement Overview In light of the impact pandemic restrictions had on shareholder engagement in the past two years, there was an increase in the number of events this year. Two farm tours were held, visiting Ohotū Station, the Apiary Shed, Hapuawhenua (Dairy Farm) and Tohunga Station. These saw excellent participation and engagement from shareholders and fostered a sense of appreciation and pride in the operation of the farms and apiary businesses. Shareholder Hunts were again popular and every year we get more interest, especially from uri who live afar and want the opportunity to come home and reconnect with the whenua.

There was an increase in the number of grants distributed through Te Āti Hau Trust, especially for kaumātua to support them with their wellbeing needs. Supporting our shareholders with share transfers, derivations and dividend information was also a priority this year.

46

Key Stats

9,748 shareholders 5,719

missing shareholders

$3,194,615

unclaimed dividends

Taiao

Overview Increasing legislation in the environmental space has continued to challenge farm system management and allocation of available budgets. Intensive winter grazing regulations now apply and mean significant efforts in planning for, recording and monitoring the management of crops for both farm staff and management.

We employed a summer student to help map intensive winter grazing areas on the stations, making management, consents, and the future Freshwater Farm Plans easier. Also in the compliance space, our emissions auditing has been completed for the 20212022 financial year and emissions monitoring for the 2022-2023 financial year is underway.

Healthy homes and general house inspections have been carried out on 98% of our houses, and the allocation of budget and resources for identified repairs and maintenance continues, with upgraded insulation and sufficient heat sources being priorities.

Efforts to retire more riparian and bush areas on all stations continue with 2.8 kilometres of new Ngā Whenua Rāhui bush retirement fencing completed on Te Pā Station, and 6.5 kilometres of riparian fencing completed on Te Pā, Te Paenga, Ohorea and Papahaua Stations with support from Horizons Regional Council.

A total of 150 poplar poles have been planted for soil conservation on Ohotū and Te Paenga Stations, and 48.2 hectares of mixed native species were planted

at Te Pā. Disappointingly, lower quality seedlings from outside the district and late season frosts have culminated in high mortality, which will need to be addressed.

During the summer, we were privileged to have Ian Ruru from Tairāwhiti facilitate a staff workshop on the Mauri Compass framework. This will help guide native freshwater species monitoring and protection across the whenua. We were grateful for funding support from Te Wai Māori Trust.

The Mauri Compass wānanga was hosted on Te Pā Station. It was empowering, focused on native species and water quality flowing through some of the more intensively used whenua. Staff from Waipuna and Te Pā Stations have become accredited in the Mauri Compass framework, helping to ensure we continue to adapt, and to care for natural resources as best we can while maintaining productive farm operations. Another outcome in this area has been the start of freshwater species monitoring on Te Pā.

As well as the successful funding application from Te Wai Māori Trust, we secured a $130,000 grant from Te Aka Whai Ora for next financial year 2023/2024.

This will fund the compilation of wāhi tapu and wāhi tūpuna kōrero, enabling the capture of knowledge for generations to come. An application for funding from Whanganui River Enhancement Trust (WRET) to conduct eDNA testing on Waipuna Station waterways during the 2023-2024 summer was also successful.

47

People Key Stats

72 staff 40% uri 19.1% turnover

Overview The attraction and retention of staff is currently a challenge throughout the farming industry due to a reduction in the number of people available to work.

We are working hard to maintain a full complement of staff, while supporting learning and development pathways and cultural competency.

Acting on feedback from the He aha ōu whakaaro mō te koporeihana o Ātihau-Whanganui teams survey, we have actioned extensive leadership training opportunities for our farming teams which has been well received. We have carried out benchmarking to ensure our remuneration levels are in line with

the market. We have also focused on building connections across the different teams and have had positive feedback and spent more time aligning our team goals and how we measure our success across the Group.

A focus on contractor engagement and validation has lifted the Health & Safety 365 score to 70, a level we wish to maintain going forward. Clothing to protect our kaimahi from the elements is more sustainably sourced, with an increase in the proportion of woolbased garments to 75% from 60%.

Governance and Corporate Financial Performance $5.5 million deficit (2022 $2.7 million deficit) before finance costs and non-operating revaluations and tax.

Revenue

Expenses

2023

$0.1k *

2023

$5.5m

2022

$3.3m

2022

$6.1m

Forestry & Other Wool

Apiary

$1,621,573 (2022: $3,251,834) $364 (2022: $59,174)

$32,935 (2022: $27,364)

*Loss on Sale of ETU ($1,653,822).

48

Operating

$3,320,097 (2022: $4,277,294)

Employee Costs

$2,051,950 (2022: $1,631,520)

Depreciation

$204,060 (2022: $197,373)

Ātihau-Whanganui Incorporation EXECUTIVE LEADERSHIP TEAM

Andrew Beijeman

Debbie Hyland

Whetu Moataane

Chief Executive Officer

Chief Financial Officer

Culture & Legacy Manager

Siwan Shaw

Dan Adams

Business Manager Farming

Business Manager Apiary

"The Executive Leadership Team acknowledge the hard work of kamahi during the year, both in the work completed during the year, the improvements that have been made which will support us in the future, and for their commitment to the Āti Hau Way – as we work together to achieve the collective aspirations, Āti Hau, mā te rahi Āti hau”

49

TE ĀTI HAU TRUST CHAIR REPORT

50

"It has been a busy year where we have continued to support our whānau to reach their potential, so that, in turn, they can help bring vitality and capability to our wider whānau and communities."

Tēnā kautau i roto i ngā tini āhuatanga o te wā.

I am honoured to present, on behalf of Te Āti Hau Trust, the annual report for the 2022/2023 financial year.

It has been a busy year where we have continued to support our whānau to reach their potential, so that, in turn, they can help bring vitality and capability to our wider whānau and communities.

Educational grants remain a key way pūtea is distributed by the Trust, but we have been delighted to see an increase in the number of applications from our kaumātua and have a new approach to supporting our marae that will better meet their needs and requirements.

As a Trust, we will continue to review and evaluate our processes and strategic focus to lift the efficiency and effectiveness of how we help our people, guided by our principles of mātauranga (education), kotahitanga (unity of purpose), manaakitanga (nurture and reciprocate), whanaungatanga (collaboration), tiakitanga (active stewardship), mana tūpuna (legitimacy) and te reo (identity).

51

"In order to help support marae with their project planning and operational costs, the Trust is now providing 47 marae across the rohe with a grant on a three-year cycle."

Kaumātua Grants

The change to processing applications from our kaumātua every month from a quarterly cycle has been well received, with 157 grants totalling $124,874 being approved. Being able to approve health and wellness grants, such as dental work, hearing and optical aids in a timely manner means our elderly can access the items they need more quickly, to live more comfortable lives.

We would encourage any kaumātua who have any specific health or wellbeing requirements to reach out to us so we can help align need to criteria and provide support.

Marae Grants

In order to help support marae with their project planning and operational costs, the Trust is now providing 47 marae across the rohe with a grant on a three-year cycle.

Marae groups can also apply for a one-off grant to fund a specific infrastructure project at any time.

This year, ten marae received grants totalling $59,000.

In total the Trust distributed $333,527 in General Grants during the year.

Educational Grants

The migration of the application process for all educational grants to a centralised portal hasn’t been without its challenges, but solutions have been identified and we are looking forward to some site and process enhancements in 2024 to help improve the experience of uri.

52

We encourage potential recipients to ensure they submit a full application to achieve the best possible outcome. Please do reach out for assistance with your application – we are happy to help.

In total, the Trust awarded $74,950 in 161 separate grants to those attending tertiary education, as well as a further $12,750 to support 51 high schoolers in their academic studies. Trust tertiary scholarships were also awarded, to the value of $11,000.

The Trust is also keen to help those who are following a trades apprenticeship pathway, and this year seven trades grants were approved to a total of $4,900. In all, $103,600 in Educational Grants was distributed.

Governance and Strategic Direction

The Trust is fortunate to have Dr Te Tiwha Puketapu, Chair of Ātihau-Whanganui Incorporation, and Che Wilson, Chair of the Audit and Risk Committee, join myself, Jonelle Hiroti-Kinane and Claire Cilliers (independent trustees), Tukariri Dryden (associate trustee) and Charles Chadwick (associate director), around the Trust table this past year.

It has meant we have been able to reset and realign our focus and strategic approach with those of our parent Incorporation, boost understanding of the role the Trust plays in achieving the desired outcomes for the Āti Hau Group, and work together for the benefit of our whānau.

We will continue to seek opportunities to build partnerships with businesses, groups and organisations, which help leverage what we can provide to our uri and whānau. Our relationship with the Māori Education Trust is one example of the benefits this type of relationship can bring, with additional funding helping boost the value of our educational grants and scholarships that Te Āti Hau Trust approves. Te Herenga Waka Victoria University’s Taihonoa strategic partnership approach also enables students receiving grants from the Trust to be awarded extra pūtea.

Acknowledgements

I would like to acknowledge the mahi of my fellow Trustees, and that of the Trust members who stood down last year (Shar Amner, Mavis Mullins and Aaron Rice-Edwards), for their considered and valuable input into the way the Trust is administered.

I also acknowledge the ongoing support of Ātihau-Whanganui Incorporation and thank the Committee of Management for their leadership and guidance.

Ngā mihi

Dr Rāwiri Tinirau Te Āti Hau Trust Tiamana

Te Āti Hau Trust TRUSTEES AT 30 JUNE 2023

Dr Rāwiri Tinirau

Dr. Brendon Te Tiwha Puketapu

Che Wilson

Chair, Te Āti Hau Trust

Trustee

Trustee

Jonelle Hiroti-Kinane

Claire Cilliers

Tukariri Dryden

Independent Trustee

Independent Trustee

Associate Trustee

53

TE ĀTI HAU TRUST Trust scholarships provide more than pūtea

Trust Case Study

Two students supported by Te Āti Hau Trust are focusing on the value of mātauranga Māori in the taiao space.

The wāhine say at the heart of their studies is the way mātauranga Māori can be used to add different perspectives to understanding the environment.

Leana Barriball is a shareholder descendant and also of Ngāti Tama, Te Atiawa, Ngāti Kahungunu and Rongomaiwahine descent. She is using both the Western scientific approach and mātauranga Māori in her PhD studies, looking at the impact rising sea levels would have on two īnanga spawning sites in the rohe of Ngāti Kahungunu.

She is the recipient of the PhD Scholarship, which has enabled her to fund the time she needed to spend in the field collecting raw data for her studies.

“For me, the two approaches are different ways of knowing things.

Science is very specific to the thing you are looking at – you control everything around it, isolate it, to get to know it better. Mātauranga Māori makes connections and looks at how the thing behaves in response.

It uses whakapapa, pūrākau and tohu to be able to make predictions and provide understanding. Neither is better than the other, they are just

54

different ways of learning about the thing.”

Working part-time at the Parliamentary Commission for the Environment, the watchdog for all environmental agencies, studying part-time and co-parenting her two tamariki, Leana is in her third year of the five years she thinks it will take to complete her work.

“There’s a lot of juggling, and, unfortunately, money can be a big stressor when you are taking on a period of study,” says Leana.

“Receiving the scholarship has made a big difference in enabling me to complete my fieldwork

without having to worry all the time.

I’ve also been able to give koha in acknowledgement and appreciation for those who have shared their time and knowledge with me.”

But the scholarship means more than just pūtea.

“Knowing that my iwi can see the value in my work, and how it will benefit future generations, gives me a greater belief in myself,” she says.

And the same is true for Pania Tutemahurangi (Ngāti Tūwharetoa, Te Āti Haunui-a-Pāpārangi, Whakatōhea), recipient of the Ravensdown Scholarship and

“Knowing that my iwi can see the value in my work, and how it will benefit future generations, gives me a greater belief in myself.”

Leana Barriball

studying Bachelor of Resource and Environmental Planning with Māori Studies at Massey University.

“When I applied, I didn’t know if this was even the right direction for me,” she confesses. “But receiving the scholarship gave me a real feeling that my whānau believed in me and so I should believe in myself.”

“Now I know I am doing something right and realise that I am a generation that can make a huge difference in the place for those to come.”

Her course of study will allow her to pursue many different avenues – for example, planning policy, resource consent, transport, urban planning – while looking though a Māori world lens.

“I love the fact that the learning and knowledge I am gaining is in something that is so relevant for my whānau and iwi in how we care for our environment, the lakes and awa and I want to come home and work with and for them one day,” she says.

Pania studies full-time as well as running her own gym. She also had a part-time job at Kapiti Coast District Council, but the scholarship meant she could give that up and focus more on her studies.

“It’s made such a difference to me

that I don’t have to worry about the money I need for my living expenses quite so much,” she says. She has one more year to go before completing the four-year course.

can feel very daunting to talk about yourself in such a positive way, but it is important we do these things so others can see our passion and support us in it.”

Both Leana and Pania say they would encourage anyone thinking of applying for a scholarship to do so.

“I thought ‘what have I got to lose?” says Pania. “And it turned out that actually I had so much to gain. Now I am on track pursuing a career I am passionate about, in a way that will benefit who and where I come from.”

