Ngāi Tahu 2011 Annual Report

Directory Auditor

50 Corsair Drive Wigram PO Box 13-046 Christchurch Telephone: 03 366 4344 Facsimile: 03 341 6792 Website: www.ngaitahu.iwi.nz Email: info@ngaitahu.iwi.nz

Deloitte Chartered Accountants 60 Grove Rd Christchurch

Registered Office for Ngäi Tahu Holdings Corporation Limited

50 Corsair Drive Wigram PO Box 13-575 Christchurch Telephone: 03 366 4344 Facsimile: 03 341 6792 Enrolment on Te Rünanga o Ngäi Tahu Whakapapa database

If you require information on, or an enrolment form for the Ngäi Tahu Whakapapa database, please visit www.ngaitahu.iwi.nz or phone 03 366 4344 or 0800 KAI TAHU (524 824) and ask for the Whakapapa Unit.

Solicitors

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Annual Report 2011 For the full online Annual Report please visit www.ngaitahu.iwi.nz

ANNUAL REPORT 2011

Corporate Office

TE RÜNANGA O NGÄI TAHU

TE RÜNANGA O NGÄI TAHU

Buddle Findlay 245 St Asaph St Christchurch Saunders & Co 162 Kendal Avenue Burnside Christchurch Wynn Williams & Co Homebase, Unit B 195 Marshlands Rd Christchurch Bankers

ANZ National Bank Limited 97 Riccarton Rd Christchurch Bank of New Zealand 81 Riccarton Road Christchurch Commonwealth Bank of Australia Level 27, 201 Sussex Street Sydney, Australia Westpac Institutional Bank Level 8 16 Takutai Square Auckland

Kä amoraki o äpöpö Tomorrow's leaders This report is printed on Impress Offset which contains pulp from tree farms and FSC™ Certified forests. Manufactured in an Elemental Chlorine Free (ECF) process the mill is ISO 14001 certified. Printed by Blue Star Group, FSC Certified Print Supplier.

TE RÜNANGA O NGÄI TAHU

Ngä Papatipu Rünanga Map

Te Rünanga o Kaiköura Te Rünanga o Ngäti Waewae

Te Ngäti Tüähuriri Rünanga Te Rünanga o Makaawhio

Te Hapü o Ngäti Wheke (Räpaki) Wairewa Rünanga Te Taumutu Rünanga

Te Rünanga o Koukourarata Önuku Rünanga

Te Rünanga o Arowhenua

Te Rünanga o Waihao

Te Rünanga o Moeraki Käti Huirapa Rünaka ki Puketeraki Te Rünanga o Ötäkou

Hokonui Rünanga Öraka-Aparima Rünaka

Waihöpai Rünaka Awarua Rünanga

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Who is Ngäi Tahu Ngäi Tahu is the iwi comprised of Ngäi Tahu Whänui; that is, the collective of the individuals who descend from the five primary hapü of Ngäi Tahu, namely Käti Kurï, Ngäti Irakehu, Käti Huirapa, Ngäi Tüähuriri and Ngäi Te Ruahikihiki, and the iwi of Ngäti Mämoe and Waitaha.

Te Rünanga o Ngäi Tahu was established by the Te Rünanga o Ngäi Tahu Act 1996 to be the vehicle for protecting and advancing the iwi’s collective interests and ensures that the benefits of the Settlement are enjoyed by Ngäi Tahu Whänui now and in the future.

This Annual Report is a celebration of our rangatahi. Throughout the report we have featured images of inspiring young potential leaders participating in Ngäi Tahu cultural and leadership initiatives.

Throughout the South Island there are 18 local Papatipu Rünanga. An elected representative from each rünanga makes up Te Rünanga o Ngäi Tahu, the governing body overseeing the tribe’s activities.

The executive functions of Te Rünanga o Ngäi Tahu are carried out by the Office of Te Rünanga o Ngäi Tahu, which manages the representational activities, protects the rights of Ngäi Tahu Whänui and delivers social and cultural programmes, and Ngäi Tahu Holdings Corporation Limited, which manages commercial activities and assets.

Cover: Sam Briggs (Makaawhio, Wairewa, Waihao) Left: James Tawa (Öraka-Aparima, Puketeraki, Awarua). James was a Ngäi Tahu Tourism scholarship recipient for three years and has recently taken up a position at Rainbow Springs.

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Mö tätou, ä, mö kä uri ä muri ake nei For us and our children after us

Above: Eva Scott-Keen (Makaawhio)

Values

Vision: Ngäi Tahu 2025

WHANAUNGATANGA (FAMILY)

TÖ TÄTOU NGÄI TAHUTANGA

We will respect, foster and maintain important relationships within the organisation, within the iwi and within the community.

Our dream is to have a vibrant Ngäi Tahu culture. Our goal is that our taha wairua will flourish through the passion and energy we have to carry our culture forward.

muri ake nei – For us and our children after us – reminds us that we must protect our environment to ensure future generations have the opportunities to keep our tikanga and mahinga kai practices alive.

MANAAKITANGA (LOOKING AFTER OUR PEOPLE)

KO NGÄ WHAKAPÄPÄTANGA

WHÄNAU

Tribal communications and participation in Ngäi Tahu 2025 details our desire for effective communications, as well as providing Ngäi Tahu whänau with enhanced opportunities to take part in tribal activities. It’s about communicating our dreams and achievements to Ngäi Tahu Whänui.

Our goal in this area is to ensure Ngäi Tahu whänau wellbeing is improved through the targeting of dedicated resources to meet identified whänau needs and aspirations, with whänau supported to engage in activities that enhance their physical, emotional, mental and spiritual health.

We will pay respect to each other, to iwi members and to all others in accordance with tikanga Mäori.

TOHUNGATANGA (EXPERTISE)

We will pursue knowledge and ideas that will strengthen and grow Ngäi Tahu and our community.

TE PÜTEA TE WHAKATIPU

KAITIAKITANGA (STEWARDSHIP)

We will work actively to protect the people, environment, knowledge, culture, language and resources important to Ngäi Tahu for future generations.

The development of, and support for, our Papatipu Rünanga: in Ngäi Tahu 2025 we state that we want to support Papatipu Rünanga initiatives to develop an infrastructure that offers security and advances whänau, hapü and iwi wellbeing.

Investment planning is the core function of Ngäi Tahu Holdings Corporation and a key plank in securing our whakataukï.

TE KAITIAKITANGA ME TE TÄHUHU

We continue to increase the effectiveness of our governance.

TIKANGA (APPROPRIATE ACTION)

We will strive to ensure that the tikanga of Ngäi Tahu is actioned and acknowledged in all of our outcomes.

TE WHAKAARIKI

MÄTAURANGA

Influencing external decision-makers and processes is vital to achieving Ngäi Tahu 2025.

The educational aspirations of Ngäi Tahu require an environment of life-long learning that provides opportunities for Ngäi Tahu Whänui to be well educated, trained and strong in their knowledge of Ngäi Tahutanga. The ability to access quality education and training will provide choices and give whänau the opportunity to create their own destiny.

RANGATIRATANGA (LEADERSHIP)

We will strive to maintain a high degree of personal integrity and ethical behaviour in all actions and decisions we undertake.

TE AO TÜROA

Ngäi Tahu has a strong commitment to preserving our natural environment. Our whakataukï – Mö tätou, ä, mö kä uri ä

TE RÜNANGA O NGÄI TAHU BOARD Back row, left to right: Stewart Bull, Quentin Hix, Tahu Pötiki, Terry Nicholas, Matapura Ellison, Tim Rochford, Maria Pera, Gail Tipa, Wally Stone, Gerry Te Kapa Coates.

Front row left to right: James Daniels, Ngaire Tainui, Sandy Lockhart, Jo McLean (alternate representative), Mark Solomon (Kaiwhakahaere), Mike Sang (Secretary), Lisa Tumahai, Elizabeth Cunningham, Tutehounuku Korako, Michael Skerrett.

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From the Kaiwhakahaere and Chief Executive Officer The year in review will be long remembered for the series of seismic events that struck the Waitaha region. Cumulatively these earthquakes caused such utter devastation that they changed forever the landscape, the city and the lives of all those who call Ötautahi home.

After each event, as an organisation Te Rünanga responded promptly to the needs identified. While the priority was to look after our own, the decision was made early on that we would reach out to all those needing help in our community. Little did we know at the time that September 4 was really just a practice run for the events to come!

Mark Solomon, Kaiwhakahaere

Mike Sang, Chief Executive Officer

After February 22 out of necessity, our daily business was slowed as staff worked to shovel silt, answer helpline calls, worked with the response teams at Rëhua and Ngä Hau E Whä Marae and helped out anywhere they could. The response from local Papatipu Rünanga, other iwi, Mäori providers and communities throughout Aotearoa was awesome. Our deep thanks to everyone and particularly our staff and our businesses, who worked together to help the people and to provide a base at Wigram enabling us to support the response and recovery effort.

With limited equipment and resources our staff went beyond the call of duty.

