Parininihi ki Waitotara Annual Report 2016

20 16 He Tangata He Whenua He Oranga Sustaining and Growing our People through Prosperity

OUR STORY At its heart our story is one of perseverance in the face of adversity. It is the story of people working together to create opportunity and a brighter future for their children.

It is about an intergenerational business that is seeking to continue the journey to;

> provide opportunity to its people > regain our ancestral land > protect and grow our assets for current and future generations > balance our commercial and cultural responsibilities

And importantly our story has evolved to be that of a business of innovative and sustainable farm management.

This Annual Report is a celebration of our journey to date as we look to illustrate to our shareholders the stories behind the numbers.

Cover: Spencer Carr former PKW Chairman (NgÄ ti Ruanui) Left: Rose Denness and Faith Wharemate at the 2015 AGM, Aotearoa Marae, ĹŒkaiawa

OUR KAUPAPA The ambition of our kaum ā tua to build Parininihi ki Waitotara into an organisation dedicated to fulfilling the aspirations of our ancestors is being realised.

We recognise we have a duty to manage our lands and assets not just for our generation but for those that follow us.

OUR MISSION He Tangata, He Whenua, He Oranga – Sustaining and Growing our People through Prosperity.

OUR VISION A successfully diversified and sustainable Taranaki Māori-owned and operated business providing meaningful opportunity to its people.

OUR VALUES REFLECT · · · ·

Care for our present and future generations Commitment to leadership Adherence to our tikanga and belief in our future Belief in collective action with trusted partnerships.

Right: Farm Manager, Jon Smythe, feeds out to stock on Farm 29 - Māwhitiwhiti Road, Ōkaiawa.

PARININIHI KI WAITOTARA INCORPORATION Te Pūrongo ā-Tau a te Heamana

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Chair’s report

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Performance at a glance

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Meet the Committee of Management

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Meet the Executive Management Team

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Parininihi ki Waitotara - 40 years in the making

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CONTENTS

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CONTENTS

PARININIHI KI WAITOTARA INCORPORATION ANNUAL FINANCIAL STATEMENTS Contents

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Auditors' report

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Committee’s annual report

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Statement of comprehensive income

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Balance sheet

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Statement of changes in equity

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Statement of cash flows

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Notes to the financial statements

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Minutes of the Incorportation Annual General Meeting 62

PARININIHI KI WAITOTARA TRUST Te Pūrongo ā-Tau a te Heamana

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Chair’s report

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Scholarships and grants

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Contents

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Auditors' report

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Entity information

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Statement of service performance

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Statement of financial performance 86 Statement of financial position 87 Statement of cashflow

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Statement of accounting policies 89 Notes to the performance report

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Minutes of the Trust Annual General Meeting

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Left: Carol Kahui and mokopuna, Jayden Robinson

Parininihi ki Waitotara

PARININIHI KI WAITOTARA TRUST ANNUAL FINANCIAL STATEMENTS

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Ahakoa ngā piki me ngā heke o ngā tau e rua kua taha ake nei, ka tū tōrunga tonu tātou.

Ka titiro whakamua tātou ki ngā rā kei te heke mai me te āheinga ki te whakarato whai wāhitanga whai mana toitū ki te iwi, ina ka titiro whakamuri ai, ina ka mihi ai ki ngā rā kua pahure ake me ngā tāpaetanga o te hunga kua whetūrangihia.

3.7

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MILLION NET PROFIT Tēnā koutou

Poua ki runga Poua ki raro

Poua iho rā ki te maunga tītōhea E kore e pau te ika unahi nui Tihei mauri ora

Nōku te hōnore ki te whakatakoto i te pūrongo ā-tau a te Kōmiti Whakahaere mō te tau i mutu i te 30 o Pipiri 2016 (Tau Pūtea TP 15/16).

He tau uaua anō i roto i tō tātou tino wāhanga haupū, arā, ko te mīraka kau, ā, ka āta kitea te hūnuku a te tāngata hoki. I poroporoākī tātou i tō tātou Tumu Whakarae Tuatahi, a Dion Tuuta, ā, i kopoutia tō tātou Tumu Whakarae hou, a Wawick Tauwhare-George. Kua ngākau kaikā mātou ki te whakatau i a Warwick ki tāna mahi hou, i tēnei wā hou o te whanaketanga o PKW hoki.

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Ngā Hua Pūtea

He tau uaua anō te tau kua pahure mō Parininihi ki Waitotara nā te heke haere tonu o te ohu miraka. Nā tērā i kino tonu ai te pānga ki te moni whiwhi ka puta i ā tātou rawa ahumīraka kau. Engari ko tētehi painga ka puta, ka kitea tonuhia ngā whiwhi moni nui ake i ā tātou haupū ā-ahumoana, me te paku tupu o te whiwhi moni mō te Tau Pūtea (TP)15/16. Ka pērā tonu te moni whiwhi o te whenua ki ā tērā tau, ā, ka $1.7m te nui haere tonu o te wāriu tika o te whenua tōpū. Mō te TP 15/16, ka whiwhi a Parininihi ki Waitotara ki te $3.7m huamoni, unuhia tāke (TP 14/15: $7.5m).

Ko te hua o te mahi ā-pūtea o runga ake, i tupu te tōkeke a ngā kaiwhaipānga ki te $204.3m (TP 14/15: $202.8). Ahakoa te iti o te tupu tōkeke, i te mutunga iho ka pai te kite i te neke tōrunga. Ko te nama katoa i te mutunga o te tau he $67.2m (TP 14/15: $68.8m).

AFTER TAX

Pērā anō te iti o te tupu, engari he tōrunga. I taea e mātou te whakaheke i te nama katoa, te whakanui hoki i te tōkeke nā te āta whakahaere i ngā utu whakahaere mahi pāmu (i heke i te $1.3m), ā, ka heke te maha o ngā kararehe, ka whakaheke hoki i te whakapaunga utu haupū rawa. I kite tātou i te neke tōrunga o te wāriu o ngā hea Fonterra ($1.8m), te rere ukauka tōrunga i a Finistere me ngā putanga e rua ahakoa i whakaritehia e ngā whakahekenga wāriu kore moni i ngā haupūranga ka waihotia ki tahaki, me te whakapiki iti o te wāriu o ō tātou whenua i kōrerohia ai i runga ake.

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Moni ā-Tau

Hui katoa ko te moni ā-tau o te rōpū mō TP 15/16 ka $18.2m, arā, i heke kia 17% i te tau i mua (TP 14/15: $21.9m). Ko te tino take i pēnei ai ko te heke nui o te moni ā-tau ahu mīraka kau, i heke i te $3m, ki te $6.8m (TP 15/16: $9.8) nā te heke o te mahinga ki te 2.7m kirokaramu mīraka totoka (kkMT) (TP 15/16 3.3m kkMT) me te utu mīraka iti iho a Fonterra, i te $3.90 mō TP 15/16 (TP 14/15: $4.40).

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Nama ā-Rōpū

Hui katoa ko ngā nama ā-Rōpū ka $16.3m, he iti te piki i te tērā tau (TP 14/15) $16.6m — tirohia te pitopito kōrero 8 o ngā pūrongo pūtea). Ka hāngai te nuinga o tēnei nama ki

He Tangata

TE PŪRONGO Ā-TAU A TE HEAMANA HINERANGI RAUMATI-TU'UA

TE PŪRONGO Ā-TAU A TE HEAMANA

$

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<< ngā nama whakamahi pāmu i $8.4m (TP 14/15: $9.7m) i heke kia $1.3m me ngā huanga kaimahi ka $3.5m (TP 14/15: $2.6m). I nui haere ngā huanga kaimahi i te whakawhitinga o ētehi kaikirimana motuhake o runga pāmu ki ngā kirimana kaimahi i te ngau o te hekenga ahu mīraka kau.

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Te Rautaki I te Huitanguru 2016, nā runga i tā tātou tikanga ia, i whai wā ki te āta tirotiro i tā tātou rautaki.

Ka whakapūmau te whakatau kia aro whakaroto i tēnei wā, ā, ka āta aro atu ki te whakapiki i ngā pāmu me te whakapakari i te āheinga ō-roto ā-pūnaha, ā-tāngata hoki ka toko ake i ngā hua ā-pūtea me te mahinga whānui hoki. Ko te whāinga pae tawhiti ka whakarite tonu tātou i ngā tū momo rawa pūtake kē atu, ā, ka whakaratoa tētehi tuaritanga toitū ki ngā kaiwhaipānga, ki ō rātou whānau hoki i a rātou e tiaki ana i te wāriu tūturu o te tōkeke. Nā tētehi wāhanga o tēnei tukanga i whakaaroarohia e te Kōmiti Whakahaere, e ngā Ringatohu Motuhake, e te Māngai

Kaiwhaipānga hoki, me ngā Kaiwhakahaere Matua ngā hua o tā tātou patapatai Kaiwhaipānga, ki tā tātou mahi o tēnei wā me te horopaki ohunga hei arataki i a tātou. I whakapūmautia tō tātou whāinga, arā, 'He Tangata, He Whenua, He Oranga'.

I oti i a mātou tētehi arotake i ngā nama Mana Ārahi i te tau. Kei ngā pitopito kōrero o ngā pūrongo pūtea ngā taipitopito. Mutu noa te kimi ārahitanga motuhake, i tau te whakaaro kia ū tonu ki te utu o ngā mema o te Kōmiti Whakahaere i roto te rahinga i whakaaetia, arā, ko te $250,000. I mua rā kāore i pau i a mātou te rahinga, nō reira i āhei ai te whakanui i ngā nama pūtake mō ngā mema o te Kōmiti Whakahaere, te tuari hoki i tētehi wāhanga o te pūtea i tuaritia i mua ki ngā Heamana o ngā kōmiti tuarua me te Tarati.

Tauākītanga Whakamaunga.

Ko te arotake i Te Ture Whenua Māori 1993 tētehi āhuatanga matua o te tau e arotakengia ana. I tae ā-tinana atu mātou, ā, i tāpae kōrero hoki e pā ana ki te whakaatu hukihuki me te pire hukihuki. Ka tautoko mātou i te whāinga o te pire, arā, ki te hāpai i te mana motuhake me te mana whakatau whakaaro o ngā kaipupuri whenua, ki te whakatūturu hoki i te ūnga, ki te āwhina i te whakamahinga me te whanaketanga nui ake i te whenua Māori herekore mō te painga o ōna kaipupuri. Engari he māharahara ō mātou e hāngai pū ana ki ō tātou wheako. Ko te wetewete hea, te whai wāhi me ngā pae whakatau whakaaro ngā pūtake o ō mātou māharahara. I kōrerohia ō mātou māharahara i ngā nohoanga o te Kōmiti Whiriwhiri. I tautoko, i whai wāhi hoki tātou ki te tukunga a FOMA (Federation of Māori Authorities) i whakatakotohia ngā pitopito kōrero huhua mō te Pire ka whakaaro tātou ka taea te whakapai ake.

I whakatau mātou ki te whakapūmau i ngā hiahia kei waenga i ngā poari o te Kōporeihana, te Kamupene Pāmu me te Tarati o PKW ka hāngai ki te mahi, te tuku pūrongo, ngā uara me ētehi atu take whakahaere mā He mea pārekareka te hūnuku ki ngā Tauākītanga Whakamaunga. te whare hou i te Poutūterangi o I ia tau ka arotake mātou i ngā 2016. He whiwhinga whakahirahira

Hei whakakapinga, hei whakamutu i te tau i whakaū mātou ko Ngā Iwi o Taranaki Whānui i te takohanga ā-mātāpono ki te whakangao tahi ki tētehi whai wāhitanga rawa. He nui noa atu te āta whakamātau hei mahi, ā, ka ngākau kaikā tātou ki te mahi ki te taha o ngā iwi ki te whakapakari anō i te tūāpapa ohanga Māori o tō tātou rohe.

tonu o te rāngai ahu mīraka kau me te iti o te utu mīraka ka arotahi tonu a PKW ki te whakahaere i te kohinga o tēnei wā, ā, kāore i whakangao I te Hereturikōkā 2015, i pōhiri mātou anō i ngā hokotanga ā-rīhi. ki a Richard Krogh (nō Te Atiawa) hei mema poari o PKW Farms. Ka Ka piki tonu te wāriu tika o te pārekareka te ngākau i te urunga whenua Corpus, ā, ka piki te mai o Richard, ā, kua ngākau kaikā wāriutanga mā te $1.7m (TP 14/15: tātou ki tōna tāpaetanga haere tonu $10.9m). Kua $169.2m te wāriu atu. tika o ngā rawa Whenua katoa. (TP Kaiwhaipānga mō te Tarati nā rātou te takohanga me ngā whakatutukitanga i te tau.

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14/15: $168.8m).

Te Tirohanga Whānui ā-Whakahaere

Mahi Pāmu

Whenua

Ki tā te hokinga māhara o ngā tau tata nei, ka tohua te tau mahi pāmu o te TP 15/16 te tau uaua rawa atu.

Te Mana Ārahi

Ka tata ki te 17,000 ha o tōna rawa whenua tōpū ka rīhi tonuhia e Parininihi ki Waitotara. He rīhi mau mō ake tonu o te 262 West Coast Settlement Reserve ērā. Ka hoko noa ēnei rīhi, ā, ka mau tonu i a PKW te mana whakakore tuatahi mō ngā rā mahi 20 ina wātea ai ngā rīhi hei mea hoko ki te mākete whānui. I whakatutuki i ngā kaiwhakahaere te mahi whakarite mō te arotake rīhi o 2017 e haere mai ana.

Ka mihi au ka tika ki ngā mema Kōmiti katoa, ki ō tātou ringatohu motuhake rātou ko tō tātou Māngai

Ko te $5.9m te moni whiwhi rīhi i tae mai ki a PKW mō te TP 15/16 (TP 14/15: $6.0m). Nā te heke haere

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I te mutunga iho i heke te matapae utu mīraka tīmatanga a Fonterra o $5.25/kkMT mō ia kkMT ki te utu iti rawa atu mai rā anō o $3.90 mō ia kkMT (TP 14/15: $4.40, TP 13/14 $8.40) nā te hiahia ā-ao ngoikore haere tonu me te nui o te whakaratonga haere tonu i ngā kaiwhakamahi i te Tuakoi Raki o te Ao. Ko ngā tōrangapū ā-ao i Uropi me Rūhia i pā kaha, i pā wā roa hoki - nā reira i hua mai ai te pēhitanga o te utu mīraka roa atu i ngā marama 24.

He Tangata

te whare i roto i te whanaketanga o te Kōpororeihana, ā, ka tū te whare hei pou rautaki, hei pou mana motuhake hoki. Ka tū te whare hei pou whakamaumaharatanga, hei tohu ki ā tātou tamariki i ngā mea e taea ai mā te mahi ngātahi a te iwi Māori te whakatutuki. I whai whakaaro mātou kua 40 ngā tau o te Kōporeihana, ā, he mea hiranga te hāpai i tō tātou whakapapa me ngā hiahia o te wāhi mahi o tēnei wā hoki i roto i te hoahoa me te whakatū i tō tātou ake wāhi. Ka mihia ngā tāngata katoa nā rātou te whakatuwheratanga i whakatutuki.

TE PŪRONGO Ā-TAU A TE HEAMANA

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<< Hei āpiti atu i te utu iti mau roa ka tāpaetia mō te mīraka, ka tino kino te raruraru o te āhuarangi i Taranaki hoki. Ka tere huri te wā makariri tino roa, kino te anu, mākū hoki o te makariri ki te kōanga i ahu mai te raumati me te ngahuru tino roa te wera me te pakapaka. Hui katoa ka tata ki te 20% te hekenga o te tupu o te karaihe puta noa i ngā pāmu ka whakahaerehia e PKW ka hua i ēnei putanga āhuarangi.

Ahakoa te mōhio ka uaua te tau, tūturu ka tino kino te pā atu o te āhuarangi, o te utu mīraka tino iti me te iti haere o ngā wāriu kararehe ki te huamoni pakihi.

I rāhiri tātou ki te kopoutanga o tētehi Kaiwhakahaere Whānui Ahuwhenua hou, ko Louise Cook.

Kua puta kē mai ngā painga ki PKW i te whakatūtanga o te tūranga nei hei whakatō mai i ngā pūkenga rautaki, pūkenga pāmu pakihi hoki ki te rōpū whakahaere matua o te pakihi.

a te Rōpū Pāmu katoa, i puta ai te hua ā-pūtea ka pai ake kia $2.4m (arā, ka 26%) i tērā tau. Nā te āta whakahaere i te hoko me ngā panoni pūnaha pāmu hei hāpai i te toitū pakihi i te itinga o te utu mai i piki ake ai ngā hua ā-pūtea.

Ka tino heke ngā utu haupū rawa kararehe i te roanga o te tau, nā reira ka heke te wāriu o ngā kararehe e pupurihia ana ki te puka taurite kia $2.8m.

I te tau i oti i ngā kaiwhakahaere te whakawhanake i ngā mahere ā-tau mō te haumaru, mō te taiao hoki me ētehi taputapu whakahaere oranga kararehe hei āratahi i te pakihi Pāmu i roto i ēnei āhuatanga tūraru hiranga.

Nā tō tātou whāinga ki te whakaiti i te whakapaunga moni mō te kore noa, kāore i tīmata i ētehi atu mahinga haupū rawa nui i te tau.

I tēnei tau ka whakamahia e te rōpū pāmu ngā pūkenga katoa e Ko tētahi tino aronga o tēnei tūranga taea ana e rātou hei ārai i tō tātou ko te mahi ki te taha o te rōpū pāmu pakihi pāmu i ngā raru ā-pūtea, ā-haumaru, ā-taiao, ā-oranga hei āwhina ki te aromatawai i te kararehe hoki. Ka whakaaturia ngā huamoni pakihi. Nā te mahi tahi

hua i tēnei tau e te Kaiwhakahaere Matua Ahuwhenua hei "mahi manawa ururoa ahakoa te horopaki pāmu uaua rawa atu tērā pea ka tūponotia". Ka ringa tōhau nui ō tātou kaimahi ia rā ia rā, ahakoa ka pāngia ā rātou mahi e ngā āhuatanga maha tē taea e rātou te karo. Ahakoa te aha, ka arotahi rātou ki ngā mea e taea e rātou te panoni, ā, āpōpō rā ka tae atu anō rātou, ka rite hoki kia haere tonu te mahi. He mīharo te mahi a tō tātou rōpū ki te tiaki i ā tātou pakihi i ngā marama 12 kua pahure atu, ā, ka whakamihi au ka tika ki a rātou mō ā rātou mahi.

Ahumīraka I tīmata a PKW Farms i te tau TP 15/16 ki te whakarite pūtea kia hua ai te 3.30m kirokaramu o te mīraka tōtoka (kkMT), ā, i hua ai te 2.74m kkMT (TP 14/15: 3.32 kkMT). Ahakoa te kino iti haere o te mahinga, nā ngā utu mīraka o tēnei wā kāore te huamoni i puta i te utu o te taunaki mahinga nui ake.

I roto i te tau, ka whiwhia te $2.6m penapena utu ka tauritea ki te tahua, engari ka tae atu tēnei ki

CHAIRMAN’S REPORT

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He Tangata

mīraka i whakaritea ai kia ū ai a PKW āta whakaiti ngā pāmu huhua i te ahakoa ngā nekenekehanga o ngā maha o ngā kararehe, nā reira ka iti haere te kai ka matea te hoko, ka mākete hei ngā rā haere ake nei. āta whakaiti hoki i te utu whakamahi.

I ngā tau kua hipa i whakatupuria e PKW ngā toenga ūwhā kau hei Te Ahuwhenua Koremīraka whakarahi atu i ngā rīhi hou ka Ka whakatupu ngā wāhanga whiwhia, hei hoko atu ki te mākete I te TP 15/16 i kitea tētehi tokorua koremīraka a PKW Farms LP i ngā rānei. Nā te takahurihuri o te 50/50 hea mīraka wā roa, a Dale kau whakakapi mō ngā pāmu mīraka mākete toenga ūwhā kau ka āta rāua ko Phillipa Corrigan, nō Pāmu whakahekengia te maha o ngā 6 Opua Rori e puta atu ana i tō tātou kau, ā, mā ngā toenga punua kau i ō tātou pāmu e taea ai te whakatupu toenga ūwha kau ka whakatupuria. whānau ki te whakahaere tonu i tō me te mau kararehe anō mō te Ka whakaiti tēnei i te haupū moni rāua umanga ahuwhenua ki waho i whakanui āmuri atu rā rānei, mō a PKW ka herea ki ngā kararehe PKW. te hoko atu kia whiwhia ai te moni o ētehi whenua. Hei āpititanga, I oti hoki i a Linn rāua ko Diane rānei. I te TP 15/16, ka puta te hua he panoni e whāngaihia ai ngā Wineera i Pāmu 8 i Normanby i te rautaki whakatupu pūru a PKW kararehe ā-rāwaho ki te karaihe Rori i tā rāua hononga 50/50 hea Farms LP. Ko ngā utu nui mō te ka whakaratoa tētehi huarahi moni mīraka ki PKW, engari kua huri hei mīti i whiwhia i te tau i whakamāmā i whiwhi pai i te roanga o te tau.

Kaiwhakahaere ki taua whenua tonu ngā hua o te utu mīraka iti.

Kōura mā PKW. He rerekē ngā whakahaerenga Ko te titiro whakamua mō te TP Kore mīraka a PKW Farms LP ki ā te He tau whai hua anō te TP 15/16 i tā PKW haupūnga i Port Nicholson 16/17, tērā pea ka kitea ētehi painga wāhanga Mīraka, ina ka whakahua mā te pakihi ahuwhenua. Ahakoa wāriu mā te tupu o te kararehe me te Fisheries Limited Partnership (PNF) ka pōturi te piki o te utu mīraka, ka nui haere o te taumaha, ā, ka whiwhi I tēnei tau i hokona mai hoki ngā hea 0.7m anō; ka tata ki te $2m te utu. āhua whakamatua hoki. Ka kaha ki te moni i te wā hoko rānei i te rā tonu te utu Hea Fonterra whiwhi whakatau wāriu i te mutunga o te tau He $42.9m (TP 14/15: $36.2m) te wāriu tika i tēnei wā o te wāhanga. moni, ā, ka kitea te tīmata o te piki o rānei.

He kakenga nui tā PNF i te tau nā te ngā utu Kararehe.

Nā te nui o te panoni i te ahumahi tāpiri i Moana New Zealand (arā, ko Nā ngā panoni pūnaha pāmu i i te hekenga o te utu mīraka, e rua Aotearoa Fisheries Limited) hei hoa atu i te 1 o Paenga-whāwhā 2016. ngā panoni matua ki te pakihi Kore tautuhia, i whakatinanahia hoki ka ētehi penapena utu ā-huahaumako tē taea te toitū. Kua tutuki tētehi kaupapa ka whai te toko ake i te pakihi me te rapu rautaki pai rawa atu hei tiaki pūtea haere ake nei mō ngā pāmu katoa.

TE PŪRONGO Ā-TAU A TE HEAMANA

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TR14

<< Nā te tāpiri o Moana New Zealand ka tuarua ā-rahinga i Nū Tireni a PNF hei kaupapa whakamahi kōura, kaupapa tuku kōura ki tāwāhi hoki.

Ka tae ki a PKW ngā momo moni whiwhi e toru i āna haupūtanga kōura, tae atu ki: te utu rīhi mō te wāhanga rawa a PKW $2.5m (TP 14/15: $2.3m), he wāhanga huamoni i te pakihi whakamahi nā runga i te nui i whakamahia ka $1m (TP 14/15: $1m), me te momo utu rīhi i ngā whare whakamahi kia $0.14m (TP 14/15: $0.15m). Nā, ka puta te hua katoa, unuhia ngā utu, kia $3.5m (TP 14/15: $3.4m) ki te rōpū o PKW. Ka 8% te hua whānui ka puta i tēnei haupūtanga i tēnei wā (TP 14/15: 9%).

...........................................

i tērā i manakohia ai, kāore hoki i tutuki te puta ā-pūtea. Nā tērā i hua ai te whakakoretanga ka tata ki te $0.5m o te wāriu katoa o tā PKW haupūtanga tuku iho i roto i a Finistere.

I puta te hokonga atu o te haupūtanga Transcend hoki i te tau. I whakatinana tēnei i te $2.2m i ngā hua o te hoko atu. He $0.7m anō tērā pea ka whakatinanahia i tētehi utu herenga i pupuritia, ā, ka whakataungia ai ā mua mai i te Pipiri 2017.

Ka tū tonu te whakaritenga me Finistere Oceania kia whakahaere tonu a Finistere i ēnei rawa mā PKW mō te kore utu tae noa atu ki te whakaotinga o ērā.

Ētehi Haupū Anō

Ngā Rawa Ōhanga

Ngā Āporo Rockit

Ka tata te rawa ōhanga a PKW ki te 1% o ngā rawa katoa a PKW, engari he wāhanga whai wāriu tonu o tā PKW kohinga haupūnga whānui. Ka tae mai ngā utu ki te Kōporeihana i ōna rawa ōhanga kei Miranda Tiriti ki Whakaahurangi; kei Kuini Tiriti ki Whai-tara, ki Powderham Tiriti ki Ngāmotu hoki.