“It does mean you have to put yourself out there and talk about what you want to achieve, and the successes you have chalked up to get to this point,” says Leana.

“Māori are a humble people, so it

“Sometimes you just have to jump in and give it a go.”

55

Summary of Grant Distribution For the year ended 30 June 2023

Total Grant Distribution

$437,127 (2022: $266,045)

452

TOTAL GRANTS

(2022: 412)

Education Grants

General Grants

$103,600

$333,527

(2022: $135,950)

(2022: $130,095)

165

56

287

TOTAL GRANTS

TOTAL GRANTS

(2022: 203)

(2022: 209)

NORTHLAND

$3,033 6 Grants

AUCKLAND

BAY OF PLENTY

$19,617

$15,579

26 Grants

20 Grants

WAIKATO

GISBOURNE

$17,945 $1,000

$700

29 Grants

AUSTRALIA

1 Grant

TARANAKI

1 Grant

$6,903

HAWKE'S BAY

10 Grants

$7,040

11 Grants

WHANGANUI-MANAWATU

$315,881 292 Grants

WELLINGTON

NELSON

$36,672

$1,500 1 Grant

MARLBOROUGH

35 Grants

$329

1 Grant

CANTERBURY

$5,429 7 Grants

OTAGO

$4,750

10 Grants SOUTHLAND

$750

2 Grants

57

Summary of Grant Distribution For the year ended 30 June 2023

Areas of Study

Other

Law

4

12

Engineering & Design

Trades

9

7

Health

Business

23

9

Science

Te Ao Māori

8

20

Education

Arts

9

12

Education Grants

58

Postgraduate Grants

Undergraduate Grants

Secondary School Grants Y10-11

$22,650

$48,800

$12,750

17 TOTAL

84 TOTAL

51 TOTAL

(2022: $37,300)

(2022: $73,100)

(2022: $11,750)

Places of Study

Other *

20

Massey University

19

Victoria University of Wellington

13

University of Waikato

12

University of Auckland

10

UCOL

6

Te Wānanga o Raukawa

6

University of Canterbury

6

Te Wānanga o Aotearoa

5

Otago University

4

AUT

3

BCITO

3

Eastern Institute of Technology

3

Toi Ohomai

3 *15 different tertiary and educational providers.

General Grants

Marae

Cultural

Kaumātua

Sport, Art & Travel

$59,000

$13,874

$124,874

$19,079

10 TOTAL

8 TOTAL

157 TOTAL

47 TOTAL

(2022: $10,000)

(2022: $1,000)

(2022: $95,775)

(2022: $11,230)

59

Te Āti Hau Trust Education Grants List

SPECIAL SCHOLARSHIPS Ātihau Scholarships awarded by the Ātihau Committee of Management during the year ended 30 June 2023.

Recommended by Te Āti Hau Trust.

Robin Murphy-Peehi Hope Tioro

Master of Health Psychology

To celebrate 60 years of the Māori Education Trust, Hope Tioro was awarded a one off special scholarship to the value of $30,000. Ātihau Whanganui Incorporation

8,000 per year for two years

Te Āti Hau Trust

2,000 for one year

Māori Education Trust

10,000 for one year

Victoria University

10,000 for one year

Ohotū

Huia Wiari

Bachelor of Business Studies

2,000 per year for two years

Jasmine Fraser

Bachelor of Management Studies

2,000 per year for two years

AWHI/Ravensdown Scholarship Painia Tutemahurangi

Bachelor in Resource and Envirnmental Planning

TE ĀTI HAU TRUST SCHOLARSHIPS

TOTAL: $ 9,000

PhD Scholarships

Qualification

Doctor of Philosophy in Environmental Science ​

3,000

Justin Brooks

Doctor of Philosophy in Physics

3,000

NZ Certificate in Agriculture

3,000

Leana Barriball

Agriculture Scholarship Logan Blackburn

60

5,000 per year for four years

$

Te Āti Hau Trust Education Grants List

TRADES Recipient

Leyton Tapa

Qualification

Apprenticeship in Plumbing and Drain Laying

TOTAL: $ 4,900 $

700

Neo Tichbon

Apprenticeship in Building

700

Wayne Poutini

Apprenticeship in Carpentry

700

Troy Stanley

Apprenticeship in Carpentry

700

John-Dayne Cuthers-Sheehy

NZ Certificate in Commercial Barbering

700

Karepa Kaiawha

NZ Certificate in Light Automotive Egineering

700

David Ball

NZ Certificate in Light Fabrication

700

POSTGRADUATE INCLUDING MEDICAL 4YRS+

TOTAL: $ 24,150

Recipient

Qualification

Masters in Business Studies

650

Karli Selwyn

Post Graduate Diploma in Māori Health

750

Lorraine Tyson

Postgraduate Diploma in Clinical Pharmacy

Fiona Nicoll

Bachelor of Medicine and Surgery

1,300

Ngahuia Kawau

Postgraduate Diploma in Education

1,400

Seth Haapu

Doctor of Clinical Psychology

1,400

Tomairangi Hipango

Graduate Diploma in Teaching and Learning Secondary

1,400

Ashleigh Hobbs

Post Graduate Diploma in Nursing

1,500

Briaan Brown-Sharpe

Bachelor of Medicine and Surgery

1,500

Brydee Stone

Postgraduate Diploma in Teaching & Learning

1,500

Candice Thompson

Master of Creative Writing

1,500

Chontelle Wallace

Poutahu Whakaakoranga

1,500

Holly Reynolds

Masters of Law

1,500

Jolene Yandall

Post Graduate diploma in Health Science

1,500

Leslie Skinner

Masters of Māori and Indigenous Leadership

1,500

Rylee Dudley

Bachelor of Medicine and Surgery

1,500

Suraya Goss (2022)

Master of Arts

1,500

Suraya Goss (2023)

Master of Arts

1,500

Suzanne Hepi

$

750

61

Te Āti Hau Trust Education Grants List

UNDERGRADUATE

TOTAL: $ 48,800

Recipient

Qualification

Bachelor of Law

250

Ashleigh Tahiwi

Graduate Diploma of Learning and Teaching

300

Jenna Connors

$

Daniel Tauru

Certificate in Real Estate

300

Gaylene Bell

Graduate Diploma in Psychology

300

Jaimee-Lee Coleman

Certificate in Te Reo Māori

300

Kelly Karena

Bachelor of Counselling and Mental Health

300

Metiria-Hinekorangi Doyle

Bachelor of Law and Commerce

300

Mike Harmony Taurerewa

Certificate in Te Ara Reo Māori (He Pī Ka Rere)

300

Robyn Poutini

Certificate in Health and Wellbeing

300

Anna Van Der Lubbe

Bachelor of Environmental Science

350

Belinda Katene

Graduate Certificate in Applied Learning

350

Chevy Winterburn

Certificate in Small Business

350

Daniel Chadfield

Bachelor of Applied Theology

350

Gaylene Tiatia

Diploma in Māori Arts- Toi Paematua - Raranga

350

Marion Matenga

Certificate in Manu Taiko

350

Tamari Gray-Kaiwahia

Certificate in Small Business

350

Makayla Kahi

Bachelor of Medicine and Surgery

400

Metiria Doyle

Bachelor of Law & Commerce

400

Mollie Tuohy

Bachelor of Criminal Justice

400

Susan Vette

Bachelor of Midwifery

400

Ashley Beard

Bachelor of Law

500

Brooklyn Bishop

Bachelor of Arts

500

Mollie Tuohy

Bachelor of Criminal Justice

500

Natalia Healey-Forde

Bachelor of Medicine and Surgery

500

Paris King

Bachelor of Anatomy

500

Sophie Tuohy

Bachelor of Commerce

500

Christina McMaster

Poutuarongo Te Rangakura

600

Gemma Walsh

Bachelor of Law and Arts

600

Huia Wiari

Bachelor of Business Studies

600

Jasmine Raukawa Fraser

Bachelor of Management Studies

600

CONTINUED

62

Te Āti Hau Trust Education Grants List

UNDERGRADUATE (CONTINUED)

TOTAL: $ 48,800

Jill Sheehy

Diploma in Arts

600

Joshua Waitai

Diploma in Construction

600

Joziah Townsend

Bachelor of Arts

600

Korimako Mako

Bachelor of Teaching Early Childhood Education

600

Lucy Brown

Bachelor of Health Science

600

Mihiata Davis

Bachelor of Applied Management

600

Mya Mataki-Wilson

Bachelor of Arts

600

Paris Urwin

Certificate of Arts and Design

600

Peppa Reweti

Bachelor of Design with Honors

600

Sam Buckley

Bachelor of Engineering

600

Sophia 'Unga

Bachelor of Arts

600

Amaia Tāwaikohu Pepere

Certificate in Tourism, Airline and Flight Attendant Operations

700

Belinda Kahu Hohepa

Certificate in Health & Well-being Social Services

700

Caleb Cribb

Bachelor of Computer and Information Science

700

Chanel Kahaki

Bachelor of Nursing

700

Christie Wallace

Bachelor of Law & Bachelor in Te Reo Māori

700

Daniel Kereti

Bachelor of Architectual Studies

700

Darcelle Wall

Bachelor of Bicultural Social Work

700

Darryl Ryder

Diploma in Heke Mātauranga Māori

700

Decadia Pakinga

Certificate in Mental Health and Wellbeing, Social Services

700

Georgie Bell

Bachelor of Visual Communications

700

Gina Pohe

Bachelor of Arts

700

Isaiah Teki

Diploma in Architectual Technology

700

Jackie Tamaki

Diploma in Heke Rongoa

700

Jessie Moana Maruera

Bachelor of Business Studies

700

Kahira Williams

Bachelor of Science

700

Khan Love

Bachelor of Health Psychology

700

Kimiora Rangirangi

Bachelor of Nursing

700

Kyla Joseph

Bachelor of Arts Degree

700

Lena Gregory

Toi Paematua

700

Lexus Taiwhati

Diploma in Beauty Therapy

700 CONTINUED

63

Te Āti Hau Trust Education Grants List

UNDERGRADUATE (CONTINUED) Louise Taiaroa

Bachelor of Arts

700

Luke August

Bachelor of Mechanical Engineering

700

Mackenzie Froyle de Heer

Bachelor of Law & Commerce

700

Mackenzie Pritchard

Bachelor of Communication

700

Maia Waudby

Bachelor of Climate Change

700

Matua Parkinson

Te Tohu Paetahi

700

Min Rogers

Bachelor of Law

700

Nani-Rose Sadlier

Certificate in Music

700

Nova Waretini-Hewison

Bachelor of Arts

700

Paige Wilson

Te Tohu Paetahi

700

Riana Carroll

Bachelor of Arts

700

Rihari Peeti

Bachelor of Applied Sciences Wellness & Exercise

700

Rylee Dudley

Bachelor of Medicine and Bachelor of Surgery

700

Scarlett Blackburn

Bachelor of Law & Bachelor of Commerce

700

Shade Tuaine-Whanau

Diploma in Heke Te Rangakura

700

Shari Scanlon

Diploma in Business

700

Shawnyscee Johnson

Certificate in Study & Career Preparation

700

Sophie Sargent

Akopai & Te Puna

700

T’Leya Wood

Diploma in Te Reo Māori (Te Tohu Paetahi)

700

Tamsin Hodson

Bachelor of Sport and Recreation

700

Te Raina Durie

Bachelor of Arts

700

Xavia Bennett

Graduate Diploma in Psychology

700

Zara Bristol

Bachelor of Teaching

700

INTERNATIONAL Recipient

Kobe Millar

64

TOTAL: $ 48,800

Qualification

Entrepreneurial Studies

TOTAL: $ 2,000 $

2,000

Te Āti Hau Trust Education Grants List

SECONDARY - YEAR 10 ($250) Recipient Ahitoro Poutini-Wiari Ali Whanarere-Tauri Anahera Bennett Aria Bannister Braxton Tiraha-Siou Caid Tiraha-Siou Dayton Muru-Albert Devon Wheeler-Peeti Gavane Nikora-Nimarota Harlen Samuels-Solitt Joseph Hema Joseph Takiwa Kaira McCausland Kamaea Teki Karena-Marie Peeti-Karatau

Education Provider Te Kura Kaupapa Māori o Tupoho Whanganui High School Taihape Area School Kavanagh College Wellington College Wellington College Ruapehu College Rangitikei College Manukura Taupo-nui-a-Tia College Taupo-nui-a-Tia College Palmerston North Boys' High School Tauhara College Whanganui Girls' College Rangitikei College

Recipient Kayden Dickinson-Robinson Latrell Moses Maia Iversen Moana Taupa'u-Rogan Nehemiah Matoe-Kapi Norton Reihana Paetyn Brown Phoebe Huxtable Tayma Jahnke Te Orangi Te Riaki Te Turi Tamakehu-Keremeneta Violet Ranginui-Mansell Witerina Hough Zavier Alexander

