Te Tīmatanga Introduction from the chair

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.

Board members

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.

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.

Strategic intentions

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 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.

Investments / asset sales

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.

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.

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.

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

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