Hui katoa ka $0.2m te utu i tae mai i ngā rawa ōhanga nei i te tau (FY 15/16: $0.2m).

I te tau i mua, i āta haupū te Kōmiti Whakahaere ki tētehi haupūtanga āhua māmā, kano maha i tētehi uru hua rākau ki Te Matau-a-Māui e tupu atu ai ngā Āporo Rockit. Ka whakawhanake tonuhia te uru hua rākau, ā, ka ahu whakamua tonu ki tāna i whakarite ai, arā, ko te whakatupu āporo hei hoko atu ki tāwāhi.

Finistere Oceania Ka mau tonu i a PKW tētehi whaipānga i roto i Finistere, ka tata ki te $2.4m te wāriu (TP 14/15: $3.7m). Ko te nuinga o te hapūtanga o te pūtea kei ngā kaupapa ka tīmatahia ki te Ahumahi Taonga Rongoā.

I tēnei tau i whakatau tētehi arotake motuhake i te wāriu o te kohinga kāore ngā kohinga haupūtanga e toru i whakatinana

Ngā Tāngata Ka mihi tātou ka tika ki te tira Whakarae, ā tātou kaimahi ki te Whare o PKW, me ngā Kaimahi Pāmu mō tā rātou ū tonu, mō tā rātou āhei hoki. Kua pā atu ngā toimahatanga ā-pūtea ki ō tātou kaimahi katoa i ngā tau e rua kua pahure ake, ā, ka mahi tahi tātou ki te hāpai i te pakihi me te aro atu ki te whakatikatika i ngā pūnaha me te tukanga ō-roto.

Ka mihi au ka tika ki ō tātou kaiārahi — i te taha ringatohu me te whakahaere — e whai kaha ana, e whai āhua ake, whai oranga toitū ana hoki i roto i ngā wā panoni me te iti noa iho o ngā rauemi. Mei kore rātou, ka kore tō tātou hinonga e pēnei ai.

Hei Whakakapi Ka ahu whakamua tātou ki ngā wā o te whakapiki ora. Ka kite tātou i te kōpura o te piki ake i roto i te rāngai ahumīraka kau. Ahakoa ngā piki me ngā heke o ngā tau e rua kua taha ake nei, ka tū tōrunga tonu tātou. Ka titiro whakamua tātou ki ngā rā kei te heke mai me te āheinga ki te whakarato whai wāhitanga whai mana toitū ki te iwi, ina ka titiro whakamuri ai, ina ka mihi ai ki ngā rā kua pahure ake me ngā tāpaetanga o te hunga kua whetūrangihia.

Ngā mihi nui.

Tena koutou Hinerangi Raumati-Tu'ua Heamana Matua

He Tangata

8

We remain positive despite the challenges of the last two years. While we acknowledge the past and the contributions of those who are no longer with us, we welcome the future and the prospect of being able to sustainably provide meaningful opportunity to our people.

3.7

9

MILLION NET PROFIT Tēnā koutou

Poua ki runga Poua ki raro

Poua iho ra ki te maunga titohea E kore e pau te ika unahi nui Tihei mauri ora

On behalf of the Committee of Management I am proud to present the annual report for the year ended 30 June 2016 (FY 15/16). It has been another challenging year in our major investment area, dairy, and we have experienced considerable people change as well. We farewelled our inaugural CEO Dion Tuuta and appointed our new CEO Warwick Tauwhare-George. We look forward to welcoming Warwick in his new role and this next phase of PKW’s development.

...........................................

Financial results With the continuing downturn in the dairy market, it has again been a difficult year for Parininihi ki Waitotara. The downturn continued to negatively impact the revenue generated from our dairy-farming assets. On a positive note, our investments in Fisheries continued to show strong revenue returns, with a small improvement in revenue growth for FY 15/16.

Whenua maintained its revenue levels compared to the prior year whilst the fair value of the corpus land continued to improve with an increase in value of $1.7m.

Parininihi ki Waitotara has achieved a net profit after tax of $3.7m for the FY15/16 financial year (FY 14/15 $7.5m).

As a result of the above financial performance, shareholder equity grew to $204.3m (FY14/15 $202.8m). While equity growth was small it was good to see positive movement overall. Total debt at year end was $67.2m (FY14/15

AFTER TAX

$68.8m). Again the movement was small but positive. We were able to reduce overall indebtedness and improve equity by tightly managing farm working expenses (down $1.3m), reducing stock levels and minimising capital expenditure. We saw positive movements in the value of Fonterra shares ($1.8m), positive cash flows from Finistere with two exits albeit offset by non cash writedowns in investments which are being mothballed, and a small increase in the value of our corpus land as mentioned above.

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Revenue

Total group revenue for FY 15/16 year was $18.2m, representing a 17% decrease on the previous year (FY 14/15: $21.9m). This was largely due to significantly reduced dairy revenue, down by $3m, to $6.8m (FY 15/16: $9.8m) coming from a reduction in production to 2.7m kilograms of milk solids (kgsMS) (FY 15/16: 3.3m kgsMS) and a lower Fonterra milk price being $3.90 for FY 15/16 (FY 14/15: $4.40).

...........................................

Group Expenses Total group expenses of $16.3m was a slight improvement on the previous year (FY14/15: $16.6m – see note 8 of the financial statements). The majority of this expense relates to farm operating expenses of $8.4m (FY 14/15: $9.7m) down $1.3m and employee

He Tangata

CHAIR’S REPORT HINERANGI RAUMATI-TU'UA

PKW INCORPORATION CHAIR'S REPORT

$

10

<< benefits of $3.5m (FY 14/15: $2.6m).

Employee benefits increased as a number of on-farm independent contractors converted to individual employee agreements as the dairy downturn continued to bite.

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Strategy

As is our usual practice, we paused to review our strategy in February 2016. We confirmed that we would maintain our internal focus at this time with specific attention being paid to farms optimisation and building internal capability with regard to both systems and people which support optimised financial returns and overall performance. In the long term we will maintain our goal of diversifying our asset base and delivering a sustainable distribution to shareholders and their whānau while protecting the real value of equity. As part of this process the Committee of Management, Independent Directors, Shareholder Representative and Senior Managers reflected on the results of our Shareholder survey, our current performance and the wider

economic environment to guide us. feature of the year in review. We Our mission was reconfirmed as ‘He attended and made submissions Tangata, He Whenua, He Oranga’. on both the exposure draft and draft bill. We are supportive of the We completed a review of intent of the bill, that is, to give Governance fees during the year. more autonomy and decisionThe detail is contained in the notes making power to landowners to the financial statements. After and to ensure the retention and seeking independent advice we support greater utilisation and decided to maintain the cost of COM development of Māori freehold land members' fees within the current for the benefit of its owners. We do, approved allowance of $250,000. however, have concerns specific We had not fully utilised the to our experiences. Our concerns allowance previously so had some centre on share fragmentation room to capture a modest increase and participation and decisionin base fees for COM members making thresholds. We voiced our while also reallocating a proportion concerns at the Select Committee of fees previously allocated to hearings. We also supported and Chairs of subcommittees and the were a party to the Federation of Trust.

Māori Authorities’ submission which captured significant detail on the We also undertook to formalise content of the Bill that in our view the expectations between the could be improved.

Incorporation and the Farms LP and PKW Trust boards with regard to performance, reporting, values and other governance issues, by way of Statements of Intent. We will review the Statements of Intent on an annual basis.

The review of Te Ture Whenua Māori Act 1993 has been a key

It was pleasing to move into new premises in March 2016. The building is an important milestone in the history of the Incorporation and will be a strategic pou of identity.

It presents as a living memorial and an example to our tamariki of what can be achieved through

and we look forward to his ongoing contribution.

...........................................

Operational Overview Whenua

Parininihi ki Waitotara Incorporation continues to lease approximately 17,000ha of its corpus land asset Finally, we ended the year making an in principle commitment with Ngā in the form of 262 West Coast Iwi o Taranaki Whānui to collectively Settlement Reserve perpetual leases. These leases are freely invest in a property opportunity.

There is considerable due diligence traded and PKW retains a to do and we look forward to taking 20-working day first right of refusal our place working with Iwi to rebuild as leases become available for sale on the open market. During the the Māori economic base in our year, management completed the rohe. groundwork in preparation for the upcoming 2017 rent review.

Governance PKW received Corpus lease rental I would like to thank all Committee income of $5.9m for FY 15/16 (FY members, our independent directors 14/15: $6.0m). There was no further and our Shareholder Representative investment in leasehold acquisitions for the Trust for their commitment during the year as PKW continued and achievements during the year. to focus on managing the existing portfolio as a result of the continuing We welcomed Richard Krogh downturn in the dairy sector and low (Te Atiawa) to the board of PKW milk price.

Farms in August 2015. It has been The fair value of the Corpus land a delight having Richard on board

...........................................

continued to increase with a valuation gain of $1.7m (FY 14/15: $10.9m). The fair value of the total Whenua assets is $169.2m. (FY 14/15: $166.8m).

Farming The FY15/16 farming season has been classed as the most challenging in recent memory.

Fonterra’s opening forecast milk price of $5.25/kgMS per kgMS ultimately fell to an all-time low of $3.90 per kgMS (FY14/15 $4.40, FY 13/14 $8.40) as a result of sustained weak global demand, and continued strength of supply from Northern Hemisphere producers. Global politics in Europe and Russia also had a significant and enduring impact – resulting in continued suppression of the milk price for over 24 months.

In addition to the constraint of the low price being offered for milk, Taranaki had highly adverse climatic conditions. A very long, cold, wet winter and spring turned quickly into a very long, hot, dry summer

He Tangata

collective Māori action. We had been mindful that after 40 years of life for the Incorporation, having our own place, designed with our whakapapa in mind and the needs of a modern working environment, was an important step for all of us.

We thank everyone who made the opening a success.

PKW INCORPORATION CHAIR'S REPORT

11

<< and autumn. The total impact of these climate events reduced grass growth by approximately 20% across PKW’s operated farms.

Capital Livestock prices reduced significantly through the year, reducing the value of livestock held on the balance sheet by $2.8m.

While a challenging year had been expected, the climate impact, low milk price and dwindling livestock values had a considerable impact on business profit.

During the year management completed the development of an annual safety plan, annual environmental plan and animal welfare management tools to guide the Farming business through these critical risk areas.

We welcomed the appointment of the new General Manager of Ahuwhenua, Louise Cook. The introduction of this role to bring a specified strategic and commercial farming skill set into the senior management team of the business has already been yielding benefits to PKW. A key focus of this role was to work with the rest of the farming team to support a critical assessment of business profit. Together the entire Farms team returned a financial result that was $2.4m (26%) better than the prior year.

The improvement in financial results was due to strict cost control and farm system changes to improve business resilience at low payouts.

There were no other significant capital works embarked on during the year, due to our goal of minimising unnecessary spend.

The farming team this year have used every skill at their disposal to protect our farming business from financial, safety, environmental and animal welfare threats. The results from the current year are described by the GM Ahuwhenua as “a heroic effort in the face of the most difficult farming environment you could expect to face. Our Kaimahi work tirelessly every day, with their performance being affected by so many things they can’t control.

Through it all, they keep their eyes

focussed on what they can control and show up tomorrow ready to do it again. Our team have done an outstanding job caring for our business in the last 12 months, and they have all of my thanks and respect for their efforts.”

Dairy Farming PKW Farms LP began the FY15/16 season budgeting to produce 3.30m kilograms of milk solids (kgMS) and achieved a final result of 2.74m kgMS (FY14/15: 3.32m kgMS). While production reduced significantly, the cost of supporting higher production was not profitable with current milk prices.

Cost savings of $2.6m were achieved within the year compared to budget, however this included some temporary cost savings in fertiliser use which cannot be continued long term. A project has been completed that sought to optimise the business and look at the most cost-effective strategy moving forward for all farms.

FY15/16 saw a long-time 50/50 share milking couple, Dale and

CHAIRMAN’S REPORT

12

Linn and Diane Wineera - Farm 8, Normanby Road also ended their 50/50 sharemilking relationship with PKW but have converted to being Managers on the same property for PKW.

enabling further stock to be raised and held for future growth, or sold for cashflow purposes. PKW Farms LP’s drystock farming strategy of rearing beef animals proved beneficial during FY15/16. The strong beef prices achieved during the year served to mitigate the effects of the low milk price.

Unlike the Dairy division, PKW Farms LP’s Drystock operations generate value through animal growth and weight gain, with cash being generated at the point of sale or at end of year valuation date.

Looking ahead, the FY16/17 dairy season offers glimmers of hope on the horizon for the farming business. Milk price is lifting slowly but reasonably steadily, the Fonterra Share dividend price remains With significant change occurring in strong, and we are starting to see a the industry in response to the low recovery in Livestock prices. milk price, two core changes have occurred in the Drystock business The farm system changes identified to better position PKW for future and implemented have seen many market shifts. farms reduce stock numbers considerably, requiring less Historically PKW has reared surplus imported feed and significantly heifers and used these to stock-up reducing their cost of production. newly acquired lease purchases, or Drystock Farming PKW Farms LP’s drystock units rear replacements for the dairy units, with excess calves from our farms

sell surplus to market. The volatility of the market for surplus heifers has meant the volume of surplus heifers to be reared is significantly reduced.

This reduces the capital PKW

has tied up in livestock on some properties. In addition, a shift to taking in third party stock as grazing animals provides a favourable cash income stream throughout the year.

Lobster FY15/16 provided another profitable year from PKW’s investment in Port Nicholson Fisheries Limited Partnership (PNF). It also saw the purchase of a further 0.7m quota shares during the year at a cost of almost $2m. The current fair value of the quota is $42.9m (FY 14/15: $36.2m). PNF achieved a significant milestone during the year with the addition of Moana New Zealand (formerly Aotearoa Fisheries Limited) as a partner effective 1 April 2016.

The addition of Moana New Zealand makes PNF New Zealand's secondlargest processor and exporter of Lobster in New Zealand.

PKW receives three income streams from its lobster investments including: lease income for its quota assets $2.5m (FY14/15: $2.3m), a profit share from the processing business based on

He Tangata

Phillipa Corrigan, from Farm 6, Opua Road leave our whānau and continue their farming career outside PKW.

PKW INCORPORATION CHAIR'S REPORT

13

14

<< volumes processed $1m (FY 14/15: $1m), and a rental stream from the processing facilities $0.14m (FY14/15: $0.15m). Giving us a total return, less costs, of $3.5m (FY 14/15: $3.4m) to the PKW group.

The current overall rate of return on this investment is 8% (FY14/15: 9%).

investment in Finistere.

Other Investments

An arrangement continues with Finistere Oceania in which they will Conclusion continue to manage these assets on PKW’s behalf at no management We look forward to brighter times.

We see glimmers of improvement in cost and through to their conclusion. the Dairy sector. We remain positive despite the challenges of the last Commercial Property two years. While we acknowledge PKW’s commercial property the past and the contributions of represents approximately those who are no longer with us, we 1% of PKW’s total assets but welcome the future and the prospect remains a valuable part of PKW’s of being able to sustainably provide overall investment portfolio. The meaningful opportunity to our Incorporation receives rent from its people. commercial properties in Miranda Ngā mihi St, Stratford; Queen St, Waitara; and Powderham St, New Plymouth.

The total rent received from these commercial properties during the Hinerangi Raumati-Tu'ua Executive Chair year was $0.2m (FY 15/16: $0.2m).

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Rockit Apples During the previous year, the Committee of Management made a modest diversified investment into a Hawkes Bay-based orchard development which will supply Rockit Apples. The orchard continues to be developed and head towards its goal of producing apples for the export market.

Finistere Oceania PKW retains an interest in Finistere valued at approximately $2.4m (FY 14/15: $3.7m). The majority of the fund’s investment is with start-up ventures in the Medical Devices Industry.

During the year, an independent review of the value of the portfolio determined three of the portfolio investments had failed to live up to their potential and achieve financial exits. This has resulted in a net write-down of approximately $0.5m on the total value of PKW’s legacy

Also occurring during the year was the sale of the Transcend investment. This realised $2.2m from the proceeds of the sale.

A further $0.7m could be realised from a contingent payment which has been held back and which will be determined by June 2017.

the business and focus on internal improvements in systems and procedures.

I would especially like to thank our leaders − both executive and management − who have shown strength, character and resilience in an environment of change and tight resources. We wouldn't be the organisation we are without them.

Tena koutou

People We acknowledge the commitment and capability of our Executive team, our Kaimahi at PKW Whare and our Kaimahi on Farm. All of our staff have experienced the financial pressures of the last two years and have worked with us to optimise

GROUP PERFORMANCE AT A GLANCE

FINANCIAL PERFORMANCE OPERATING PROFIT AFTER TAX AND BEFORE FAIR VALUE GAINS / (LOSSES) DOWN $3.2 M FROM 2015 TO:

$0.512 M

2011/12

2012/13

2013/14 2014/15

2015/16

($ '000)

($ '000)

($ '000)

($ '000)

Financial performance Revenue

20,168

20,415

29,482

21,872

18,206

Operating expenses

(9,679)

(12,528)

(15,440)

(16,561)

(16,344)

Finance costs

(1,988)

(2,223)

(2,537)

(3,336)

(3,280)

0

792

1,095

1,151

1,099

8,501

6,456

12,600

3,126

(319)

(1,054)

(855)

(2,161)

(457)

(193)

before fair value gains / (losses)

7,447

5,601

10,439

2,669

(512)

Net gains / (losses) from investments

1,131

10,219

(1,307)

4,838

4,228

8,578

15,820

9,132

7,507

3,716

Share of profit from joint venture

Operating profit / (deficit) before tax and other items Tax expense

FINANCIAL POSITION EQUITY UP $1.57 M FOM 2015 TO:

($ '000)

GROUP PERFORMANCE

15

FIVE YEAR CONSOLIDATED PERFORMANCE TO 2015/16

Operating profit / (deficit) after tax and

Profit from continuing operations

$204.3 M

61%

6%

1%

32%

PKW Whenua

PKW Fish

PKW Investments

PKW Farms

He Tangata

GROUP ASSETS BY BUSINESS

16

PERFORMANCE HIGHLIGHTS 2015 / 2016

Lobster return on assets were

Milk solids produced

The fair value of the total

June 2016.

due to lower livestock numbers

to $169.2m as at 30 June 2016.

8% for the financial year 30

decreased 18% on prior year and unfavourable climatic

whenua assets increased 1.4%

conditions..

8%

18%

1.4%

KEY OPERATING DATA

2011/12

2012/13

2013/14

2014/15

2015/16

#'S

#'S

#'S

#'S

#'S

Total Milk Solids Produced kgs/ms

2,574

2,668

3,009

3,333

2,743

Quantity of dairy cattle on hand

3,365

4,520

7,783

9,367

7,350

Total hectares farmed (owned and leased)

3,661

3,798

4,236

4,642

4,630

Total Milking platform hectares

2,128

2,203

2,229

2,331

2,331

($,000)

($,000)

($,000)

($,000)

($,000)

1,205

1,326

1,808

599

1,199

139

209

327

282

227

Dividends provided PKW Trust Grants Distributed

The metrics detailed above highlights the consolidation undertaken by PKW in 2015/16 to better effectively manage the current low dairy payout environment.

TERM LIABILITIES

2011/12

$43,162

2012/13

17

2013/14

$62,531

2014/15

$68,839

2015/16

$67,189 Decrease in debt levels due to deferral of planned capital and maintenance projects allowing cash proceeds to reduce debt

GROUP PERFORMANCE

$43,950

TOTAL ASSETS

2011/12

$224,117

2012/13

$239,997

2013/14

$267,143

2014/15

$276,841

2015/16

$279,040 A fair value increase and an additional purchase of lobster quota totalling $6.7m during 2015-16

TOTAL EQUITY

2012/13 2013/14 2014/15

$173,618 $188,850 $196,809 $202,754

2015/16

$204,327 Shareholders Equity has increased consistently year on year, from $173.6m in 2012 to $204.3m in 2016, representing a total growth of 17.6% over 5 years

He Tangata

2011/12

18

MEET THE COMMITTEE OF MANAGEMENT

L-R: David MacLeod, Hinerangi Raumati-Tu'ua (Chair), Taaringaroa Nicholas, Bev Gibson, Aisha Ross, Hinerangi Edwards, Claire Nicholson

Philip Luscombe

Richard Krogh

Darryn Ratana

(PKW Farms GP Ltd,

(PKW Farms GP Ltd,

(PKW Trust Shareholder

Independant Director)

Independant Director)

Representative)

COMMITTEE OF MANAGEMENT

JOINT VENTURE COMPANIES

Hinerangi Raumati-Tu'ua (Chair) Aisha Ross Bev Gibson Claire Nicholson David MacLeod Hinerangi Edwards Taaringaroa Nicholas

PORT NICHOLSON FISHERIES GENERAL PARTNER LTD Dion Tuuta (Chair) Hinerangi Raumati-Tu'ua Aisha Ross

CHIEF EXECUTIVE / SECRETARY Dion Tuuta (Resigned 30 June 2016)

KOURA INC GENERAL PARTNER LTD Dion Tuuta (Chair) Hinerangi Raumati-Tu'ua Aisha Ross

PKW COMMITTEES

SUBSIDIARY COMPANIES

PKW TRUST Hinerangi Edwards (Chair) Aisha Ross Bev Gibson Claire Nicholson David McLeod Hinerangi Raumati-Tu'ua Taaringaroa Nicholas Darryn Ratana (PKW Trust Shareholder Representative)

PKW FARMS GENERAL PARTNER LTD Hinerangi Raumati-Tu'ua (Chair) Aisha Ross Bev Gibson Claire Nicholson David MacLeod Hinerangi Edwards Taaringaroa Nicholas Phillip Luscombe (Independent Director) Richard Krogh (Independent Director)

PKW AUDIT AND RISK COMMITTEE Taaringaroa Nicholas (Chair) Aisha Ross Claire Nicholson David MacLeod Richard Krogh (Independent Director)

PKW INVESTMENTS LTD (INACTIVE) Dion Tuuta TARANAKI AQUA GARDENS LTD (INACTIVE) Dion Tuuta TE ORANGA LIVESTOCK LTD Louise Cook

He Tangata

HUMAN RESOURCES COMMITTEE Bev Gibson (Chair) Hinerangi Edwards Hinerangi Raumati-Tu'ua Phillip Luscombe (Independent Director)

MEET THE COMMITTEE OF MANAGEMENT

19

20 Elected Chair in 2011. Chair PKW Farms General Partner Ltd, member of Human Resources Committee and PKW Trust.

ENTITY POSITION Te Ohu Kaimoana Portfolio Management Ltd Director Te Ohu Kaimoana Trustee Ltd Director Aotearoa Fisheries Ltd Director Nga Miro Trust Chairman Crown Forestry Rental Trust Director Forestry Emissions Unit Trust Board Member Port Nicholson Fisheries General Partner Ltd Director Te Korowai o Ngaruahine Trust Finance & Audit Committee Taranaki Iwi Holdings Limited Director Koura Inc General Partner Limited Director Auckland Council Investments Limited Director

AISHA ROSS Director PKW Farms General Partner Ltd, member of Audit and Risk Committee and PKW Trust.

ENTITY POSITION 23ika Ltd Managing Director Ng훮ruahine Fisheries Ltd Director Baxters Ltd Director Palmerston North M훮ori Reserves Trust Trustee PKWF 2013 Ltd Director Te Wananga o Aotearoa Employee Port Nicholson Fisheries General Partner Ltd Director Koura Inc General Partner Limited Director

CLAIRE NICHOLSON Director PKW Farms General Partner Ltd, member of Audit and Risk Committee and PKW Trust.

ENTITY POSITION Sirona Animal Health Ltd Shareholder / Director EOS Consulting Ltd Director Techion Shareholder Edison Consulting Group Ltd Shareholder AgResearch Associate Director O'Brien Group Holdings Ltd Director/Shareholder

DAVID MACLEOD Director PKW Farms General Partner Ltd, member of Audit and Risk Committee and member of PKW Trust.

ENTITY POSITION AJ Greaves Electrical Ltd Owner/Managing Director Taranaki Regional Council Chairman Property Portfolio Investments Ltd Director LGNZ - Regional Affairs Committee Member Port Taranaki Ltd Director Fonterra Cooperative Group Director Far South Farms Ltd Shareholder

HINERANGI EDWARDS Director PKW Farms General Partner Ltd, member of Human Resources Committee and Chair PKW Trust.

ENTITY POSITION Aatea Consultants Ltd (t/a Aatea Solutions) Director R and R Edwards Whanau Trustee Ltd Director M훮ori Translation.Co.NZ Ltd Director Agri Women's Development Trust Trustee Generosity NZ Member Generosity NZ M훮ori Strategy Committee Chairman Kupenga 94 Trust Trustee

GROUP PERFORMANCE AT A GLANCE

HINERANGI RAUMATI-TU'UA

21 Director PKW Farms General Partner Ltd, Chair Human Resources Committee and PKW Trust.

Independent Director of PKW Farms General Partner Ltd and member of Human Resources Committee.