Their show of strength, courage and total commitment even when many were going through their own personal trauma has been humbling to say the least. While Kotahitanga has been an organisational focus for some time now, the impact of the earthquake has brought about a new sense of unity and shared purpose across the group. This has been strengthened further by our new temporary home at the portacom village at the former Wigram Airbase and the close proximity of our daily working conditions.

We were very fortunate in being able to recover most of the valuable taonga housed in Te Waipounamu House thanks to the efforts of staff and emergency teams. These events have highlighted the need for us to look at safe, multiple off-site storage options for housing our taonga in the future.

While the earthquakes have bought destruction and change they have also provided opportunities. Ngäi Tahu is one of the statutory partners committed to developing the recovery strategy. From day one we have been working closely with the government and other key agencies in every step of the recovery process from dealing

with the immediate crisis to planning the city’s rebuild.

The need for skills in the construction industry as a result of the earthquakes has led to a partnership with the Christchurch Polytechnic Institute of Technology (CPIT),​ Te Tapuae o Rëhua and the Built Environment Training Alliance (BETA) in establishing a Mäori Trade Training Scheme, He Toki ki te Rika. It has funding from Te Puni Kökiri and the support of Ngäi Tahu Property. Whänau Ora is also poised to come into its own as the future unfolds.

Te Rünanga has set aside a fund of $1.1m to add to the over $500k which we received in donations. Te Awheawhe Rü Whenua, our Earthquake Recovery Working Group, chaired

by Wally Stone, has been set up to assist with our immediate and long-term response to the earthquakes and Canterbury’s recovery and to administer these funds.

Amid the flurry of earthquake activity we reluctantly farewelled our CEO Anake Goodall. Over his four years in the role, Anake achieved a number of significant outcomes for the iwi not least of all consolidating the tribal platform and making it ready for the next stage of our intergenerational journey. On behalf of Te Rünanga o Ngäi Tahu, staff, and Ngäi Tahu whänau, we would like to acknowledge Anake for his commitment to the iwi and wish him all the best for his future career.

Mike Sang has been appointed as CEO on an extended contract to avoid any further disruption to our operation through these difficult times.

Te Rünanga itself has been refining its governance arrangements and earlier in the year reached a consensus on a new committee structure to provide strategic oversight in some of the core business areas: the core committees are Te Apärangi (external issues), Te Here (internal matters), Contracts Review Committee and the Audit and Risk Committee. These arrangements are working well and will enable Te Rünanga to focus on more strategic matters in the future.

When we consider the volatility of the global marketplace, and the impact of the earthquakes, we can all be very proud of the strong financial performance across the group and wish to congratulate the board, management and staff of Ngäi Tahu Holdings Corporation (NTHC) and its respective subsidiaries on their solid performance. The NTHC net operating surplus of $37.28m was up $1.77m (5%) on the previous year. NTHC

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Ngai Tahu AR 2011 FA_v3.indd 4

9/19/11 10:17 AM

Melany Tainui (Önuku) at Te Atakura.

Ngäi Tahu allocation since Settlement

$227.9m

shareholder equity increased by $23.36m to $519.06m.

It is timely to reflect that since Settlement, Te Rünanga has been responsible for allocating over $227m to iwi activities. In the past financial year the total funding for all of our mahi, including the capital distribution to rünanga was $27.1m.

Despite earthquakes the Office has remained focused on developing initiatives and delivering tribal programmes that will help us in achieving the outcomes for Ngäi Tahu Whänui as set out in our tribal vision Ngäi Tahu 2025. We also continue to focus on reducing costs and increasing support and direct distributions to Papatipu Rünanga and iwi members.

The next 12 months will see some major decisions made regarding the rebuild of Ötautahi. With the likelihood that we will be unable to return to Te Waipounamu House, Te Rünanga will also be considering its options regarding the future home of the organisation but in the meantime, we will be staying put at Wigram.

Our partnerships with the Crown, and the newly formed Canterbury Earthquake Recovery Authority (CERA) among others, will be instrumental as we move forward to the next phase.

The immediate impact of the quakes created a new set of challenges for us all, but as this annual report sets out, both the distribution side of our organisation and the businesses have performed remarkably given the circumstances. These are exciting times in which we are united by our whakapapa, our passion, and the will to learn and grow.

Never has the whakataukï ‘He aha te mea o te ao? He tangata! He tangata! He tangata!’ seemed to be more apt.

Mark Solomon Kaiwhakahaere

Mike Sang Chief Executive Officer 5

AS AT 30 JUNE 2011

Group Performance at a glance Financial Performance Net Operating Surplus after interest (up $1.77m from 2010):

$37.28m Tribal Rünanga and Whänau distributions ($11.6m in 2010)

$11.1m

FOUR YEAR CONSOLIDATED PERFORMANCE TO 2010/11

2007/08 ($ 000s)

2008/09 ($ 000s)

2009/10 ($ 000s)

2010/11 ($ 000s)

Financial Performance Net Operating Surplus after interest attributable to Ngäi Tahu Holdings Non Operating Adjustments

31,769 26,486

18,630 (5,289)

35,512 7,950

37,282 (21,388)

Profit attributable to Ngäi Tahu Holdings

58,255

13,341

43,462

15,894

(8,818) (12,859) 0

(10,408) (10,189) 0

(9,890) (11,635) 0

(9,234) (11,134) (962)

36,578

(7,256)

21,937

(5,436)

Add Net Fisheries & Aquaculture Settlement 27,931 Less Impairment AFL Income Shares 0 Less Taxation Te Rünanga o Ngäi Tahu (313)

28,933 (1,595) (410)

5,914 0 (605)

1,263 0 (552)

Profit (Loss) after taxation for the Year

64,196

19,672

27,246

(4,725)

Attributable to: Equity holders of the parent Minority Interest

63,956 240

19,727 (55)

27,116 130

(4,880) 155

64,196

19,672

27,246

(4,725)

Operating Expenses –Te Rünanga o Ngäi Tahu Tribal, Rünanga and Whänau Distributions Non-Operating Adjustments Net Profit (Loss) Before Taxation and Fisheries Settlements

Group Financial Position Equity ($570.20m in 2010).

Increase in Equity of $20.84m to:

$591.04m

EQ UI

LA

$513.58m $526.66m $570.20m $591.04m

NGÄI TAHU FISHERIES SETTLEMENT 2007/08 2008/09 2009/10 2010/11

8%

$644.82m $657.43m $715.25m $730.47m

NGÄI TAHU SEAFOOD

2007/08 2008/09 2009/10 2010/11

8%

TO TA

DE NGÄI TAHU TOURISM

TE RM

9%

$98.15m $95.06m $114.00m $106.00m

NGÄI TAHU CAPITAL

2007/08 2008/09 2009/10 2010/11

58%

15%

TY

SS ET S

TERM DEBT, TOTAL ASSETS AND EQUITY

BT

GROUP TOTAL ASSETS BY BUSINESS

NGÄI TAHU PROPERTY

2%

6

NGÄI TAHU HOLDINGS

AS AT 30 JUNE 2011

Te Rünanga Distribution at a glance The annual payments to each Papatipu Rünanga increased from $169,000 pa in 2009-2010 to $194,000 pa in 2010-2011.

AN ISA 26% 17% 15% 10% 2008 2009 2010 2011

GR

7% 9% 7% 6% 2008 2009 2010 2011

5% 8% 8% 5%

SE

GO

TT

VE

OU

PO

RG

RN AN CE

EN TP RO LE M

NA U 31% 31% 37% 34% 2008 2009 2010 2011

W HÄ

31% 35% 33% 44% 2008 2009 2010 2011

RÜ

NA NG A

TE

TI

CT I

$194,000

ON

ON

INTERGENERATIONAL TRIBAL DEVELOPMENT ANNUAL DISTRIBUTION

2008 2009 2010 2011

Financial trends indicate declining costs and increasing distributions to Papatipu Rünanga and iwi members.

NGÄI TAHU 2025 DISTRIBUTION

KO NGÄ WHAKAPÄPÄTANGA (TRIBAL COMMUNICATIONS & PARTICIPATION)

11%

0% TE PÜTEA (INVESTMENT PLANNING)

7%

TÖ TÄTOU NGÄI TAHUTANGA (CULTURE & IDENTITY)

15%

WHÄNAU (SOCIAL DEVELOPMENT)

5%

34% TE KAITIAKITANGA ME TE TÄHUHU (GOVERNANCE & ORGANISATIONAL DEVELOPMENT)

TE WHAKATIPU – PAPATIPU RÜNANGA DEVELOPMENT (Includes $4.5m capital distribution)

10%

TE KAITIAKITANGA ME TE TÄHUHU (TRONT BOARD)

MÄTAURANGA (EDUCATION)

7% 6%

5%

TE AO TÜROA (NATURAL ENVIRONMENT)

TE WHAKAARIKI (INFLUENCE) 7

101 82 84 71 2008 2009 2010 2011

$1,676,535 $1,774,271 $1,588,471 $1,244,885

FR

TO

T OM AL A AP MO PL UN IC AN T SO TS UG HT $1,225,573 TO $1,035,778 AP TA PR L A $890,329 OV M ED OU $703,324 NT

2008 2009 2010 2011

147 117 123 92

TO AP TA PL L N IC U AT MB IO ER NS O RE F CE IV TO ED T AP A PL L N IC U AT MB IO ER NS O AP F PR OV ED

Ngäi Tahu Fund

Tö Tätou Ngäi Tahutanga (Culture and Identity)

Ko Ngä Whakapäpätanga (Tribal Communications)

This broad portfolio includes Whakapapa, the Ngäi Tahu Fund, Te Reo initiatives and Mö Tätou.