Education Provider Cullinane College City College Mahurangi College One Tree Hill College Palmerston North Boys' High School Northland College Ruapehu College Taihape Area School Palmerston North Girls' High School Ruapehu College Te Kura a Iwi o Kokohuia Whanganui High School St Catherine's College Dannevirke High School

SECONDARY - YEAR 11 ($250) Recipient Aria Bannister Bobbigirl Watson Eden Mary Rolfe Jahnaia Brown Jai Ngataki-Karehana Jayaiah Ashford Jeremiah Nicholls Jese Stevens Kaitlyn Williams Keara Moses Kingi Edwards

Education Provider Trinity Catholic College St Joseph's Māori Girls' College St Peters College Ruapehu College Hato Paora College Otaki College St Bernard's College Taupo-nui-a-Tia College St Matthew's Collegiate School Whanganui City College Whanganui High School

Recipient Kiritea Te Reo Lazario Pakinga Manaia Marshall-Ponga Mary Carston Max Campbell-Smith Mikaere Cooper Quilashey Nahona-Tamou Tahatika Te Riaki Tamauira Hawira-Harrison Te Karami Barratt Te Orangi Te Riaki

TOTAL: $ 7,250

TOTAL: $ 5,500

Education Provider Botany Downs Secondary College Cullinane College Whanganui City College Baradene College Mount Albert Grammar School Hato Paora College Cullinane College Ruapehu College Whanganui City College Whanganui High School Ruapehu College

65

Te Āti Hau Trust Education Grants List

SPORT, ART & TRAVEL

TOTAL: $ 19,079

Recipient

Representative Team / Event

Aotearoa Māori Netball National Tournament

120

Jaydis Albert-Hammond

HYRC Tournament

210

Merenia Anahera Ponga

U13 Girls Basketball Champs

250

Keara Ataahua Moses

Various North Island Tournaments

250

Chase Gaitano Benjamin Leach

Training and levy costs

250

Aria Bannister

NZ Squash Nationals

250

Aria Bannister

NZ Short Course Swimming Championship

250

Sartaj Uddamdeep Singh Baidwan

U13 Central Champs

250

Katarina Horne

National Motorcross Championship

250

Ali Whanarere Tauri

AON U15 Nationals Basketball Tournamnet

250

Ihaka Whanarere

AON U13 Basketball Tournament

250

Kingi Mataamua Edwards

Hurricanes Youth Rugby Council Tournament

250

Merenia Houltham

U13 Girls Basketball

250

Tahatika Te Riaki

Hurricanes Youth Rugby Council Tournament

250

Tamelia Blackburn

U19 Girls National Tournament

250

Kingi Mataamua Edwards

National U17 Boys

250

Peara Aumua

NZ Touch Junior Nationals

250

Turongo Arapo Tumanako Tamaki

NZ Touch Junior Nationals

250

Nehemiah Ariki Matoe-Kapi

Regional/National Basketball Tournament

250

Tui Panui

Blue Sox Easter Classic

250

Landon Pointon-Gyde

Rookie Sox U13 Tournament 2023

250

Ihaia Cooper

Whanganui Softball U17

250

Aria Bannister

NZ Junior Open & Junior Worlds Camp

250

Josie Tapa

NZ Touch Junior Nationals

250

Ali Whanarere-Tauri

NZ Touch Junior Nationals

250

Tayma Jahnke

NZ Touch Junior Nationals

250

Ihaia Cooper

NZ Touch Junior Nationals

250

Nevaeh Jane Te Huirangi Blake

Whanganui Netball U16 Reps

250

Sarah Ellilson-Rogan

Whanganui Netball U16 Reps

250

Jahnaia Brown

Whanganui Netball U16 Reps

250

Jaeda Rose Hagley-Tutauha

$

CONTINUED

66

Te Āti Hau Trust Education Grants List

SPORT, ART & TRAVEL (CONTINUED) Recipient

Representative Team / Event

TOTAL: $ 19,079 $

Manaia Marshall-Ponga

Whanganui Netball U16 Reps

250

Paetyn Brown

Whanganui Netball U16 Reps

250

Sarah Maree Herewini

Whanganui Netball U14 Reps

250

Kobi Robinson

Māori Football Aotearoa

250

Frederick Wroe

SONZ Summer Games

499

Parish Vincent Lawrence TeUira Allan

Commonweatlth Games

500

Taiana Day

World Champs in Hungary

500

Hiraka Waitai-Haenga

World Secondary School Rugby Tournament

500

Oliver Wynen

U18 Youth International series 2023

500

Marley Paora Rawhiti Paki Hekenui

Junior World Series, Dubai 2023

500

Kaylin Paora Arapata Huwyler-Hunia

World Bowls Oceania Challenge

750

Lucas William Bush

WKA International World Champs

1,000

Haimona Keelim Tamati-Te Paki

WKA International World Champs

1,000

Lennox Easthope

2023 Softball World Cup

1,000

Chantilli-Rose Metekingi-Waitokia

Pacific Student Leaders Programme

1,000

Tyla-Jaye Hakaria

Outward Bound

1,000

Jorja Rangi

Climbing NZ Open Speed Team

2,000

CULTURAL

TOTAL: $ 13,874

Recipient

Event

St Peter Chanel

Hui Aranga

1,000

Te Wainui-a-Rua Cultural Club

Hui Aranga

1,000

Te Waiora

Hui Aranga

1,000

St Vincents

Hui Aranga

1,000

Pākaitore

Pākaitore Celebrations

1,000

Waimarie Tipene

Imagine Native Film Festival

1,000

Ngapuwaiwaha Marae

Restoration of Carvings

7,000

St Pauls Memorial Church Restoration Project Building repairs

$

874

67

Te Āti Hau Trust Education Grants List

KAUMĀTUA - HEALTH & WELLBEING (UP TO $1,000) Recipient

Recipient

Recipient

Recipient

Adriane Rowe

Erena Mete-Kingi Anson

Marama Taurerewa

Richard Kingi

Aileen Bishop

Ethel Julian

Maree Myers

Riki Robinson

Alan (Beau) Hansen

Frances Joseph

Margaret Haami

Riripeti Liszette Harawira

Amiria Beamsley

Frances Marshall

Margaret Menehira

Robert Hikaka

Andre Mason

Gerald Taputoro

Maria Hepi

Robert Staples

Andrea Thompson

Gloria Biddle

Martin Kumeroa

Rose May Barrow

Andrew Edwards

Gloria King

Mary Te Haara

Ruth Hammond

Angela Tioro-Teki

Haruru Taurerewa

Mary Wakefield

Sandra Ranginui

Annasophia Calman

Helen Chase

Maryanne Hale

Shane Mathews

Anne Marshall

Herehere Pene

Mathew Mataki

Sharon Simons

Anne Metekingi

Hine Stanley

Mereana Hemopo

Shirley Bing

Aroha Te Awa

Huki Bishop

Mereana Kerr

Simon Hepi

Bella Hipera Tioro

Jacqui Turoa-Brown

Mereana Parkinson

Soraya Peke-Mason

Bessie Williams

James Allen

Merolyn Kiriona

Te Aroha Hakaraia

Bessina Rewi-Pehi

Jane Edwards

Michael Wardlaw

Te Huiakama Borrell

Billy Reihana

Janet Townsend

Mike Wardlaw

Te Wainui a Rua Rex Mareikura

Bradley Mc Dermit

Jasmin Alexander

Myra Thompson

Teraraoterangi Metekingi

Carol Rameka

Johanne Patel

Nanette Pirikahu-Smith

Teresa Allen

Carolin Borck

John Cribb

Natalie Tira Pehi

Teresa Ranginui

Cecilia Fromont

John Maihi

Neville Mooney

Teresa Wanihi

Charles Martin

Joyce Kani

Niki Parker

Terrence Ranginui

Charmaine Puru

Julian Broughton

Olive Hawira

Terrie Davey

Cheryl Toa

Juliana Hook

Parehenoa Ponga

Tristine Henare

Christine Herewini

Kahui Maihi

Patricia Ashford

Turoa Ranginui

Clark Kauika-Stevens

Karney Herewini

Patrick Wallace

Valma Wallace

Corrine Kawana

Kereti Maniapoto

Paul Timu

Vanessa Thompson

Cynthia Gotty

Korea Matthews

Pearl Haami

Vivienne Parker

Daisy Cameron

Korina Waitai

Peehi Wilson

Wayne Ormsby

Dale Edwards

Kuini Te Miha-Aldridge

Peter Pauro

Wendy Colledge

Danny Williams

Kurai Toura

Phillip Reweti

Wendy Hansen

Darrel Hall

Lance Teki

Puawai Thompson (Moore)

William Phillips

Denise Golf

Lea Hartley

Raewyn Haapu

William Rangi

Dennis Arahanga

Leoni Short

Raewyn McDonnell

Wipaki Peeti

Dino Ashford

Lilian Wardlaw

Rangi Staples

Yvette McGregor

Elaine Farr

Linda Klue

Rangimarie Hall

Yvonne Rakatau

Elizabeth Houltham

Lorraine Pehi-Littleton

Raukura Koberstein

Elizabeth Taurua

Lorraine Tapa

Raymond Hina

Ellenor Riddle

Mangu Scurr

Renee Hill

Adelaide Mere Taurerewa

68

TOTAL: $ 124,874

Emily Campbell

Maraea Bellamy

Reti Poutini

Te Āti Hau Trust Education Grants List

MARAE

TOTAL: $ 59,000

Recipient

Grant Project

Spouting replacement and drainage

2,000

Matahiwi Marae

Sewerage upgrade

2,000

Maungarongo Marae

Repairs to two roofs carpet Marae and Wharekarakia

2,000

Ngapuwaiwaha

Kitchen Reno & extensions

2,000

Patiarero Marae

Upgrade & install new septic tank

2,000

Te Ao Hou Marae

Retaining wall

2,000

Tuhiariki Marae

Install vinyl in kitchen and dining room

2,000

Māniaiti Marae

Build Whare Paepae & manuhiri shelter

15,000

Koriniti Marae

$

Te Awhitu Whānau Maria Marae

Marae & Papakainga development

15,000

Te Pou o Rongo Marae

Replace roof on wharekai

15,000

AWHI MARAE GRANT ($3000) Recipient

Recipient

Recipient

Hiruharama

Ngapuwaiwaha

Rakato

Kaiwhaiki

Opaea

Raketapauma

Kakahi

Papatupu

Ranana

Koriniti

Paraweka

Te Ao Hou

Makaranui

Parikino

Te Ao Marama

Mangamingi

Peterehema

Te Koura

Maniaiti

Poumaanu

Te Pou o Rongo

Matahiwi

Pungarehu

Tieke

Maungarongo

Putiki

Tirorangi

Mo Te Katoa

Raetihi Te Puke

Tuhiariki

Atene

Ngā Mokai

TOTAL: $ 102,000

Raetiwha

Whānau Maria

69

ĀTIHAU-WHANGANUI INCORPORATION GROUP FINANCIAL STATEMENTS For the year ended 30 June 2023

Ātihau-Whanganui Incorporation Financial Statements for the year ended 30 June 2022

CONTENTS 72

Shareholding & Committee of Management Disclosures

74

Consolidated Statement of Financial Performance

75

Consolidated Statement of Changes in Equity

76

Consolidated Statement of Financial Position

77

Consolidated Statement of Cash Flows

78

Notes to and forming part of the Consolidated Financial Statements

89 18 Leases 90 19 Investments in Associates & Joint Ventures 92 20 Property, Plant & Equipment 94 21 Share and Bond Investments 95 22 Intangible Assets 96 23 Contingent Liabilities 96 24 Provisions

78 1 Reporting Entity

97 25 Borrowings

78 2 Basis of Preparation

98 26 Financial Instruments

78 3 Significant Accounting Policies

100 27 Programmed Property Maintenance

78 4 Critical Accounting Estimates

101 28 Related Parties

79 5 Revenue from Contracts with Customers

102 29 Group Entities

80 6 Other Income

102 30 Unclaimed Dividends

81 7 Finance Income

102 31 Subsequent Events

81 8 Farm & Apiary Operating Expenditure

103 32 Commitments for Expenditure

81 9 Depreciation & Loss on Sale

103 33 Capital

81 10 Other Operating Expenses

103 34 Reserves

82 11 Grants and Donations 83 12 Income Tax

104

Auditors' Report

85 13 Māori Authority Credit Account 85 14 Cash and Cash Equivalents 85 15 Trade and Other Receivables 86 16 Stock on Hand 87 17 Biological Assets

71

Ātihau-Whanganui Incorporation Group SHAREHOLDING & COMMITTEE OF MANAGEMENT DISCLOSURES As at 30 June 2023

Share Information

Greater than 5,000 shares Between 1,000 and 5,000 shares Between 500 and 1,000 shares Between 100 and 500 shares Between 5 and 100 shares Between 1 and 5 shares Under 1 share Totals

No. of Shareholders

No. of Shares Held

12 230 290 1540 4439 1720 1517

0.12% 2.36% 2.97% 15.80% 45.54% 17.64% 15.56%

111,994.52 434,826.20 204,443.74 357,251.49 142,769.83 4,665.70 577.52

8.91% 34.61% 16.27% 28.43% 11.36% 0.37% 0.05%

9748

100.00%

1,256,529.00

100.00%

Committee of Management - Shareholding The following CoM members have shares in the Incorporation registered in their names as at year end. Excludes shares registered in trust names of which the CoM member may be a beneficiary.