ENTITY POSITION Quality Visions Ltd Managing Director Robinson Whanau Trust Trustee Mahia Mai a Whai Tara Trust Chairman Amiria Rangi Education Trust Trustee Lantern House Trust Independent Trustee Lottery Taranaki Community Committee Committee Member

ENTITY POSITION Philip Luscombe Partnership Partner Hendham Farm Co Director Koki South Farms Limited Director Pharm Trust Ltd Trustee Allied Farmers Limited Director Kingfisher Escape Limited Director Ocean Ohope Limited Director Argyll Farms Ltd Chairman Massey, Lincoln & Agricultural Industry Trust Trustee Allied Nationwide Finance Ltd Director Allied Farmers Rural Ltd Director Mairangi Investments Ltd Director Par Farms Ltd Director Te Rua o Te Moko Ltd Director NZ Farmers Livestock Ltd Director

TAARINGAROA NICHOLAS Director PKW Farms General Partner Ltd, Chair Audit and Risk Committee and member of PKW Trust.

ENTITY POSITION Ngati Ruanui Holdings Corporation Ltd Director Ngati Ruanui Holdings Operating Company Ltd Director Te Awanui Hukapak Ltd Director Southern Pastures (NZ) Ltd Director Southern Pastures Founders Ltd Director/Shareholder Southern Pastures Management Ltd Director/Shareholder Miraka Ltd Director Pirirakau Trust Trustee Direct Capital IV Member Advisory Committee Waikato-Tainui College of Research & Development Trust Trustee Te Waharoa Investments Ltd Director Matariki Capital Ltd Director

MEET THE COMMITTEE OF MANAGEMENT

PHILIP LUSCOMBE

RICHARD KROGH Independent Director of PKW Farms General Partner Ltd and member of the Audit and Risk Committee.

ENTITY POSITION Top Energy Limited & Subsidiaries Director Ngawha Generation Limited Director Port Taranaki Limited Director Phone Plus 2000 Limited Director First Gas Limited Director Top Co Limited & Subsidiaries Director Gas Services New Zealand Ltd Director Top Energy Ngawha Ltd Director The Lines Company Director Energia Limited Managing Director / Shareholder

He Tangata

BEV GIBSON

22

GOVERNANCE

PKW Audit and Risk HR Committee PKW Farms General PKW Trust Incorporation Committee Partner Ltd Member Attended Possible Attended Possible Attended Possible Attended Possible Attended Possible

Hinerangi Raumati-Tu'ua Hinerangi Edwards Aisha Ross Bev Gibson Claire Nicholson David MacLeod Darryn Ratana Phillip Luscombe Taaringaroa Nicholas Richard Krogh

9 9 9 9 6 8 7 -

9 9 9 9 9 9 9 -

4 2 5 4 3 3 5 3

5 5 5 3 5 3

5 4 3 2 -

5 5 5 2 -

6 6 6 6 5 6 6 5 6

6 6 6 6 6 6 6 6 -

5 6 5 6 3 6 4 5 -

6 6 6 6 6 6 6 6 -

*NOTE: PKW Incorporation and PKW Farms GP Ltd meetings are held on the same day.

MEET THE EXECUTIVE MANAGEMENT TEAM

L-R: Allie Hemara-Wahanui (General Manager Whaipainga), Jacqui King (Acting General Manager He WhÄ riki), Louise Cook (General Manager Ahuwhenua).

He Tangata

31

24 32

Parininihi Ki Waitotara 40 Years In The Making This year marks the 40th anniversary of Parininihi Ki Waitotara so it is fitting that we chart the history of the incorporation, with assistance from past and present leaders.

Management

Former PKW Chair Spencer Carr vividly recalls the birth of Parininihi Ki Waitotara – the 1976 Hāwera meeting when more than 1,000 owners agreed to form a Māori incorporation to take control of the West Coast Settlement Reserve.

After years of petitioning and lobbying pioneered by leaders such as inaugural PKW Chair Charles Bailey, the government had agreed to pass control back to the owners and there was a pressing need to create an organisation capable of administering some 346 leases covering more than 20,000 hectares of land.

“It was a hugely encouraging sign of things that were to unfold - Māori having a much greater say in determining the future of their own land assets.”

Hinerangi Raumati-Tu'ua

Committee of

The first twenty years

“The Hāwera meeting was a truly momentous occasion,” says Spencer who was elected to the board in 1988 and became Chair in 2002.

“We have shown that our collective strength helps us weather the storms and drive our vision - He Tangata, He Whenua, He Oranga.”

Inaugural PKW

“It was a hugely encouraging sign of things that were to unfold - Māori having a much greater say in determining the future of their own land assets.”

Spencer Carr

real control of their land.

In 1993, a report to the Minister of Māori Development found that the leasing system ‘had interfered with the natural and inherent rights of The new incorporation received Māori land owners by removing Tino unimproved land assets of $5.3 Rangatiratanga, their right to make million and had just $15,000 to their own decisions in respect of establish itself. their land; the system has treated The new model was a major step in them like children or people under a the right direction but the regime of disability incapable of making their perpetual leases, then with 21-year own decisions simply because they rights of renewal, still denied owners were Māori’.

1996 to today While the first 20 years had consisted mainly of administering leases, the next 20 would see a more active PKW venture into new territory, against a backdrop of political change.

The Māori Reserved Lands Amendment Act 1997 was an attempt at balancing competing owner and lessee interests. For landowners like PKW the Act brought benefits such as rent reviews every seven years (instead of 21) and a 20-day first right of refusal to buy back leases as they became available. The latter was particularly important given that PKW had been formed out of a desire to regain control of ancestral lands from the Crown.

“The most pleasing aspect for me during my time at PKW was being part of a leadership team that contributed to transitioning the incorporation from a passive model to a much more active one."

Jamie Tuuta

However, the Act directed that perpetual leases would continue and despite a modest amount of compensation being made available PKW was still faced with a lack of funds to buy back leases.

25 33

The Minister of Māori Affairs at the time, Tau Henare described the Act as ‘one of the most discriminatory pieces of legislation’ and observed that it did not achieve the return of the freehold. He added that ‘the Bill is not all that Māori want, and it is certainly less than they deserve’.

Undaunted, PKW launched a long-term plan in 1998 to buy back strategic leases in order to enter the dairy industry and begin farming the lands once more.

Former PKW Chair Jamie Tuuta says: “The most pleasing aspect for me during my time at PKW was being part of a leadership team that contributed to transitioning the incorporation from a passive model to a much more active one.

“ PKW is about the commitment and dedication of its people - from inception in 1976 through to today in 2016. This is what makes it work and will continue to make it work."

Peter Moeahu.

“This was an expression of Rangatiratanga and was always an aspiration of our old people who had the foresight to establish the incorporation.”

property and lobster processing and export.

Over the last 15 years PKW has bought back 50 leases to regain active control of its ancestral lands.

Today it actively manages 10 per cent of its total land assets as dairy farms. It is the largest landowner, corporate dairy farmer and Fonterra milk supplier in Taranaki.

PKW Chair Hinerangi Raumati says: “The last 10 years of our incorporation's history have seen us make the move from passive to active ownership.

Despite the challenges of raising capital to buy back key leases, and the requirements to purchase Jamie recalls that this was a time of lessees’ improvements and pay considerable business challenges an additional premium to gain with losses in Australia as well as the dairy shares, PKW has grown into global financial crisis. ‘But overall a strong entity in the business of we won the support and trust of innovative and sustainable farm our shareholders through improved management. communication and engagement based on principles of openness As caretaker of the land, PKW and transparency. We also aims to maximise productivity and looked to inspire our shareholders profitability for shareholder dividend, through vision and demonstrated towards a time when its 9,000 performance. This has positioned owners will once again control and the incorporation strongly for the manage their ancestral lands. future.”

The incorporation is worth more than $300m and has diversified its investment portfolio into a range of interests including dairy farming, livestock, forestry, commercial

“We have built the foundations we need to achieve rangatiratanga over our assets and our future.

“We have shown that our collective strength helps us weather the storms and drive our vision - He Tangata, He Whenua, He Oranga.”

He Whenua

By the mid 1990s the incorporation had matured greatly. Board member Peter Moeahu recalls: “The dedication and commitment of the PKW pioneers had given us a solid grounding and we were able to build on this, developing a new level of professionalism, with experience and education that weren’t available back in the early days.”

20 16 PARININIHI KI WAITOTARA

INCORPORATION FINANCIAL STATEMENTS

Awhina

for the year ended 30 June 2016

28 36

FINANCIAL STATEMENTS - 30 JUNE 2016 Auditors’ report

29

FINANCIAL STATEMENTS Committee’s annual report for the year ended 30 June 2016

30

Statement of comprehensive income

31

Balance sheet

32

Statement of changes in equity

33

Statement of cash flows

34

Notes to the financial statements

1 Corporate information

35

2 Summary of significant accounting policies

35

3 Correction of an error

41

4 Financial risk management

42

5 Critical accounting estimates and judgements

43

6 Revenue

44

7 Other (losses) / gains

44

8 Expenses

44

9 Finance income and expenses

45

10 Income tax expense

11 Māori authority credit account 46

12 Trade and other receivables

46

13 Biological assets

47

14 Property, plant and equipment

48

15 Quota assets

49

16 Equity accounted investments

50

17 Investments in subsidiaries

51

18 Investments

52

19 Equity instruments

52

20 Investment properties

53

21 Borrowings and Unclaimed Dividends

54

22 Derivative financial instruments

55

23 Net deferred tax assets / (liabilities)

56

24 Trade and other payables

56

25 Share capital

57

26 Reserves and retained earnings

57

27 Dividends

58

28 Contingencies

58

29 Commitments

58

30 Related party transactions

59

31 Subsequent events

60

32 Statement of estimated current market values

61

45

Chartered Accountants

29 37

Independent Auditor's Report To the shareholders of Parininihi ki Waitotara Incorporation (“Incorporation”) and its controlled entities (the “Group”) Report on the Financial Statements We have audited the financial statements of the Group on pages 30 to 61, which comprise the balance sheet of the Chartered Accountants Group as at 30 June 2016, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

Independent Auditor's Report This is made solely tokithe Incorporation’s shareholders, as a body. Our audit has been undertaken so that To thereport Beneficiaries of Parininihi Waitotara Charitable Trust

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 We have audited performance report of theand Parininihi ki Waitotara Charitable Trust (the “Trust”) pagesfor 84our to audit work, for this anyone other the than the Incorporation the Incorporation’s shareholders as aon body, 95, whichor comprises Trust information, statement of service performance, the statement of financial report, for thethe opinions we havetheformed.

Report on the Performance Report

performance and statement of cash flows for the year ended 30 June 2016, the statement of financial position of the Trust as at 30 June 2016, and the statement of accounting policies and other explanatory information.

Committee of Management’s Responsibility for the Financial Statements

This is made solely to the Beneficiaries of the Trust, ason a body.

Ourof audit beenfor undertaken so that we and fair presentation Thereport Committee of Management is responsible behalf thehas entity the preparation might state to the Trust’s beneficiaries those matters we are required to state to them in an auditor's report and for the financial statements, in accordance with New Zealand equivalents to International Financial Reporting no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone Standards Regime, and internal Committee other than the Reduced Trust and theDisclosure Trust’s members as a body, for for our such audit work, for thiscontrol report, oras forthe the opinions we of Management have formed. is necessary to enable the preparation of financial statements that are free from material determines

of

misstatement, whether to fraudReport or error.

Trustees’ Responsibility for thedue Performance The Trustees are responsible on behalf of the Trust for

Auditor's Responsibility Identifying outcomes and outputs, quantifying the financial outputs to the extent practicable, Oura)responsibility is to express anand opinion on the statements basedthat onare ourrelevant, audit. We conducted our audit reliable, comparable and understandable, to report in the statement of service performance; in accordance with International Standards on Auditing (New Zealand). These auditing standards require that we b) the preparation andethical fair presentation of the performance report comprises comply with relevant requirements and plan andwhich perform the audit to obtain reasonable assurance about • financial the Trust information; whether the statements are free from material misstatement.

Our responsibility is to express an opinion on the performance report based on our audit. We conducted our audit We have obtained sufficient and appropriate evidence provide a basis for our audit opinion. of thebelieve statementwe of financial performance, statement of financial position,audit statement of cash to flows, statement of accounting policies and notes to the performance report in accordance with International Standards on Auditing Other than inand our asTrust auditor we have no relationship with, or interest in, thewith Group.

(New Zealand), thecapacity audit of the information and statement of service performance in accordance the International Standard on Assurance Engagements (New Zealand) ISAE (NZ) 3000 (Revised). These standards Opinion require that we comply with relevant ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the performance report ison freepages from material In our opinion, the financial statements 30 to misstatement.

61 present fairly, in all material respects, the financial

position of theperforming Group as at 30 June 2016 and its financial and cash flows for the year then ended in An audit involves procedures to obtain audit evidence about theperformance amounts and disclosures in the performance report, performing procedures toto obtain evidence about and evaluating whetherStandards the accordance withincluding New Zealand equivalents International Financial Reporting Reduced Disclosure reported outcomes and outputs and quantification of the outputs to the extent practicable, are relevant, reliable, Regime. comparable and understandable. The procedures selected depend on our judgement, including the assessment of the risks of material misstatement of the performance report, whether due to fraud or error. In making those risk Report on we Other Regulatory Requirements assessments, have considered the internal control relevant to the Trust’s preparation and fair presentation of the performance report in order to design audit procedures that are appropriate in the circumstances, but not for In accordance with the Te Ture Whenua MaoriofAct we report that register and index of the purpose of expressing an opinion on the effectiveness the 1993 Trust’s internal control.

Anthe auditshare also includes shareholders has been duly and correctly kept and by the thereasonableness Incorporation. evaluating the appropriateness of accounting policies used of accounting estimates, as well as evaluating the overall presentation of the performance report.

We believe we have obtained sufficient and appropriate audit evidence to provide a basis for our audit opinion.

Other than in our capacity as auditor we have no relationship with, or interest in, the Trust.

Opinion In our opinion: ►

the reported outcomes and outputs, and quantification of the outputs to the extent practicable, in the

►

the performance report on pages 84 to 95 presents fairly, in all material respects

16 September 2016 performance are suitable; statement of service Wellington ►

the Trust information for the year ended 30 June 2016;

►

the service performance for the year then ended; and

A member firm of Ernst & Young Global Limited

A member firm of Ernst & Young Global Limited

Parininihi He Orangaki Waitotara Incorporation

• the statement of service performance; and An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the • the statement of procedures financial performance, statement of financial statement of cash flows, financial statements.

The selected depend on our position, judgement, including the assessment of the risks of statement of accounting policies and notes to the performance report material misstatement of the financial statements, whether due to fraud or error. In making those risk in accordance with Public Benefit Entity Format Reporting – Accrual (Not-For-Profit) issued in assessments, we have considered theSimple internal control relevant to the entity’s preparation and fair presentation of New Zealand by the New Board, and that are appropriate in the circumstances, but not for statements inZealand order Accounting to designStandards audit procedures the financial for suchof internal control asan the opinion Trustees determine is necessary to enable preparation of the control. An audit also includes thec)purpose expressing on the effectiveness of thetheentity’s internal performance report that is free from material misstatement, whether fraudreasonableness or error. evaluating the appropriateness of accounting policies useddue andto the of accounting estimates, as well asResponsibility evaluating the overall presentation of the financial statements.

Auditor's

30 38

COMMITTEE’S ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2016

2016 $'000

REVIEW OF OPERATION Net profit of the Group for the year ended 30 June 2016

3,716

Less provision for dividend

(1,199)

Add retained earnings as at 1 July 2015

173,571

176,088

It is not proposed to make any transfer to reserves.

THE STATE OF THE GROUP’S AFFAIRS AT 30 JUNE 2016 WAS: Assets totalled

279,040

THESE WERE FINANCED BY: Shareholder's equity

204,327

Liabilities 74,713

Total equity and liabilities

279,040

The business of the Incorporation is managing the interests of its Māori shareholders under the Te Ture Whenua Māori Act 1993. The nature of the Incorporation's business has not changed during the year.

The financial report was authorised for issue and signed on behalf of the Committee, dated 30 August 2016.

For and on behalf of the Committee of Management.

HINERANGI RAUMATI-TU'UA Chair 30 August 2016

TAARINGAROA NICHOLAS

Chair Audit and Risk Committee 30 August 2016

31 39

Group 2016 2015

Notes $â&#x20AC;&#x2122;000 $â&#x20AC;&#x2122;000 Revenue

6

18,206

21,872

Other (losses) / gains

7

4,228

4,838

Expenses

8

(16,344)

(16,561)

Finance costs - net

9

(3,280)

(3,336)

1,099

1,151

Share of profit from joint venture

16

Profit before income tax 3,909 7,964 Income tax expense 10 (193) (457) Profit after income tax

3,716

7,507

Other comprehensive income Cash flow hedges

26,(a)

(944)

(899)

Includes sales mainly relating to milk proceeds, lease income received from our whenua and income from our crayfish

FINANCIAL STATEMENTS

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2016

Includes gains on the fair value of our whenua

Includes costs mainly relating to farming operations and administration costs of PKW

Costs from our financier Rabobank

Our share of PNF General Partner Ltd surplus for the year

Total comprehensive income for the year

2,772 6,608

HINERANGI RAUMATI-TU'UA Chair 30 August 2016

TAARINGAROA NICHOLAS Chair Audit and Risk Committee 30 August 2016

The above statement of comprehensive income should be read in conjunction with the accompanying notes.

Parininihi He Orangaki Waitotara Incorporation

For and on behalf of the Committee of Management these financial statements are authorised for issue on 30 August 2016.

40 32

BALANCE SHEET FOR THE YEAR ENDED 30 JUNE 2016

Group

2016

2015 Notes

$â&#x20AC;&#x2122;000 $â&#x20AC;&#x2122;000 Money owed to PKW by our customers

ASSETS

Current assets

Livestock owned

by PKW Cash and cash equivalents

781 312 and other receivables 12 Trade

1,445 837

13 Biological assets

8,299 13,018 Crayfish quota owned

by PKW

Total current assets

10,525 14,167

Non-current assets General Investment in PNF Partner Ltd

14 Property, plant and equipment

75,491 74,526 assets 15 Quota

15,620 13,660

16 Includes shares in Investment in joint venture 2,650 2,708 Fonterra Co-operative, NZ

18,19 Investments - other

20,669 19,409 Government Bond and Finistere Venture Capital

20 Investment properties - unimproved lease land

151,960 150,276 Fund

20 Investment properties - commercial

2,125 2,095 Total non-current assets

268,515 262,674

Accounting value of our whenua tupuna

Total assets

279,040 276,841

LIABILITIES Current liabilities and other payables 24 Trade

4,082 3,480

Bank overdraft

68

Current tax payable

57 (462)

22 Derivative financial instruments

597 490

Total current liabilities

4,804 3,508

Money owed to our suppliers

Non-current liabilities

Includes borrowings from

21 Borrowings and unclaimed dividends 67,189 68,839 Rabobank and Unclaimed dividends

22 Derivative financial instruments

1,741 704

23 Deferred tax liabilities

979 1,036

Total non-current liabilities

69,909 70,579 Represents unrealised losses on interest rate hedges

Total liabilities

74,713 74,087

Net assets

204,327 202,754

EQUITY capital 25 Share

5,549 5,549

26,(a) Reserves

22,690 23,634 The net worth of PKW

26,(b) Retained earnings

176,088 173,571 Incorporation as measured

Total equity

204,327 202,754 in the Group financial accounts

The above balance sheet should be read in conjunction with the accompanying notes.

Attributable to equity holders of the Incorporation

Share Capital

capital reserve

Group Notes $’000 $’000

Balance at 1 July 2014

Cash flow hedge Retained Total reserve earnings equity $’000 $’000 $’000

5,549

24,591

(58)

166,727

196,809

-

-

-

(64)

(64)

Balance as at 1 July 2014 (restated*) 5,549

24,591

(58)

166,663

196,745

Adjustment on correction of error

3

Profit for the year

-

-

-

7,596

7,596

Adjustment on correction of error

-

-

-

(89)

(89)

Cash flow hedges

3 26,(a)

-

-

(899)

-

(899)

-

-

(899)

7,507

6,608

27

-

-

-

(599)

(599)

Total transactions with owners

-

-

-

(599)

(599)

Total comprehensive income

Dividends provided

Balance as at 30 June 2015 (restated*)

Balance as at 1 July 2015

5,549

24,591

(957)

173,571

202,754

5,549

24,591

(957)

173,571

202,754

Profit for the year

Cash flow hedges 26,(a)

-

-

-

3,716

3,716

-

-

(944)

-

(944)

-

-

(944)

3,716

2,772

27

-

-

-

(1,199)

(1,199)

Total transactions with owners

-

-

-

(1,199)

(1,199)

Balance as at 30 June 2016 5,549 24,591

(1,901)

176,088

204,327

Total comprehensive income

Dividends provided

*Certain amounts shown here do not correspond to the 2015 financial statements and reflect adjustments made, refer to Note 3.

The above statement of changes in equity should be read in conjunction with the accompanying notes.

FINANCIAL STATEMENTS

Parininihi He Orangaki Waitotara Incorporation

33 41

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2016

42 34

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2016

Statement of cash flows shows where cash has been paid and received. The statement shown is split in three parts; operational activities, investing activities and financing activities.

Notes

Group 2016 $â&#x20AC;&#x2122;000

2015 $â&#x20AC;&#x2122;000

25,665 132 469 (13,256) (3,456) (3,412) (924) 5,217

28,853 163 (1,254) (16,789) (1,023) (3,499) (111) 6,340

Cash flows from investing activities Payments for property, plant and equipment (3,018) Investment purchases Purchases of intangible assets (1,960) Proceeds from sale of investments 1,254 Cash from joint venture 1,157 Net cash outflow from investing activities (2,567)

(11,356) (653) 1,395 (10,614)

Cash flows from operating activities Receipts from customers Interest received Income tax paid Payments to suppliers Payments to employees Interest paid GST paid Net cash inflow from operating activities

Cash flows from financing activities Proceeds from borrowings Repayment of borrowings Dividends paid Net cash inflow / (outflow) from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at end of year

The above statement of cash flows should be read in conjunction with the accompanying notes.

11,506 (13,281) (474) (2,249)

13,278 (7,466) (1,312) 4,500

401 312 713

226 86 312

35 43

1 CORPORATE INFORMATION Parininihi ki Waitotara Incorporation ('PKW Incorporation' or the 'Parent') is registered under the Te Ture Whenua MÄ ori Act 1993 and is incorporated in New Zealand.

The Parent and its controlled entities are included in the Parininihi ki Waitotara Incorporation Group (the 'Group').

..........................................

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements include separate financial statements for PKW Incorporation as an individual entity and the consolidated entity consisting of PKW Incorporation and its controlled entities.

The principal accounting policies adopted in the preparation of the financial statements are set out below.

These policies have been consistently applied to all the years presented, unless otherwise stated. (a) Basis of preparation The Group financial statements have been prepared in accordance with generally accepted accounting practice in New Zealand and section 276 of Te Ture Whenua MÄ ori Act 1993.

The Group financial statements have been prepared on an historical cost basis except for biological assets, certain investments, investment properties and derivative financial instruments which have been measured at fair value.

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

where assumptions and estimates are significant to the financial statements, are disclosed in note 5.

NZ IFRS - Reduced Disclosure Regime

(b) New accounting standards and interpretations

For the purpose of complying with NZ GAAP, PKW Incorporation is eligible to apply Tier 2 For-Profit Accounting Standards (New Zealand equivalents to International Financial Reporting Standards - Reduced Disclosure Regime ("NZ IFRS RDR")) on the basis that it is not publically accountable and is not a large for-profit public sector entity. PKW Incorporation has elected to report in accordance with NZ IFRS RDR and has applied disclosure concessions.

Changes in accounting policy and disclosure

The consolidated financial statements of PKW Incorporation comply with New Zealand equivalents to International Financial Reporting Standards - Reduced Disclosure Regime ("NZ IFRS RDR") and other applicable Financial Reporting Standards, as appropriate for profit oriented entities.

Entities reporting The consolidated financial statements for the Group include PKW Incorporation and its controlled entities.

Critical accounting estimates The preparation of financial statements in conformity with NZ IFRS RDR requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas

The accounting policies adopted are consistent with those of the previous year. (c) Principles of consolidation (i) Subsidiaries The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of the Parent and the results of all subsidiaries as at and for the period ended 30 June each year (the Group).

Subsidiaries are all entities over which the Group has the power to govern the financial and operating policies, generally accompanying a shareholding of more than one-half of the voting rights. The existence and affect of potential voting rights that are currently exercisable or convertible are considered when assessing whether a Group controls another entity.

The financial statements of the subsidiaries, except for Taranaki Aqua Gardens Limited which has a 31 March balance date, are prepared for the same reporting period as the Parent company, using consistent accounting policies. In preparing the consolidated financial statements, all intercompany balances and transactions, income and expenses and profit and losses resulting from intra-group transactions have been eliminated in full.

Parininihi He Orangaki Waitotara Incorporation

..........................................

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016

44 36

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Subsidiaries which form part of the Group are consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases.

Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred.

Investments in subsidiaries held by the Parent are accounted for at cost in the separate financial statements of the Parent entity less any impairment charges. (ii) Joint ventures - Jointly controlled entities The Group's investments in joint ventures are accounted for using the equity method in the consolidated financial statements and at cost in the Parent.