Tribal publications fall within this portfolio, as does Tahu FM, events management and communications including the provision of strategic media advice across Te Rünanga Group, iwi liaison and sponsorship and communication support for the Office of the Kaiwhakahaere and CEO.

While some projects were disrupted by the need to prioritise earthquake recovery efforts, the Whakapapa team continued to register new members and assist potential members with their applications throughout the year.

The Ngäi Tahu Fund, a fund for cultural rejuvenation, supported a wide range of projects and while the March 2011 round was reduced (for this year only) by $150,000 to assist Te Rünanga with the earthquake response, a number of exciting projects were still funded. These including a digital archiving project to record Makaawhio history and a wänanga series “Te Kähui Kaumätua o Arowhenua”, which aims to build the knowledge and understanding of sites of significance to Käti Huirapa. In total this year the Ngäi Tahu Fund distributed $703,324 to support 71 Ngäi Tahu cultural projects.

The Mö Tätou exhibition continued its tour of Te Waipounamu during 2010 and 2011 with the final closing event held at Otago Museum on April 17. Mö Tätou ran for five years and was seen by over one million visitors. In that time it proved its worth as the premier showcase of Ngäi Tahu taonga, histories, stories and culture.

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2008 2009 2010 2011

2008 2009 2010 2011

The opening of Te Ana Ngäi Tahu Rock Art Centre in Timaru was an incredible occasion for the iwi and particularly the Ngäi Tahu Mäori Rock Art Trust. Te Rünanga extends its congratulations to those that devoted their tireless dedication and effort to realising this dream.

In terms of te reo initiatives, a highlight for the year was the January Kura Reo Käi Tahu, which is our total immersion language wänaka for Käi Tahu speakers of te reo. It was held at Arowhenua and attracted over 100 attendees of all ages. Another success was the launch of www.destinationreo.com, a tool which helps learners and speakers of te reo easily locate te reo friendly businesses, groups and organisations. As part of the celebrations for Te Wiki o Te Reo Mäori we launched the revamped online reo Mäori readers for parents with young children – interactive resources to help support reo use at home. They can be found on our www. kmk.maori.nz website.

There was an enormous level of activity throughout the year in this portfolio due largely to the earthquake recovery process and the need to communicate response initiatives.

A highlight was the 50th anniversary issue of Te Karaka.

The normal tide of tribal events kicked off in November with a successful Hui-ä-Tau hosted by Käti Huirapa Rünaka ki Puketeraki.

The touring of Mö Tätou also continued and Te Rünanga staff supported Papatipu Rünanga with a number of events, including the closing event. Successful Waitangi Day celebrations were held at Ötäkou and the opening of Te Wheke at Räpaki was another meaningful and beautiful occasion, as was the opening of the new Civic Building, Te Hononga. A fun event for the year was a Matariki Dinner at the Antarctic Centre, which gave many tribal members a chance to kick back and relax.

The earthquakes highlighted the value of the Ngäi Tahu website and social media sites.

Tribal members, Te Rünanga and Papatipu Rünanga now regularly communicate via these tools.

Te Whakatipu (Papatipu Rünanga Development) This portfolio encompasses environmental support to Papatipu Rünanga, economic development, taonga commercial development and Te Pütea.

A significant achievement for the year was assisting Makaawhio to establish its authentication programme for pounamu; the rünanga has licenced a number of carvers to manufacture under its authority. The Office also undertook considerable pounamu protection work throughout the year resulting in large amounts of snowflake returned to the iwi and a Southern Rünanga Pounamu Management Plan, involving Murihiku and Ötäkou Rünanga, is in its final stages.

The Ngäi Tahu Fund provides resources for whänau and hapü to assist in the development of initiatives that promote and grow Ngäi Tahutanga.

Above: Mananui Ramsden (Koukourarata) at a Ngäi Tahu sailing wänanga in 2010. 9

Papatipu Rünanga efforts to protect significant water bodies led to some good results through the year.

Above left: Hïkoi Whakatipu Waitai Above right: Susan Wallace (Makaawhio, Wairewa, Waihao)

Papatipu Rünanga aspirations drove a busy work programme through the year, with an example being the Wairewa Mahinga Kai programme, a very exciting venture involving the Te Pütahi farm. This project involves branding and the development of online services to market and sell unique farm produce. Development of this programme also won a place at an international organic trade expo in Sydney, providing opportunity to link with other indigenous and non-indigenous distributors of organic and wild foods.

Yet another intiative during the year was a programme to elevate recognition of Ngäi Tahu contemporary artists and to develop an authentication or branding process to help protect and promote their work. This programme is occurring under the Aho cultural authenticity brand that acknowledges Ngäi Tahu uniqueness.

Te Pütea Whakamahi of $194,000 per Papatipu Rünanga was paid this financial year, an increase of $25,000 per rünanga from the previous year.

Te Whakaariki (Influence) A key outcome for the year was the Crown’s direct acknowledgement that it needed to partner with Ngäi Tahu in the Ötautahi recovery. The legislation to establish the Canterbury Earthquake Recovery Authority (CERA) not only protected the Ngäi Tahu Claims Settlement legislation, it provided for consultation with Ngäi Tahu in terms of the development of the Earthquake Recovery 10

Strategy, and recognised Ngäi Tahu alongside the Christchurch City Council and Environment Canterbury.

In other significant developments, boundary relations with Te Tau Ihu continued to improve throughout the year. Good discussions progressed between Ngäti Kurï and Huataki (Rangitäne) and also between Ngäti Waewae and Ngäti Apa. Three of the Te Tau Ihu iwi have now settled with the Crown in a manner that does not impinge upon the Ngäi Tahu takiwä.

Te Rünanga also continued to engage with the Crown and other iwi on new proposals for aquaculture space, and to secure Settlement rights.

Support of Papatipu Rünanga and Te Rünanga on freshwater and climate change issues continued. Work commenced on a Ngäi Tahu freshwater strategy, which will guide our contributions into national freshwater management reforms. We remain fully engaged with the Crown and other iwi on freshwater matters.

Environment Canterbury’s engagement with the Papatipu Rünanga improved throughout the year with the establishment of the Tuia working group, to deliver programmes and outcomes.

Te Ao Türoa (Natural Environment) This is a broad portfolio encompassing Fisheries, Department of Conservation (DOC)

interaction, Tribal Heritage and Cultural Mapping, Mahinga Kai projects, Tribal Property development and maintenance and RMA advocacy.

During the year the Toitü te Whenua team offered assistance to affected Papatipu Rünanga dealing with the Hunter Downs Irrigation (HDI) Scheme in South Canterbury.

Outstanding issues were resolved via a new trust arrangement, agreement to implement farm management plans and water augmentation to the Wainono Lagoon to assist in improving water quality. Also, the Central Plains Water (CPW) project required mediation between CPW and Ngäi Tahu, a process that was ongoing at the end of the financial year.

Papatipu Rünanga efforts to protect significant water bodies led to some good results through the year. Ngäi Tahu and DOC successfully applied to amend the Water Conservation Order over Te Waihora, which will see broader recognition of values, including the tribal historical values and customary fisheries. Te Rünanga would also like to acknowledge the work carried out by Ngäi Tahu ki Murihiku, working with stakeholders to garner significant publicity about the precarious state of Waituna.

The Te Waipounamu Iwi Forum completed a fisheries plan in May. It sets out the aspirations and integrated commercial and non-commercial objectives of the nine iwi of Te Waipounamu. The plan also sets out a series of actions that will be implemented in coming years.

Sam Shannon (Puketeraki) on the 2010 Tiki Tour, aimed at giving Ngäi Tahu rangatahi a taste of the tourism industry.

At 30 June 2011 the Whai Rawa balance was over: Since Whai Rawa started members and whänau have deposited over: The annualised return for the three years ending 30 June 2011 was 5.60%. The return for 12 months to 30 June 2011 was:

$9.69m $18.03m $8.40m 4.38%

2,614 2 ,850 3,028 3,273

3,971 4,820 4,591 4,9 97

2007 2008 2009 2010

2007 2008 2009 2010

NUMBER OF MEMBERS WHO ARE SAVING (FOR FULL CALENDAR YEAR)

8,880 9,700 10,200 10,879

TOTAL MEMBERSHIP AS AT 30 JUNE 2011

2008 2009 2010 2011

Whänau (Social Development)

Since inception Te Rünanga has contributed to members accounts (by way of matched savings and distribution payments) over:

4,545 4,801 5,031 5,098

A tribal desire to have a united approach to environmental matters across Te Rünanga entities was advanced with the creation of a new staff position to create better linkages. A key project worked upon was the preparation for the trial dairy farms at Eyrewell where this role assisted Papatipu Rünanga to ensure appropriate values were embedded from the beginning of the new venture. And in the area of tribal properties, a highlight was the completion of the Kaiköura Economic Development Plan.