Keria Ponga Mavis Mullins Rāwiri Tinirau Whatarangi Murphy-Peehi

61.05 1,000.00 543.36 3,104.35

Meeting Attendance - Committee of Management There were ten Committee of Management monthly meetings and one general meeting held during the year.

Member's attendance as follows: Committee of Management

Ordinary

AGM

Te Tiwha Puketapu (CoM Chair)

11

1

Che Wilson (ARC Chair)

10

1

Keria Ponga

8

1

Rāwiri Tinirau (Te Āti Hau Trust Chair)

9

1

Shar Amner

10

1

Whatarangi Murphy-Peehi

10

1

Sarah Bell

6

1

Mavis Mullins

4

1

Charles Chadwick (Associate Director) First hui in January 2023.

6

1

Jason Ashford (Associate Director) First hui in January 2023.

5

1

Joe Hanita (Independent ARC member) Last hui in December 2022; AGM.

N/A

N/A

Pania Winterburn (Independent ARC member)

N/A

N/A

David Nelson (Independent Farm subcommittee member) Last hui in February 2023.

N/A

N/A

Jonelle Hiroti-Kinane (Te Āti Hau Trust Independent Trustee)

N/A

1

Claire Cilliers (Te Āti Hau Trust Independent Trustee)

N/A

1

Tukariri Dryden (Te Āti Hau Trust Associate Trustee)

N/A

1

(Farm & Awhiwhenua subcommittee Chair) First hui January 2023.

Last hui in December 2022; AGM.

Independent subcommittee members

First hui in February 2023.

72

Ātihau-Whanganui Incorporation Group SHAREHOLDING & COMMITTEE OF MANAGEMENT DISCLOSURES As at 30 June 2023

Meeting Attendance - Subcommittees Member's attendance as follows: Audit & Risk

Farm

Awhiwhenua

Te Āti Hau Trust

Ātihau Forestry Trust

Te Tiwha Puketapu (CoM Chair)

5

-

5

3

1

Che Wilson (ARC Chair)

7

-

-

3

1

Committee of Management

Keria Ponga

2

-

4

-

1

Rāwiri Tinirau (Te Āti Hau Trust Chair)

-

-

-

4

1

Shar Amner

1

3

-

2

1

Whatarangi Murphy-Peehi

3

4

6

-

1

Sarah Bell

-

3

3

-

-

Mavis Mullins

-

1

2

1

-

Charles Chadwick (Associate Director)

-

-

-

3

-

Jason Ashford (Associate Director)

-

3

-

-

-

Joe Hanita (Independent ARC member)

3

-

-

-

-

Pania Winterburn (Independent ARC member)

3

-

-

-

-

David Nelson Last hui in February 2023.

-

3

-

-

-

Jonelle Hiroti-Kinane

-

-

-

5

-

Claire Cilliers

-

-

-

5

-

Tukariri Dryden

-

-

-

3

-

(Farm & Awhiwhenua subcommittee Chair) First hui in January 2023.

Last hui in December 2022; AGM.

Independent subcommittee members First hui in January 2023.

First hui in January 2023.

Last hui in December 2022; AGM.

First hui in February 2023.

(Independent Farm subcommittee member) (Te Āti Hau Trust Independent Trustee) (Te Āti Hau Trust Independent Trustee) (Te Āti Hau Trust Associate Trustee)

Remuneration Committee of Management

Fees $

Independent subcommittee members

Fees $

Te Tiwha Puketapu

58,000

Joe Hanita (Last hui at December 2022; AGM)

3,200

Che Wilson

32,000

David Nelson (Last hui in February 2023)

6,550

Keria Ponga

32,000

Charles Chadwick (First hui in January 2023)

3,000

Rawiri Tinirau

32,000

Jason Ashford (First hui in January 2023)

2,000

Shar Amner

32,000

Jonelle Hiroti-Kinane

2,000

Whatarangi Murphy-Peehi

32,000

Claire Cilliers

2,000

Sarah Bell (First hui in January 2023)

17,973

Tukariri Dryden

750

Mavis Mullins (Last hui at December 2022; AGM)

16,000

73

Ātihau-Whanganui Incorporation Group CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE For the year ended 30 June 2023 Note

2023 $

2022 $

15,609,260

15,605,283

Milk

2,023,123

2,235,916

Wool

680,691

802,797

REVENUE FROM CONTRACTS WITH CUSTOMERS Livestock

Apiary

5

5

OTHER INCOME Gain/(loss) from sale of emission trading units

22

Finance income

7

Rental income Other income

6

TOTAL REVENUE & OTHER INCOME EXPENSES Farm and Apiary operating expenses

8

Employee benefits expense Depreciation and loss on sale

9

Repairs and maintenance Governance and shareholder expenses

3,878,822 22,522,818

(1,653,822)

-

79,486

70,616

304,709

328,279

1,874,268 604,640

3,406,240 3,805,135

22,627,444

26,327,953

10,996,010

13,802,632

6,327,795

5,764,484

1,928,084

1,881,493

1,260,295

952,403

847,112

795,062

Donations and scholarships

11

448,717

277,293

Other operating expenses

10

1,634,715

1,190,701

23,442,728

24,664,068

(815,284)

1,663,885

(2,130,102)

(1,579,831)

(98,398)

(394,588)

(4,146,283)

932,182

TOTAL EXPENSES NET SURPLUS / (DEFICIT) BEFORE FINANCE COSTS AND NON OPERATING REVALUATIONS FINANCE COSTS Interest expense REVALUATION GAINS (LOSSES)

Profit / (Loss) from equity accounted investments

19

Profit / (Loss) due to price changes on livestock NET SURPLUS / (DEFICIT) BEFORE INCOME TAX Income tax expense (credit) - current year movement

12

NET SURPLUS (DEFICIT) AFTER INCOME TAX

(7,190,067)

621,648

(502,889)

(648,573)

(6,687,178)

1,270,221

OTHER COMPREHENSIVE INCOME Revaluation of interest rate swap contracts

61,547

-

Revaluation of share investments

73,284

(164,569)

Revaluation of property, plant & equipment

20

79,055,784

-

Revaluation of emission trading units

22

(15,928,940)

15,163,267

392,257

(1,010,724)

Share of gain or (loss) on property revaluation of associates

19

1,610,396

861,207

Income tax relating to items that will not be reclassified subsequently

12

Provision for ETU surrender

74

3,709,729 22,022,804

2,776,794

(2,653,572)

TOTAL OTHER COMPREHENSIVE INCOME

68,041,123

12,195,609

TOTAL COMPREHENSIVE INCOME

61,353,945

13,465,830

These financial statements are to be read in conjunction with the accompanying notes

Ātihau-Whanganui Incorporation Group CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the year ended 30 June 2023 Capital Reserves $ BALANCE AT 1 JULY 2022

PPE Reval Reserve $

Retained Earnings $

24,311,005 148,388,312 31,841,163

ETU Share Cashflow Reserve Reserve Hedge $ $ $ 27,984,113

1,149

Total Equity $

- 232,525,742

Dividends paid

-

-

(904,701)

-

-

-

(904,701)

Transactions with owners

-

-

(904,701)

-

-

-

(904,701)

Net Surplus after Income tax

-

- (6,687,178)

-

-

-

(6,687,178)

-R evaluation of interest rate swap contracts

-

-

-

-

-

61,547

61,547

-R evaluation of emission trading units

-

-

- (15,928,940)

-

- (15,928,940)

-R evaluation of property, plant & equipment

-

79,055,784

-

-

-

-

79,055,784

-R evaluation of share investments

-

-

-

-

73,284

-

73,284

-P rovision for ETU surrender

-

-

-

392,257

-

-

392,257

-S hare of gain (loss) on property revaluation of associates

-

1,610,396

-

-

-

-

1,610,396

- I ncome tax relating to items that will not be reclassified subsequently

-

-

-

2,787,564

-

(10,770)

2,776,794

Total Comprehensive Income for the Year

-

80,666,180 (6,687,178) (12,749,119)

73,284

50,777

61,353,945

Transfer to Retained Earnings

-

-

-

Other Comprehensive Income

-

7,163,060

(7,163,060)

-

BALANCE AT 30 JUNE 2023

24,311,005 229,054,493 31,412,344

8,071,934

74,433

50,777 292,974,986

BALANCE AT 1 JULY 2021

24,311,005 147,527,105 34,394,306

- 220,065,135

13,831,570

1,149

Dividends paid

-

- (1,005,223)

-

-

-

(1,005,223)

Transactions with owners

-

- (1,005,223)

-

-

-

(1,005,223)

Net Surplus after Income tax

-

-

1,270,221

-

-

-

1,270,222

-R evaluation of emission trading units

-

-

-

15,163,267

-

-

15,163,267

- Revaluation of property, plant & equipment

-

-

-

-

-

-

-

Other Comprehensive Income

- Revaluation of share investments

-

-

(164,569)

-

-

-

(164,569)

-P rovision for ETU surrender

-

-

-

(1,010,724)

-

-

(1,010,724)

-S hare of gain (loss) on property revaluation of associates

-

861,207

-

-

-

-

861,207

- I ncome tax relating to items that will not be reclassified subsequently

-

-

-

(2,653,572)

-

-

(2,653,572)

Total Comprehensive Income for the Year

-

861,207

1,105,652

11,498,971

-

-

13,465,831

Transfer to Retained Earnings

-

- (2,653,572)

2,653,572

-

-

-

24,311,005 148,388,312 31,841,163

27,984,113

1,149

BALANCE AT 30 JUNE 2022

- 232,525,742

A description of the nature and purpose of each reserve is stated in note 34.

These financial statements are to be read in conjunction with the accompanying notes

75

Ātihau-Whanganui Incorporation Group CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 30 June 2023 Note

2023 $

2022 $

CURRENT ASSETS Cash and cash equivalents

14

896,081

866,409

Trade and other receivables

15

3,030,724

2,653,271

Stock on hand

16

8,316,620

7,917,286

Biological assets TOTAL CURRENT ASSETS

17

31,353,434 43,597,089

36,088,258 47,525,224

NON CURRENT ASSETS Property, plant & equipment

20

277,130,203

197,652,342

Right-of-use assets

18

382,056

446,109

Investments in associates and joint ventures

19

11,422,602

10,035,629

Share and bond Investments

21

1,796,781

1,717,059

Intangible assets

22

8,690,401

28,994,836

Biological assets - non current TOTAL NON CURRENT ASSETS

17

1,313,264 300,735,307

600,000 239,445,975

344,332,396

286,971,199

TOTAL ASSETS CURRENT LIABILITIES Cash & cash equivalents

14

-

-

Borrowings

25

11,323,750

10,578,750

Lease liabilities

18

Trade and other payables Provisions

24

GST and income tax payable Employee entitlements TOTAL CURRENT LIABILITIES

82,435

81,000

1,616,302

1,797,232

618,487

1,010,724

592,146

353,522

867,582 15,100,682

750,517 14,571,745

NON CURRENT LIABILITIES Borrowings

25

26,900,000

27,140,000

Programmed property maintenance

27

-

49,670

Lease liabilities

18

334,249

393,105

1,193

2,464

LIC Share Liability Unclaimed dividends

30

3,194,615

2,928,462

Deferred tax liability TOTAL NON CURRENT LIABILITIES

12

5,826,669 36,256,726

9,360,012 39,873,713

TOTAL LIABILITIES

51,357,408

54,445,458

NET ASSETS

292,974,987

232,525,741

EQUITY Retained earnings Reserves

34

TOTAL EQUITY

31,412,344

31,841,163

261,562,643

200,684,579

292,974,987

232,525,741

The Committee of Management of Ātihau-Whanganui Incorporation authorised the financial statements for issue on 10 October 2023.