Under the equity method, investments in joint ventures are carried in the consolidated Balance Sheet at cost plus post-acquisition changes in the Group's share of net assets of the joint venture. Goodwill relating to a joint venture is included in the carrying amount of the investment and is not amortised. After application of the equity method, the Group determines whether it is necessary to recognise any impairment loss with respect to the Group's net investment in joint ventures. Goodwill included in the carrying amount of the investment in joint venture is not tested separately; rather the entire carrying amount of the investment is tested for impairment as a single asset. If impairment is recognised, the amount is not

allocated to the goodwill of the joint venture.

the exchange rates at the date when the fair value was determined

The Group's share of its joint venture post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movement is recognised in other comprehensive income. The cumulative postacquisition movements are adjusted against the carrying amount of the investment. Dividends receivable from joint ventures are recognised in the Parent entity's Statement of Comprehensive Income as a component of other income.

(e) Revenue recognition

When the Group's share of losses in a joint venture equals or exceeds its interest in the joint venture, including any unsecured long-term receivables and loans, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the joint venture. (d) Foreign currency translation (i) Functional and presentation currency Both the functional and presentation currency of PKW Incorporation and its New Zealand controlled entities is New Zealand dollars ($). (ii) Transactions and balances Transactions in foreign currencies are initially recorded by applying the exchange rates ruling at the date of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at the date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using

Sales of goods are recognised when they have been delivered and accepted by the customer.

Rental income is recognised upon issue of invoices that are issued six months in advance.

Milk proceeds are recognised in alignment with the processor Fonterra on a per dollar per kilogram basis.

Interest income is recognised using the effective interest method.

Dividend income is recognised when the right to receive payment is recognised. (f) Income tax The income tax expense charged to the Statements of Comprehensive Income includes both the current year's provision and the income tax effect of: â&#x20AC;˘ Taxable temporary differences, except those arising from initial recognition of goodwill and other assets that are not depreciated; and â&#x20AC;˘ Deductible temporary differences to the extent that it is probable that they will be utilised.

Temporary differences arising from transactions, other than business combinations, affecting neither accounting nor taxable profit are ignored.

Deferred income tax is not recognised on temporary differences associated with investments in subsidiaries, joint ventures and associates because: â&#x20AC;˘ The Parent entity is able to control the timing of the reversals of the differences; and

(CONTINUED) • They are not expected to reverse in the foreseeable future.

Tax effect accounting is applied on a comprehensive basis to all timing differences using the liability method.

A deferred tax asset is only recognised to the extent that it is probable there will be future taxable profit to utilise temporary differences.

Following the changes to subpart HI of the Income Tax Act 2004, an election was made to become a Māori Authority, for tax purposes, with effect from 1 July 2004. The income tax rate applicable from the date of election was 19% and was reduced in the 2012 tax year to 17.5%.

Distributions to Incorporation members are no longer deductible for tax purposes. Any distribution of post 1 July 2004 reserves will include Māori Authority Credits of up to 17.5% of the gross taxable amount in the hands of members. Any distribution of pre 1 July 2004 reserves is tax free in the hands of members. (g) Goods and Services Tax (GST) The profit and loss component of the Statements of Comprehensive Income has been prepared so that all components are stated exclusive of GST. All items in the Balance Sheets are stated net of GST, with the exception of receivables and payables, which include GST invoiced. (h) Fair value estimation The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes.

The nominal value less estimated credit adjustments of trade receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Group for similar financial instruments. (i) Impairment

would have been determined had no impairment loss been recognised for the asset. The reversal of an impairment loss is recognised immediately in income. (j) Trade and other receivables Trade receivables are recognised initially at fair value and subsequently measured at amortised cost, less provision for doubtful debts.

Collectibility of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A provision for doubtful receivables is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. The amount of the provision is recognised in the Statements of Comprehensive Income.

At each reporting date, the Group reviews the carrying amounts of its assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable (k) Biological assets amount of the asset is estimated in (i) Valuation of livestock order to determine the extent of the Livestock at balance date includes impairment loss. dairy cattle, beef cattle and sheep If the recoverable amount of a cash and they are valued at a fair value. generating unit is estimated to be less Subsequent fair value changes are than its carrying amount, the carrying recognised in profit or loss. amount of the cash generating unit is reduced to its recoverable amount. (l) Property, plant and equipment An impairment loss is recognised immediately in the Statements of Comprehensive Income. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that

Property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

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

37 45

NOTES TO THE FINANCIAL STATEMENTS

ACCOUNTING POLICIES

The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and trading and available-for-sale securities) is based on quoted market prices at the balance date.

The quoted market price used for financial assets held by the Group is the current bid price; the appropriate quoted market price for financial liabilities is the current ask price.

Parininihi He Orangaki Waitotara Incorporation

2 SUMMARY OF SIGNIFICANT

46 38

The fishing quota is initially recognised at cost. The quota is regarded ACCOUNTING POLICIES as having an indefinite useful life (CONTINUED) because there is no foreseeable limit to the period over which they economic benefits associated with the are expected to be useful. They are item will flow to the Group and the cost subsequently not amortised, but of the item can be measured reliably. tested annually for impairment.

All other repairs and maintenance are charged to profit or loss during (n) Investments and other financial the financial period in which they are assets incurred.

The Group classifies its financial Land is not depreciated. Depreciation assets in the following categories: financial assets at fair value through on other assets is calculated using profit or loss, loans and receivables, the straight-line and diminishing and financial assets at cost. The value methods to allocate their cost, classification depends on the purpose revalued or net book value amounts for which the assets were acquired. to their residual values over their Management determines estimated useful lives, as follows: 2 SUMMARY OF SIGNIFICANT

Accounting Rates for Property, Plant and Equipment

Straight Line

Diminishing Value

Buildings

0% - 12.6%

6.25% - 20%

Plant and equipment

10% - 80.4%

2% - 67%

Furniture and fittings

8% - 30%

10% - 40%

Motor vehicles

10% - 21%

8% - 30%

Leasehold improvements

2% - 9.6%

2% - 45%

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount (note 2(i)).

Gains and losses on disposal are determined by comparing proceeds with carrying amount. These are included in the Statements of Comprehensive Income. (m) Quota assets (i) Fishing quota

the classification of its assets at initial recognition and re-evaluates this designation at every reporting date, but there are restrictions on reclassifying to other categories when financial assets are recognised initially, they are measured at fair value, plus in the case of assets not at fair value through profit or loss, directly attributable transactions costs.

Recognition and derecognition All regular purchases and sales of financial assets are recognised on trade date i.e., the date that the Group commits to purchase the asset. Financial assets are

derecognised when the right to receive cashflows from the financial assets has expired or when the entity transfers substantially all the risks and rewards of the financial assets. If the entity neither retains nor transfers substantially all of the risks and rewards, it derecognises the assets if it has transferred control of the assets.

Subsequent measurement (i) Financial assets at fair value through profit or loss This category has two sub categories: financial assets held for trading, and those designated at fair value through profit or loss on initial recognition. A financial asset is classified as held for trading if acquired principally for the purpose of selling in the short term or if so designated by Management.

The policy of Management is to designate a financial asset if there exists the possibility it will be sold in the short term and the asset is subject to frequent changes in fair value.

Derivatives are also categorised as held for trading unless they are designated as hedges. Assets in this category are classified as current assets if they are either held for trading or are expected to be realised within 12 months of the balance sheet date. (ii) Loans and receivables Loans and receivables including loan notes are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are carried at amortised cost using the effective interest rate method. Gains and losses are recognised in profit or loss when the loans and receivables are derecognised or impaired. These are included in current assets except for those with maturities greater than 12 months after balance date, which are

(CONTINUED) classified as non-current. (iii) Financial assets at cost Financial assets at cost cannot be prescribed a reliable fair value. (o) Investment properties

(q) Borrowings Borrowings are initially recognised at cost, being the fair value of the consideration received net of issue costs associated with the borrowing.

After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method.

Commercial investment property, which includes land and buildings that earn rental income or appreciate in value, are initially measured at cost and subsequently measured at fair value. Gains or losses arising from changes in the fair value of investment property are included in the All borrowing costs are recognised Statements of Comprehensive Income as an expense in the period they are in the period in which they arise. incurred.

The fair value of the unimproved leased land is calculated by using a discounted cash flow model. The assumptions of the model are as follows:

(r) Derivative financial instruments and hedging activities

The Group uses derivative financial instruments to hedge its risks associated with interest rate ďż˝ Discount rate of 6.25% (2015: fluctuations. Such derivative financial 6.25%); instruments are initially recognised at fair value on the date on which a ďż˝ Cash flows to increase at the rate derivative contract is entered into and of inflation at 2.4% (2015: 2.4%) are subsequently re-measured to fair however is only uplifted every seven value. years into the cash flow periods in line with the rental reset periods determined by legislation; and ďż˝ The time horizon is thirty years (2015: 30 years).

(p) Trade and other payables Trade and other payables are carried at cost and due to their short term nature they are not discounted.

They represent liabilities for goods and services provided to the Group prior to the end of financial year

Derivatives are carried as assets when their fair value is positive and as liabilities when their fair value is negative. The fair values of interest rate swaps are determined using a valuation technique based on cash flows discounted to present value using current market interest rates.

Any gains or losses arising from changes in the fair value of derivatives, except for those that qualify as cash flow hedges are taken directly to profit or loss for the year.

Cash flow hedges are used when they hedge the exposure to variability in cash flows that are attributable either to a particular risk associated with a recognised asset or liability or to a forecast transaction. The Group currently has cash flow hedges attributable to payment of interest on borrowings. The effective proportion of the gain or loss on the hedging instrument is recognised in other comprehensive income, while the ineffective portion is recognised in profit or loss.

The Group tests each of the designated cash flow hedges for effectiveness on a quarterly basis both retrospectively and prospectively using regression analysis. A minimum of 30 data points is used for regression analysis and if the testing falls within the 80:125 ranges, the hedge is considered highly effective and continues to be designated as a cash flow hedge.

39 47

NOTES TO THE FINANCIAL STATEMENTS

ACCOUNTING POLICIES

which are unpaid and arise when the Group becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecured and are usually paid within 30 days of recognition.

At each balance date, the Group measures ineffectiveness using the dollar offset method. For interest rate cash flow hedges, any ineffective portion is taken to other expenses in the Statements of Comprehensive Income.

If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or if its designation as a hedge is revoked (due to it being ineffective), amounts previously accumulated in reserves remain in reserve until the forecast transactions occurs. (s) Share capital Ordinary shares are classified as equity.

Parininihi He Orangaki Waitotara Incorporation

2 SUMMARY OF SIGNIFICANT

40 48

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (t) Dividend distribution Provision is made for the amount of any dividend declared on or before the end of the financial year but not distributed at balance date.

Dividend distribution to the shareholders is recognised as a liability in the Group financial statements in the period in which the dividends are approved by the Parent's shareholders. (u) Employee benefits

Leases in which the Group retains the provision is the amount expected to substantially all the risks and benefits of ownership of the leased asset are be paid. classified as operating leases. Initial (v) Leases direct costs incurred in negotiating an operating lease are added to the The determination of whether an carrying amount of the leased asset arrangement is or contains a lease and recognised as an expense over is based on the substance of the the lease term on the same basis as arrangement and requires an rental income. assessment of whether the fulfilment of (w) Comparative balances the arrangement is dependent on the expected to be less than 12 months,

use of a specific asset or assets and

Comparative balances have been the arrangement conveys a right to use reclassified and restated to conform the asset. with changes in presentation and classification adopted in the current (i) Group as a lessee period.

Operating lease payments are

(i) Wages and salaries, annual leave and sick leave

recognised as an expense in the

The provision for employee entitlements is recognised as a liability in the Balance Sheets. These benefits include salaries, wages and annual leave. Where the payment is expected to exceed 12 months of balance date, the liability is recorded at its present value. Where the payment is

term. Operating lease incentives

Statements of Comprehensive Income on a straight-line basis over the lease are recognised as a liability when

received and subsequently reduced

by allocating lease payments between rental expense and reduction of the liability.

(ii) Group as a lessor

3 CORRECTION OF AN ERROR A review of the Group's fixed asset registers identified buildings that had not been depreciated. This resulted in an increase to depreciation expense affecting prior periods.

The error has been corrected by restating each of the affected financial statement line items for the prior periods, as follows:

Impact on equity (increase/(decrease) in equity)

As at 30 June 2015 $0'00

As at 1 July 2014 $0'00

(89)

(64)

(89)

(64)

(89) (89) (89)

-

Non-current assets Property, plant and equipment Equity Retained earnings

NOTES TO THE FINANCIAL STATEMENTS

41 49

Expenses Depreciation expense Profit after income tax Total comprehensive income

Parininihi He Orangaki Waitotara Incorporation

Impact on statement of comprehensive income (increase/(decrease))

42 50

4 FINANCIAL RISK MANAGEMENT (a) Financial instruments by category

Financial assets as per balance sheet

Assets at fair value through profit or loss $'000

Loans and receivables $'000

Financial assets held at cost $'000

17,266 17,266

1,509 713 2,222

3,403 3,403

15,110 15,110

893 312 1,205

4,299 4,299

Cash Flow Hedge $'000

Other Financial Liabilities Measured at Amortised Cost $'000

(2,338) (2,338)

67,189 853 68,042

(1,194) (1,194)

68,839 1,385 70,224

Group At 30 June 2016 Other Investments Trade and other receivables Cash and cash equivalents

At 30 June 2015 Other Investments Trade and other receivables Cash and cash equivalents

4 FINANCIAL RISK MANAGEMENT (CONTINUED)

Financial liabilities as per balance sheet

Group At 30 June 2016 Borrowings and unclaimed dividends Derivative financial instruments Trade and other payables

At 30 June 2015 Term Liabilities Interest Rate Swaps Trade Creditors

43 51

NOTES TO THE FINANCIAL STATEMENTS

by management using a discounted cash flow model. The discount rate applied in this model is also reviewed

by PwC. The cash flow model applies assumptions of a post tax discount rate of 6.25%, 2.4% increment per year but cash flow affected at 7 year intervals.

Parininihi He Orangaki Waitotara Incorporation

repatriation of retained earnings depend on Management's estimates of future cash flows. These depend The preparation of the financial on estimates of future production statements requires Management and sales volumes, operating to make judgements, estimates and costs, restoration costs, capital assumptions that affect the reported expenditure, dividends and other amounts in the financial statements. capital management transactions.

Management continually evaluates Judgements are also required (ii) Impairment Finistere investment its judgements and estimates in about the application of income tax relation to assets, liabilities, contingent legislation. These judgments and Management rely on the management liabilities, revenue and expenses. assumptions are subject to risk and team of the Finistere investment to Management bases its judgements uncertainty, hence there is a possibility provide accurate and timely financial and estimates on historical experience that changes in circumstances will information to assess the performance and on other various factors it alter expectations, which may impact of the investment. Impairment is tested believes to be responsible under the the amount of deferred tax assets and as and when the individual stocks circumstances, the result of which deferred tax liabilities recognised in of Finistere pass through milestone form the basis of the carrying values the Balance Sheets and the amount liquidity positions. The stock is of assets and liabilities that are not of other tax losses and temporary assessed as impaired when the entity readily apparent from other sources. differences not yet recognised. In does not pass to the next phase of such circumstances, some or all of liquidity.

Management has identified the the carrying amounts of recognised following critical accounting policies (b) Critical judgements in applying deferred tax assets and liabilities for which significant judgments, may require adjustment, resulting in a the entityâ&#x20AC;&#x2122;s accounting policies estimates and assumptions are made. corresponding credit or charge to the Actual results may differ from these (i) Taxation Statements of Comprehensive Income. estimates under different assumptions The Group's accounting policy for (ii) Operating lease commitments and conditions and may materially taxation requires Management's Group as a lessor affect financial results or the financial judgement as to the types of position reported in future periods.

The Group has entered into arrangements considered to be a tax Further details of the nature of these on income in contrast to an operating commercial property leases on its investment property portfolio. The assumptions and conditions may cost. Judgement is also required in be found in the relevant notes to the assessing whether deferred tax assets Group has determined that it retains financial statements. and certain deferred tax liabilities are substantially all the significant risks and rewards of the ownership of these recognised in the Balance Sheets. (a) Critical accounting estimates properties primarily as the lease does Deferred tax assets, including those and assumptions not transfer ownership of the asset at arising from un-recouped tax losses the end of the lease term. Thus the and temporary differences, are The Group makes estimates and recognised only where it is considered Group has classified the leases as assumptions concerning the future. operating leases. more likely than not that they will be The resulting accounting estimates recovered, which is dependent on will, by definition, seldom equal the the generation of sufficient future related actual results. The estimates taxable profits. Deferred tax liabilities and assumptions that have a arising from temporary differences in significant risk of causing a material investments, caused principally by adjustment to the carrying amounts of assets and liabilities within the next retained earnings held in foreign tax jurisdictions, are recognised unless financial year are addressed below. repatriation of retained earnings can (i) Unimproved lease land be controlled and are not expected to occur in the foreseeable future.

Parininihi ki Waitotara recognises Assumptions about the generation unimproved lease land in its Balance of future taxable profits and Sheet. The land is valued internally 5 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

44 52

6 REVENUE

Group 2016 2015 $’000 $’000

Rental income Milk proceeds Fisheries lease income Other income

6,071 6,797 2,456 2,882

6,243 9,791 2,279 3,559

18,206 21,872

7 OTHER (LOSSES) / GAINS

Group 2016 2015 $’000 $’000

Fair value (losses) / gains on other financial assets at fair value Gain / (loss) on Finistere Fair value gain on investment property Foreign exchange loss

1,845 670 1,714 (1)

(2,817) (2,892) 10,939 (392)

4,228 4,838

8 EXPENSES

Group 2016 2015 $’000 $’000

Auditors' remuneration Depreciation Employee benefits Farm operating expenses Lease expenses Members fees Other expenses

52 1,659 3,456 8,399 543 295 1,940

Total expenses

57 1,811 2,563 9,717 390 216 1,807

16,344 16,561

Finance costs Finance income Net finance costs

3,412 (132) 3,280

10 INCOME TAX EXPENSE

Group 2016 2015 $’000 $’000

3,499 (163) 3,336

(a) Income tax expense Current tax: Current tax on profits for the year Adjustments in respect of prior years Deferred tax (benefit) / expense Income tax expense Net loss on revaluation of cash flow hedges

309 (59) (57) 193 (200)

1,032 (279) (295) 457 (190)

Profit from continuing operations before income tax expense Tax at the New Zealand tax rate (i) Tax effect of amounts which are not deductible (taxable) in calculating taxable income:

Other permanent differences

Changes in fair value of investments

Over provided in prior years

Income not subject to tax

Expenses not deductibe for tax purposes

Benefit of resident withholding tax & imputation credits

3,909 668

7,964 1,417

204 (623) (53) 33 7 (43)

547 (1,422) (127) 42 -

193

457

Income tax expense

(i) The Group is taxed at the Māori authority tax rate of 17.5% however some subsidiary entities of the parent are taxed at the corporate tax rate of 28%. (2015: The Parent was taxed at the Māori authority tax rate of 17.5% and PKW controlled entities were taxed at the corporate tax rate of 28%).

45 53

NOTES TO THE FINANCIAL STATEMENTS

Group 2016 2015 $’000 $’000

Parininihi He Orangaki Waitotara Incorporation

9 FINANCE INCOME AND EXPENSES

46 54

11 MĀORI AUTHORITY CREDIT ACCOUNT

2016 $’000

Through direct shareholding Through indirect shareholding

5,712 -

12 TRADE AND OTHER RECEIVABLES

2016 $’000

Accounts receivable Provision for doubtful receivables

1,509 (79) 1,430

893 (69) 824

Prepayments 15

1,445

13 837

Group

2015 $’000

6,011 -

Group

2015 $’000

Cattle Balance at the beginning of the year Increase due to purchases Decrease due to sales Changes in fair value Balance at the end of the year

12,991 7,253 (8,998) (2,962) 8,284

12,247 9,593 (10,065) 1,216 12,991

27 1 (18) 5 15

27 27 (27) 27

8,299

13,018

Sheep Balance at the beginning of the year Increase due to purchases Decrease due to sales Changes in fair value Balance at the end of the year Biological assets balance at the end of the year

Group

2016

Units

47 55

NOTES TO THE FINANCIAL STATEMENTS

13 BIOLOGICAL ASSETS

Group

2016 2015

$â&#x20AC;&#x2122;000 $â&#x20AC;&#x2122;000

2015 Units

Rising 1 year heifers Rising 2 year heifers Cows Rising 1 year bulls Rising 2 year steers

1,275 1,739 3,508 399 429 7,350

2,101 1,467 4,487 922 390 9,367

69 147 2 218

73 210 5 288

Quantity of sheep on hand Ewe hoggets 5/6 year ewes Breeding rams

The Parent engages in sophisticated dairy farm management to preserve the value of stock.

Biological assets of the Group comprise dairy cattle, beef cattle and sheep.

The inputs applied in the valuation of the Group's biological assets have been categorised as level 2 in the fair value hierarchy.

Parininihi He Orangaki Waitotara Incorporation

Quantity of dairy cattle on hand

48 56

13 BIOLOGICAL ASSETS (CONTINUED) (a) Financial risk management strategies (i) Environmental and climatic risks The Group is exposed to climatic and other environmental risks. The Group's geographic spread of farms allows a high degree of mitigation against adverse climatic (eg: drought and flooding) and environmental (eg: disease) effects at a regional level.

revenue is received in the second half of the financial year, whereas financial expenses are incurred throughout the year. The Group manages this risk through budgeting (ii) Commodity price risk and actively managing working capital The Group is exposed to risks arising requirements, as well as maintaining from fluctuations in the price and sales credit facilities at levels sufficient to volume of livestock and dairy produce. meet working capital requirements.

The Group has environmental practices aimed at compliance with environmental and other laws in New Zealand.

(iii) Financing risk The nature of livestock farming means that most of the Group's agricultural

14 PROPERTY, PLANT AND EQUIPMENT

Group At 1 July 2014

Cost Accumulated depreciation Net book amount At 30 June 2015 Cost Accumulated depreciation Net book amount

Capital

Freehold

Furniture &

$'000

$'000

Motor

Leasehold

$'000

$'000

Total $'000

1,261 (125)

33,534 (271)

68,968 (2,420)

62

1,136

33,263

66,548

6,197 (1,382)

143 (90)

1,712 (342)

39,087 (620)

78,840 (4,314)

14,722

4,815

53

1,370

38,467

74,526

14,737

14,722

4,815

53

1,370

38,466

74,525

-

1,304 (475)

609 (24) (697)

222 (26) (12)

120 (3) (142)

591 (7) (333)

2,846 (220) (1,660)

14,737

15,551

4,703

237

1,345

38,717

75,491

201 -

14,737 -

17,906 (2,355)

6,782 (2,079)

365 (128)

1,818 (473)

39,670 (953)

81,479 (5,988)

201

14,737

15,551

4,703

237

1,345

38,717

75,491

$'000

land

$'000

Buildings

equipment

1,009 -

14,737 -

13,852 (1,212)

1,009

14,737

362 362

Year ended 30 June 2016 Opening net book 362 amount Reclassification Additions Transfers / Disposals (160) Depreciation charge (note 8) Closing net book 202 amount At 30 June 2016 Cost Accumulated depreciation Net book amount

Plant and

i/ments

WIP

(a) Leasehold improvements

fittings

vehicles

4,432 (731)

143 (81)

12,640

3,701

14,737 -

16,602 (1,880)

14,737

$'000

Leasehold improvements are derived from the purchase of improvements to the land by Lessee's.

Total $â&#x20AC;&#x2122;000

At 1 July 2014 Cost Accumulated amortisation and impairment Net book amount

13,660 13,660

At 30 June 2015 Cost Accumulated amortisation and impairment Net book amount

13,660 13,660

Year ended 30 June 2016 Opening net book amount Additions Closing net book amount

13,660 1,960 15,620

At 30 June 2016 Cost Accumulated amortisation and impairment Net book amount

49 57

NOTES TO THE FINANCIAL STATEMENTS

15 QUOTA ASSETS

Group and Parent

15,620

15,620

Parininihi He Orangaki Waitotara Incorporation

During the 2016 year Parininihi ki Waitotara acquired an additional 699,305 Quota Shares at a cost of $1.96m.

There have been no disposals or impairement losses during the year (2015: nil). The fair value of the quota at 30 June 2016 is $42.9m (2015: $36.2m) as supplied by industry specialist Quota Management System Limited.

50 58

16 EQUITY ACCOUNTED INVESTMENTS Name of entity Port Nicholson Fisheries General Partner Limited

Incorporated in

Equity holding

New Zealand

33%

Port Nicholson Fisheries General Partner Limited's principal place of business is 50 Customhouse Quay, Wellington. (a) Joint venture

Group 2016 2015 $’000 $’000

Investment in joint venture 2,650

2,650

2,708 2,708

(b) Movements in carrying amounts Group

2016 2015

$’000 $’000 Balance 1 July Share of profit after tax Cash Distribution Carrying amount at the end of the financial year

2,708 2,952 1,099 1,151 (1,157) (1,395) 2,650 2,708

17 INVESTMENTS IN SUBSIDIARIES

51 59

accordance with the accounting policy described in note 2(c):

Name of entity Incorporated in Balance date PKW Farms Limited Partnership PKW Farms Limited Taranaki Aqua Gardens Limited JSP Limited PKW Investments Limited Te Oranga Livestock Limited

New Zealand New Zealand New Zealand New Zealand New Zealand New Zealand

30 June 30 June 31 March 31 March 30 June 30 June

Equity holding 2016 2015 100% 100% 100% 100% 100% 100%

100% 100% 100% 100% 100% 100%

PKW Farms Limited Partnership is in the business of farming.