Whai Rawa

2008 2009 2010 2011

In the area of tribal heritage, the highlight for the year was working with Önuku and Mahaanui Kura Taiao developing a conservation management plan for Takapuneke pä site. This incorporated both the history of the site and policies to protect cultural association and values.

CHILD MEMBERS

ADULT MEMBERS

CHILD MEMBERS

ADULT MEMBERS

This portfolio broadly encompasses direct distributions, Crown agency engagement, health and social projects, and the Whai Rawa tribal savings scheme for individuals.

As Whai Rawa staff were redirected to assist with earthquake relief, new membership campaigns were slowed. Nevertheless, the Whai Rawa fund balance at 30 June 2011 grew to $18.03m showing that there are still many who are dedicated to making regular savings. Close to 16,000 members are now enrolled in the fund.

11

Most pleasing was the increase in total member and whänau contributions, which were up 8% to $2.23m in the 12 months to 30 June 2011. This compares with the contributions in the previous 12 months of $2.08m and $1.76m in the 12 months prior to that. Kaumätua grants for the year totalling over $650,000 were also distributed.

able to be downloaded to back up systems but an enormous amount of learning from the disaster saw new storage and disaster recovery plans implemented.

Many within the He Oranga Pounamu provider network faced their most challenging year ever. While having to face the devastation of the earthquake on their own properties, many provider staff swung into action to assist those in need with health and social services. At an administrative level HOP faced the challenge of not only progressing the intent of the Whänau Ora programme but ensuring medium to longterm support of whänau affected by the earthquake. This was achieved by securing a Whänau Ora contract to provide Kaitoko positions. The people who fill these Kaitoko positions will provide kanohi ki te kanohi assistance to those most in need within the Ötautahi Mäori community.

A very successful hïkoi of cadets, scholarship holders and trainees from across Te Rünanga Group was held ahead of Huiä-Tau last year. This hïkoi was supported

by Trevor Howse and David Higgins who introduced tauira to sites of significance in the Moeraki and Karitäne regions and shared their knowledge. The Te Rünanga Group cadetship programmes and scholarship programmes have become increasingly popular in recent years and are critical to our succession planning efforts.

Te Pütea (Investment Planning) In March 2010, Te Rünanga adopted a Group Investment Policy Framework (IPF). The implementation of this framework is a longterm task made significantly more interesting by the September and February earthquakes, which open up investment opportunities that should align with the policy framework.

The level of annual distribution is also governed by the IPF, which provides a rule that will see approximately 4% of next year’s value of assets being returned to the iwi for distribution. We expect this to be in the vicinity of $26 million.

Te Kaitiakitanga me te Tähuhu (Governance and Organisational Development) This broad portfolio encompasses a variety of projects to upgrade infrastructure and systems, governance support processes, service delivery, alignment, archival projects and development of people and talent.

Our IT professionals had to carry much of the burden of rebuilding Te Rünanga Group IT systems at Wigram after the February earthquake closed Te Waipounamu House.

Te Rünanga had tapes offsite that were 12

Several key projects designed to improve operational efficiencies and reduce costs were achieved; these included rollout of Windows 7, the CRM upgrade project, and the outsourcing of the service desk.

Another important development programme for Ngäi Tahu is Aoraki Bound.

Two successful courses were held over the reporting period. Courses for 2012 are already nearing capacity, showing increasing enthusiasm for this iconic Ngäi Tahu leadership programme.

Mätauranga (education) This portfolio focuses on advocacy and Crown obligations, education resources, scholarships and grants and Te Tapuae o Rëhua.

Below: Satriani Reihana (Arowhenua)

Te Tapuae o Rëhua, a partnership between Te Rünanga and five of the tertiary institutions in Te Waipounamu, has implemented the 2010 strategic review which places more focus on developing Ngäi Tahu interests in tertiary education. A good example of this new direction, is the creation of the Mäori trade training initiative, He Toki ki te Rika, between CPIT, Te Rünanga, Te Tapuae and the BETA workgroup. This initiative aims to place 200 Mäori into trade training positions at CPIT before the end of the 2011 calendar year.

The demand for education grants was particularly strong throughout the year.

Te Rünanga funded 962 Ngäi Tahu Kä Pütea Grants (tertiary grants) amounting to $462,750 and 40 Ngäi Tahu Kä Pütea Scholarships amounting to $60,000 during the 2010-2011 financial year. Demand for Out of School Tuition grants for primary and secondary school students was also very strong with 343 grants provided.

Te Rünanga continues to work with the Ministry of Education to support Papatipu Rünanga to receive funding to develop education resources with their local schools. This included teaching resources incorporating a Ngäi Tahu identity and professional development training for teachers. The Ministry is also collating data that should better inform Ngäi Tahu of Mäori achievement and allow us to ascertain whether our expectations are being met.

Earthquake Assistance

Above: Rangatahi, including Akida Shimamoto (Awarua), assisting in the earthquake clean up.

The September 2010 and February 2011 earthquakes had a significant effect on Christchurch, our people and our work programmes. Te Rünanga o Ngäi Tahu facilitated a broad recovery effort and staff spent considerable time in the field offering direct assistance.

Many others also came to our assistance including many marae, iwi and Mäori organisations from around the country.

Food donated to the Ngäi Tahu base at Wigram was distributed by staff and the Mäori Wardens.

Member Services, which includes both Whakapapa and Contact Centre Services, were at the forefront of earthquake recovery efforts and had the key task of contacting at-risk whänau and manning the 0800 Käi Tahu number.

Significant effort was focused on the safe retrieval of whakapapa files. Once retrieved, the files were able to be safely

stored with thanks to the Airforce Museum of New Zealand.

Te Rünanga also established a fund to assist the community and Ngäi Tahu whänau affected by the earthquakes. To date approximately $500,000 has been donated into this fund and hardship grants continue to be distributed from it in response to written applications from those in need in the Christchurch community. We would like to thank all whänau, rünanga, other iwi and friends for their generous contributions and support.

In addition and separate to the above mentioned fund, Te Rünanga set aside an additional $1.1m specifically to assist those affected by these earthquakes. The Te Rünanga earthquake recovery working group Te Awheawhe Rü Whenua is ensuring these funds are distributed appropriately, and among the many projects has set aside $400,000 for grants to agencies offering

direct support to Mäori (an example being the $15,000 donated to the Aranui-based Whakaoranga Trust for emergency food grants).

Communications through this period were critical, particularly communication via social media. There was considerable effort

by Tahu FM, Te Rünanga and other external supporters to recommence broadcasting after the February earthquake. Te Upoko o Te Ika in Wellington provided the broadcast initially and with support from Tuaropaki Communications, Radio Ngäti Porou, AVC Group and Te Mängai Päho, Tahu FM was back on air (in a tiny room lined with mattresses). Although the autumn issue of Te Karaka was cancelled due to the impact of the February earthquake, a larger earthquake edition was produced for winter.

13

NGÄI TAHU HOLDINGS CORPORATION

From the Chair and Chief Executive 16.99%

Term Debt to Funds Employed of:

Operating Return on Equity (incl NTFSL) of:

$37.28m 6.63%

Total Profit for the Year of:

$15.89m

Operating Net Surplus up by $1.77m to:

Assets under management increased by $13.15m to:

$666.38m

Shareholder Equity increased from $495.71m to: Distributions to Ngäi Tahu Charitable Trust:

$519.06m $22.60m

A YEAR IN REVIEW

The 2010-2011 financial year was one of very solid results for Ngäi Tahu Holdings Corporation (NTHC). This was pleasing, particularly given the continuing challenges presented in the wake of the global recession and the devastation of the Canterbury earthquakes.

We arrived at a good year-end result with a record net operating surplus of $37.28m, an increase of $1.77m (5%) on the previous year. Across the board we have made progress in focusing on our strengths and moving away from assets not returning best results.

Trevor Burt, Chair

$22.00m Greg Campbell, Chief Executive 14

As expected, the year-end valuations of our Christchurch investment properties were impacted upon by the earthquakes. Overall, our investment properties fell in value by $17.86m due to market impacts. In addition we incurred damage to the properties which will total $9.32m and these costs have been taken into account this year. Repairs to the buildings are underway, and the buildings are fully insured however, we will not receive the full amount of these insurance proceeds until the next financial year.

Shareholders equity has increased by $23.36m to $519.06m breaking through the $500m level for the first time. This has mainly been driven by an increase in the value of our shareholding in Ryman Healthcare which increased by $31.20m.