Signed for and on behalf of the Committee of Management:

Brendon Te Tiwha Puketapu Chair 10 October 2023

76

Che Phillip Wilson Chair of the Audit and Risk Committee 10 October 2023 These financial statements are to be read in conjunction with the accompanying notes

Ātihau-Whanganui Incorporation Group CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 30 June 2023 2023 $

2022 $

23,793,712

29,904,243

58,298

68,799

CASH FLOWS FROM OPERATING ACTIVITIES Cash was provided from: Receipts from operations Interest, dividends and other investments received Grants received

185,124

330,085

24,037,134

30,303,127

21,631,523

23,051,258

Cash was disbursed to: Payments to suppliers and employees Donations and grants paid

424,373

382,889

Interest paid

2,103,851

1,519,287

Net GST paid

(119,621) 24,040,125

277,955 25,231,389

(2,991)

5,071,738

NET CASH FLOWS FROM OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Cash was provided from: Proceeds from disposals of property, plant & equipment

207,920

85,080

6,366,258

286,169

6,574,178

371,249

Acquisition of property, plant & equipment

2,792,128

3,095,157

Purchase of investments

3,519,810 6,311,938

7,264 3,102,421

262,240

(2,731,172)

Repay Borrowings

(505,000)

745,000

Dividends

638,549

731,475

Grants & donations

12,000

16,000

Investment and Intangibles proceeds and disposals Cash was disbursed to:

NET CASH FLOWS USED IN INVESTING ACTIVITIES CASH FLOWS FROM FINANCIAL ACTIVITIES Cash was disbursed to:

Lease payments

84,028

81,000

229,577

1,573,475

NET CASH FLOWS USED IN FINANCIAL ACTIVITIES

(229,577)

(1,573,475)

Net (Decrease)/Increase in Cash Held Cash at the Beginning of the Year

29,672 866,409

767,091 99,318

CASH AT THE END OF THE YEAR

896,081

866,409

These financial statements are to be read in conjunction with the accompanying notes

77

Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2023

STATEMENT OF ACCOUNTING POLICIES 1. REPORTING ENTITY Ātihau-Whanganui Incorporation (Ātihau) is registered under the Te Ture Whenua Māori Act 1993 and is incorporated in New Zealand. These financial statements are for Ātihau and its subsidiaries (Ātihau Group).

Refer to note 29 for further disclosure.

2. BASIS OF PREPARATION Ātihau-Whanganui Incorporation is a for-profit entity for the purposes of complying with NZ GAAP. Ātihau qualifies for NZ IFRS (RDR) as it is not a large for-profit entity. The Incorporation is eligible for and has elected to report in accordance with Tier 2 For Profit accounting standards and has applied disclosure concessions.

The financial statements have been prepared under the historical cost basis except for land & buildings, biological assets and some financial instruments that are measured at revalued amounts or fair values at the end of each reporting period, as explained in the accounting policies.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is

78

directly observable or estimated using another valuation technique.

(c) Changes in Accounting Policies and Disclosures

The information is presented in New Zealand Dollars and all values are rounded to the nearest dollar.

Whenua and associated capital improvements has historically been carried at ratings valuation (RV) and changes to RV recognised in the statement of comprehensive income.

This year they are carried at fair value (FV) as assessed by independent registered valuers. The differences between FV and RV is recognised in the statement of comprehensive income. See note 20 for more detail

The financial statements have been prepared using the significant accounting policies and measurement basis that are in effect at year end as summarised below. These were used throughout all periods presented in the financial statements.

3. SIGNIFICANT ACCOUNTING POLICIES Accounting policies which materially affect the measurement of the consolidated financial statements are disclosed as follows and under the notes to which they relate. Comparative balances have been restated to reflect current presentation. (a) Expenses Expenses are recognised on a functional basis in the period in which they are incurred. Operating lease payments are recognised as an expense on a straight-line basis over the lease term. (b) Goods and Services Taxation (GST) All amounts are stated exclusive of goods and services tax except for accounts payable and receivable which are inclusive of GST.

Other than the above, there have been no changes in accounting policies during the financial year.

4. CRITICAL ACCOUNTING ESTIMATES The preparation of these financial statements requires Management to exercise its judgement in the process of applying Ātihau's accounting policies that effect the reported amounts in the financial statements.

Judgements and estimates are based on external advice, historical experience and other factors that they believe is relevant to the circumstances. Actual results may differ from those estimates.

The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant are listed throughout the notes to the financial statements.

Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2023

5. REVENUE FROM CONTRACTS WITH CUSTOMERS 5a. Livestock Revenue

2023 $

2022 $

Sales Sheep

10,254,711

12,111,536

Cattle

7,673,143

6,763,087

Total Sales

17,927,854

18,874,624

Purchases Sheep

(304,850)

(368,050)

Cattle

(1,059,724)

(2,203,634)

Total Purchases

(1,364,574)

(2,571,684)

(954,020)

(697,656)

15,609,260

15,605,283

2023 $

2022 $

Honey sales

2,488,327

3,267,927

Less carrying value of honey sold

(2,342,515)

(3,151,733)

145,812

116,194

Increase / (Decrease) in value due to change in numbers Total Livestock Revenue

5b. Apiary Revenue Sales

Gain on honey sold Other Apiary Inventory Movements Honey harvested - bulk

2,996,296

4,977,170

Honey revaluation to NRV

(331,796)

(2,750,533)

Total Honey Revenue

2,810,313

2,342,831

899,416

1,535,991

Apiary Leases / Landowner Royalties Total Apiary Revenue

3,709,729

3,878,822

POLICIES - REVENUE RECOGNITION Honey harvested is initially valued at fair value less future costs of sale. Fair value is assessed using market comparison (where values are based on the latest market prices) for the type of honey and its UMF factor. At the year end, the carrying value of Honey stock on hand is revalued to Net Realisable Value (NRV) to reflect honey attribution changes and estimated future achievable sales values.

79

Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2023

5. REVENUE FROM CONTRACTS WITH CUSTOMERS (CONTINUED)

POLICIES - REVENUE RECOGNITION Revenue from Contracts with Customers Revenue from contracts with customers comprises the expected value for the sale of goods and services, excluding Goods and Services Tax. Revenue is recognised as follows: Sale of Goods - Livestock Ātihau sells livestock to third-party buyers. The livestock revenue is recognised at the point in time that control is assumed by the buyer, being the date that the animal is killed. The amount of revenue recognised is based on the industry market price provided by the buyer.

Sale of Goods - Apiary Ātihau sells honey product to third-party buyers. Honey sale revenue is recognised when control of the goods has passed to the customer, being the point in time that the goods are delivered to the customer. The amount of revenue recognised is based on an agreed price list adjusted to account for current market conditions.

Sale of Goods - Milk Ātihau sells milk to a third-party buyer. The milk revenue is recognised at the point in time that control is assumed by the buyer, being the date of collection. Payment is paid on a per kg milksolids basis based upon the forecast milk price payable. Approximately 85% is received upon collection and the balance is deferred, spread over the months up to September following year end.

Sale of Goods - Wool Ātihau sells wool to third-party buyers. The wool revenue is recognised at the point in time that control is assumed by the buyer, being the date the wool is collected, or the date the wool is sold at auction. The amount of revenue recognised is based on industry-accepted market price provided by the buyer.

6. OTHER INCOME

2023 $

2022 $

-

-

Forestry - logs harvested

828,213

2,437,631

Forestry - valuation movement

713,264

600,000

Rebates received

94,310

64,729

Apiary leases

Other income

238,482

303,880

1,874,268

3,406,240

POLICIES - OTHER INCOME Rental income is recognised on a straight line basis over the term of the lease. Dividends received are recognised on receipt, net of non-refundable tax credits. The policy for recognition of revenue for emissions trading units is described in the Intangible Assets note below.

80

Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2023

7. FINANCE INCOME

2023 $

2022 $

Dividends received

55,600

52,158

Interest income

23,886

18,457

-

-

79,486

70,616

2023 $

2022 $

Apiary leases / expenses

1,453,268

951,619

Cropping and pasture

2,335,207

2,438,107

Farm expenses

3,773,831

3,906,281

Feed

535,986

499,935

Fertiliser

1,423,421

3,272,400

Forestry expenses

729,048

1,907,870

Vehicles

745,250

826,420

10,996,010

13,802,632

2023 $

2022 $

1,759,361

1,805,692

Depreciation on Right-of-use assets

64,053

64,053

Loss on sale of property, plant and equipment

104,670

11,748

1,928,084

1,881,493

2023 $

2022 $

Audit Fees

36,724

28,763

Accountancy, legal and consultancy

685,340

524,675

Administration expenses

658,252

586,683

Project and other expenses

254,399

50,581

Total Operating Expenses

1,634,715

1,190,701

Imputation Credits

Total Finance Income

8. FARM & APIARY OPERATING EXPENDITURE

Total Farm & Apiary Operating Expense

9. DEPRECIATION & LOSS ON SALE Depreciation

Total Depreciation & Loss on Sale

10. OTHER OPERATING EXPENSES

81

Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2023

11. GRANTS AND DONATIONS

2023 $

2022 $

12,000 12,000

16,248 16,248

Sports Art and Travel

19,079

11,230

Cultural

13,874

1,000

Ātihau Scholarships Ātihau Scholarships

Total Ātihau Scholarships TE ĀTI HAU TRUST GRANTS AND DONATIONS General Grants

Community

6,000

-

Marae

59,000

10,000

AWHI Marae Grant

102,000

-

Kaumatua Assistance

124,874

95,775

Tangihanga Tent

8,700

12,000

Previous grants returned

(410)

(5,000)

Total General Grants

333,117

125,095

Secondary School - Year 10 and 11

12,750

11,750

Trades

4,900

2,100

Undergraduate

48,800

73,100

Postgraduate

22,650

37,300

Medical

1,500

5,700

Overseas

2,000

-

Agriculture

3,000

-

PHD scholarships

8,000

6,000

Total Education Grants & Scholarships

103,600

135,950

Total

448,717

277,293

Education Grants & Scholarships

82

Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2023

12. INCOME TAX Income tax expense reflects the impact of current and deferred tax and is recognised in profit & loss unless it relates to an item in other comprehensive income.

12a. Income tax recognised in profit & loss

2023 $

2022 $

Deferred tax expense / (income) re the origination & reversal of temporary differences

(502,899)

(648,573)

Total income tax expense / (income) recognised in the current year

(502,899)

(648,573)

Net surplus / (deficit) before income tax

(7,190,067)

356,056

Tax at the New Zealand tax rate applicable to Māori Authorities (17.5%)

(1,258,262)

62,310

- livestock

611,209

621,906

- capex and depreciation

(102,550)

(46,301)

- other temporary differences

(337,664)

26,436

- permanent differences

1,545,897

(716,715)

Adjustments recognised in current year in regard to current & deferred tax of prior years

(961,519)

(596,209)

Income tax expense (income) recognised in profit & loss

(502,889)

(648,573)

The income tax expense for the year reconciles to the accounting profit as follows:

In calculating taxable income the following adjustments were made: Temporary differences

Permanent differences

83

Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2023

12. INCOME TAX (CONTINUED) 12b. Income tax recognised in other comprehensive income

2023 $

2022 $

Deferred tax

2,776,794

(2,653,572)

Total income tax recognised in other comprehensive income

2,776,794

(2,653,572)

2023 $

2023 $

2023 $

Opening balance

Movement in profit & loss, other comp income or equity

Closing balances

(628,011)

611,209

(16,802)

(3,892,202)

(102,550)

(3,994,752)

Provisions

105,190

20,035

125,515

Unused tax losses

234,263

(182,618)

51,645

Other

(5,179,251)

3,186,977

1,992,274

Total deferred tax liability

(9,360,012)

3,533,344

(5,826,668)

12c. Deferred tax liability

Deferred tax assets & (liabilities) in relation to: Livestock Property, plant & equipment

POLICIES - INCOME TAX Ātihau is registered as a Maori Authority for income tax purposes. Current income tax assets and/or liabilities comprise those obligations to, or claims from, Inland Revenue Department relating to the current or prior reporting periods that are unpaid at the reporting date. Current tax is payable on taxable profit, which differs from profit or loss in the financial statements. Calculation of current tax is based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.

Deferred income taxes are calculated in respect to temporary differences between the carrying amounts of assets and liabilities and the amounts used for tax purposes. It is not provided on the initial recognition of an asset or liability unless the transaction is a business combination or affects tax or accounting profit. Deferred tax on temporary differences associated with investments in subsidiaries and joint ventures is not provided if reversal of these temporary differences can be controlled by Ātihau and it is probable that reversal will not occur in the foreseeable future.

Deferred tax assets are recognised to the extent that it is probable that they will be able to be utilised against future taxable income, based on Ātihau's forecast of future operating results which is adjusted for significant non-taxable income and expenses and specific limits to the use of any unused tax losses or credit. Deferred tax liabilities are always provided in full.

Deferred tax assets and liabilities are offset only when Ātihau has a right and intention to set off current tax assets and liabilities.

Changes in deferred tax assets or liabilities are recognised as a component of tax income or expense in the profit or loss, except where they relate to items that are recognised in other comprehensive income (such as the revaluation of land) or directly in equity, in which case the related deferred tax is also recognised in other comprehensive income or equity, respectively.

84

Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2023

13. MĀORI AUTHORITY CREDIT ACCOUNT a) Māori Authority Credit Account balance at the end of the year b) Balance of retained earnings earned prior to 2004.

2023 $

2022 $

413,785

412,946

9,672,512

10,577,213

2023 $

2022 $

890,776

861,252

Dividends paid from pre 2004 retained earnings have no Māori Authority Credits attached.

14. CASH AND CASH EQUIVALENTS

Cash at bank / (overdrawn) Deposits on call

5,305

5,157

896,081

866,409

2023 $

2022 $

2,303,022

2,555,997

Ātihau has an overdraft facility of $1,000,000 and a credit card facility of $20,000.