PKW Farms Limited was in the business of farming. The Company ceased trading during 2014 and it is the Parent's intention to have the Company removed from the Companies Register in 2017.

NOTES TO THE FINANCIAL STATEMENTS

The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in

Te Oranga Livestock Limited is in the business of livestock trading.

JSP Limited is in-active and it is the Parent's intention to have it removed from the Companies Register in 2017.

PKW Investments Limited is dormant.

Parininihi He Orangaki Waitotara Incorporation

Taranaki Aqua Gardens Limited is in-active and it is the Parent's intention to have it removed from the Companies Register in 2017.

60 52

18 INVESTMENTS

Group 2016 2015 $’000 $’000

Fonterra Co-operative Group Limited 17,266 Finistere (note 19) 2,407 New Zealand Government inflation indexed bond -

19,673

13,596 3,717 1,514 18,827

Other financial assets carried at cost 996 582

996 582

20,669 19,409

Fonterra Co-operative Group Limited is measured at fair value using the listed share price at balance date.

Finistere is an unlisted equity instrument. The Finistere investment is recognised at impaired cost of $2.4m (2015: $3.7m) and is related to an investment of USD $1.9m (2015: USD $2.7m) that was unhedged at 30 June 2016.

19 EQUITY INSTRUMENTS

Group 2016 2015 $’000 $’000

Finistere Balance 1 July 3,717 Add capital contributions 202 Deduct investments sold

(963) Deduct investment impaired

(549)

2,407 Finistere investment derecognised: Proceeds from sale 2,185 Gain on sale 2,185

6,873 129 (3,285) 3,717 -

The start up companies in which Finistere invests are private companies and due to their nature are only revalued at different liquidity phases. None of these companies are listed with readily available fair value information.

The majority of the fund's investment are with start up ventures in the Medical Devices Industry.

The Group relies on the management team of the Venture Capital fund to invest in companies that will provide the Group with a significant return on each investment. This return is realised when the start up companies are acquired by an investor.

Impairment testing is based on entities within the portfolio meeting liquidity milestones.

Group 2016 2015 $â&#x20AC;&#x2122;000 $â&#x20AC;&#x2122;000

Investment properties unimproved land Balance at beginning of year 150,276 139,336 Net gain in fair value 1,684 10,939

151,960 150,276 Commercial property Balance at beginning of year 2,095 3,065 Net gain/(loss) in fair value 30 (970)

2,125 2,095 154,085 152,371 The Parent has used a discounted cash flow model to assess the fair value of the unimproved land. Refer to significant

accounting estimates and assumptions for estimates and assumptions applied in calculating fair value. This valuation is not prepared by an independent valuer.

53 61

NOTES TO THE FINANCIAL STATEMENTS

INVESTMENT PROPERTIES 20

Commercial properties are carried at fair value, which have been determined based on valuations performed by Telfer

Young as at 30 June 2016. Telfer Young is an industry specialist in valuing these types of commercial properties in the Taranaki region.

The fair value represents the amount at which the assets could be exchanged between a knowledgeable willing buyer and a knowledgeable willing seller in an arms length transaction at the date of valuation. In determining fair value,

the expected net cash flows applicable to each property have been discounted to their present value using a market determined, risk adjusted, discount rate applicable to the respective asset.

The inputs applied in the valuation of the Group's investment properties have been categorised as level 3 in the fair

Parininihi He Orangaki Waitotara Incorporation

value hierarchy.

62 54

BORROWINGS AND UNCLAIMED DIVIDENDS 21

Group 2016 2015 $â&#x20AC;&#x2122;000 $â&#x20AC;&#x2122;000

Rabobank facility 62,266 64,950 Unclaimed dividends 4,014 3,889 Fonterra Shareholder Support Loan 909 67,189 68,839 The Parent and Group utilises both an interest only finance facility of $74m (2015: $70m) and an undrawn facility of $5m (2015: $5m) from Rabobank New Zealand Limited. The $74m facility is split between the Parent and the Group, $17.4m and $56.6m respectively. Both of these facilities expire on 20 February 2024. The interest charge on the drawn facility is currently at a variable rate based on an agreed margin over the BKBM rate (daily interbank rate). At 30 June that rate approximated 5.82% per annum (2015: 5.09%). The loan fee on the undrawn amount of the facility is 0.25% per annum.

The facility is secured by first mortgage over certain leasehold and freehold interest in property, a registered first security agreement over all present and subsequently acquired personal property with a priority sum of $72m and unlimited guarantees from PKW Farms Limited and PKW Investments Limited. The carrying value of financial assets pledged as collateral as at 30 June 2016 was $132.2m (2015: $128.4m).

The Fonterra loan as at 30 June 2016 $0.9m, (2015: $nil) is an interest free loan for two seasons, until 31 May 2017. The loan provided by Fonterra Co-operative Support, provided 50 cents for every kgMS produced from 1 June 2015 to 31 December 2015. The production needed to be backed by shares or counting vouchers held at close of business on 30 September 2015. Automatic repayments will commence when the Total Advance Rate Payments exceed $6.00 and will be applied to season-to-date production. The loan is interest free until 31 May 2017, after this Fonterra may charge interest at Fonterra's cost of borrowing (up to a maximum of the published wholesale inter-bank rate plus 0.5% per annum).

Group 2016 2015 $â&#x20AC;&#x2122;000 $â&#x20AC;&#x2122;000

Non-current assets Current liabilities Interest rate swaps (597) Non-current liabilities Interest rate swaps (1,741)

(2,338)

(490) (704) (1,194)

Interest bearing loans of the Group currently bear a variable interest rate between 3.86% and 5.21%. In order to protect against rising interest rates the Group has entered into interest rate swap contracts under which it has a right to receive interest at fixed rates and to pay interest at floating rates. Swaps in place cover approximately 53% (2015: 46%) of the principal outstanding. The fixed interest rates range between 3.58% to 5.85% (2015: 3.86% to 5.85%) and the variable rate is 1.50% above the 90 day bank bill rate, which at balance date was 2.41% (2015: 3.51%).

The interest rate swaps require settlement of net interest receivable or payable each 90 days. The settlement dates coincide with the dates on which the interest is payable on the underlying debt. All swaps are matched directly against the appropriate loans and interest expense. They are settled on a net basis.

55 63

NOTES TO THE FINANCIAL STATEMENTS

22 DERIVATIVE FINANCIAL INSTRUMENTS

The swaps are measured at fair value and all gains and losses attributable to the hedged risk are recognised in other comprehensive income. Interest expense is recognised in profit or loss.

Parininihi He Orangaki Waitotara Incorporation

The inputs applied in the valuation of the Group's interest rate swaps have been categorised as level 2 in the fair value hierarchy.

64 56

23 NET DEFERRED TAX ASSETS/ (LIABILITIES)

Investment

properties Group $’000

Property, plant and equipment $’000

Livestock $’000

Other $’000

Total $’000

At 1 July 2014 Charged / (credited) to total comprehensive income At 30 June 2015

(564)

(153)

(284)

(330)

(1,331)

(128) (692)

- (153)

76 (208)

347 17

295 (1,036)

Charged / (credited) to the statements of comprehensive income At 30 June 2016

321 (371)

(236) (389)

195 (13)

(223) (206)

57 (979)

TRADE AND OTHER PAYABLES 24

Group 2016 2015 $’000 $’000

Trade creditors 853 Other payables 1,783 Provision for dividend 1,199 GST payable / (receivable) 247

4,082

1,385 1,514 599 (18) 3,480

Fair value Due to the short term nature of these payables, their carrying value approximates their fair value.

57 65

Group

2016 Shares

Share authorised, issued and fully paid

2015 Shares

2016 $’000

2015 $’000

1,197,709

1,197,709

5,549

5,549

1,197,709

1,197,709

5,549

5,549

26 RESERVES AND RETAINED EARNINGS

Group 2016 2015 $’000 $’000

(a) Reserves Capital reserve 24,591 Cash flow hedge reserve (1,901)

22,690

24,591 (957) 23,634

NOTES TO THE FINANCIAL STATEMENTS

25 SHARE CAPITAL

Movements: Capital reserve Balance 1 July Charge to other comprehensive income Balance 30 June

24,591 - 24,591

24,591 24,591

Cash flow hedge reserve Balance 1 July Charge to other comprehensive income Balance 30 June

(957) (944) (1,901)

(58) (899) (957)

Cash flow hedge reserve This reserve records the portion of the gain or loss on a hedging instrument in a cash flow hedge that is determined to be an effective hedge. These amounts retained in the cash flow hedge reserve at 30 June 2016 are expected to mature and affect profit and loss in subsequent financial periods. (b) Retained earnings Movements in retained earnings were as follows:

Balance 1 July Net profit for the year Dividends Balance 30 June

Group 2016 2015 $’000 $’000 173,571 3,716 (1,199) 176,088

166,663 7,507 (599) 173,571

Parininihi He Orangaki Waitotara Incorporation

Capital reserve The capital reserve represents capital contributions that have been recognised and accounted for since establishment of the Incorporation.

66 58

DIVIDENDS 27

Group 2016 2015 $’000 $’000

Declared and paid during the year: Dividend proposed 2016 $1.00 (2015: $0.50) 1,199

1,199

599 599

28 CONTINGENCIES (a) Contingent liabilities There were no contingent liabilities as at 30 June 2016 (2015: nil).

29 COMMITMENTS (a) Capital commitments During 2015 the subsidiary 'PKW Farms General Partner Ltd' entered two arrangments to purchase leasehold improvements of $2.4m. The completion of these purchases are scheduled for payment in 2017 and 2018. (b) Lease commitments: as lessee (i) Operating leases Future minimum rentals payable under non-cancellable operating leases as at 30 June are as follows:

Within one year Later than one year but not later than five years Later than five years

Group 2016 2015 $’000 $’000 61 56 -

61 117 -

Total

117 178

30 RELATED PARTY TRANSACTIONS

59 67

During the year, the Group charged interest at 0% (2015: 0%) on loans between the Parent and it's wholly-owned subsidiaries.

The Parent has an equity interest in Port Nicholson General Partner Limited. PKW Incorporation (the Parent), leased crayfish quota to Port Nicholson General Partner Limited.

During the period, the Chief Executive Officer has leased a residential property from the Parent at market value.

Claire Nicholson is a director of Sirona Animal Health Ltd. During the 2016 financial period the company purchased $0.03m from Sirona Animal Health Ltd for animal health products (2015:$nil). There are no outstanding balances at 30 June 2016 (2015:$nil). The transactions were underaken on an arms length basis and no balances were written off during the year.

During 2016 the PKW Trust has charged interest at 5.59% (2015: 5.76%) on the existing loan with PKW Incorporation of $1.54m (2015: $1.6m), and 6.09% on a new loan balance of $1.54m (2015: $0m).

No related party debts have been written off or forgiven during the year and all transactions were conducted on an arms length basis.

NOTES TO THE FINANCIAL STATEMENTS

(a) Parent entity

(b) Directors David MacLeod is a director of the Fonterra Co-operative Group Limited.

Taaringaroa Nicholas, David MacLeod and Claire Nicholson are all committee members and shareholders of Parininihi ki Waitotara Incorporation.

(c) Key management and personnel compensation

Hinerangi Raumati-Tu'ua Taaringaroa Nicholas Hinerangi Edwards Bev Gibson David MacLeod Aisha Ross Claire Nicholson Committee of Management Members Darryn Ratana Hinerangi Edwards Hinerangi Raumati-Tu'ua Philip Luscombe Richard Krogh Other Governance Fees Total Group Governance Fees

60 32 30 33 30 30 30 245

- - - - - - - -

- - - - - - - -

- - - - - - - -

60 32 30 33 30 30 30 245

- - - - - -

- - 10 20 18 48

3 - - - - 3

- 3 - - - 3

3 3 10 20 18 54

245

48

3

3

299

Parininihi He Orangaki Waitotara Incorporation

Committee Members and Directors remuneration and value of other benefits received from the Group for the year ended 30 June 2016 were:

Director PKW Trust

Honoraria Fees Daily fees Honoraria Total

$’000 $’000 $’000 $’000 $’000

60 68

30 RELATED PARTY TRANSACTIONS (CONTINUED) In August 2015 the Committee of Management undertook a review of the Committee remuneration. As a result of this review the Committee has approved a total remuneration approach to governance fees based on the following: Chairman $60,000 honorarium per annum.

Chairs of Audit and Risk Committee, HR Committee and PKW Trust $2,500 honorarium per annum.

All other Committee of Management members receive $30,000 honorarium per annum.

Independent Directors of PKW subsidiaries receive Director's fees of $20,000 per annum.

Committee of Management Members appointed to board of Port Nicholson Fisheries General Partner Ltd Directorships receive Director Fees of $5,000 (2015: $10,000) per annum.

(i) Other transactions and balances No other related party balances were written off or forgiven during the year.

31 SUBSEQUENT EVENTS There were no events occurring subsequent to balance date which require adjustment to or disclosure in the financial statements.

32 STATEMENT OF ESTIMATED CURRENT MARKET VALUES

61 69

Assets

Accounts payable and accruals Term loans Unclaimed dividends

Schedule of assets Investment properties Unimproved land value Powderham Street, New Plymouth Queen Street, Waitara Miranda Street, Stratford

Investments Finistere Venture Capital Fund PNF Limited Quota Fonterra Co-op Shares Mangaoapa Forest Partnership Government Inflation Indexed Bond

10,526 67,809 94,697 154,085 327,117

4,082 62,266 4,014 70,362 256,755

151,960 1,350 410 365 154,085

2,407 2,650 42,986 17,266 2,500 67,809

Parininihi He Orangaki Waitotara Incorporation

Current assets Investments Property, plant and equipment Investment properties

Less liabilities

NOTES TO THE FINANCIAL STATEMENTS

AS REQUIRED BY SECTION 276 (4) (C) OF TE TURE WHENUA MĀORI ACT 1993

30 June 2016

Group

$’000

62

2015 MINUTES PARININIHI KI WAITOTARA INCORPORATION ANNUAL GENERAL MEETING Minutes of the Parininihi ki Waitotara Incorporation annual general meeting of shareholders held at Aotearoa Marae, Ōkaiawa on Saturday 31 October 2015 at 10:00am.

PRESENT Hinerangi Raumati-Tu’ua, (Parininihi ki Waitotara Chair) presided over approximately 66 meeting attendees and committee of management members Bev Gibson, Hinerangi Edwards, Taaringaroa Nicholas, Aisha Ross, Claire Nicholson, Darryn Ratana (Shareholder Representative, PKW Trust), Phillip Luscombe (Independent Director, PKW Farms and Richard Krogh (Independent Director, PKW Farms) IN ATTENDANCE Ihaka Robinson, Mary Elizabeth Nicholson, Anita June Forsman, Taaringaroa Nicholas, Enid Hohaia, Patricia Hemara Wahanui, Mana Jenkins, Shona B Coffey, Josephine Coffey, Teruangakau Ratahi Whānau Trust, Ripo Tautahi Whānau Trust (Tapakione Skinner), Claire Nicholson, Maikara Kaaro Te Teira Whānau Trust, Georgina Gould, John Hooker, Wehi Takamori, Helen Searle, Dolly Horo, Pamela Wooster, Rose Denness, Raymond Edwards, Rangiapehu Te Patu, Mereana Te Patu, Adrian Te Patu, Mere Berry, Jean McLeod, Carol Kahui, Rangiwahanga Whānau Trust, Doreen Maaka, Henare Ngaia, Raewyn Broughton, Heemi Wiripo Ngaiwikatea Bailey Whānau Trust, Kira Whānau Trust (Maria Robinson), Leo Buchanan, Murray Tutauha, Evelyn Pullen, Nika Gwen Whānau Trust, Aroha Wharemate, Faith Wharemate, Andrew Baker Jnr, George Broughton, Te Wehi Whānau Trust, Andrew Paddy Robinson Whānau Trust, Maria Robinson, Daisy Noble, Alison Pouwhare, Jennifer Noble, Frances Katene, Amber Hikatangata, Kororia Jordan, Betty Anderson, Tuka and Hine Puororangi Kumeroa Whānau, Queenie Makuini Horo Whānau Trust, Derek Wooster, Charles Bailey Estate, Werenia Ivy Papakura Whānau Trust (Wikitoria Michalanney), Valerie Janice Davey, Rona Hobson, Rawiri Taiaroa Whānau Trust, Rangimaimaioa Cora Ross, Brian Norman Hunt, Peter Moeahu Jnr, Jane E Hughes, Mulligan Whānau Trust (Wayne Mulligan), Fitzgerald Luke, Patricia Bodger and PKW staff.

MIHI WHAKATAU Hinerangi Raumati-Tu’ua APOLOGIES Board Apology received and sustained from David MacLeod.

Apologies were received and sustained from Bill (William) Sparks, Tommy Reihana, Elliot Mauriri, Ngawai MacIntyre, Moana Watson, Piko Hook, Ann Tuteri Wallace, Edna Hawe, David O'Brien, Anna Morris, Tatakura Popata, Hurihia Reddy, Carole McKay, Georgina Brown, Marion Eldby, Maureen Collis, Hine Rose, Hine Rose Whānau Trust, Mahara Okeroa, Vonda Houpapa, Matau Baker, Russell Hohaia, Judith Kaiwai, Pearl Ranui, Lima Whānau Trust, Leanne Snooks, Kahu Thompson, Charles King, Phillip Hooker, Mary Roebuck, Andrew Hooker, Nancy Basset, William Hooker, Fred Hooker, Judy Richards, Margaret Robson, Kura Taylor, Maraea Hargreaves, Wharemawhai Timutimu, Georgina Taiaki, Te Akerama Taiaki, Georgina Taiaki, Jennifer Stevens Apologies noted for 2015 AGM CONFIRMATION OF 2014 MINUTES That the minutes of the annual general meeting held 8 November 2014 be approved as a true and accurate record.

Peter Moeahu / Mana Jenkins CARRIED

Parininihi ki Waitotara Chair Hinerangi Raumati Tu’ua welcomed shareholders to the 2015 Annual General Meeting acknowledging those who have travelled to attend.

The Chair acknowledged those who had lost family members recently.

2015 has been a challenging financial year. As shareholders are aware, PKW profitability is driven by Fonterra and the milk price. While we have a variety of investments we are heavily exposed to the dairy industry.

We maintain a long-term view of our dairy investments.

Health & Safety Health & Safety is a real priority in our farming business. A great deal of effort has been put into ensuring we are creating a culture where Health & Safety comes first, we are very mindful of the risks attached to the business we are in and the care that needs to be taken around our staff.

Note the two exits and marshalling area out the front of the marae ātea.

PKW Strategy Update Strategy was refreshed last year in a two-day workshop. As a board we remain committed to our strategy He Tangata, He Whenua, He Oranga – Sustaining and Growing our People through Prosperity which at its heart is making PKW a more prosperous business to provide greater opportunity to our people.

Our vision is to make PKW a successfully diversified and sustainable Taranaki Maori-owned and operated business providing meaningful opportunity to its people.

Our goals remain systemisation of operations to improve performance, skills training and development for

It has been a difficult year but we have made positive albeit small progress in line with these strategic decisions. The strategy highlights the things we think are important to us, what our measures for success are for our people and our partners, how we will act and behave and what our values are all about. A copy of this document is available to anyone who would like one.

Committee of Management Election Outcome Three members of Committee of Management were up for re-election.

When the nominations closed, the three nominations received were the three board members standing for re-election, namely, Hinerangi Raumati-Tu’ua, Bev Gibson & David MacLeod. On the basis that those were the only nominations received, pursuant to Section 23(5) of the Māori Incorporation Constitutions Regulations 1994, Hinerangi RaumatiTu’ua, Bev Gibson & David MacLeod are deemed re-elected to the Committee of Management.

The chair thanked the shareholders for their continued support and endorsement of the Committee of Management members.

Strategic Highlights • Focus on PKW’s internal systems, processes and people to maximise profitability and minimise the losses in the agribusiness interests.

• Organisational Realignment.

Management team in four key business units - Shareholder Engagement, Corporate Management, Farms Management and Investment Management; the

• Focus on Organisational development, relationship development, diversification (in a small way) and Te Ture Whenua Māori Act. • PKW Farms’ Board was strengthened with the addition of a second Independent Director – Richard Krogh.

• Agri study tour − the Board and Management team visited Ngāi Tahu farms, and Dairy Holdings to gain a better understanding of future opportunities for farms business. They also met with Synlait, had a look at Robotic Milking Systems and A2 milk.

• Health & Safety brought in line with the legislation changes and PKW’s standards for health and wellbeing of kaimahi.

• Third-party lease arrangements entered into to enable growth without capital investment.

• Collaboration with post-settlement Iwi groups is being discussed.

There is significant opportunity for PKW to work alongside its Iwi entities to help grow collective economic might within Taranaki.

• Diversification – PKW established Te Oranga Livestock Company, a livestock trading company that buys and onsells stock internally and externally. PKW also made a small investment in a specialist orchard in the Hawkes Bay growing specialist high value apples called “Rockit” for the export market.

• Te Ture Whenua Māori Act − the process continues, with an extension of timeline for further consultation and work on land service and other documents.

PKW remains closely engaged in that process and has made a submission stating PKW did not support it in its current form.

He Tangata

Introduction

new General Manager Ahuwhenua role filled.

MINUTES OF THE INCORPORATION ANNUAL GENERAL MEETING

63 succession and implementation of diversification strategy to manage risk.

64 • Lobster return on assets was 9% for the financial year 30 June 2015.

• Milk solids produced increased by 11% on prior year.

• PKW group has increased total hectares by 10% in the last year through lease opportunities and farm purchases.

Financial Performance The Chair provided an overview of PKW’s financial performance and position.

The Chair noted that there was a bottom line profit but there has been a decline in operating profit from $10.4m to $2.7m. It was a challenging year with a significant downturn in milk price, essentially impacting the revenue ($29.4m to $21.8m). PKW achieved a profit of $7.6m for the year which is made up of two components – operating profit of $2.7m and non cash capital gains of $4.8m. Group revenue was $21.8m, a $7.6m reduction on the prior year and driven by a dairy pay-out movement of $8.40 down to $4.40. At the same time our direct costs did increase and that was due to farms acquired part way through the prior year, and 100% of the costs of those came through to this year.

Farm costs did go up because the platform was expanded but profitability came down because of the overall revenue figure. We also had an increase in our net financing costs because as the year progressed we couldn’t pay down debt as we had planned.

After factoring PKW’s share in profit from Port Nicholson Fisheries, PKW achieved an operating profit of approximately $2.8m. That figure is important to note as that is what is used to calculate the dividend.

Other gains and losses included a reduction in the Fonterra share value

of $2.8m and a write down in our Finistere Investment of $3.3m and this was offset by a capital value increase in our underlying land of $10.9m; so, in summary, some ups and downs and these contributed to the bottom line profit of $7.6m.

Financial Position Total assets increased in value from $267m to $276m due to the underlying land value. Liabilities have increased from $70.3m to $74m – this is made up of debt to Rabobank of $65m, unclaimed shareholder dividends of $4m and other payables and creditors of $3m.

Shareholder equity has increased to $203m.

While our debt levels are within our agreed policy of no more than 30% of total group assets, time has been spent on how this debt can be reduced in this environment with lower revenue there are limited options.

Group Assets by Business PKW has a range of investments, with dairy making up one-third of PKW’s balance sheet, PKW Trust 1%, PKW Investments 1%, PKW Fishing (Port Nicholson Fisheries) 5% and PKW whenua (underlying corpus land) 60%.

Operational Overview Chief Executive Officer Dion Tuuta provided an overview of operational highlights for the 2014/15 financial year:

acquisitions taking place.

•P erpetual leases continue to provide a stable and valuable income stream, with Annual Rental of $6m for the year.

•T he next Rent Review is set for 2017. The Incorporation has agreed to undertake a collegial process with the West Coast Lessees’ Association which effectively means that all the Lessees get together and select a rental valuer, and PKW appoints its valuer, and together they will assess the value of the properties and arrive at a rental for the next seven years.

Ahuwhenua – Farming (Dairy, Drystock and Livestock Operations)

• A challenging year: a $8.9m loss was posted for the 2014/2015 year due to the reduction in revenue − primarily as a result of Fonterra reducing its price from the $7.15per kilogram milk solids (/ kgMS) forecast to $4.40/kgMS. • Fonterra shares also devalued along with livestock.

• Costs increased for more farms.

• Fonterra’s forecast milk price for 2015/16 year is slightly higher.

• Management realignment completed – the Farms team is now under a new position of General Manager Ahuwhenua – Louise Cook has been appointed and will commence on 7 December.

Whenua - Leases

Port Nicholson Fisheries – Quota Investment

• Only one lease of 40 hectares was acquired during the 2014/15 year, and until total farms’ profitability improves and stabilises, PKW does not anticipate many farm

• Port Nicholson Fisheries Partnership processed and exported 240 tonnes of lobster to China. It is the fifth-largest lobster export business in Aoteraroa.