Operating cashflows of $36.25m (FY10 $37.89m) have funded a Ngäi Tahu Charitable Trust distribution of $22.60m.

Surplus funds have been applied to the commencement of the Rainbow Springs redevelopment project, completion of the Christchurch Civic Building and the reduction of term debt. Term debt currently sits at $106.0m The performance of both Ngäi Tahu Property (NTP) and Ngäi Tahu Seafood (NTS) once again exceeded budget and improved on last year’s results. NTS has delivered an outstanding result with an operating EBIT of $16.73m, up $3.37m on last year.

This positive result was largely due to the ongoing strength of the köura market, in particular China, and enhanced by an overall stronger performance of all species.

NTP also enjoyed a successful 12 months ending the year with an operating EBIT of $24.44m (FY10 $20.35m). The diversity of the NTP portfolio continues to be its greatest asset in protecting against the highs and lows of the industry. The NTP investment portfolio has once again performed exceptionally well with almost 100% occupancy and increased rental returns in spite of the macro-economic challenges. The strength of the investment portfolio compensated for a tougher year in the property development sector.

It was a difficult year for Ngäi Tahu Tourism (NTT) as they battled declining visitor numbers only to be further impacted upon by the earthquake. NTT saw its profit fall against the previous year to $4.12m (FY10 $5.94m). However, we are pleased to report that the medium-term forecast for tourism is much improved and with review and

TO TA L

DI

TO TA L

6.59% 3.68% 6.68% 6.63% $58.25m $13.34m $43.46m $15.89m $32.73m $6.75m $59.76m $46.18m $22.90m $21.97m $22.00m $22.60m $606.87m $594.94m $653.23m $666.38m $98.15m $95.06m $114.00m $106.00m

2008 2009 2010 2011

2008 2009 2010 2011

2008 2009 2010 2011

2008 2009 2010 2011

2008 2009 2010 2011

TE RM DE BT

SE TS

TO CT

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UI

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0.9% SEAFOOD OPERATIONS

AS

TI ON S

BU

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M PR EH EN

ON

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CO

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PR

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TU

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LU

RP

SU

9.0%

ST

TO TA L

NG

TI

RA

PE

NG

NU E

TI

RA

RE VE

PE

2008 2009 2010 2011

NE TO

NE TO

$31.77m $18.63m $35.51m $37.28m

2008 2009 2010 2011

TO TA L

$179.47m $166.13m $145.77m $162.63m

2008 2009 2010 2011

GROUP ASSET PROFILE (BY FUNDS EMPLOYED)

16.8% RURAL LAND

8.1% 9.4% DEVELOPMENT PROPERTIES

SEAFOOD QUOTA & MARINE FARM LICENCES

38.4% INVESTMENT PROPERTIES

17.4% NGÄI TAHU CAPITAL

15

Above: Matakahi cadets complete their hïkoi from Moeraki to Karitäne in time for Hui-ä-Tau 2010

GROWING OUR FUTURE Iti te matakahi, paoa atu anö, nä, potapota noa Even the smallest wedge, with persistent effort, can topple the greatest tree The commercial aspirations of NTHC coupled with our role as inter-generational stewards of the assets of the iwi and the acknowledgement of the importance of education has led to the development of a commercially focused cadetship programme. The programme known as Matakahi (wedge) is designed to create opportunities to grow Ngäi Tahu capacity for the future. Established in 2009 the cadetships are for Ngäi Tahu students entering their first or second year of a commercially focused tertiary qualification.

The package provides: fees, pastoral care, holiday employment within Ngäi Tahu businesses, mentoring and cultural wänanga. The first three recipients have successfully completed their commerce degrees with one going on to further studies, one working in the property industry and the third due to take up an internship with Treasury in 2012.

16

rationalisation of assets NTT is in a healthy position to take advantage of the upturn when it comes.

Over the past year we have stayed focused on exploring new opportunities to expand our investment portfolio and further diversify our capital base; thus guaranteeing our strength as an inter-generational investor.

The most notable success in this regard has been the recent Ngäi Tahu Capital cornerstone investment in the Asian joint venture Agria, the controlling shareholder in PGGW. This investment is significant for two key reasons: It fits well with Ngäi Tahu interests in the rural sector; and, it also serves to strengthen our global relationships in this region.

The development and implementation of NTP’s rural strategy, ratified by NTHC and Te Rünanga, has committed us to the sale of forestry assets and diversification into a pilot sustainable-dairying project. This has been another significant step forward on the journey to re-shaping the NTHC portfolio.

ENDURING PARTNERSHIPS

Over the years we have worked hard to build an extensive network of partners whom we believe fit with the NTHC values and best suit our investment philosophy. One of the most significant and enduring is our relationship with the Crown, which led to the first Private Public Partnership (PPP) venture with the Christchurch City Council in the new civic building. It is hoped the highly successful outcome of this project will lead to further PPPs in the future. However, any investment we make in this area must be first and foremost a sound commercial proposition.

GOVERNANCE

Linda Constable’s appointment on the NTHC board ended on 30 June 2011. Linda has been an integral member of the board over the past five years. Linda will remain on the Ngäi Tahu Property board. We were fortunate to have Sandy Maier join the board in September 2010. Sandy was previously chair of the Te Rünanga o Ngäi Tahu Investment Advisory Sub committee and

was instrumental in developing the Ngäi Tahu investment framework.

The subsidiary boards are now all fully operational and we are really beginning to see the true value of their expertise.

OUR PEOPLE

Our success goes beyond the numbers and as always we must acknowledge the exceptional efforts of our staff and senior management, individually and collectively in delivering this successful result. We are privileged to have such a loyal, dedicated and high-performing team.

The real strength of the team came to the fore in the aftermath of the earthquake when they exceeded all expectations in their commitment to assisting in the clean up. We acknowledge the personal effort, collaboration and high degree of professionalism demonstrated in what were extremely trying times for us all.

While we will continue to focus on the diversification of our asset base, our shortterm focus will be on assessing our obligations and our opportunities in regard to the re-build of Christchurch. As the investment arm of Te Rünanga o Ngäi Tahu, it is imperative we take a lead role in shaping the future of the city.

Making investment decisions that deliver superior results in the best interests of our owners is essential in creating a sustainable long-term future for the iwi. As an intergenerational investor, decisions we make will also benefit the local economy and New Zealand.

...we have worked hard to build an extensive network of partners whom we believe fit with the NTHC values...

Ngäi Tahu Holdings Corporation prides itself on the resilience and vibrancy of our investments. With a solid capital base, strong local and global relationships, our people and an optimistic attitude towards the future, we have an excellent platform to support our plans for controlled and deliberate growth.

THE FUTURE

The next financial year is shaping up to be another good one and we are excited about the opportunities that lie ahead. With the growth in the Asian economy, Ngäi Tahu Holdings is well positioned through its Agria shareholding to maximise potential opportunities in this increasingly important global market.

Trevor Burt Chair Ngäi Tahu Holdings Corporation

Greg Campbell Chief Executive Ngäi Tahu Holdings Corporation

Left to right: Gerry Te Kapa Coates, Catherine Drayton, Sandy Maier, Linda Constable, Trevor Burt, Greg Campbell, Ross Keenan 17

NT ER ES T

NGÄI TAHU HOLDINGS GROUP

EN T M ST ED PL OY M

ET LR TA 12.90% 2.80% 8.65% 0.68%

$380.97m $378.51m $431.98m $411.29m

2008 2009 2010 2011

2008 2009 2010 2011

TO

TA TO $45.55m $10.51m $35.04m $2.85m 2008 2009 2010 2011

FU ND SE

UR

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PR E LC OM

RE IN G AT 5.40% 4.10% 5.02% 5.80% 2008 2009 2010 2011

OP ER

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NS IV HE

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IT EB IN G AT $19.14m $15.74m $20.35m $24.44m 2008 2009 2010 2011

OP ER

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OVERVIEW

It has been an historic year for the Canterbury region as the local economy struggled to come back from the global recession only to be struck by a series of devastating earthquakes. Amid the grim economic landscape, Ngäi Tahu Property (NTP) has once again delivered a solid result with an operating EBIT of $24.4m (FY10 $20.4m) with a further $5.2m of profit from the sale of carbon credits before revaluations.

NC OM

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Ngäi Tahu Property

While the development portfolio had a tough year with reduced sales, the investment portfolio performed exceptionally well prior to the impact of the February 22 earthquake with almost full occupancy and increased rental returns. Our rural portfolio has also returned positive results due to the improved performance in the rural sector and sale of our carbon credits. With the diversification into sustainable dairying the future of this portfolio is set for longterm growth.

PROPERTY DEVELOPMENT

The ongoing impacts of the recession have continued to present challenges. This has been marked by a downturn in sales and as a consequence the development portfolio ended the year $1.3m below budget.

This downward trend has now been reversed by the catastrophic events of February 22, an event and its impacts that could never have been forecast. With the devastation of the CBD and the close to 12,000 homes destroyed, the demand for both residential and commercial property will provide significant opportunities for NTP in the coming years.