15. TRADE AND OTHER RECEIVABLES

Revenue from contracts with customers Receivables from Related Parties

145,832

-

Provision For Doubtful Debt

(34,263)

-

Other receivables

554,816

97,274

Derivatives

61,547

-

3,030,954

2,653,271

POLICIES - TRADE RECEIVABLES Trade Receivables are recognised initially at fair value and subsequently measured after impairment (if any). Any impairment loss is recognised in the profit and loss component of the Statement of Comprehensive Income.

85

Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2023

16. STOCK ON HAND

2023 $

2022 $

735,083

594,427

-

-

735,083

594,427

7,503,524

7,117,808

-

83,495

Raw Materials Feed Apiary raw materials Total Raw Materials Merchandise Honey - bulk Honey - packaged

78,013

121,556

Total Merchandise

Wool

7,581,537

7,322,859

Total Stock on hand

8,316,620

7,917,286

POLICIES - INVENTORY Inventories are stated at the lower of cost and net realisable value. The cost formula for specific inventory items is as follows: Stock feed on hand is stated at fair value at point of harvest, less costs to realise. Agricultural produce inventory from biological assets is valued at fair value, by reference to market prices for bulk honey and wool, less estimated point of sale costs.

Bulk Honey is valued at estimated Net Realisable Value (NRV) to reflect honey attribution changes and estimated future achievable sales values. Writedown of carrying value to NRV is offset against Apiary Revenue.

Honey is MGO quality tested and an estimate of market price valued using forecast farmgate prices listed by a significant customer at year end discounted to account for slow moving stock.

Packaged honey is valued at the bulk honey value plus cost of raw materials used.

86

Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2023

17. BIOLOGICAL ASSETS

2023 $

2022 $

18,180,939

19,423,904

304,850

368,050

Decrease due to sales

(10,254,711)

(12,111,536)

Animal growth

10,035,044

11,181,735

Sheep Balance at the beginning of the year Increase due to purchases

Changes in fair value

(3,771,431)

(681,213)

Total sheep on hand

14,494,691

18,180,939

Balance at the beginning of the year

17,105,740

15,628,250

Increase due to purchases Decrease due to sales

1,059,724 (7,673,143)

2,203,634 (6,763,087)

Animal growth

5,421,181

4,175,406

Changes in fair value

(221,817)

1,861,537

Total cattle on hand

15,691,685

17,105,740

Balance at the beginning of the year

786,579

707,252

Changes in value

363,479

-

-

79,327

Total bees on hand

1,150,058

786,579

Horses on hand

17,000

15,000

Total Biological Assests - Current

31,353,434

36,088,258

Biological Assets - Non Current (Forest)

1,313,264

600,000

Cattle (Dairy & Beef)

Bees (Biomass)

Increase due to hive growth

Livestock consists of mixed age sheep and cows which are held for dairy and dry stock farming. The units on hand were counted and independently verified by PGG Wrightson (PGG) prior to years end.

A fair value valuation of the sheep and cattle was undertaken by S Luoni (employed by PGG). The valuation is based on reference to market evidence of current prices less point of sale costs. PGG is an independent registered valuer not related to Ātihau. The valuers hold recognised and relevant professional qualifications and have recent experience in the category of biological asset they have valued.

Bees on hand consist of queen and worker bees. Hive valuations were verified independently by W Steel in June 2023 (Director of an apiary company).Values were based on the size of the hive, and included both biomass (bees) and hiveware components. The biomass component is calculated by deducting the hiveware component from hive value.

Non JV Forestry was valued at market value in accordance with IAS 41 and New Zealand Institute of Forestry standards by Forest360, an independent registered forestry valuer. The valuers hold recognised and relevant professional qualifications with experience in the industry.

87

Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2023

17. BIOLOGICAL ASSETS (CONTINUED)

POLICIES - BIOLOGICAL ASSETS Biological assets include livestock, bees and forests and are valued using market values by industry experts.

Livestock market values reflect livestock of similar age, breed and genetic merit. Changes in the value of livestock are recognised in the Statement of Comprehensive Income. Value changes that form part of Ātihau livestock management policies including animal growth and changes in livestock numbers are recognised as Revenue in the Statement of Comprehensive Income.

Changes in value due to general livestock price movements are beyond Ātihau's control and are recognised in the Statement of Comprehensive Income as gain/loss due to price changes on livestock. Bees are measured at fair value less point of sale costs.

Non current Biological Assets relates to forestry not held through the Papahaua JV and are located across Ohorea, Waipuna, Te Paenga and Tawanui blocks. These trees are revalued to fair value value by a registered Forestry Valuer.

2023 Units

2022 Units

MA Ewes

32,448

31,162

2-Tooth Ewes

16,333

17,419

Ewe Hoggets

18,449

19,070

Mixed Lambs

21,993

20,610

Breeding Rams

1,210

1,175

5

45

90,438

89,481

MA Cows

2,538

2,524

R4 Heifers

891

920

R3 Heifers

1,226

1,050

R2 Heifers

1,649

1,676

Heifer Calves

1,859

1,810

Breeding Bulls

201

212

Quantity of Sheep on Hand

MA Wethers

Quantity of Beef and Dairy Cattle on Hand

88

R3 Bulls

5

7

R3 Steers

318

810

R2 Steers

1,835

2,317

Steer Calves

1,776

1,619

12,298

12,945

Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2023

18. LEASES

2023 $

2022 $

446,109

510,162

Ātihau leases land and buildings and the below relates to those asset classes.

Right-of-use assets Opening Balance Additions

-

-

Lease variations & term adjustments

-

-

Depreciation

(64,053)

(64,053)

Closing Balance

382,056

446,109

474,105

529,632

Lease Liabilities Opening Balance

-

-

Interest expense

Additions

24,607

26,280

Lease payments

(82,028)

(81,000)

-

(807)

416,684

474,105

Lease variations & term adjustments Total Closing Balance Classified as current liability

82,435

81,000

Classified as non current liability

334,249

393,105

Total

416,684

474,105

POLICIES - LEASES All significant leases over twelve months term are accounted for by recognising a right-of-use asset and a lease liability: Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate determined by reference to the rate inherent in the lease. Variable lease payments are expensed in the period to which they relate.

Right of use assets are initially measured at the amount of the lease liability, reduced for any lease incentives received, and increased for lease payments made at or before commencement of the lease, initial direct costs incurred; and the amount of any provision recognised where Ātihau is contractually required to dismantle, remove or restore the leased asset.

Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments made. Right-of-use assets are amortised on a straight-line basis over the remaining term of the lease.

89

Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2023

19. INVESTMENTS IN ASSOCIATES & JOINT VENTURES

2023 $

2022 $

Ātihau has the following investments in associates & joint ventures: Ownership & Voting

Valuation method

Papahau Forestry Partnership

50%

Fair Value

1,454,188

366,916

Te Hou Limited Partnership

33.33%

Equity

9,968,415

9,668,713

11,422,602

10,035,629

Te Hou Limited Partnership is in the business of Sheep, Beef and Dairy farming and is audited.

Papahau forestry partnership is a separately structured vehicle whose accounts are unaudited. The primary activity is forest plantation. The Ātihau share of this forest investment is valued at market value by Stuart Orme, a RMNZIF Registered Forestry Consultant of Orme & Associates Limited. Realisation of this investment will require reconstruction of a publicly owned bridge. Management are now confident that this will be replaced by the local council and accordingly, the forest valuation is no longer discounted by the bridge construction cost estimate.

2023 $

2022 $

366,916

1,007,646

Papahau Forestry Partnership Balance at the beginning of the year Share of surplus / (deficit) Revaluation - Forestry Funds advanced

(16,703)

(16,378)

1,088,801

(635,551)

15,174

11,199

1,454,188

366,916

Balance at the beginning of the year

9,668,713

8,836,333

Share of surplus / (deficit)

Balance at the end of the year Te Hou Farms Limited Partnership

90

(1,067,028)

498,618

Revaluation - Forestry

(114,667)

(241,277)

Revaluation - Land & Buildings (OCI)

1,610,396

861,207

Distributions and other adjustments

(129,000)

(286,169)

Balance at the end of the year

9,968,415

9,668,713

Total Investments in Associates & Joint Ventures

11,422,602

10,035,629

Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2023

19. INVESTMENTS IN ASSOCIATES & JOINT VENTURES (CONTINUED) Equity Accounted Investments Total Share of surplus / (deficit) after tax for Joint Ventures (including forestry revaluations)

2023 $

2022 $

(98,398)

(394,588)

Total other comprehensive income movements (including land & building revaluation)

1,610,396

861,207

Total incease / (decrease) in Equity Accounted Investments

1,511,998

466,620

POLICIES - INVESTMENTS IN ASSOCIATES AND JOINT VENTURES Associates are those entities over which Ātihau is able to exert significant influence but which are not subsidiaries.

A joint venture is an arrangement that Ātihau controls jointly with one or more other investors over which Ātihau has rights to a share of the arrangement's net assets rather than direct rights to underlying assets and obligations for underlying liabilities. Ātihau's investment in associates and joint ventures are accounted for using the equity method of accounting in the financial statements.

Under the equity method, investments in associates and joint ventures are carried in the Statement of Financial Position at cost plus post-acquisition changes in the share of net assets of the associate and joint ventures.

The carrying amount of the investment in associates and joint ventures is increased or decreased to recognise Ātihau's share of the net surplus and other comprehensive income of the associate and joint venture, adjusted where necessary to ensure consistency with Ātihau's accounting policies.

91

Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2023

20. PROPERTY, PLANT & EQUIPMENT

As at 30 June 2023

Class

Cost

Freehold Land

146,976,000

Leasehold Land

12,536,500

Improvements

5,572,511

OPENING Acc Depn

As at 30 June 2022

-

Book Value

Cost

-

Book Value

146,976,000

139,467,000

139,467,000

-

12,536,500

20,045,500

-

20,045,500

983,554

4,588,957

5,499,984

942,435

4,557,549

Buildings & Bridges

24,036,039

2,648,678

21,387,361

23,309,011

2,498,811

20,810,200

Plant & Machinery

4,219,159

2,410,818

1,808,341

3,941,398

1,955,396

1,986,002

Motor Vehicles

3,942,064

2,148,566

1,793,498

3,707,418

1,852,815

1,854,603

982,234

618,342

363,892

953,425

577,735

375,691

29,120,875

21,141,449

7,979,426

26,971,775

20,475,947

6,495,827

227,385,382

29,951,406

197,433,976

223,895,511

28,303,139

195,592,372

218,366

-

218,366

1,653,913

-

1,653,913

227,603,748

29,951,406

197,652,342

225,549,424

28,303,139

197,246,285

Furniture & Fittings Development Uncompleted Capital Works Total Property, Plant & Equipment

As at 30 June 2023 Class

As at 30 June 2022

Additions Disposals Revaluations

Depn

Additions

Reclass

Disposals Revaluations

Depn

Freehold Land

-

-

83,062,000

-

-

7,509,000

-

-

-

Leasehold Land

-

-

(112,626)

-

- (7,509,000)

-

-

-

-

-

(3,893,590)

38,109

72,527

-

-

-

41,119

358,109

-

-

144,300

727,028

-

-

-

149,867

Improvements Buildings & Bridges Plant & Machinery

139,009

15,443

-

427,932

298,678

-

7,464

-

468,874

Motor Vehicles

713,993

440,127

-

95,250

421,064

-

71,520

-

410,649

Furniture & Fittings Development

29,354

3,654

-

61,725

61,041

-

2,988

-

69,852

1,108,256

-

-

652,375 2,149,101

-

-

-

665,501

2,348,721

459,224

79,055,784 1,419,691 3,729,439

-

81,972

218,366

-

1,653,913

-

79,055,784 1,419,691 3,947,805

-

1,735,885

- 1,805,862

Uncompleted 170,638 Capital Works Total Property, 2,519,359 Plant & Equipment

218,366 677,590

-

-

As at 30 June 2023 Class

Cost

Freehold Land

230,038,000

Leasehold Land

12,423,874

CLOSING Acc Depn

- 1,805,862 -

As at 30 June 2022

-

Book Value

Cost

230,038,000

146,976,000

12,423,874

12,536,500

CLOSING Acc Depn

-

Book Value

146,976,000 12,536,500

Improvements

1,678,921

1,021,663

657,258

5,572,511

983,554

4,588,957

Buildings & Bridges

24,394,148

2,792,978

21,601,170

24,036,039

2,648,678

21,387,361

Plant & Machinery

4,342,725

2,838,750

1,503,975

4,219,159

2,410,818

1,808,341

Motor Vehicles

4,215,930

2,243,816

1,972,114

3,942,064

2,148,566

1,793,498

Furniture & Fittings

1,007,934

680,067

327,867

982,234

618,342

363,892

Development Uncompleted Capital Works Total Property, Plant & Equipment

92

OPENING Acc Depn

30,229,131

21,793,824

8,435,307

29,120,875

21,141,449

7,979,426

308,330,663

31,371,098

276,959,565

227,385,382

29,951,406

197,433,976

170,638

-

170,638

218,366

-

218,366

308,501,301

31,371,098

277,130,203

227,603,748

29,951,406

197,652,342

Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2023

20. PROPERTY, PLANT & EQUIPMENT (CONTINUED) 20a. Land and improvements were revalued to market value on a General Freehold basis by registered valuers Morgans Property Advisors (Morgans) as at 30 June 2023. Any sale could be affected by the requirements of sale imposed by the Te Ture Whenua Māori Act 1993. Morgans estimate that such effect could be 5-15% discount on specific property totalling $40.3m. This is a change of estimate from prior years where the policy was to revalue to ratings valuation performed by Quotable Value Limited (latest being in 2020 by Ruapehu District Council). Ratings valuations are considered a departure from accounting standard NZ IAS 16 primarily because ratings valuations are general rather than specific appraisals.