2. Profit share from the Port Nicholson Fisheries processing business $1.15m 3. Rental from one-third ownership of factory – a rental stream of $150,000.

• I n its fifth year of operation, the venture has attracted several new partners. 27 Iwi have joined together. Aotearoa Fisheries Limited is going to join Port Nicholson Fisheries, which will enable it to go from being a 240-tonne to 650-tonne business and the second-largest in Aotearoa.

A great model of collaboration.

Other Investments • Forestry – 50/50 Joint venture, Mangaoapa forest is approximately six years from harvest • Four (4) Commercial Properties in North and Central Taranaki, with the recent purchase of 35 Leach Street, New Plymouth. Existing properties retained in Waitara, Stratford and New Plymouth

2016 continues to be challenging and PKW is focussing on farming in a model where the pay-out is in the $4.40 range. In essence it will be about reducing inputs and looking at stocking rates to improve profitability or at least minimise losses. Expect the new General Manager Farms to take a lead role in looking at our farm operations with the assistance of the farms team. Managing our debt and tightening our farm operations are the key foci and the Board is likely to give emphasis to less acquisition in favour of pursuing other higher cash-returning assets. That said, the only way to make significant movement in debt is by selling down assets − but this is something for the future. PKW will still be working to reconfirm the specific areas for diversified investment. A positive is the increasing emphasis on partnering to seek opportunities.

Now that Iwi have completed the settlement process, they are actively seeking opportunities with PKW and each other.

a revised environmental policy

which includes KPIs around good

environmental performance, and, as

part of that, has adopted the strategy of every two years undertaking Dairy NZ enviro walks. Health and Safety and environmental compliance are

critical for maintaining our strategic goals and values.

Where is Mangaoapa Forest?

Would the board be interested in

any other forestry investment if it was available?

Mangaoapa Forest is a 400-hectare

forest in Eastern Taranaki (Stratford).

With any investment presented to it, the Board has a process that it follows. Any new investment has

to meet certain targets and criteria and go through PKW’s Kaupapa evaluation tool.

Are most of the leases farms or are there any homes?

The vast majority is farmland. In

rough numbers out of the 20,000 ha of land owned by PKW about

Questions from the Floor

14,000ha is class 1 or 2 which is

• Horticulture – Rockit Apples Limited Partnership – small investment but good opportunities. Looking at berries in the near future.

How is the board looking at Environmental benchmarking operations – Kaitiakitanga?

dairy and then 5,000ha is class 3 or

• Finistere Venture Capital Fund – US-based fund specialising in agriscience and medical devices – a write down of $3.3m for 2014/15

targets set by Taranaki Regional

PKW has strived to meet all the Council and Fonterra in relation to the clean streams accord. PKW was one of the only organisations in Taranaki

the highest class of land suitable for 4 suited to dairy support and the rest is more class 6 or 7 mostly forestry, there are some residential and lifestyle blocks.

Will the cost of the new building be

in this year or next year’s accounts

Looking Forward

in line to actually achieve that. Not

and how much will it likely be?

The Chair noted that the current office facilities are too small which is why the Board made the bold step of buying a new property and refurbishing it. The Board is unable to meet at the office at the moment as they can’t fit, so is looking forward to

aware of any benchmarking being done against other organisations.

It is part of this year’s budget so will

Even though there are financial constraints, the Board has not neglected its requirement to improve its environmental standards when required. The Board has approved

65

MINUTES OF THE INCORPORATION ANNUAL GENERAL MEETING

1. Annual leasing of the quota to Port Nicholson Fisheries − a rental stream of $2.3m

having a home at the end of March 2016.

be in next year’s accounts and will be reported on in the next annual report. We do not treat the new

building as an investment as we will be living in it. The land and building were purchased for approximately

He Tangata

• Within the lobster business there are three income streams:

66

$900,000 about 1 year ago. The

is challenging and the Board does

budget is $1.6m to refurbish it and

debate it at some length at times.

then PKW will have a brand new building. PKW is working with Te Atiawa Iwi who will come in with us as a tenant and be co-located there.

PKW has also been in discussion with Taranaki Iwi and they may come and co-locate there as well. Once developed PKW will have the option of onselling if wanting to recoup the capital.

The Board made the decision to buy the building so do they have the control of selling it?

That is correct.

Are all other investments in this area or are there any out of Taranaki?

The vast majority of PKW’s investments are in Taranaki. The Finistere investment is in the US. The Rockit Apples investment is in the Hawkes Bay. The chair thanked everyone for their comments and responded to points made by shareholders regarding the challenges of how PKW connects directly with the owners of the organisation. The PKW Trust is the vehicle that has flexibility to have real impact on individual lives through scholarship and on PKW’s wider community through community grants. How we generate benefits more than the dividend and the employment PKW provides

There is no solution yet, other than thinking about making a profit which allows PKW to make a dividend; having a healthy business so that more people can be employed. There are targets around Taranaki Māori employment. There are targets and objectives around Taranaki Māori business and continuing to think laterally about the positive impact that PKW can make.

A conservative approach has been taken towards dividend this year because of the financial constraints.

A figure of $0.50 per share is recommended.

Resolution 3 APPOINTMENT OF THE AUDITOR That shareholders approve Parininihi ki Waitōtara Incorporation appoint Ernst and Young as the Auditor for the 2015/2016 financial year.

Wayne Mulligan/Ray Edwards CARRIED

Resolution 4 APPOINTMENT OF SHARE VALUER That shareholders approve Parininihi ki Waitotara Incorporation appoint PricewaterhouseCoopers as the

Resolution 1 ADOPTION OF 2014 ANNUAL REPORT That the 2015 Annual Report,

Share Valuer for the 2015/2016 financial year.

Tiri Bailey/Rose Denness CARRIED

Auditors Report and the Accounts for Parininihi ki Waitotara Incorporation

The Chair thanked the Management

for the financial year ended 30 June

Team. PKW is very lucky to have the

2015 be received and adopted.

Peter Moeahu/Belle Tupe CARRIED

Resolution 2 APPOINTMENT OF SHAREHOLDER DIVIDEND That shareholders approve the payment of a $.50 per share dividend for the financial year ended 30 June 2015.

Matua Rangitaputu/Mana Jenkins CARRIED

talent, the heart and honesty that goes with PKW’s management team.

Thanks to the Board members who do a great job on the shareholder’s behalf. Shareholders are asked to please complete the survey and be honest with your feedback.

75

TR68

... ka arotahi te Tarati ki te whakamahi i ōna rangapū me ōna hononga e whakanuitia ai te whai wāhitanga o te whanaketanga Māori o Taranaki.

TE PŪRONGO Ā-TAU A TE HEAMANA HINERANGI EDWARDS Tēnā koutou katoa Nōku te hōnore ki te tuku pūrongo nō ngā Tarahīti mō ngā mahi a te Tarati mō te tau pūtea 2015/16. Ka hāpai tonu te Tarati o PKW i āna mahi mō ngā Kaiwhaipānga o PKW me te hapori Māori o Taranaki. I tēnei tau i aro atu ki:

nāna rātou i tautoko, ā, ka tohu tēnei rahinga i te tautoko tonu a te hunga kaiwhaipānga i te kaupapa karahipi me te tāpae o te Tarati ki ngā whāinga mātauranga, whāinga ahurea hoki o ngā Māori o Taranaki.

Ahakoa ka iti haere ngā tono ki ērā o ngā tau o mua, ka hari koa mātou ki te tautoko i ngā ākonga • Ngā hononga ki ngā 175 (TP 14/15: 220) i tēnei tau nā kaiwhaipānga me ngā kaiwhiwhi te whakaae i te $159,000 hei pūtea painga; tuku mātauranga, whare wānanga hoki (TP 14/15: $204,000). Hei • Te whakatairanga hoki i te whai tāpiritanga ki tēnei ko ngā karahipi wāhitanga pakihi ahuwhenua ki tau-maha i whakaaetia i ngā tau te hapori; e rua kua taha ake, engari i utua i tēnei wā. Ka whakanui ēnei • Te whakamihi hoki i te Tarati o karahipi tāpiri i te whakangao a PKW hei hoa whai painga. te Tarati kia $194,700 mā ngā He mea hīranga te whakamihi i te kaiwhiwhi 188.

Kōporeihana o PKW mō tā rātou Ka hua tēnei i te: pūtea ā-tau $120,000 te rahi (TP 14/15: $170,000). Ahakoa he iti • 3 Karahipi Charles Bailey, hui atu te pūtea tuku i tā tērā tau, ka katoa ka $22,500; whakaatu tēnei i te utu mīraka iti i pā atu ki te PKW Group, kua pā • 7 Karahipi Tohu Paerunga, hui mai hoki ki te Tarati o PKW ināianei. katoa ka $35,000.

Hāunga tēnei, mai i te pūtea whiwhi hui katoa $313,000 a te Tarati o • 9 Karahipi Paetahi, hui katoa ka PKW (TP 14/15: $405,000), hui $18,000; katoa ka $227,000 (TP 14/15: • 169 Pūtea Whare Wānanga, hui $282,000), ka whakangaoa anō mā katoa ka $119,200. ngā uri o Taranaki me ngā kaupapa hapori. Ka whakaaturia ētehi o ēnei kaiwhiwhi ki raro nei:

TE PŪRONGO Ā-TAU A TE HEAMANA

TR69

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NGĀ PŪTEA MĀTAURANGA, KARAHIPI WHARE WĀNANGA HOKI Tata ki ngā ākonga katoa (ka 92%) i tuku tono ai ki te Tarati he uri whakaheke o te kaiwhaipānga

NGĀ PŪTEA TĀKUHE MĀ TE HAPORI Ka ū tonu ki ngā mea tuatahi mō ngā pūtea hapori, arā, mō te marae, mō te reo Māori me te mātauranga.

Me tū hoki ngā kaupapa hapori katoa ki Taranaki. Waihoki, he pērā ki te iti haere o ngā karahipi

He Oranga

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TR70

mātauranga, i heke hoki te maha o ngā tono ā-hapori. Nā reira ka 11 ngā kaupapa ka whakaaetia mō tēnei tau (TP 14/15: 13). Engari, hui katoa ka nui ake te pūtea i tukuna atu i te $83,000 (2014/15: $76,000) te rahi, ā, i horahia ki ngā mea tuatahi e whai ake nei: • ngā pūtea mā te Marae, hui katoa ka $50,000; • ngā pūtea mō te Reo, hui katoa ka $7,000; • ngā pūtea Mātauranga, hui katoa ka $26,000 Ka whakamahi tonu te Tarati i āna pūtea hei āwhina i ngā marae o Taranaki ki te whiwhi pūtea mai i ngā pokapū kē pērā i te Tari Taiwhenua me te TSB Community Trust. He ritenga mātau tēnei hei whakarahi ake i te whakarato pūtea ā-rohe.

Ka pērā anō te kaupapa whakarato ngātahi i te pūtea ki ētehi atu kaupapa hapori. Hei tauira, ko Para Kore me Taranaki Tū Mai. He kaupapa ā-marae a Para Kore ka aro ki te kore moumou, i whakatūria ai i Waikato, ā, ka whakahaerehia puta noa i te motu. Ka whakarato te kaupapa o Taranaki i te wānanga me te āwhina ki: ngā marae o Wharepuni, o Muru Raupatu, o Oakura, o Wai-o-Turi; ki ngā kaupapa o Te Kōpae Piripono, o Ngāti Te Whiti, o Paepae in the Park, o Taranaki Tū Mai me te raupapa kaiaka wāhanga toru o Taranaki Toa Mounga, arā, ko te Taranaki Toa Mounga Tri Series. Ko ētehi atu hoa whakatū ko te Manatū mō te Taiao, ko te Kaunihera ā-Rohe o Taranaki ki te Tonga, me te Kaunihera ā-Rohe o Ngāmotu.

He kaupapa taurua te Taranaki Tū Mai, ā, ka whakamanuhiri a Ngāti

Mutunga Iwi i te kaupapa i tēnei tau i Urenui. Ka kukume te ahurei toru-rā i ngā uri 2,000 neke atu o Taranaki, i whai wāhi atu ki ngā momo hākinakina e hāngai ana ki ngā mokopuna tae atu ki te hunga pahake. Ko Ngāti Maru te toa whakaihuwaka, ā, i riro i a Taranaki Iwi te toanga o te whakataetae kapa haka ka āta whāia ai e te katoa. Nā te Taranaki Māori Trust Board, nā Te Puni Kōkiri, nā ngā Rūnanga ā-Iwi me Te Tarati o PKW Trust hoki te tāpae ā-pūtea mō tēnei kaupapa.

Ka mutu pea te rawe o te kaupapa o Taranaki Tū Mai, ā, nō Ngāruahine te hōnore ki te whakamanuhiri i te ahurei ā te tau 2017.

I whakaaetia e te Tarati o PKW te $83,000 (2014/15: $76,000) ka whakangaoa ki te hapori o Taranaki mō te tau 2015/16.

pahikara-oma 'Māori' nei te āhua.

Ka whakatinahia ngā rēhitatanga o ia whakataetae ki te 160 tāngata, ā, ka kīkī ngā whakataetae katoa — nā tērā i kitea ai te kaha ratarata o te iwi ki ngā wero pēnei.

Mā te hoatu i ēnei moni ki ngā kaupapa ā-hapori pērā i ngā Whakataetae Taranaki Toa e āhei ai kia maha atu ngā whānau kia whai urunga, kia kōkiri, kia whai whakaaro hoki ki ō rātou oranga tinana. E whakahīhī ana te Tarati ki te tautoko i ēnei tū momo kaupapa mā ngā Kaiwhaipānga.

I mua i te whakakorenga o tēnei kaupapa here, i tukuna ngā pūtea 11 i te tau pūtea 2015/16 ki ngā kaitono e tākoro ana mō NūTīreni i te kaiaka, te poihau, te hōkī retireti, te poiuka, me te mekemeke.

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NGĀ PŪTEA TĀKUHE MŌ TE HĀKINAKINA ME TE AHUREA

NGĀ KARAHIPI TARANAKI TRADE TRAINING

I tēnei wāhanga i whakakore te Tarati i te kaupapa here mō te Hākinakina me te Ahurea hoki i whakaaetia ngā tākuhe hākinakina, ahurea hoki ki ngā tāngata takitahi ka kōwhiria hei kanohi mō Nū Tīreni.

Ahakoa te uaua o tēnei kōwhiringa i whakaae te Tarati ki te whakawhiti i ēnei moni ki ngā kaupapa hākinakina ka āta aro atu ki te hapori whānui kē, ā, ko tētehi tauira ko te Taranaki Toa Mounga Triathlon Series. He rōpū a Taranaki Toa o te kāinga, ka whakahau atu i te Māori kia ngana ki te kauhoe, te oma me te eke pahikara. I whakaritea e te rōpū ngā whakataetae kauhoepahikara-oma e toru — ko tētehi i Ōpunake, e rua i Whai-tara, i āta hāngai ki te whānau, ahakoa te pahake, te taumata hauora kia whai wheako ki ngā whakataetae kauhoe-

Ko te tau tuarua tēnei ka tautokona e te Tarati o PKW te kaupapa Māori Pasifika Trade Training, ā, e hari koa ana mātou ki te whakamōhio atu ko te whakangungu ahuwhenua tētehi kaupapa ka tāpaetia. Hei taunaki i tēnei kaupapa ka tāpaetia ō tātou pāmu hei wāhi ako mā ngā ākonga nei, me te mea anō nō ngā kāwai whakapapa o Taranaki ētehi, ā, he mokopuna hoki nā ētehi kaiwhaipānga. Ahakoa kei te tōmuatanga tonu o te kaupapa, he mea hīranga ngā hua ka puta i te tupu āheinga ahuwhenua i te Māori ki ngā mahi ā-rehe katoa, ā, hei ngā tau e tū mai ana, tērā pea ka mahi ētehi o ēnei pia mā PKW. Tae noa mai ki tēnei wā, 17 ngā ākonga kua eke ki ngā taumata whakangungu teitei atu, ā, e waru kua whai mahi ki ā rātou rohenga ako.

TR71

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TE PŪRONGO Ā-TAU A TE HEAMANA

Hei whakakapi ake, he tau angitu anō tēnei tau mō te Tarati, mō ngā KO TE PANONI I TE PUKA uri hoki. Engari, he mea hīranga WHAKAAETANGA O TE TARATI te mārama ki ngā uauatanga o te O PKW wā i te rāngai ahuwhenua, ā, ko te E rua ngā panoni hīranga ki te āhua nei ka pā atu tērā āhuatanga puka whakaaetanga ka mahia. ki te Tarati hei te tau pūtea 2015/16.

He tuatahitanga tēnei mai i te Ko te matapae, hei te tau e tū mai whakatūtanga o te Tarati o PKW i te ana e kore te Tarati e āhei ana ki tau 1983. Ko te panoni tuatahi ka te āwhina pēnei i te rahinga i tēnei whakaāhei i ngā tarahīti tonu ki te tau. Ahakoa kua takoto te mānuka, whakatau panoni ā-whakahaere ki te ka arotahi te Tarati ki te whakamahi puka whakaaetanga. I te Tino Rōia i ōna rangapū me ōna hononga e o te Kuīni tēnei mana i mua, ā, nō whakanuitia ai te whai wāhitanga o muri atu i te Kōti Matua — nā tērā ka te whanaketanga Māori o Taranaki. whakapau ai te wā me te pūtea — ā, ka tāpae tēnei whakapaunga pūtea motuhake ki te whakapaunga moni anō.

Hinerangi Edwards

$405,000 2015 INCOME

Ngã mihi

Ka whakaroa te panoni tuarua i te Heamana tūnga o te Māngai Kaiwhaipānga i te kotahi ki te toru tau. Ka pērā ki ērā atu Tarahīti katoa.

He mea hīranga ki ngā Tarahīti kia whai mōhiotanga ngā Kaiwhaipānga ki te tukanga, ā, kia wahi wāhi ki ngā pārongo katoa. Nā te pae tukutuku, ngā pānui i ngā nūpepa ā-rohe, me ngā kōrero whakahou kei roto i te maheni o Whenua i tukuna ai i ngā kōrero whakahou. Ko te kōwhiringa o tēnei rā, arā, mō te Māngai Kaiwhaipānga ka toru tau te roa o tōna noho te hua ka puta i tēnei mahi.

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$313,000 2016 INCOME

$3.202M 2015 ASSETS

$3.115M 2016 ASSETS

I te mutunga o tērā tau i whakahaerehia e te Kōporeihana tētehi uiui Kaiwhaipānga. Ko te uiui tuatoru o tēnei momo ka arotahi ki ngā Kaiwhaipānga anahe. Ka whakarato te uiui i ētahi māramatanga e pā ana ki ngā tūmanako o ngā Kaiwhaipānga me te mahi a te Tarati.

$282,000 2015 GRANTS PAID

$227,000 2016 GRANTS PAID

He Oranga

TE TITIRO WHAKAMUA

68

... the Trust is focused on utilising its partnerships and relationships that will promote increased opportunity for Taranaki MÄ ori development.

CHAIR’S REPORT HINERANGI EDWARDS

On behalf of the Trustees it is my privilege to report on the Trust’s activities for the 2015/16 financial year. The PKW Trust continues its efforts on behalf of the PKW Shareholders and the Taranaki Māori community. This year that focus was on: • Relationships with shareholders and beneficiaries; facilitating active participation; • Agri-business opportunities promoted to the community; and • Recognition of PKW Trust as a valued partner.

It is important to acknowledge PKW Incorporation for their annual grant of $120,000 (FY14/15: $170,000).

While this grant is lower than the previous year, it reflects the low milk price the PKW Group has been affected by, which now affects the PKW Trust. This aside, from the PKW Trust’s total income of $313,000 (FY14/15: $405,000) a total of $227,000m (FY14/15: $282,000) was reinvested back into Taranaki descendants and community groups. Examples of these recipients are outlined below:

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EDUCATION GRANTS & TERTIARY SCHOLARSHIPS Nearly every student (92%) who applied to the Trust is a direct descendant of the shareholder who endorsed them and this level

indicates that shareholders continue to support the grants programme and the Trust’s role in contributing to the education and cultural aspirations of Taranaki Māori.

Although the number of applications was less than the previous years, we are pleased to have supported 175 students (FY14/15: 220) this year by approving $159,000 as education and tertiary grants (FY14/15: $204,000). In addition to this are the multi-year scholarships approved in the two years prior but paid for in this period. These additional scholarships increased the Trust’s investment to $194,700 for 188 recipients.

This is represented as: • 3 Charles Bailey Scholarships totalling $22,500; • 7 Postgraduate Scholarships totalling $35,000; • 9 Undergraduate Scholarships totalling $18,000; • 169 Tertiary Grants totalling $119,200.

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COMMUNITY GRANTS The priorities for community grants remains unchanged; and they are marae, te reo Māori and mātauranga. All community projects must also be located in Taranaki. Similarly, as with the fewer education grants, the number of community applications decreased as well, with 11 projects approved

He Oranga

Tēnā koutou katoa

PKW TRUST CHAIR'S REPORT

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for this year (FY 14/15: 13).

However, the total amount awarded was higher at $83,000 (2014/15: $76,000) and were spread across the following priorities: • Marae grants totalling $50,000; • Te Reo reo grants totalling $7,000; • Mātauranga grants totalling $26,000.

Taranaki Iwi won the coveted kapa haka competition. he Taranaki Māori Trust Board, Te Puni Kōkiri, Iwi Rūnanga and PKW Trust all contributed financially to this kaupapa. Taranaki Tū Mai is a fantastic kaupapa and the honour of hosting the 2017 festival sits with Ngāruahine.

Shareholders, the PKW Trust is proud to support these types of kaupapa.

The PKW Trust approved $83,000 (2014/15: $76,000) back into the Taranaki community for the 2015/16 year.

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The Trust continues to leverage its funds to support Taranaki Marae to acquire funding from other agencies SPORTS AND CULTURAL like the Department of Internal GRANTS Affairs and the TSB Community Trust. This is an astute way of During this period the Trust revoked maximising regional funding. the Sport and Cultural Grants policy The theme of co-funding continued that awarded sport and cultural grants to individuals selected to with other community projects. represent New Zealand. While this Examples include Para Kore and was a difficult decision the Trust Taranaki Tū Mai. Para Kore is a agreed to redirect these funds to marae-based zero waste initiative sporting events that targeted the established in the Waikato region wider community instead, and an and is now operating throughout the motu. The Taranaki programme example of this was the Taranaki Toa Mounga Triathlon Series. provided wānanga and support to: Taranaki Toa is a local group who Wharepuni Marae; Muru Raupatu encourages Taranaki Māori to try Marae; Oakura Marae, Wai-o-Turi, their hand at swimming, running Te Kōpae Piripono, Ngāti Te Whiti, and cycling. The group organised Paepae in the Park, Taranaki Tū three triathlons in Opunake and two Mai and the Taranaki Toa Mounga in Waitara, that targeted whānau Triathlon Series. Other co-funders of all ages and fitness levels to included the Ministry for the Environment, South Taranaki District experience triathlons ‘Māori style’.

Entry to each triathlon was capped Council and the New Plymouth at 160 registrations and all three District Council. events sold out − confirming that Taranaki Tū Mai is a biennial event challenges like these are highly and this year’s festival was hosted popular. in Urenui by Ngāti Mutunga Iwi. The Redirecting these funds into three-day festival attracted over community-based activities like 2,000 Taranaki descendants who participated in a range of sporting Taranaki Toa Triathlons allows activities targeting mokopuna more whānau to participate and through to kaumātua. Ngāti Maru to challenge and think about their were the overall winners and physical wellbeing. On behalf of

............................................

Prior to revoking this policy, 11 grants were awarded in the financial year 2015/16 to applicants representing New Zealand in athletics, volleyball, inline hockey, softball and boxing.

TARANAKI TRADE TRAINING SCHOLARSHIPS This is the second year the PKW Trust has supported the Māori Pasifica Trade Training initiative and we are pleased to advise that agricultural training is now one of the programmes on offer.

To support this kaupapa we have offered our farms as training venues for these students; many whakapapa to Taranaki and are mokopuna of shareholders. While this kaupapa is still in its early stages, its outcomes of growing Māori capability in farming and across the trades is worth pursuing, and potentially in the years to come, some of these graduates may find themselves working for PKW. To date, 17 students have progressed onto higher level trade training and eight have secured employment in their areas of study.

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AMENDING THE PKW TRUST DEED For the first time since the PKW Trust was established in 1983, the deed underwent two important changes. The first change now allows the trustees themselves to make administrative changes to the deed. Previously this authority sat

71

The second change involves changing the term of the Shareholder elected representative from one year to three. This is now consistent with all other Trustees.

It was important to the Trustees that Shareholders were kept informed about the process and had access to all information. Updates were given at previous Shareholder hui, through the website, notices in the local newspapers and updates in the Whenua magazine. Today’s election of the Shareholder representative for a three-year term is the result of this work.

the 2015/2106 financial year. It is anticipated that the ability of the Trust to assist to the same level in the coming year will be unlikely.

While this will pose a challenge, the Trust is focused on utilising its partnerships and relationships that will promote increased opportunity for Taranaki Māori development.