RESIDENTIAL

Sections in the Linden Grove development have sold well with very few left. Wigram Skies is in its third stage and showing signs of being an outstanding performer. While at Lincoln, 16 Stage One sections have sold.

A highlight has been commitment from Christchurch City Council to the rezoning for the Prestons development. All three developments have been investigated by geotechnical engineers, Tonkin & Taylor and Aurecon who have confirmed there is no evidence of land damage or liquefaction.

This coupled with the increased demand for housing will see NTP well placed to provide homes for up to 3,000 families in the coming years.

18

COMMERCIAL

The completion of Te Hononga, the new Christchurch Civic Building in August 2010 on time and ahead of budget has been a stand-out success. This is the biggest project of its kind to be undertaken by NTP, the first major public premises to be built under a local authority/iwi partnership and the first renovated building to receive a six Green Star environmental rating. Most importantly, the project has been significant in terms of its interaction with the iwi in the naming of the building and the creation of its visual imagery. From the pou positioned at the front of the building to the story window on Hereford St, the Christchurch Civic Building is truly a mark of Ngäi Tahu being part of the city.

PROPERTY INVESTMENT

We are delighted to report that the investment portfolio has bridged both the recession and the earthquake with almost all (99.72%) property tenanted (industry average is 94.68%) prior to February 22.

While some of our buildings sustained earthquake damage, the majority are

repairable and most still currently occupied.

The impact of the earthquakes on the market has resulted in decreased value of $17.86m to our investment portfolio. All properties were insured however, we will not receive the full payout for damage until the next financial year.

The strength of our investment portfolio is largely due to our strategy for securing the Crown and other premium quality tenants. The police premises in Christchurch, Dunedin and Queenstown, the courts in Christchurch and Queenstown and Tower Junction in Christchurch continue to be stand-out performers.

RURAL LAND

Our focus has been on rationalising our rural assets. We are selling down the poorer performing foothill forestry lands and reinvesting in the development of the balance of our rural land for agricultural and pastoral use.

PEOPLE

The new NTHC governance model is working well. It has been hugely beneficial

Above: Eyrewell in North Canterbury.

to have industry expertise at board level to provide support for management and our shareholders. Once again our dedicated team have performed outstandingly. With their unified approach during the earthquakes, looking after each other and their customers, and offering support to affected families, they truly came into their own.

LOOKING AHEAD

SUSTAINABLE DAIRYING NTP have been working closely with Papatipu Rünanga, Lincoln University research scientists and industry experts in the development of three environmentally sustainable pilot dairy farms at Eyrewell in North Canterbury.

This move into dairying is in line with our long-term rural strategy that has a focus on taking up opportunities for inter-generational wealth creation.

Our immediate focus is on repair of buildings in our investment portfolio while at the same time working closely with the Christchurch City Council and CERA to take a major role in re-housing families and rebuilding central Christchurch. NTP are fully committed to this task.

NTP owns 17,000 hectares of rural land in North Canterbury that has potential for agricultural and pastoral use. Clearing of forestry has commenced at Eyrewell and Balmoral and 2,000 hectares of pasture is now in place and a dryland farming operation fattening 60,000 lambs is underway.

Water is set to be one of the biggest challenges for NTP moving forward. We have been working closely with our rünanga and are currently sitting in the front row with Ngäi Tahu in the fight for sustainable water management. Water is the key to adding value to our rural portfolio

Development has begun on the pilot farms with fencing, irrigation, stockwater, effluent treatment, milking shed, farm building and housing projects either underway or due to commence shortly. Each farm will have 1,400 cows and will provide employment for three families. Milking is scheduled to start in July 2012. Future opportunities will be available for Ngäi Tahu whänau who are experienced operators in the dairy sector, and training programmes will be developed as we progress with these pilot farms.

We continue to explore opportunities for the development of further Public Private Partnerships (PPPs). Despite the success of the joint venture Christchurch Civic Building, it is becoming increasingly difficult to convince the Crown that this Ngäi Tahu model should be the basis for our future PPP relationships with the Crown.

With the strength of our investment portfolio, our long-term focus on sustainable dairying, our reputation as a trustworthy development company and the potential growth in our development portfolio, NTP is well positioned to maintain and grow its stronghold in the local economy.

This move into dairying is in line with our long-term rural strategy...

The local community has been hugely supportive with offers of industry advice and support. Local schools, sports clubs and community organisations have been involved in final land clearing (stick picking) as a community fundraiser.

19

NT ER ES T

NGÄI TAHU HOLDINGS GROUP

EN T M ST $88.91m FUN DS $112.68m EM $110.44m PL OY $111.23m E 2008 2009 2010 2011

D

IN VE ON

17.04% 4.68% 12.21% 15.14% 2008 2009 2010 2011

N UR LR TA TO

TO

TA

ET

LC OM

RE IN G OP ER

AT

IN G AT OP ER

PR E $12.83m $4.72m $13.63m $16.78m 2008 2009 2010 2011

TU 16.88% 4.80% 11.98% 15.09% 2008 2009 2010 2011

EB

IT $12.71m $4.83m $13.36m $16.73m 2008 2009 2010 2011

While the 2010-2011 year has continued to present major challenges with earthquakes, volcanic ash hindering air transport and exchange rates going against us, Ngäi Tahu Seafood (NTS) is proud to report a second successive record return, with an operating EBIT of $16.7m (FY10 $13.4m). We entered this financial year with cautious optimism and ended it with a result much greater than expected.

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Ngäi Tahu Seafood

While the majority of NTS profits are due to the strong köura (crayfish) market, the performance of all areas of our seafood business has been most encouraging. The global economy is still facing some major crises and a number of our traditional markets are facing tough times. We are constantly reminded of the cyclical nature of the seafood business and its fluctuating returns. While we celebrate the successes, we must prepare for the inevitably tougher times ahead.

NTS continues to support 49 Ngäi Tahu fishers as well as enjoying excellent relationships with our non-Ngäi Tahu fishers.

NTS and Ngäi Tahu Fisheries Settlement Ltd (NTFSL) work closely together, with NTS managing the majority of the settlement ACE on behalf of NTFSL. This has allowed NTS to provide better security to its fishers and ACE partners via longer term contracts.

NTS also works alongside Toitü Te Käinga on the regional development of fish stocks.

Considerable energy is invested in supporting the sustainable management of our fisheries. This is vital for our future and supports the values of the iwi. Iwi fishing forums and industry stakeholder groups work closely with the Ministry of Fisheries to ensure our fish stocks are well managed and the assessment of individual fish stocks using scientific data matches up with what is being observed by fishers on the water.

SPECIES PERFORMANCE KÖURA

China remains the major market for köura with its powerful economy continuing to prosper and perform more strongly than the US and European sectors. With increasing affluence in China, demand for food with “status” such as lobster is increasing, and New Zealand prices have held up despite the higher exchange rates. The continually improving quality of the TAHU brand has been acknowledged by importers.

20

The graphs above include Ngäi Tahu Fisheries Settlement Ltd assets (settlement quota transfers from Te Ohu Kai Moana as received) which Ngäi Tahu Seafood manages and operates. This provides a fairer base for assessing returns. Note that this treatment differs from prior years when these assets have been excluded from these graphs.

KÜTAI

The kütai industry underwent significant rationalisation during the year with Sanford purchasing Pacifica’s mussel business. There has also been greater industry collaboration with “Pure New Zealand Greenshell” (a co-operative involving most of the major companies in the mussel sector) being established to market New Zealand mussels into China. As a result, mussel prices have improved and we are again seeing positive returns from this sector. The future looks brighter. During the latter part of the year we entered into a farm servicing and mussel processing agreement with Aotearoa Seafoods and appointed an Aquaculture Manager to oversee our farms and investigate new opportunities in this growing sector.

IKA

In line with our strategy, NTS leases out the majority of its wetfish ACE to partners including: Talley’s, United Fisheries, Harbour Fish and Okains Bay Seafood. Term contracts

have been entered into with partners that incorporate support for Ngäi Tahu fisher catch plans. The only fishery NTS is currently active in is BCO5, where the Murihiku development pool catch around 100 tonnes of Blue Cod, which is processed through our Bluff plant.

We also sell and export a significant amount of fish supplied by our partners or other New Zealand companies.

PÄUA

Hong Kong and Asia are the main markets for päua, both of which were significantly affected by the global financial crisis. However, the past year has seen improvement in prices and demand for the canned product is still very strong. Exchange rates have hindered full recovery but the upward trend is encouraging.

TIO

The February 22 earthquake was not the ideal start to the new oyster season on

March 1, especially its impact on a number of our Christchurch customers. However, despite a slow start we completed another very successful season due to good catches from our vessels, smooth processing through our plant, a very strong customer base and good weather. NTS appreciates the support of Awarua Tio Development who provide the majority of our supply.