20b. In 2023 Grants from Horizons Regional Council, $66,446 and One Billion Trees programme $94,178 were deducted before arriving at capitalised fencing and native tree planting classed as development. (2022: $222,085).

20c. In 2022 Ātihau resumed three leases totalling 2,679 ha. On resumption $1.4m compensation (included as asset additions) was paid to the lessee based on an agreed value of the lessee improvements between Ātihau and the lessees. The $7.5m value of the land was reclassed from Leasehold to Freehold class.

POLICIES - PROPERTY, PLANT & EQUIPMENT Items of property, plant and equipment, except for land, are measured on the cost basis and are therefore carried at cost less accumulated depreciation and any accumulated impairment losses. In the event the carrying amount of property, plant and equipment is greater than its estimated recoverable amount, the carrying amount is written down immediately to its estimated recoverable amount and impairment losses recognised either in profit or loss or as a revaluation decrease if the impairment losses relate to a revalued asset. A formal assessment of recoverable amount is made when impairment indicators are present.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably.

Land is revalued to fair value by registered valuers in accordance with NZ IAS 16. Revaluation movements are reflected through Other Comprehensive Income and cumulative revaluations reflected in the PPE Revaluation Reserve.

The depreciable amount of all fixed assets, including buildings and capitalised lease assets but excluding freehold and leasehold land, is depreciated on a straight-line or diminishing value basis over the asset's useful life. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

Land is not depreciated. Depreciation rates applied to significant classes of assets are: Class

From

To

Buildings & Bridges 0% 20%DV Development & Improvements 0% 40%DV Motor Vehicles, Plant & Machinery 6%DV 40%DV Furniture & Fittings 8%DV 40%DV Gains and losses on disposal are determined by comparing proceeds with carrying amount and are included in the Statement of Comprehensive Income.

Development Expenditure Development costs are where expenditure is carried out on Ātihau's farming property over and above normal maintenance. Development costs are capitalised and depreciated over future periods in relation to expected future benefit.

Government Grants Government grants relating to PPE assets are deducted in arriving at the initial carrying amount of the asset.

93

Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2023

21. SHARE AND BOND INVESTMENTS

2023 Number of Shares

2022 Number of Shares

2023 $

2022 $

Ravensdown

590,784

590,784

590,784

590,784

Fonterra Co-operative Group

193,515

193,515

632,794

561,194

N/A

N/A

500,000

500,000

-

-

73,203

65,081

1,796,781

1,717,059

RAL Gondola Bonds Other share investments Total Share Investments

A liquidator was appointed on 21st June 2023 for Ruapehu Alpine Lifts Limited (RAL), issuer of the RAL Gondola Bond. The liquidators opened both skifields for the 2023 ski season and is continuing to operate while investigating the sale of the individual ski fields. Initial indications are that bonds and associated commitments relating to the Gondola will transfer to any new owner of the Whakapapa Ski field in accordance with the original agreements therefore management has not impaired the bonds at this time.

POLICIES - INVESTMENTS Investments in shares have been classified at fair value through other comprehensive income (OCI) for equity instruments. At balance date shares are revalued to fair value and any gains or losses reflected through other comprehensive income.

94

Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2023

22. INTANGIBLE ASSETS All units are NZU/s

22a.

Units held

Balance at beginning of the year Additions (revalued at 30 June)

2023 Number of Units

2022 Number of Units

381,511

318,333

2023 $

2022 $

28,994,836

13,831,569

14,021

63,178

-

-

(103,830)

-

(7,891,080)

-

Revaluations

-

-

(15,928,940)

15,163,267

Surrendered

(83,399)

Balance held at year end

208,303

381,511

8,690,401

28,994,836

18,385

13,299

618,467

1,010,724

1,901

209,353

79,310

15,910,828

Gain / (loss) on disposal of emission trading units

2023 $

(1,653,822)

2022 $

Total Gains and (Losses)

(1,653,822)

-

Disposals

3,515,585

22b.

Included in the above are units attaching to harvested forest (refer note 24) 22c.

Included in the above balance are units attaching to the Papahau JV 22d.

Gains / (Losses) from sale of emission trading units

-

POLICIES - INTANGIBLE ASSETS (EMISSION TRADING UNITS) Emission trading units have been purchased and earned (ie internally generated) off growing forestry and are considered to have indefinite useful life (as long as the market regulatory framework is not changed significantly).

Post-1989 Forest Land Ātihau chose to enter the ETS for post-1989 forest land and earn NZUs as forests grow and carbon is stored in the forest from a 2008 baseline. NZUs are required to be returned to the Crown if the carbon stored in the specified area reduces. NZUs are initially recognised at cost and revalued to market value at reporting date through comprehensive income and reserves. If the obligation to return units arises the obligation is recognised on the Balance Sheet.

Revenue recognition - when sold gains or losses on the carrying value relating to the trading of NZUs are reflected in Net Surplus and the carrying value is transferred from revaluation reserve to retained earnings.

95

Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2023

23. CONTINGENT LIABILITIES

2023 $

2022 $

Contingent liabilities arising from the Emissions Trading Scheme (ETS)

32,820,781

51,059,612

Total

32,820,781

51,059,612

There is a contingent liability relating to the Carbon Account Record which represents the market value of the total number of units which are required to be surrendered if the land is withdrawn from the ETS. Management have no plans to change land use at this time which would trigger such a liability. The amount includes Papahau JV ETU's. The forest on affected land is insured against forest fire.

24. PROVISIONS

2023 $

2022 $

Provision for surrender of ETU's on harvested forest

618,467

1,010,724

Total

618,467

1,010,724

This is a provision for the cost of the ETU's which are required to be surrendered on harvested forest (filed December 2022). Refer note 22b.

POLICIES - PROVISIONS Provisions are recognised when there is an obligation which can be reliably measured at balance date as a result of a past event and it is probable that Ātihau will be required to settle the obligation. The expense relating to any provision is presented in the Statement of Comprehensive Income net of any reimbursement.

Provisions are measured at the best estimate of the expenditure required to settle the obligation at balance date. Movements in the best estimate are recorded in the net surplus.

96

Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2023

25. BORROWINGS

2023 $

2022 $

Current

11,323,750

10,578,750

Non-Current

26,900,000

27,140,000

Total Borrowings

38,223,750

37,718,750

260,731,735

180,931,744

Secured

Secured liabilities and assets pledged as security The borrowings are secured by a registered first mortgage over the original land title (approx 41k Ha), and over livestock owned by Ātihau.

The carrying value of assets pledged as security for borrowings are: Land and buildings Livestock

30,186,376

35,286,679

Total pledged assets

290,918,111

216,218,423

a) Loans classed as current are those that have a maturity date within the next year. b) Ātihau has a total debt facility of $45.6m, of which $38.2m (2022: $37.8m) is drawn down at year end. c) The purpose for each of the loan facilities is summarised below: $m Resumptions and farm development 25.0 Te Hou investment 7.9 Seasonal debt facility 6.5 Diversification into apiary unit 3.5 Investments of RAL bonds and other shares 1.7 Overdraft facility 1.0 45.6 d) Annual principal repayments are made on the Te Hou and RAL investment floating loans ($240k and $105k respectively per annum). e) Interest rate risk is primarily mitigated by using flexible terms and interest rates. Customised average rate loans provide flexibility for drawdown and repayment dates. Total principal loan amounts are divided into portions, each portion being allocated a different interest rate, hence mitigating interest rate risk. Interest rates can be floating, fixed and capped.

97

Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2023

26. FINANCIAL INSTRUMENTS Financial Assets 2023 Cash and cash equivalents

Amortised Fair Value through Cost or Cost Other Comp Income $ $

Total $

896,081

-

896,081

2,492,078

-

2,492,078

Investment in shares

-

1,796,781

1,796,781

Derivatives

-

61,547

61,547

3,388,160

1,858,328

5,246,487

1,438,217

-

1,438,217

Trade and other receivables (GST excl.)

Total Financial Assets Financial Liabilities 2023 Trade and other payables (GST excl.)

Lease Liabilities

416,684

-

416,684

Borrowings

38,223,750

-

38,223,750

Total Financial Liabilities

40,078,652

-

40,078,652

Financial Assets 2022 Cash and cash equivalents Trade and other receivables (GST excl.)

Amortised Fair Value through Cost or Cost Other Comp Income $ $

$

242,783

-

242,783

2,495,964

-

2,495,964

Investment in shares Total Financial Assets

Total

-

1,717,059

1,717,059

2,738,747

1,717,059

4,213,023

1,578,249

-

1,578,249

474,105

-

474,105

Financial Liabilities 2022 Trade and other payables (GST excl.)

Lease Liabilities Borrowings

37,718,750

-

37,718,750

Total Financial Liabilities

39,771,104

-

39,771,104

POLICIES - FINANCIAL INSTRUMENTS & RISK MANAGEMENT The principal financial instruments used by the Group from which financial instrument risk arises are as follows: - Trade receivables - Investments in quoted and unquoted equity securities - Emissions trading units - Trade and other payables - Bank overdrafts - Floating-rate bank loans - Fixed rate bank loans - Interest rate swaps derivatives Financial assets and financial liabilities are recognised when Ātihau becomes a party to the contractual provisions of the instruments.

98

Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2023

26. FINANCIAL INSTRUMENTS (CONTINUED)

POLICIES - FINANCIAL INSTRUMENTS & RISK MANAGEMENT (CONTINUED) Financial Assets Ātihau classifies its financial assets into the following categories: "amortised cost" and "fair value through OCI for equity instruments". The classification depends on the nature and purpose of the financial assets, and is determined at the time of initial recognition and is re-evaluated by Management at every reporting date. All transactions are recognised (or derecognised) on trade date basis.

Fair value through OCI for equity instrument financial assets held by Ātihau include supplier shares which are issued at $1 and if surrendered are repaid at $1. Where shares are able to be traded on the listed or unlisted exchange these are reflected at market value. They also hold shares for which there are value changes, including Fonterra shares. These are reflected at values advised by Fonterra. Dividends on these financial assets are recognised in net surplus when Ātihau's right to receive the dividends is established.

Financial assets recognised at amortised cost are non-derivative financial assets that are held with the objective to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

These financial assets include trade and other receivables, and cash and cash equivalents and are measured at amortised cost using the effective interest rate, less any impairment.

Impairment of financial assets: At reporting date Management reviews financial assets for impairment using the expected credit loss model. Any impairment loss is recognised in the profit and loss component of the Statement of Comprehensive Income.

Financial Liabilities Financial liabilities are classified as either financial liabilities at fair value through profit and loss or other financial liabilities.

No financial liabilities are held at fair value through profit and loss.

Other financial liabilities (including borrowings and trade and other payables) are initially recorded at cost and subsequently measured at amortised cost using the effective interest method. Due to the short term nature of trade and other payables these are not discounted. Borrowings are subsequently measured at amortised cost using the effective interest method. All borrowing costs are recognised as an expense in the period they are incurred.

Derivative financial instruments Ātihau uses cash flow hedges to manage its risks. These are managed by Interest rate swaps and fixed interest rates Ātihau interest rate on a portion of the BNZ borrowings is floating exposing the Group to movements in interest rates. The swaps provide the right to pay interest at fixed rates instead of at floating rates. Such hedges cover 10% of drawn borrowings (2022: Nil). The strategy for interest rate risk management is to reduce the uncertainty of interest rate movements through the fixing of interest rate costs and to minimise the net interest costs within acceptable risk parameters. Ātihau’s treasury policy defines the use of approved hedging instruments to manage interest rate exposures within minimum and maximum control limits of fixed interest rate cover as set out in the interest rate risk section of the treasury policy.

99

Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2023

27. PROGRAMMED PROPERTY MAINTENANCE

2023 $

2022 $

Current liabilities - included in trade and other payables

155,621

191,021

-

49,670

155,621

240,691

Non current liabilities - Programmed property maintenance

Ātihau have eight agreements with Programmed Property Services Ltd (the contractor) for an agreed programme of work covering a ten year period. The programme provides for exterior paint of farm buildings and farm houses, with regular maintenance in subsequent years. The agreements have total annual payments of $155,621 (GST excl.) (2022: $191,021). The liability is a best estimate of the actual amount of work performed by the contractor for which the contractor has not been paid at balance sheet date and is not adjusted for inflation.

100

Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2023

28. RELATED PARTIES Ātihau has a related party relationship with key management personnel and its Joint venture partners. Key management are the members of the Committee of Management, the Chief Executive Officer, Business Managers, CFO, People & Safety Manager and the Station Managers.