PKW TRUST CHAIR'S REPORT

with the Attorney-General and then the High Court − which is expensive both in time and pūtea − and this extraordinary cost has contributed to the overspend.

Ngã mihi Hinerangi Edwards

$405,000

Chair

2015 INCOME

$313,000 2016 INCOME

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LOOKING AHEAD

$3.202M 2015 ASSETS

$3.115M 2016 ASSETS

In closing, this has been another successful year for the Trust and its beneficiaries. However, it is important to note that the current challenging climate in the agriculture sector is likely to have a flow-on effect on the Trust in

$282,000 2015 GRANTS PAID

$227,000 2016 GRANTS PAID

He Oranga

Late last year the Incorporation conducted a Shareholder survey, the third of its kind that focused exclusively on Shareholders. That survey provides insights around Shareholder expectations and the role of the Trust.

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NGĀ KAIWHIWHI TAUTOKO SCHOLARSHIPS AND GRANTS CHARLES BAILEY POSTGRADUATE SCHOLARSHIP

Recipient

Year

Qualification

Shareholder Support

Aaria Dobson Waitere

2016

Master of Conservation Science

Orangipeka Whanau Trust

Bernard O’Donnell

2015

Postgraduate Diploma in Business

Kura Ratapu

Mitchell Ritai

2014

Masters of Business

GRADUATED

MATEKITAWHITI CARR POSTGRADUATE SCHOLARSHIP

Recipient

Year

Qualification

Shareholder Support

Kim Modlick

2016

Master of Indigenous Studies

Mahanakiterangi Manuirirangi Turake

Nadine Parata

2015

Masters of Business Administration

Elliot John Mauriri

Hayden Hamilton

2014

Masters of Science

Whānau Pani Whakatutu

EDWARD TAMATI POSTGRADUATE SCHOLARSHIP

Recipient

Year

Qualification

Shareholder Support

Theresa Moore 2016 Master of Science

Eleanore Matekaikino Pairama Whanau Trust

Brad Tatere

2015

Kellogg Rural Leadership Programme

GRADUATED

Te Aroha Hohaia

2014

PhD

Te Rangiurei Hohaia

GLORIA KEREHOMA POSTGRADUATE SCHOLARSHIP

Recipient

Year

Qualification

Shareholder Support

Joeliee Seed Pihama

2015

PhD

Rongomai Wharehoka

Raiha Hooker

2014

Masters of Management

GRADUATED

Benjamin Snooks

2016

Master of Interior Architecture

Charlie Snooks

UNDERGRADUATE SCHOLARSHIP

Recipient

Year

Qualification

Shareholder Support

Te Hiraka Chase

2016

Bachelor of Physical Education

David Rawiri Mako

Oriwia Hohaia

2016

Anaru Adams

2016

Bachelor of Social Sciences/Law

Werenia Papakura Whanau Trust

Bachelor of Laws/Maori

Enid Hohaia

Kuramaiki Lacey-Brooks 2016

Bachelor of Dental Surgery

Marylinda Brooks

Dion Luke

2016

Bachelor of Environmental Management Hina Lucy Luke

Nga Putiputi Akapita

2015

Te Aho Tatairangi

GRADUATED

Te Aka Hamiilton-Katene 2015 Bachelor of Information Science

Te Kotahitangia Ruawai-Hamilton Whānau Trust

Courtney Hook

2015

Bachelor of Commerce

Piko Hook

Roxanne McDonald

2015

Bachelor of Nursing

Pamela Te Urumairangi Ritai

Jay Short

2015

Bachelor of Architectural Studies

Diane Roka Short

Natasha Bishop

2014

Bachelor of Nursing

GRADUATED

Te Waikapoata Tamati 2014

Bachelor of Dentistry

Hond Whānau Trust

Recipient

Year

Alana Mako 2015

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Qualification

Shareholder Support

Qualification

Shareholder Support

Bachelor of Resource Rawiri David Mako and Environmental Planning

TERTIARY GRANTS

Recipient

Luke Abbott Certificate in Science

He Whenua Tapu Whanau Trust

Paula Anderson

Bachelor of Education (Teaching) Primary

Kororia June Jordan

Pearl Anderson

Certificate in Hospitality and Tourism

Desie Rangitaawa

Reuben Aubrey

Bachelor of Medicine and Bachelor of Surgery

Rangi Goff

Mohi Aupouri

National Certificate in Fitness Vera Puketapu (Decd) (Exercise Consultant)

Fiona Barriball

Bachelor of Midwifery

SCHOLARSHIPS & GRANTS

PKW-RAVENSDOWN SCHOLARSHIP

Fiona Amohia Barriball

Emily Bidois Diplom in Business Studies Nanny Ruby's Whanau

Trust Bonita Bigham

Master of Fine Arts

Hinewaito Bigham

Te Rei BighamDudley

Certificate in Trade Skills

Hinewaito Bigham

Chyloe Bishop

Diploma in Engineering

Ramari Bishop

Olajawon Bourne

Bachelor of Education (Teaching) Primary

Therese Lee Bourne

Therese Bourne

Postgraduate Diploma in the Therese Lee Bourne Practice of Psychology

Huia Brady

Bachelor of Nursing

Debbie Tauri

Alison Brooks

Conjoint: Bachelor of Science/Bachelor of Laws

Gloria Kerehoma

Courtney Chadwick Akapita

Bachelor of Applied Social Henare Ngaia Science (Social Work)

Brook Chamberlain

Bachelor of Arts / Bachelor Rosalie Mae Rangi of Business Studies (Conjoint)

Bryda Chamberlain

Bachelor of Laws

Rosalie Mae Rangi

Tania Collingwood

Bachelor of Teaching and Learning (Early Childhood)

Charmaine Hoeta

Rosina Cowan

Bachelor of Education (Teaching) Primary

Therese Lee Bourne

Aaron Davis Bachelor of Business Studies Marcus Paul TImothy Davis Deborah Davis

National Certificate in Janira Rehua-Davis Hospitality (Restaurant Service)

He Oranga

Karen Butler Bachelor of Nursing Terrence Rangiwahia Tohia

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TERTIARY GRANTS (CONTINUED)

Recipient

Qualification

Jonny Dittmer

Bachelor of Health Science (Physiotherapy) Marie-Nui BIss

Lilly

Donnelly

Ella Tirita Duxfield

Bachelor of Applied Science

Pirihira Whanau Trust

Temple Rose Eiffe

Diploma in Art and Design

Paul Eiffe

Rose Eru

Bachelor of Health Science (Nursing)

Andrea Bishop

Wade Gadsby

Bachelor of Business Studies

Shirley Perriton

Tania GilbertKennedy

Bachelor of Social Services

Urutaahua Gilbert

Campbell Gin

Bachelor of Arts/Bachelor of Laws (Conjoint) Campbell Gin

Karmea GrahamRatana

Bachelor of Health Sciences

Meteria Broughton

Megan Maria Hancock

Bachelor of Business Analysis

Delwyn Maria Hancock

Kenny Hau

Bachelor of Health Sciences

Kenneth Mark Hau (snr)

Corrie Hawe

Bachelor of Business Management

John Hoani Hawe

Rowena Hawea

Akona Te Reo (Certificate in Maori Language) Arthur Rangi

Natalia Herewini

Diploma in Culinary Arts

Bachelor of Science

Shareholder Support Samuel Wallis Kahui

Shirley Bing

Te Herekiekie Herewini Doctor Of Philosophy

Herewini Hapu Mareikura Reremoana Whanau Trust

Connor Hobbs

Bachelor of Engineering with Honours

Dorothy Hobbs

Zoe Dorothy Hobbs

Hobbs

Kiwa Huata

Doctor of Philosophy

Taranaki Maori Trust Board

Tiffany Hughes

Bachelor of Applied Social Science (Social Work)

Margaret Timoko

Matthew Huirua

Bachelor of Science

Helen Neilson

Natalia Hunt

Bachelor of Pharmacy

Brian Norman Hunt

Bachelor of Sport and Recreation

Natasha Hutchieson Bachelor of Health Science (Nursing)

Joann Hutchieson

Louise Jansen

Bachelor of Health Science (Physiotherapy) Ray Edwards

Mary Jones

Master of Maori and Pacific Development

Leejean Kahui

Diploma in Naturopathy and Herbal Medicine Neville Kahui

Catherine Kakkar

Bachelor of Social Services

Jazz Kane

Bachelor of Arts/Bachelor of Laws (Conjoint) Paul Ashdown

Rawiri Kapea

Bachelor of Arts

Witerina Cooper

Sumer Karaitiana

Certificate in Foundation Studies (with optional specialisation)

Charmaine Hoeta

Hana Karipa

Bachelor of Science

Richard Karipa

Tama Karipa

Master of Biomedical Science

Richard Karipa

Tane Karipa

Bachelor of Science/Bachelor of Sport and Leisure Studies (Conjoint)

Richard Karipa

Belinda Katene

Postgraduate Diploma in Business Administration

Gloria Kerehoma

Mary Te Kuini Jones Urutaahua Gilbert

TERTIARY GRANTS (CONTINUED)

Qualification Shareholder Support

Celecia Katene Bachelor of Nursing Mihipeka Katene Reuben Katene Certificate in Health Sciences Hinewaito Bigham Zachary Katene Bachelor of Management Studies / Campbell Gin

Bachelor of Laws with Honours

(Conjoint) Ashleigh Kauika Certificate in Health Sciences Johanna Kauika Ruben Toa Bachelor of Maori Studies Edward Ronomai Ira Kearney-Parata Tamati Whanau Trust Lena Kemp

Bachelor of Health Sciences Jan Bezems

Noah Kemp

Bachelor of Laws Jan Bezems

SCHOLARSHIPS & GRANTS

Recipient

75

Ripeka Kennedy Bachelor of Social Services Urutaahua Gilbert Deanne King

Master of Science (Sport and Bernard Joseph King Exercise Science)

Latoia Certificate in Maori Studies Teresa Rudolph Kirionawhanau BreeAnna Langton

Bachelor of Medicine and Bachelor Rex Bruce Langton of Surgery

Mitchell Langton Bachelor of Medicine and Bachelor Rex Bruce Langton

of Surgery Paora Laurence Bachelor of Medicine and Bachelor Taranaki Maori Trust

of Surgery Board Raeanne Ley Bachelor of Applied Social Work Raeanne Dorothea Ley Rachel Lindsay Bachelor of Dental Surgery Georgina Caroline Goodhue Nicole Loper

Bachelor of Medicine and Bachelor Clesta Benita Loper of Surgery

Shaun Loper

Bachelor of Business Studies Clesta Benita Loper

Tamahou Love National Certificate in Carpentry Peter Love Atalya Loveridge Bachelor of Performing and Rosalie Mae Rangi

Screen Arts Keeara Loveridge

Certificate in Conference and Events Management Rosalie Mae Rangi

Bobby Luke

Master of Art and Design Robert Campbell

Thomas Bachelor of Accountancy David Nigel Macleod Macleod Certificate in Maori Studies Arthur Rangi

Kahlton Manaia Poutuarongo Whakaakoranga Ngawai Walden

(previously known as Poumanawa

Maatauranga Whakaakoranga) Alicia Bachelor of Commerce Tongawhiti Manuirirangi Manuirirangi Ariki Bachelor of Accountancy Tongawhiti Manuirirangi Manuirirangi

He Oranga

Monique Makatea

76

TERTIARY GRANTS (CONTINUED)

Recipient

Qualification

Shareholder Support

Dillon Manuirirangi

Bachelor of Medicine and Bachelor of Surgery

Tongawhiti Manuirirangi

Kealyn Marshall-Nyman

Bachelor of Arts / Bachelor of Teaching Maria Toro (Early Childhood Education) (Conjoint)

Jasmaine Ruaka Martin Bachelor of Social Work

Heemi Wiripo Ngawikatea Bailey Whanau Trust

Rebecca Martin-Pope

Bachelor of Midwifery

Raewyn Skerrett

Andy Maruera

National Certificate in Fitness (Exercise Consultant)

Arthur Rangi

Janine Maruera

Master of Indigenous Studies

Arthur Rangi

Bonival Maxwell

National Certificate in Marae Catering

Thresa Katene-Nuku

Alana McDonald Bachelor of Music

Rawiri-Taiaroa Whanau Trust

Arihia McGregor Bachelor of Social Services

Nga Uri o Maaka Herewini Haapu raua ko Mareikura Reremoana Trust

Tama McGuigan

National Certificate in Joinery

Malcolm McGuigan

Gabriel Miguel

Conjoint: Bachelor of Engineering (Honours)/ Susan Beverley Love Bachelor of Property

Alice Miles Bachelor of Education (Early Childhood

Education)

Ngaraiti and Rangi Kotuku Rukuwai Whanau Trust

Cory Miles Master of Natural Sciences

Ngaraiti and Rangi Kotuku Rukuwai Whanau Trust

Shonee Moore

Certificate in Maori Studies

Arthur Rangi

Ani Wira Ruakere

Morison

Bachelor of Science

Kieran Paraire Morris

Bachelor of Arts

Anna Jan Morris

Lisa Business

Mount Sophia Ross Administration

National Certificate in

Rhys MuruKing

Certificate in Media Arts

Bernard Joseph King

Candace Newman

Bachelor of Arts

Patricia Amour

Tyler Ngaia

Bachelor of Design

Laurance Ngaia

Ihaia Ngata

Bachelor of Design with Honours

Herewini Ngata

Mihikeita Ngata

Bachelor of Science

Herewini Ngata

Aria Work

Nicholls Darryl Nicholls

Bachelor of Social

Timuoterangi Niwa Doctor of Education

Hemi Hautu Whanau Trust

Jackson O'Brien

David Barry O'Brien

Bachelor of Contemporary Music

77

TERTIARY GRANTS (CONTINUED)

Qualification

Shareholder Support

Natanahira Parata Bachelor of Commerce

Edward Rongomai Ira Tamati Whanau Trust

Moanaroa Jane Phillips

National Certificate in Marae Catering

Rawhiri-Taiaroa Whanau Trust

Keanu Piki

Bachelor of Science

Maria Maringi Piki

Nacole Pue

Bachelor of Management Studies Poi Haututu Pue

Jordan Quinnell

Bachelor of Maori Visual Arts - Maunga Kura Toi

Sina James Whanau Trust

Alexandra Ratahi

Certificate in Health Sciences

Steven Gray

Chelsea Rei

National Certificate in Hospitality Teresa Rudolph (Food Services)

Gloria Rei

National Diploma in Te Matauranga Gloria and Melvina Maori me te Whakangungu Wereta Whanau Trust

Kylie Rei

Diploma in Creative Technologies Hinewaito Bigham

SCHOLARSHIPS & GRANTS

Recipient

Chelsea Rennie Bachelor of Education (Teaching) Henare Ngaia Primary Tara Ririkore MBA

Taranaki Maori Trust Board

Mathew Robinson Bachelor of Business Studies

Richard Wayne Robinson

Emmarena Ruakere Bachelor of Science Norris

David Ruakere Estate

Joel Taylor Bachelor of Arts and Media Rudolph

Tuahine Ma Pikihuia Rudolph

Harina Rupapera

Te Aho Tatairangi

David Rawiri Mako

Katie Scorringe

Bachelor of Medicine and Bachelor Gary Scorringe of Surgery

Alayna Sharma Conjoint: Bachelor of Health

Sciences/Bachelor of Nursing

Heemi Wiripo Ngawikatea Bailey Whanau Trust

Lionel Skipper

Graduate Diploma of Teaching (Secondary)

Lynne Rei

Brian Smith

Master of Education

Johnathan Murray

Joshua Solomon

Bachelor of Biomedical Sciences Hinewaito Bigham

Teiarere Stephens

Bachelor of Science

Wira Ruakere

Ashley Stern

Diploma in Marine Studies

Joanne Stern

Jackson Taikato

National Certificate in Agriculture Ta Awhi Whanau Trust

Josephine Takiari

Bachelor of Medical Laboratory Science

Takiari Jim Takiari

Nita Takiari (Teaching) Takiari Jim Takiari Primary

Bachelor of Education

Jazmine Tamaiparea Bachelor of Design Innovation

Mary Holly Tamaiparea

He Oranga

Waimarama Skerrett Graduate Diploma in Creative Writing Raewyn Skerrett

78

TERTIARY GRANTS (CONTINUED)

Recipient

Qualification

Shareholder Support

Hawaiki Pamela Tamati

Bachelor of Education (Teaching) Early Childhood Education

Whanau Hond Trust

Awhina Tapiki

Bachelor of Arts

Hohepa Tapiki

Katrina Tarawhiti Bachelor of Nursing Hape

Fred Pau Tapara

Hine Ngahuia Taylor National Certificate in Hospitality (Cookery)

Heketa Utiku Teira and Kui Te Atamira White Whanau Trust

Frith Marama Postgraduate Diploma in Health Sciences Teka-Murphy

Daniel John Teka or Anne-Marie Broughton

Portia Telford

Bachelor of Fine Arts

Pam Ritai

Trina Thompson

Bachelor of Applied Social Science (Social Work)

Richard Thomas Waiwiri

Wikitoria Timu

Te Ara Tuatahi Mo Te Reo Maori

Arthur Rangi

Jacquiline Ripeka TimuKaea

Te Ara Tuatahi Mo Te Reo Maori Arthur Rangi

Kellyanne Tupaea

Bachelor of Applied Science

Kororia June Jordan

Ana Management

Turner William Tihoi Maha

Diploma in Hospitality

Anne Tutaki

Certificate in Cafe Barista Operations

Arthur Rangi

Abbey Urwin

Bachelor of Health Sciences

Mereaina Kirkwood

Riria Vella Bachelor of Health Sciences

Clinton Te Iwikahu Rei Whanau Trust

Renee Waiwiri

Bachelor of Design (Product)

Sidney Waiwiri

Te Aata Walden

Bachelor of Social Sciences

Roberta Walden

Nicola Walker

Bachelor of Design

Paul Maurice Walker

Kerena Wano

Postgraduate Diploma in Teaching

Makere Wano

Kerehama Waru Diploma in Creative Technologies Te Puu

Pam Ritai

Tania Whakaruru

Tihi Daisy Noble

National Certificate in Hospitality (Food Services)

Ina Whanarere Postgraduate Certificate in Education

Cecelia Te Terenga Whanarere

Anne Wharepapa

Juanita Davis

Bachelor of Nursing

Jordan Wharepapa Diploma in Creative Technologies

Geraldine Te Ruki

Renee Wharepapa

Geraldine Te Ruki

Bachelor of Arts

Lian Wharepouri Jack O'Neil Wharepouri

Bachelor of Nursing

Anneke Wijnschenk Bachelor of Midwifery

Pam Ritai

Ereti Williams Master of Arts

Hemi Hautu Whanau Trust

Meikura Williams Bachelor of Arts

Hemi Hautu Whanau Trust

Te Whitu Williams Diploma in Software Engineering

Hemi Hautu Whanau Trust

79

Recipient

Qualification

Shareholder Support

Tetakangahau Williams

Master of Indigenous Studies

Hemi Hautu Whanau Trust

Merryn Wilson-van Duin

Bachelor of Medicine and Bachelor of Surgery

Valerie Wilson

Ashleigh Wilson-van Bachelor of Veterinary Science Duin

Valerie Wilson

Dylan Wilson-van Duin

Diploma in Quantity Surveying

Valerie Wilson

Taine Win

Bachelor of Science

Malcolm Win

Te Wehi o Mahuru Wright

Bachelor of Laws

David Rawiri Mako

Brooke Wynyard

Bachelor of Science

May Edmonds

SCHOLARSHIPS & GRANTS

TERTIARY GRANTS (CONTINUED)

SPORTING EXCELLENCE GRANTS

Recipient

Qualification

Shareholder Support

Jayden Downs Mako

Boxing

Winston Ngawhare

Bevin Martin

Softball

Charles Bailey Estate

Jared Martin

Softball

Whanau Hond Trust

Alf Robson

Softball

Whanau Hond Trust

Te Kapotai Tohu

Boxing

Queenie Makuini Horo

TARANAKI MÄ&#x20AC;ORI COMMUNITY GRANTS

Recipient Aotea Utanganui Parakore ki Taranaki Taiporohenui Marae Taranaki ki te Tonga Taranaki Tu Mai Charitable Trust Taranaki Toa Incorporate Society Urenui Marae

He Oranga

Waioturi Marae

92

Roxanne McDonald and her daughter at the 2015 AGM, Aotearoa Marae, Å&#x152;kaiawa

20 16

NOTES TO THE FINANCIAL STATEMENTS

73

PARININIHI KI WAITOTARA

TRUST

FINANCIAL STATEMENTS Parininihi ki Waitotara Incorporation

for the year ended 30 June 2016

82

PERFORMANCE REPORT - 30 JUNE 2016 Auditors report

83

NON-FINANCIAL INFORMATION Entity information 84 Statement of service performance

85

FINANCIAL INFORMATION Statement of financial performance

86

Statement of financial position

87

Statement of cash flows

88

Statement of accounting policies

89

Notes to the performance report

90

1 Analysis of revenue

90

2 Analysis of expenses

91

3 Analysis of assets and liabilities

92

4 Property, plant and equipment

93

5 Accumulated funds

94

6 Commitments and contingencies

94

7 Related party transactions

95

8 Events after the balance date

95

Chartered Accountants

Independent Auditor's Report

83

To the Beneficiaries of Parininihi ki Waitotara Charitable Trust Report on the Performance Report We have audited the performance report of the Parininihi ki Waitotara Charitable Trust (the “Trust”) on pages 84 to 95, which comprises the Trust information, the statement of service performance, the statement of financial performance and statement of cash flows for the year ended 30 June 2016, the statement of financial position of the Trust as at 30 June 2016, and the statement of accounting policies and other explanatory information.

This report is made solely to the Beneficiaries of the Trust, as a body. Our audit has been undertaken so that we Chartered Accountants might state to the Trust’s beneficiaries 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 Trust and the Trust’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Independent Auditor's Report

Trustees’ Responsibility for the Performance Report To the Beneficiaries of Parininihi ki Waitotara Charitable Trust The Trustees are responsible on behalf of the Trust for

Report on the Performance Report

This report is made solely to the Beneficiaries of the Trust,and as a body. Our audit has been undertaken so that we • the statement of service performance; might state to the Trust’s beneficiaries those matters we are required to state to them in an auditor's report and for • the statement of financial performance, of financial position, statement of cash flows, no other purpose.

To the fullest extent permitted by law, we statement do not accept or assume responsibility to anyone of accounting andfor notes thework, performance reportor for the opinions we other than the Truststatement and the Trust’s memberspolicies as a body, our to audit for this report, have formed. in accordance with Public Benefit Entity Simple Format Reporting – Accrual (Not-For-Profit) issued in Zealand by Zealand Accounting Standards Board, and Trustees’ New Responsibility forthe theNew Performance Report The Trustees are responsible on behalf of the Trust for c) for such internal control as the Trustees determine is necessary to enable the preparation of the performance report that free from material misstatement, whether due topracticable, fraud or error. a) Identifying outcomes andisoutputs, and quantifying the outputs to the extent that are relevant, reliable, comparable and understandable, to report in the statement of service performance; Auditor's Responsibility the preparation and fair presentation of the performance comprises Ourb) responsibility is to express an opinion on performancereport reportwhich based on our audit. We conducted our audit of the statement of financial performance, statement of financial position, statement of cash flows, statement of • the Trust information; accounting policies and notes to the performance report in accordance with International Standards on Auditing • and the statement service andstatement of service performance in accordance with (New Zealand), the audit ofofthe Trustperformance; information and the International Standard on Assurance Engagements (New Zealand) ISAE (NZ) 3000 (Revised). These standards • the statement of financial performance, statement of financial position, statement of cash flows, require that we comply with relevant ethical requirements and plan and perform the audit to obtain reasonable statement of accounting policies and notes to the performance report assurance about whether the performance report is free from material misstatement. in accordance with Public Benefit Entity Simple Format Reporting – Accrual (Not-For-Profit) issued in An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the New Zealand by the New Zealand Accounting Standards Board, and performance report, including performing procedures to obtain evidence about and evaluating whether the reported outcomes and outputs and of the outputs to thetoextent are relevant, reliable, c) for such internal control as thequantification Trustees determine is necessary enablepracticable, the preparation of the performance report that is free material selected misstatement, whether to fraud orincluding error. the assessment comparable and understandable.

Thefrom procedures depend on ourdue judgement, of the risks of material misstatement of the performance report, whether due to fraud or error. In making those risk Auditor's Responsibility assessments, we have considered the internal control relevant to the Trust’s preparation and fair presentation of Our responsibility is to express an opinion on the performance report based on our audit. We conducted our audit the performance report in order to design audit procedures that are appropriate in the circumstances, but not for of the statement of financial performance, statement of financial position, statement of cash flows, statement of the purpose of expressing an opinion on the effectiveness of the Trust’s internal control. An audit also includes accounting policies and notes to the performance report in accordance with International Standards on Auditing evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates, as (New Zealand), and the audit of the Trust information and statement of service performance in accordance with well as evaluating the overall presentation of the performance report. the International Standard on Assurance Engagements (New Zealand) ISAE (NZ) 3000 (Revised). These standards require that we with relevant ethical requirements plan and perform the audit to obtain We believe wecomply have obtained sufficient and appropriate and audit evidence to provide a basis for ourreasonable audit opinion. assurance about whether the performance report is free from material misstatement.