LOOKING AHEAD

NTS continues to explore opportunities consistent with our capabilities. Our overarching purpose is to prudently manage the tribe’s commercial seafood assets to derive appropriate and sustainable investment returns while always protecting and enhancing the overall value for future generations. The variable and cyclical nature of the seafood business makes it challenging to deliver consistent returns and

The initiative, driven by the local Bluff fishers, is now successfully up and running with 10 fishers on board.

the key species of today may not necessarily provide the required returns in the future.

We are therefore looking to establish a wider portfolio of seafood products to hedge against the traditional commodity swings.

Strong relationships with our fishers are important for our ongoing success. The Murihiku Development Pool is looking at ways to support investment in quota by young fishers to enable them to secure their own future rather than being reliant on leased ACE. NTS is also looking to develop a cadetship programme where young Ngäi Tahu can experience different aspects of the fishing industry aligned with some unit standards and cultural education.

The Board of Ngäi Tahu Seafood acknowledges the important role that the management team and staff have played in achieving this second consecutive record result – it has been a great team effort.

MURIHIKU DEVELOPMENT POOL Established in 2008 the Murihiku Development Pool was set up to create an opportunity for young Ngäi Tahu fishers to build their own fishing companies and ultimately ensure the long-term future of the Murihiku lobster industry.

The initiative, driven by the local Bluff fishers, is now successfully up and running with 10 fishers on board. The members are provided with mentoring and will be offered the opportunity to purchase quota alongside NTS for a minimum three-year term, giving them security to grow and develop their business.

For Ngäi Tahu Seafood it has created a significant opportunity to get closer to Bluff fisher whänau and develop mutually beneficial relationships.

Below: Ngäi Tahu fishers Quinn Fowler (left) and Shannon Hawkless

21

NT ER ES T

NGÄI TAHU HOLDINGS GROUP

EN T M ST PL OY M $63.33m $61.65m $56.53m $56.96m 2008 2009 2010 2011

FU ND SE

N UR ET LR TA 10.41% 8.60% 4.14% 7.34% 2008 2009 2010 2011

TO

TA $6.30m $5.38m $2.44m $4.17m 2008 2009 2010 2011

TO

ED

ON

HE PR E LC OM

RE IN G AT 10.50% 8.53% 10.06% 7.26% 2008 2009 2010 2011

OP ER

IN VE

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ON RN TU

IT EB IN G AT OP ER $6.35m $5.33m $5.94m $4.12m 2008 2009 2010 2011

Over the past two years, the New Zealand tourism industry, and Ngäi Tahu Tourism (NTT) with it, has faced significant challenges.

The global financial crisis has had a profound effect on travel and spending patterns across many of New Zealand’s key inbound visitor markets. In particular, the long haul source markets of the UK and USA have struggled with the enduring effects on their respective economies.

IN VE

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Ngäi Tahu Tourism

The devastating February earthquake in Christchurch has added another layer of uncertainty to the short-term travel flows. While NTT was spared the impact of having any operating assets directly in the affected area, the resulting visitor itinerary changes and negative publicity have had a downstream impact on those operating in the wider region.

Not surprisingly against this backdrop, with lower sales NTT saw its earnings fall against the previous year to $4.1m, representing a 7.3% return on funds invested in tourism.

The tourism operations across the group performed below budget and FY10 results.

Shotover Jet was down noticeably on last year’s record result, reflecting the more challenging conditions in the current year.

The new Glacier Hot Pools in Tai Poutini (West Coast) continue to attract more visitors, with 130,000 customers having now enjoyed the glacier-fed pools.

In challenging conditions, the business has responded with a range of improvement initiatives. During the year the difficult decision was taken to exit Ngäi Tahu Tourism’s interests in the Abel Tasman region to focus on the larger scale clusters of Southern Lakes, West Coast and the Central North Island. The sale of the Abel Tasman assets will be progressed over the next few months.

LOOKING AHEAD

Although the indicators are pointing to some further period of potential adversity, the medium-term outlook for New Zealand tourism remains very strong. The Asian markets are demonstrating sustained and rapid growth in visitor arrivals, led by China.

The critical Australian market has maintained its strength throughout however, many of the higher spending Australian travellers are currently favouring other long-haul

22

destinations, made accessible by a strong Australian currency.

Opportunities arising from the Rugby World Cup will be captured wherever possible, however, care is being taken to manage the impact on Ngäi Tahu Tourism’s regular customers and industry partners, and to set sensible expectations.

NTT is focused on positioning itself for growth. During the year the Ngäi Tahu Tourism and Ngäi Tahu Holdings Corporation Boards approved a major redevelopment project at Rainbow Springs.

The investment aims to “bring the park to life”, with additions including a state-of-theart water-based ride, a free-flight bird show, and an interactive children’s playground.

The new development, due to open for the 2011/12 summer, will provide its visitors with a truly unique New Zealand experience of a world-class standard.

With a long-term strategy and view, the tourism company has managed to weather the worst of the recent economic storm.

However, focus will now be on ensuring that the business is well positioned to

maximise opportunities for improved performance as the market recovers, and as the underperforming areas of the portfolio are addressed.

NTT is emerging as one of New Zealand’s leading tourism operators. As such the company recognises its responsibility to work with the wider industry to provide high quality, memorable experiences and grow New Zealand’s reputation as a destination of choice for international travellers, while also providing increasing reasons for the domestic tourism market to experience NTT product.

Illustration depicting scene from proposed Project Splash fun ride

PROJECT SPLASH

The new ride will take visitors on an unforgettable journey through New Zealand’s ecological evolution.

An important part of the Ngäi Tahu Tourism portfolio for over 15 years, Rotorua’s Rainbow Springs is undergoing a massive redevelopment, which includes a high-tech water ride designed by leading global fun-ride experts Intamin. The Swiss-based company has designed rides at Movie World, Sea World and Disney World. The $10 million “Project Splash” is the single largest investment since the wildlife park opened in 1932, and represents a significant contribution to Rotorua’s tourism offer.

Encouraging and supporting more Ngäi Tahu into tourism-focused careers within their operations and the wider industry is a key strategic goal. The development will create a number of new jobs and Ngäi Tahu Tourism is keen to work with whänau to help position them to be the best person for the job. Currently Rainbow Springs employs 27 staff.

The Rainbow Springs project is expected to be completed in early 2012.

The new ride, the only one of its kind in New Zealand, will take visitors on an unforgettable journey through New Zealand’s ecological evolution. Beginning the journey in the realm of Täne Mahuta (God of the forest) among kauri and tötara trees, the ride is both educational and exciting, providing a 12-metre adrenaline filled descent into a splash pool.

The Park Redevelopment also includes a new 350-seat bird auditorium to host live bird shows; an interactive playground that will be full of fun educational activities for rangatahi; and an upgrade of the reptile enclosure to house 10 newly hatched tuatara.

23

NT ER ES T

NGÄI TAHU HOLDINGS GROUP

EN T M ST

ON

HE

-28.59% 4.39% 21.17% 37.78%

$65.35m FUN DS $66.34m EM $79.50m PL OY $110.82m E 2008 2009 2010 2011

N UR LR TA TO

TO

TA

ET

LC OM

RE IN G OP ER

AT

IN G AT OP ER

PR E

2008 2009 2010 2011

D

IN VE

EI NS IV

ON RN

- $19.98m $2.89m $15.44m $35.95m 2008 2009 2010 2011

TU 2.06% 3.17% 3.34% 4.82% 2008 2009 2010 2011

EB

IT $1.82m $2.09m $2.43m $4.59m 2008 2009 2010 2011

Our ongoing interest in Ryman Healthcare Limited continues to be an outstanding investment for Ngäi Tahu Capital (NTC).

During the year this investment generated $2.9m in dividend income and importantly our holding increased in value by $31.2m (from $79.6m on 1 July 2010 to $110.8m on 30 June 2011). The total return on investment was 37.8% (FY10 21.2%).

IN VE

OVERVIEW

NC OM

ST

M

EB

EN T

EF OR

EI

Ngäi Tahu Capital

Ngäi Tahu initially invested in Ryman 13 years ago, purchasing a 20 per cent stake for $7.4m. Currently NTC has an 8% stake in Ryman Healthcare Limited and a coinvestment agreement with Tainui Group Holdings in respect of their 4.5% holding.

Subsequent to balance date Tainui Group have sold their shareholding in Ryman to fund other capital commitments. This shareholding makes up a considerable portion of the Ngäi Tahu Holdings Corporation assets.

Diversification of the investment base and building global relationships are key strategic goals for NTC. To this end, immediately prior to the end of the financial year the company confirmed its 7.24% investment in Agria Asia Investments Limited (Agria), the 50.01 percent controlling shareholder in PGGW. The joint-venture entity Agria is significant in bringing together an iwi-based commercial entity and a Chinese investment company with both parties being focused on values and commercial returns with an intergenerational view to investment.

The $15m (7.24%) cornerstone shareholding is an important addition to Ngäi Tahu’s ongoing interest in the rural sector and for its potential to bring downstream value to other areas of the commercial business over time.

During the next financial year NTC will also be creating and implementing a diversified listed equities and bond fund portfolio in line with our adopted Investment Policy Framework.