2023 $ 28.1 Key management personnel remuneration Committee of management fees

2022 $

250,000

250,000

Key management team remuneration

1,761,862

1,648,149

Total key management personnel remuneration

2,011,862

1,898,149

390

(3,750)

28.2 Transactions with CoM members or related entities

a) Ngā Waihua o Paerangi (R Tinirau, S Bell and W Moataane are trustees) Ngā Waihua o Paerangi was paid for hireage. (Last year purchased honey) b) Ngā Whenua Rāhui (M Mullins is a trustee) Subsidy funding received and receivable for fencing r&m and development.

-

(102,696)

c) Naia Limited (Che Wilson is a director and shareholder) Naia Limited is the company facilitating the Tai-o-Rongo project for the Our Land and Water Science Challenge.

(33,350)

-

28.3 Transactions with other key management personnel

53,091

53,091

2,031,993

1,844,794

(129,000)

(286,169)

3,975

9,744

(125,025)

(276,425)

Total transactions with key management personnel and related entities Transactions are carried out on terms and conditions no more or less favourable than those which it is reasonable to expect Ātihau would have adopted if dealing with an entity at arm’s length in the same circumstances.

28.4 Transactions with Associates & Joint Ventures a) Te Hou LP Ātihau received distributions from Te Hou b) Papahau Forestry Partnership Ātihau contributed to partnership expenses for insurance, marketing and rates Total transactions with Associates & Joint Ventures

101

Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2023

29. GROUP ENTITIES

Nature of business

Balance date

2023 Equity holding %

2022 Equity holding %

Te Āti Hau Trust

Charity

30-Jun

100

100

Ātihau Whanganui Incorporation Forestry Trust

Forestry

30-Jun

100

100

Ātihau is comprised of the following material entities:

The consolidated financial statements include the Parent Ātihau-Whanganui Incorporation and the entities it controls.

Balances and transactions between entities within Ātihau Group are eliminated, and accounting policies are applied consistently within the Group.

30. UNCLAIMED DIVIDENDS Balance at beginning of the year Dividend declared during the year Dividends paid

2023 Cents per share

2022 Cents per share

2023 $

2022 $

-

2,928,462

2,654,715

72

80

904,701

1,005,223

-

-

(638,549)

(731,475)

3,194,615

2,928,462

-

Total Unclaimed Dividends

POLICIES - UNCLAIMED DIVIDENDS Provision is made for the amount of any dividend declared on or before the end of the financial year. Amounts undistributed at balance date are unclaimed.

31. SUBSEQUENT EVENTS There have been no material subsequent events after year end (2022: Nil)

102

Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2023

32. COMMITMENTS FOR EXPENDITURE Consultancy Property, plant & equipment

2023 $

2022 $

-

136,713

-

322,987

Share investments

34,594

55,216

Total commitments

34,594

514,916

The Shares commitment is to purchase 34,594 Alliance Group Ltd shares to fulfill shareholding requirements.

This amount will be deducted from future livestock sales to Alliance Group.

33. CAPITAL Number of shares (fully paid)

2023 Number

1,256,529

2022 Number

1,256,529

These shares have no par value and share equally in dividends paid.

Refer to the below note for detail regarding retained earnings and reserves.

34. RESERVES Capital Reserves Capital Reserves represent realised capital profits predominantly arising from Crown grants.

PPE Revaluation Reserve The property plant equipment revaluation reserve arises mainly on the revaluation of land and buildings. When revalued property plant or equipment is sold, the proportion of the revaluation reserve that relates to the asset is transferred to capital reserves.

Retained Earnings Retained Earnings comprise Ātihau's accumulated net profits less dividends paid.

ETU Reserve The Emissions trading units reserve represents revaluations of emission trading units. When revalued ETUs are sold or surrendered, the proportion of the reserve that relate to those units are transferred to retained earnings.

Cash Flow Hedge Reserve The cumulative gain or loss on cashflow hedges. When the underlying derivative has been ended it will be recognised in profit or loss.

Share Reserve The Available For Sale share reserve represents unrealised revaluations of share investments.

103

Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2023

INDEPENDENT AUDITORS REPORT To the Shareholders of Ātihau Whanganui Incorporation Report on the Audit of the Consolidated Financial Statements Opinion We have audited the consolidated financial statements of Ātihau Whanganui Incorporation and its subsidiaries (the Group) on pages 74 to 103, which comprise the consolidated statement of financial position as at 30 June 2023, and the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, except for the possible effects of the matters described under the Basis for Qualified Opinion section,, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at 30 June 2023, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with New Zealand equivalents to International Financial Reporting Standards Reduced Disclosure Regime (NZ IFRS RDR).

Basis for Qualified Opinion As disclosed in note 20 on page 93 to the consolidated financial statements, the land and buildings at 30 June 2022 were reported at the latest government value “(“Quotable Value”). This was a departure from the New Zealand Equivalents to International Financial Reporting Standards – NZ IAS 16 Accounting for Property, Plant & Equipment. The Incorporation adopted the fair value model in accordance with New Zealand Equivalents to International Financial Reporting Standards – NZ IAS 16 Accounting for Property, Plant & Equipment for the year ended 30 June 2023. We were unable to determine whether any portion of the revaluation movement recorded in the 30 June 2023 other comprehensive income relates to the prior financial years.

We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with Professional and Ethical Standard 1 (Revised) Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other than in our capacity as auditor we have no relationship with, or interests in, the Incorporation or any of its subsidiaries.

104

Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2023

Emphasis of Matter – Valuation of land and buildings The Committee Members obtained an independent valuation of the land and improvements as disclosed in Note 20 to the consolidated financial statements. The Land and improvements were revalued to market value on a General Freehold basis by registered valuers Morgans Property Advisors (Morgans) as at 30 June 2023. The Incorporation has adopted the general freehold basis for the recording of the carrying value of the land and improvements in the consolidated financial statements. Any sale could be affected by the requirements of sale imposed by the Te Ture Whenua Māori Act 1993. Morgans estimate that such effect could be 5-15% discount on specific property totalling $40.3m. The difference between the carrying value of the land and improvements and the discount can only be determined once a sale takes place. We have not modified our opinion in respect to this matter.

Other information The Committee Members are responsible on behalf of the Group for the other information. The other information comprises the Annual Report on pages 3 to 73 and 107 but does not include the consolidated financial statements and our auditor’s report thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If based, on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Committee Members Responsibilities for the Financial Statements The Committee Members are responsible on behalf of the Group for the preparation and fair presentation of the consolidated financial statements in accordance with NZ IFRS RDR, and for such internal control as the Committee Members determine is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, the Committee Members are responsible on behalf of the Group for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Committee Members either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

Auditors Responsibilities for the Audit of the Consolidated Financial Statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (NZ) will always detect a material misstatement when it exists.

105

Ātihau-Whanganui Incorporation NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2023

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

A detailed description of the auditors’ responsibilities including those related to assessment of risk of material misstatement, evaluation of appropriateness of going concern assumptions and determining key audit matters are available on the external reporting board website: http://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/auditreport-7/ Report on other Legal and Regulatory requirements The Share Register and Index of Shareholders required by Section 263 of the Te Ture Whenua Maori Act 1993, has been compiled and correctly kept by the Incorporation.

Restriction on Distribution or Use This report is made solely to the Shareholders, as required by section 277 of the Te Ture Whenua Maori Act. Our audit has been undertaken so that we might state to the Incorporation’s shareholders those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Incorporation Shareholders, as a body, for our audit work, for this report, or for the opinions we have formed.

Cameron Town Silks Audit Chartered Accountants Ltd Whanganui, New Zealand Date: 10 October 2023

106

GLOSSARY OF TERMS

Accounts Receivable: Money owed to Ātihau from customers at year end, also known as Trade Debtors

Hogget: A young sheep between a lamb and a 2 tooth, from approx. 10 to 16 months of age

Accounts Payable: Money owed by Ātihau to suppliers of goods or services at year end, also known as Trade Creditors

Interest: What Ātihau needs to pay for the money it borrows from the bank

Accrued Income: Income earned by Ātihau where cash has yet to be received

Meat Processing: Process of taking live animals, humanely slaughtering them and then breaking down into saleable beef or sheep meat

Accrued Expenses: Expenses incurred by Ātihau where cash has yet to be paid

Liability: General term for what Ātihau owes

Asset: Anything owned by Ātihau to use in generating income

Milk Solids (MS): The valued solid components in milk – at present, milk-fat and protein, expressed as kg MS

Balance Date: Term used to describe the end of Ātihau’s financial year - 30th June

Net Farm Income: Income earned from farm activities less the direct costs of these activities

Brassica: The plant family which includes turnips, swedes, rape, kale, cauliflower, cabbages, etc.

Net Operating Surplus / (Deficit): Difference between revenue and the costs incurred to earn this revenue.

Capital Stock: The breeding stock on Ātihau farms that produce revenue or trading stock to generate income

Prime (livestock): Term used to describe animals that are ready for slaughter

Carbon Credits on Hand: Number of NZ units (NZU) owned at balance date under the NZ Emissions Trading Scheme valued at market value. An NZU = 1 tonne of carbon dioxide equivalent of emissions or removals.

Carrying Capacity: Number of livestock a property can graze annually without importation of feed or the deterioration of the property Change in Livestock Numbers: Difference in livestock numbers at end of year compared to the beginning of the year at market values Cull: To remove animals from a breeding population generally because of physical or performance deficiencies Current Asset: An asset of Ātihau that is expected to be converted into cash within the next year Current Liability: A liability of Ātihau which is generally due to be settled within 12 months of balance date Depreciation: The apportionment of cost of an asset over the useful life of the asset. An accounting method used to reflect the aging and use of an asset Direct Farm Expenses: Expenses incurred by Ātihau’s farming operations in generating farm income Drought: A long period of time during which there is very little or no rain Dry Matter: The plant material left after all water has been removed – using DM% comparisons can be made between different feeds such as pasture, swedes, grains, hay, etc.

Employee Entitlements: Holiday pay and other leave entitlements owing to employees at balance date Equity: A measure of the shareholders’ total interest in Ātihau – the amount by which the value of assets exceed the value of liabilities Feedlot: A third party location where Ātihau’s cattle are fed a high protein diet over the winter months Fertility (of soil): Status of soil in terms of the amount of plant-available nutrients it can supply Finishing (livestock): The process of growing animals to a point they are considered ready for slaughter Fixed Asset: Assets held for use by Ātihau rather than for sale or conversion into cash Genetics (livestock): Branch of biology concerned with trait inheritance from parents to offspring – important to use the right animals (male or female) to establish and continue Ātihau’s breeding programme Greenfeed: Annual crops, usually cereals, grasses or brassicas, grown for animal feed Gross Revenue: What is earned by Ātihau from selling goods and services Hectare (ha): A standard metric measurement of land, 1 ha = 10,000m2 = 2.471 acres Heifer: Term used to describe a young female cattle beast

Provision for Dividend: Allowance for a Dividend distribution to Ātihau shareholders Revaluation of Shares: Difference in the market value of shares that Ātihau holds in other companies at this balance date compared to the previous year.

Revaluation of Livestock: The livestock price movement being the livestock value at year end versus opening values less the amount attributed to change in livestock numbers Soil Moisture Deficit: Deficit between the actual amount of water in a soil versus its water holding capacity Statement of Cash-flow: Shows the cash movements for the year in Operating, Investing and Financing categories Statement of Financial Performance: Shows how well Ātihau has performed in its trading activities.

Statement of Movements in Equity: Reports the change in Ātihau’s ownership interest in the year Statement of Financial Position: "A snapshot" in time that reflects where the money has come from (Equity + Liabilities) and how the money has been used (Assets) Stock on hand: Inventory of goods held for resale or for Ātihau’s use, including livestock Stock Units: Livestock in NZ are commonly given a “stock unit” (su) value or measure. The basic unit (1 su) is one breeding ewe that weighs 55kgs; bears 1 lamb; and consumes approx. 550 kilograms of dry matter each year. A beef breeding cow is commonly given a value of 6 su. Stock units have a number of uses e.g. to determine how much feed is required; the stocking rate of a farm, etc.

Store (livestock): A term used to describe animals destined for “finishing” that are sold off country, which does not have the potential to finish them, to specialist “finishing” operations on easier more productive country Supplements: Additional animal feed often in the form of conserved hay, silage fodder crops (greenfeeds and brassica crops) or concentrates such as grains or meals Term Liabilities: A liability of Ātihau which is generally due to be settled more than 12 months after balance date Unclaimed Dividends Due – Te Āti Hau Trust: Funds relating to unclaimed dividends from the previous year which are advanced to Te Āti Hau Trust to invest Weaner: A young animal that has been weaned from its mother’s milk, capable of living completely on pasture Yield (carcass): Proportion of usable (saleable) meat from a carcass expressed as a percentage of total carcass weight Yield (fibre): Proportion of usable fibre present in a quantity of greasy wool expressed as a percentage

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35 Drews Avenue Whanganui 4500 New Zealand Postal Address PO Box 4035 Whanganui 4540 New Zealand