Other than in our capacity as auditor we have no relationship with, or interest in, the Trust.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Opinion performance report, including performing procedures to obtain evidence about and evaluating whether the In our opinion: reported outcomes and outputs and quantification of the outputs to the extent practicable, are relevant, reliable, comparable and understandable. The procedures selected depend on our judgement, including the assessment ► the reported outcomes and outputs, and quantification of the outputs to the extent practicable, in the of the statement risks of material misstatement of the of service performance areperformance suitable; report, whether due to fraud or error. In making those risk assessments, we have considered the internal control relevant to the Trust’s preparation and fair presentation of the report report in order design84audit procedures that are appropriate in the circumstances, but not for ► performance the performance ontopages to 95 presents fairly, in all material respects the purpose of expressing an opinion on the effectiveness of the Trust’s internal control. An auditChartered also includes Accountants ► the Trust information for the year ended 30 June 2016; evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates, as well as►evaluating the overall presentation of the performance report. the service performance for the year then ended; and We believe we have obtained sufficient and appropriate audit evidence to provide a basis for our audit opinion.

►firm ofthe position A member Ernstfinancial & Young Global Limited

of the Trust as at 30 June 2016, and its financial performance, and cash flows for

year then ended in accordance Public Benefit Simple Other than the in our capacity as auditor we have nowith relationship with, orEntity interest in, theFormat Trust. Reporting – Accrual (NotFor-Profit).

Opinion In our opinion: ►

the reported outcomes and outputs, and quantification of the outputs to the extent practicable, in the statement of service performance are suitable;

►

the performance report on pages 84 to 95 presents fairly, in all material respects

► the Trust information for the year ended 30 June 2016; 19 September 2016 Wellington ► the service performance for the year then ended; and A member firm of Ernst & Young Global Limited

Parininihi ki Waitotara Trust

a) Identifying outcomes and outputs, and quantifying the outputs to the extent practicable, that are relevant, reliable,the comparable andreport understandable, to report in the statement service We have audited performance of the Parininihi ki Waitotara CharitableofTrust (theperformance; “Trust”) on pages 84 to 95, which comprises the Trust information, the statement of service performance, the statement of financial b) the preparation and fair presentation of the performance report which comprises performance and statement of cash flows for the year ended 30 June 2016, the statement of financial position of the Trust as at•30 June 2016,information; and the statement of accounting policies and other explanatory information. the Trust

Parininihi ki Waitotara Charitable Trust ENTITY INFORMATION FOR THE YEAR ENDED 30 JUNE 2016 84

Entity's Purpose or Mission: Parininihi ki Waitotara Charitable Trust (PKW) works on behalf of PKW Shareholders and the Taranaki Maori community, focusing its efforts on three priorities: Developing the community; Facilitating active participation; and leadership. Each year the PKW Trust supports the educational and cultural aspirations of Taranaki Maori by the following clauses: (i) In making grants or loans towards the cost of the construction, establishment, management, maintenance, repair or improvement of Maori meeting houses, halls, charges and church halls, villages, marae or cemeteries (ii) In establishing, maintaining and equipping hostels for the purpose of providing either permanent or temporary accommodation (iii) In making grants or loans towards the establishment of recreational centers for the common use of any Maori community and for such other uses as the Trustees see fit. (iv) For assisting in the establishment of schools, and in the equipping, managing and conducting of schools; - In making grants of money equipment or material to schools or other educational or training institutions or - by making grants to fund established or bodies formed for the promotion of the education of Maori or - for assisting Maori to obtain training or practical experience necessary or desirable for any trade or occupation (v) In providing scholarships, exhibitions, bursaries or other methods of enabling individuals to secure the benefits of education or training, or in making grants to education boards or other educational bodies for scholarships, exhibitions or bursaries, in providing books, clothing or other equipment for the holders of scholarships or other individuals or in making grants for any such purpose, or in making grants generally for the purpose of assisting the parents or guardians or children to provide for their education or training for any employment or occupation (vi) In providing, maintaining, or contributing towards the cost of residential accommodation for children in relation to their education or training; or (vii) In the promotion of schemes to encourage the practice of Maori arts and crafts, the study of Maori lore and history and the speaking of the Maori language (viii) In supporting assisting maintaining or promoting such further or other projects or purposes for the benefit of the Maori people as the trustees may from time to time approve

Legal Name of Entity: Parininihi ki Waitotara Charitable Trust Type of Entity and Legal Basis: Charitable Trust Registration Number: CC36303 Entity Structure: Governance: The PKW Trustees are also the members of the Committee of Management of the PKW Incorporation, plus a representative elected by the shareholders at the annual general meeting.

Main Sources of the Entity's Cash and Resources: The PKW Incorporation makes an annual grant to PKW Trust calculated on 10% of the dividend paid to shareholders. The PKW Trust also earns interest from a $1.5m loan to PKW Incorporation.

Main Methods Used by the Entity to Raise Funds:

The PKW Trust is not an active fund raiser.

Entity's Reliance on Volunteers and Donated Goods or Services:

The PKW Trust is not reliant on volunteers or donated goods or services.

Physical Address: 35 Leach Street New Plymouth, New Zealand Postal Address: PO Box 241, New Plymouth 4340, New Zealand Phone: +64 (06) 769 9373 Fax: +64 (06) 757 4206 Email: office@pkw.co.nz Web: www.pkw.co.nz

STATEMENT OF SERVICE PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2016

Description of the PKW Trust's Outcomes: Established in 1983 the purpose of the PKW Trust as per the deed, is to support the education and cultural aspirations of Taranaki Maori. This is reinforced by the Trust’s mission of ‘Seeding Taranaki potential – building success’ and reflected by the Trust’s outcomes for this period: Outcomes 1. Shareholders and beneficiaries cherish their relationship with PKW; 2. PKW embraces its cultural identity; and 3. Agri-business opportunities are promoted to the community.

FINANCIAL STATEMENTS

85

Outputs 1. Active Participation.

Output 1 - Active Participation Distribute the Trust's grant programme to Taranaki Maori as part of building capacity and increasing participation by the number of: - Education and teritary recipients - Sporting and cultural grant recipients - Community grant recipients Total Grant Investment

The accompanying notes form part of these financial statements.

Actual This Year $'000

175 4 6 185

Budget This Year $'000

159 3 65 227

150 10 53 213

Actual Last Year

$'000

230 30 11 271

184 20 78 282

Parininihi ki Waitotara Trust

Description and Quantification of the PKW Trust's Output:

86

STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2016

Note

Actual This Year $(000)

Budget This Year $(000)

Actual Last Year $(000)

Revenue Grants Interest, dividends and other investment revenue 1 Other revenue 1

120 183 10

121 186 30

170 180 55

Total Revenue 313 337

405

Expenses Costs related to providing goods or services 2 Grants and donations made

138 282

132 227

124 213

Total Expenses 359 337

420

Deficit for the Year (46) (0)

(15)

The accompanying notes form part of these financial statements.

87

Note

Actual This Year $(000)

Budget This Year $(000)

Actual Last Year $(000)

Assets Current Assets Bank accounts and cash 3 Related party receivables 3 Total Current Assets

78 3,036 3,114

70 1,636 1,705

64 1,621 1,685

Non-Current Assets Property, plant and equipment 3 Investments 3 Total Non-Current Assets

1 - 1

1 1,514 1,515

3 1,514 1,517

Total Assets

3,115

3,220

3,202

Current Liabilities Creditors and accrued expenses 3 Total Current Liabilities

34 34

13 13

75 75

Total Liabilities

34

13

75

Total Assets less Total Liabilities (Net Assets)

Accumulated Funds Accumulated Surpluses 5 Reserves 5 Total Accumulated Funds

3,081

3,207

3,127

1,798 1,283 3,081

1,924 1,283 3,207

1,844 1,283 3,127

FINANCIAL STATEMENTS

STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 30 JUNE 2016

The accompanying notes form part of these financial statements.

Parininihi ki Waitotara Trust

Liabilities

88

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2016

Actual This Year $(000)

Budget This Year $(000)

Actual Last Year $(000)

198 87 30

170 167 55

315

392

(22) (92) (210) (324)

(33) (101) (284) (418)

(85)

(9)

(26)

1,514 (1,415) 99

- - -

29 29

14 64 78

(9) 79 70

3 61 64

78

70

64

Cash Flows from Operating Activities Cash was provided from: Grant's received 120 Interest received 183 Other receipts 10

313 Cash was applied to: Payments to suppliers (53) Payments to employees (74) Payments to grant recipients (271)

(398) Net cash Inflow (Outflow) from Operating Activities Cash flows from Investing Activities Cash was applied to: Proceeds from sale of investments Advances to PKW Incorporation Net Cash Inflow (outflow) from Investing Activities

Net Increase / (Decrease) in Cash Opening Cash Closing Cash This is represented by: Bank Accounts and Cash

The accompanying notes form part of these financial statements.

89

........................................................................................................................................

Basis of Preparation

Income Tax

Parininihi ki Waitotara Charitable Trust has elected to apply PBE SFR-A (NFP) Public Benefit Entity Simple Format Reporting - Accrual (Not-For-Profit) on the basis that it does not have public accountability and has total annual expenses of equal to or less than $2,000,000. All transactions in the Performance Report are reported using the accrual basis of accounting.

The Performance Report is prepared under the assumption that the entity will continue to operate in the foreseeable future.

Parininihi ki Waitotara Charitable Trust is wholly exempt from New Zealand income tax having fully complied with all statutory conditions for these exemptions.

Revenue Recognition

Accounts receivable are recognised initially at fair value and subsequently at amortised cost.

Revenue is recognised to the extent that it is probable that the economic benefit will flow to PKW Trust and revenue can be reliably measured.

Revenue is measured at the fair value of consideration received.

The following specific recognition criteria must be met before revenue is recognised:

FINANCIAL STATEMENTS

STATEMENT OF ACCOUNTING POLICIES FOR THE YEAR ENDED 30 JUNE 2016

Bank Accounts and Cash Bank accounts and cash in the Statement of Cash Flows comprise cash balances and bank balances (including short term deposits) with maturities of 12 months or less.

Accounts Receivable

Creditors and accrued expenses Creditors and accrued expenses are recognised initially at fair value and subsequently at amortised cost.

Investments

(ii) Interest income is recognised using Website costs are stated at cost and the effective interest method. are amortised over 4 years.

Expenditure

Changes in Accounting Policies

Expenditure is recognised as it is incurred by PKW Trust.

There have been no changes in accounting policies during the financial year (2015: nil).

Goods and Services Tax (GST) Parininihi ki Waitotara Charitable Trust is not registered for GST. Therefore amounts recorded in the Performance Report are inclusive of GST (if any).

Parininihi ki Waitotara Trust

Investments are recognised at fair (i) Grant income is recognised as value as they are a quoted instrument. revenue when received and all associated obligations have been met. Website Costs

90

NOTES TO THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2016

NOTE 1: ANALYSIS OF REVENUE

Revenue Item Analysis Revenue from providing goods Grant Income or services Incorporation

Total

Revenue Item Analysis Interest, dividends and other Interest Incorporation and investment revenue Government bond

Interest Bank

Total

Revenue Item Analysis Other revenue Other revenue

Total

This Year $(000)

Last Year $(000)

120

170

120

170

This Year $(000)

Last Year $(000)

123 60

96 84

183

180

This Year $(000) 10

Last Year $(000) 55

10

55

91

Expense Item Analysis Costs related to providing goods Directors Fees or services Consultancy

Legal Expenses

Total

Expense Item Analysis Other revenue Other Admin Expenses

Total

This Year $(000) 5 18 23

Last Year $(000) 10 1 11

46

23

This Year $(000) 12

Last Year $(000) 13

12

13

Parininihi ki Waitotara Trust

NOTE 2: ANALYSIS OF EXPENSES

This Year Last Year Expense Item Analysis $(000) $(000) Employee related costs Kaitakawaenga 74 102

Total 74 102

NOTES TO THE PERFORMANCE REPORT

NOTES TO THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2016

92

NOTES TO THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2016

NOTE 3: ANALYSIS OF ASSETS AND LIABILITIES

Asset Item Bank accounts and cash

Analysis ANZ Bank Account ANZ Term Deposit TSB Term Deposit

Total

Asset Item Analysis Related party receivables Incorpration advance

Incorporation loan

Total

Asset Item Analysis Investments Government bonds

Total

Asset Item Analysis Other non-current assets Property Plant & Equipment

This Year $(000)

Last Year $(000)

8 - 70

1 64 -

78

64

This Year $ 1,502 1,534

Last Year $ 1,621

3,036

1,621

This Year $(000) -

Last Year $(000) 1,514

-

1,514

This Year $(000) 1

Last Year $(000) 3

1

3

Total

Liability Item Creditors and accrued expenses

Analysis Trade and other payables Grants payable

3 31

75

Total

34

75

93

NOTE 4: PROPERTY, PLANT AND EQUIPMENT This Year

Opening Carrying Purchases Sales/Disposals Current Year

Amount $(000) $(000) $(000) Depreciation and Impairment $(000) Asset Class Computers (including software) 3 - - 2 Total 3 - - 2

Closing Carrying Amount $(000)

1 1

NOTES TO THE PERFORMANCE REPORT

NOTES TO THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2016

Last Year Closing Carrying Amount $(000)

3 3

Parininihi ki Waitotara Trust

Opening Carrying Purchases Sales/Disposals Current Year

Amount $(000) $(000) $(000) Depreciation and Impairment $(000) Asset Class Computers (including software) 7 - - 4 Total 7 - - 4

94

NOTES TO THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2016

NOTE 5: ACCUMULATED FUNDS This Year

Description Opening Balance Deficit Closing Balance

Capital Contributed

by Owners or Members $(000)

Accumulated Surpluses or Reserves Total Deficits $(000) $(000) $(000)

- - -

1,844 (46) 1,798

Capital Contributed

by Owners or Members $(000)

Accumulated Surpluses or Deficits $(000)

- - -

1,859 (15) 1,844

1,283 - 1,283

3,127 (46) 3,081

Last Year

Description Opening Balance Deficit Closing Balance

Sales/Disposals Reserves $(000)

NOTE 6: COMMITMENTS AND CONTINGENCIES

Commitments As at 30 June 2016 the Entity had no capital commitments (2015: None).

Contingent Liabilities and Guarantees As at 30 June 2016 the Entity had no contingent liabilities or assets (2015: None).

1,283 - 1,283

Current Year Total $(000)

3,142 (15) 3,127

95

NOTE 7: RELATED PARTY TRANSACTIONS

This Year $(000)

Last Year $(000)

Description of Related Party Relationship During the year the trust received grant and interest income from the parent entity PKW Incorporation Interest Income Grant Income

123 120

96 170

At balance date the Trust had the following related party receivables.

Advance to PKW Incorporation Loan to PKW Incorporation

1,502 1,534

1,621 -

NOTES TO THE PERFORMANCE REPORT

NOTES TO THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2016

The advance to PKW Inc (the Parent) is repayable upon demand by PKW Trust. Interest is receivable at the average group rate of 5.59% accruing daily (2015: 5.75%) and is payable quarterly.

The loan to PKW Inc (the Parent) is repayable upon demand by PKW Trust. Interest is receivable at the average group rate of 5.59% accruing daily (2015: 5.75%) and is payable quarterly.

Related Party Disclosures: Trustees - PKW Trust Hinerangi Edwards (Chair) Bev Gibson David MacLeod Taaringaroa Nicholas Claire Nicholson Darryn Ratana (Shareholder Representative) Hinerangi Raumati Aisha Ross

NOTE 8: EVENTS AFTER THE BALANCE DATE Events After the Balance Date: There were no events that have occurred after the balance date that would have a material impact on the Performance Report. (Last Year Nil)

Parininihi ki Waitotara Trust

The Trustees listed above (excluding the Shareholder Representative) are also members of the Committee of Management for Parininihi ki Waitotara Incorporation.

96

2015 MINUTES PARININIHI KI WAITOTARA TRUST ANNUAL GENERAL MEETING Minutes of the Parininihi ki Waitotara Trust annual general meeting of shareholders held at Aotearoa Marae, Okaiawa on Saturday 31 October 2015 11.38am.

PRESENT Hinerangi Edwards (Parininihi ki Waitotara Trust Chair), presided over approximately 66 meeting attendees and committee of management members Hinerangi Raumati-Tu’ua, Bev Gibson, Taaringaroa Nicholas, Aisha Ross, Claire Nicholson, Darryn Ratana (Shareholder Representative, PKW Trust).

IN ATTENDANCE Ihaka Robinson, Mary Elizabeth Nicholson, Anita June Forsman, Taaringaroa Nicholas, Enid Hohaia, Patricia Hemara Wahanui, Mana Jenkins, Shona B Coffey, Josephine Coffey, Teruangakau Ratahi Whānau Trust, Ripo Tautahi Whānau Trust (Tapakione Skinner), Claire Nicholson, Maikara Kaaro Te Teira Whānau Trust, Georgina Gould, John Hooker, Wehi Takamori, Helen Searle, Dolly Horo, Pamela Wooster, Rose Denness, Raymond Edwards, Rangiapehu Te Patu, Mereana Te Patu, Adrian Te Patu, Mere Berry, Jean McLeod, Carol Kahui, Rangiwahanga Whānau Trust, Doreen Maaka, Henare Ngaia, Raewyn Broughton, Heemi Wiripo Ngaiwikatea Bailey Whānau Trust, Kira Whānau Trust (Maria Robinson), Leo Buchanan, Murray Tutauha, Evelyn Pullen, Nika Gwen Whānau Trust, Aroha Wharemate, Faith Wharemate, Andrew Baker Jnr, George Broughton, Te Wehi Whānau Trust, Andrew Paddy Robinson Whānau Trust, Maria Robinson, Daisy Noble, Alison Pouwhare, Jennifer Noble, Frances Katene, Amber Hikatangata, Kororia Jordan, Betty Anderson, Tuka and Hine Puororangi Kumeroa Whānau, Queenie Makuini Horo Whānau Trust, Derek Wooster, Charles Bailey Estate, Werenia Ivy Papakura Whānau Trust (Wikitoria Michalanney), Valerie Janice Davey, Rona Hobson, Rawiri Taiaroa Whānau Trust, Rangimaimaioa Cora Ross, Brian Norman Hunt, Peter Moeahu Jnr, Jane E Hughes, Mulligan Whānau Trust (Wayne Mulligan), Fitzgerald Luke, Patricia Bodger, Phillip Luscombe (Independent Director, PKW Farms) and Richard Krogh (Independent Director, PKW Farms) and PKW staff.

APOLOGIES Board Apology received and sustained from David MacLeod.

Apologies were received and sustained from Bill (William) Sparks, Tommy Reihana, Elliot Mauriri, Ngawai MacIntyre, Moana Watson, Piko Hook, Ann Tuteri Wallace, Edna Hawe, David O'Brien, Anna Morris, Tatakura Popata, Hurihia Reddy, Carole McKay, Georgina Brown, Marion Eldby, Maureen Collis, Hine Rose, Hine Rose Whānau Trust, Mahara Okeroa, Vonda Houpapa, Matau Baker, Russell Hohaia, Judith Kaiwai, Pearl Ranui, Lima Whānau Trust, Leanne Snooks, Kahu Thompson, Charles King, Phillip Hooker, Mary Roebuck, Andrew Hooker, Nancy Basset, William Hooker, Fred Hooker, Judy Richards, Margaret Robson, Kura Taylor, Maraea Hargreaves, Wharemawhai Timutimu, Georgina Taiaki, Te Akerama Taiaki, Georgina Taiaki, Jennifer Stevens Peter Moeahu/Jean McLeod CARRIED MIHI WHAKATAU Hinerangi Edwards CONFIRMATION OF 2014 MINUTES That the minutes of the annual general meeting held 8 November 2014 be approved as a true and accurate record.

Mana Jenkins / Taari Nicholas CARRIED

The General Manager of Shareholder Engagements Allie Hemara-Wahanui presented an overview of the Trust’s activities noting:

Activities • T o be eligible for a grant, an applicant needs to be endorsed by a shareholder – 96% of all tertiary grant applicants are direct mokopuna of shareholders.

• Skills training and development for succession is a key purpose of the Trust.

• ‘Ka Takatū’, PKW’s Rangatahi Mentoring Programme which means ‘Get Ready’, targeted at secondary school students was launched. A pilot programme has started with Hāwera High School specifically aimed at the agriculture programme.

• Māori Trade Training has been piloted at WITT for the past six months – these are trade scholarships specifically for Māori and Pasifika Rangatahi. Numbers for next year are set to increase from 30 to 50.

Financials • Income was drawn from the Trust’s investments and an annual grant from PKW Incorporation • Trusts income for 2015 was $405K, an increase of $18K in 2014 • The Trust’s expenses in 2015 were $138K, $12K more than in 2014 • Total grants distributed in 2015 were $282K, a $45K decrease on the previous year

•T he Trust’s total assets in 2015 was $3.202M, $17K decrease from $3,219M in 2014 •E quity decreased in 2015 by $15K from 2014.

Financial support of Taranaki kaupapa community events including • Te Reo reo priority grants, totalling $39K • Marae priority grants, totalling $20K • Mātauranga priority grants, totalling $17K.

Grant & Scholarship statistics Applications increased from 209 in 2013/14 to 220 in 2014/15. They were awarded as follows: • 3 Charles Bailey Scholarships totalling $20K • postgraduate scholarships totalling $38 • 12 Undergraduate Scholarships totalling $24K • 164 Tertiary Grants totalling $120K; and • 46 Secondary School National Certificate in Education (NCEA) grants totalling $2K. The Chair spoke of collective benefits; when thinking of a grant it may not necessarily be just the individual receiving it, but the whānau also who is supported. The Trust will be looking at other opportunities to look at collective benefit.

As there is a high likelihood that next year there will be a reduction in the amount to distribute the Trust will be thinking strategically and looking at working with other institutions for example TSB or Department of Internal Affairs to provide funds to Marae.

Last year beneficiaries approved a proposal to change the PKW

Trust Deed to allow the term of the shareholder representative to be changed from one year to three years. Unfortunately, the legal process has not yet been completed in time for this year’s AGM. The first triennial election will take place at the 2016 AGM. Also, PKW will have a general power to vary the deed for administrative and management purposes.

In the coming year the Trust will be supporting PKW Incorporation in workforce development.

The Chair reminded beneficiaries to fill in the survey.

Comments from the Floor Comment: Congratulations to the Trust for its growth. Trust maybe consider the development of partnerships with Iwi so not just dependent on PKW. Comment: Selwyn Metcalf’s real estate company in Hawera provide funds for sports teams – they have a $3m fund available.

Comment: Tiri Bailey – great pleasure and pride to see the Board, the Trust here and the progress that has been made and of course to see the number of shareholders in attendance. Wonderful to see the number of applicants coming forward. Thanking the Trust on behalf of Tiri’s daughter who has received support for studies.

He Oranga

PKW Trust Chair Hinerangi Edwards welcomed those present and spoke about the business of the Trust that shareholders both past and present of Parininihi ki Waitotara Incorporation have supported and contributed to, thanking them on behalf of PKW Trust and the rest of the PKW Group.

MINUTES OF THE TRUST ANNUAL GENERAL MEETING

97

98

Resolution 1 ADOPTION OF THE 2015 ANNUAL REPORT

The 2015 Trustee Report, Auditor Report, the Accounts of the Parininihi ki Waitotara Trust for the financial year ending 30 June 2015 be received and adopted.

Peter Moeahu / David MacLeod CARRIED

Resolution 2 APPOINTMENT OF THE AUDITOR

The Parininihi ki Waitotara Trust appoint Ernst and Young as the Auditor for the 2015/2016 financial year.

Wayne Mulligan / Jean Ruakere CARRIED

ELECTION OF SHAREHOLDER REPRESENTATIVE

General Manager Shareholder Engagements, Allie Hemara-Wahanui explained the election process.

and introduced nominee Darryn Ratana who addressed the Trust beneficiaries prior to the vote for the Shareholder Representative for a one-year term.

• Darryn Ratana Nominated by Mana Jenkins In accordance with Section 3 of the Parininihi ki Waitotara Trust Deed, Darryn Ratana was confirmed as the Shareholder Representative of Parininihi ki Waitotara Trust.

Scholarship/Grant Recipient Presentations Scholarship recipients invited to make presentations to beneficiaries were: • Undergraduate Scholarship awarded to Natasha Bishop (Bachelor of Nursing) • Undergraduate Scholarship awarded to Roxanne McDonald (Bachelor of Nursing) • Undergraduate Scholarship awarded to Nga Putiputi Akapita (Te Aho Tātairangi)

All scholars/grant recipients provided an outline of their educational studies and expressed sincere appreciation and thanks to Trust beneficiaries for their tautoko.

PKW Trust Chair Hinerangi Edwards thanked all scholarship/grant recipients for their presentations and acknowledged PKW shareholders, fellow Committee members and Trustees for their support.

Closing

PKW Incorporation Chair, Hinerangi Raumati-Tu’ua acknowledged the scholarship recipients, all PKW shareholders, staff and management for their involvement and attendance at this year’s AGM. KARAKIA: Aroha Wharemate

NOTES