Below: Ngäi Tahu Capital recently confirmed its investment in Agria, the 50.01% controlling shareholder in PGGW.

Diversification of the investment base and building global relationships are key strategic goals for Ngäi Tahu Capital

24

TE RÜNANGA O NGÄI TAHU AND NGÄI TAHU CHARITABLE TRUST

Summary Group Financial Statements FOR THE YEAR ENDED 30 JUNE 2011

The following Summary Group Financial Statements have been extracted from the audited Full Group Financial Statements dated 17 September 2011. The Full Group Financial Statements were prepared in accordance with New Zealand Generally Accepted Accounting Practice (‘NZ GAAP’).

The Group is a public benefit entity and has made an explicit statement of compliance with NZ IFRS as applicable for public benefit entities in the Full Group Financial Statements. The Summary Group Financial Statements cannot be expected to provide as complete an understanding as provided by the Full Group Financial Statements. An unqualified audit opinion was issued on the Full Group Financial Statements.

Summary Group Statement of Comprehensive Income

page 26

Summary Group Statement of Changes in Equity

page 27

Summary Group Statement of Financial Position

page 28

Summary Group Statement of Cash Flows

page 30

Summary Statement of Accounting Policies

page 32

Notes to the Summary Group Financial Statements

page 36

The Summary Group Financial Statements have been examined by the Group’s auditor for consistency with the Full Group Financial Statements and their unqualified audit report on the Summary Group Financial Statements has been attached.

Audit Report

page 53

Further details about the Group’s Financial Performance and Financial Position can be obtained from the Full Group Financial Statements.

Each Tribal member is entitled to obtain upon request a copy of the Full Group Financial Statements. Requests should be made to the Office of Te Rünanga o Ngäi Tahu – Attention: Jeff Goldsmith.

The Rünanga Representatives authorised the issue of the Full Group Financial Statements on 17 September 2011.

25

TE RÜNANGA O NGÄI TAHU AND NGÄI TAHU CHARITABLE TRUST

Summary Group Statement of Comprehensive Income FOR THE YEAR ENDED 30 JUNE 2011

Revenue & Other Income from Trading Operations

NOTES

5 (a)

JUNE 2011 $ 000s

JUNE 2010 $ 000s

162,631

145,769

45,120

38,821

(8,469) 631 63 5,359 0 360 2,954 (2,953)

(4,816) 1,507 16,162 1,137 (7,457) (77) 0 0

(18,818)

(1,815)

(9,315)

0

14,932

43,462

1,263 (9,224) (10) 3,126 (14,260)

5,914 (9,880) (10) 2,093 (13,728)

(4,173) (552)

27,851 (605)

(4,725)

27,246

31,200 110 (1,023) 30,287

16,400 0 (106) 16,294

Total Comprehensive Income for the Year

25,562

43,540

Profit / (Loss) Attributable to: Non-Controlling Interest Members of the Parent Entity

155 (4,880)

130 27,116

(4,725)

27,246

155 25,407

130 43,410

25,562

43,540

Profit from Ongoing Trading Operations before Interest, Government Grants, Earthquake Damage Insurance Proceeds, Building Remediation costs, Revaluations including Earthquake Effect, Taxation and Tribal Activities

Finance Costs 5 (c) Share of Associate's Net Surplus Accounted for using the Equity Method Government Grant Income (Carbon Credits) Net Gain on Sale of Non-Current Assets 5 (b) Impairment Losses on Non-Current Assets 5 (c) Net Gain/ (Loss) from Fair Value Adjustments on Biological Assets Earthquake Insurance Proceeds 5 (c) Earthquake Building Remediation costs 5 (c) Net (Loss) from Fair Value Adjustments on Investment Properties 9 – Market Movement Net (Loss) from Fair Value Adjustments on Investment Properties – Specific Earthquake Damage 9 Trading Surplus prior to Tribal Activities

Aquaculture Settlement Received Operating expenses – Te Rünanga o Ngäi Tahu Impairment Losses on Non-Current Assets Revenue relating to Tribal, Rünanga and Whänau Distributions Tribal, Rünanga and Whänau Distribution Expenses (Loss) / Profit for the Year Less Taxation

6 5 (c) 7 7 13

Includes sales (mainly relating to seafood, tourism and properties), interest income, rents received, dividends and income from investments.

Our share of Whale Watch Kaiköura Surplus for the year.

Fair value of carbon credits.

Includes settlement of fish quota and settlement cash from Te Ohu Kai Moana.

Includes rünanga distributions and development, Whai Rawa distributions, Ngäi Tahu Fund distributions, protection of natural resources, publications, communications and development and expenses for other tribal programmes.

(Loss) / Profit after taxation Other Comprehensive Income / (Loss) Net Gain from Fair Value Adjustments of Investments Share of Other Comprehensive Income of Associate Net (Loss) on Cash Flow Hedges Other Comprehensive Income for the Year

Total Comprehensive Income Attributable to: Non-Controlling Interest Members of the Parent Entity

26

Ryman Shares increase in value

This Statement is to be read in conjunction with the Summary Statement of Accounting Policies and Notes to the Summary Group Financial Statements attached.

TE RÜNANGA O NGÄI TAHU AND NGÄI TAHU CHARITABLE TRUST

Summary Group Statement of Changes In Equity FOR THE YEAR ENDED 30 JUNE 2011

Balance at beginning of year Net Movement in Reserves: – Investment valuation gain – Associate's Share of Foreign Translation Reserve (Loss) Recognised on cash flow hedges

JUNE 2011 $ 000s

JUNE 2010 $ 000s

570,201

526,661

31,200 110 (1,023)

16,400 0 (106)

Net Gain recognised directly in equity

30,287

16,294

Net Surplus (Loss) for the Year: –Te Rünanga o Ngäi Tahu and Ngäi Tahu Charitable Trust – Minority Shareholders

(4,880) 155

27,116 130

(4,725)

27,246

25,562 (4,724)

43,540 0

591,039

570,201

Total comprehensive income for the year Distributions Balance at end of year

This Statement is to be read in conjunction with the Summary Statement of Accounting Policies and Notes to the Summary Group Financial Statements attached.

Ryman Shares increase in value

27

TE RÜNANGA O NGÄI TAHU AND NGÄI TAHU CHARITABLE TRUST

Summary Group Statement of Financial Position AS AT 30 JUNE 2011

NOTES

Current Assets Cash and Cash Equivalents Accounts Receivable Inventories Inventories – Property Loans Advanced Other Financial Assets Other Current Assets

Money owed to Ngäi Tahu by our customers.

Stock of fish, unleased quota, marine farm crops, retail merchandise held for sale and parts stock.

Properties and sections planned to be sold within 12 months.

Abel Tasman businesses, Canterbury Foothills forest and Carbon Credits targeted for sale within 12 months.

Non-Current Assets Classified As Held for Sale Total Current Assets Non-Current Assets Accounts Receivable Non Current Inventory – Property Loans Advanced Property, Plant and Equipment Biological Assets Investment Properties Investments in Equity Instruments Interest in Associate Company Fish Quota and Marine Farm Licences Carbon Credits Goodwill Brands, River Rights, Concessions and Software Total Non-Current Assets Total Assets

28

JUNE 2011 $ 000s

Residential and Commercial Development Property

8 9 10

Investment properties primarily held for rental income and capital appreciation.

Includes shares in Ryman Healthcare and Aotearoa Fisheries.

The carrying value of our share of Whale Watch Kaiköura.

Relates to Ngäi Tahu Tourism Businesses.

JUNE 2010 $ 000s

8,191 11,324 5,089 35,544 853 0 1,169

4,493 6,443 5,933 36,296 1,636 9 722

62,170 27,825

55,532 0

89,995

55,532

3,346 25,485 268 36,596 4,681 304,302 117,053 8,363 106,271 0 15,538 18,571

3,658 23,579 398 34,155 3,708 343,594 85,105 8,492 105,714 16,162 15,583 19,571

640,474

659,719

730,469

715,251

This Statement is to be read in conjunction with the Summary Statement of Accounting Policies and Notes to the Summary Group Financial Statements attached.

TE RÜNANGA O NGÄI TAHU AND NGÄI TAHU CHARITABLE TRUST

Summary Group Statement of Financial Position (continued) AS AT 30 JUNE 2011

NOTES

Current Liabilities Bank Overdraft Creditors and Accruals Other Current Financial Liabilities Taxation

JUNE 2011 $ 000s

Money owed to our suppliers and rünanga distributions still to be paid.

Total Current Liabilities Non-Current Liabilities Term Loans Other Financial Liabilities

12

Includes borrowings under syndicated debt facility.

Total Non-Current Liabilities

JUNE 2010 $ 000s

411 25,487 373 97

252 24,284 92 102

26,368

24,730

106,000 7,062

114,000 6,320

113,062

120,320

Total Liabilities

139,430

145,050

Net Assets

591,039

570,201

230,274 897 95,582 (7,435) 110 270,694

233,511 897 64,382 (6,412) 0 276,837

590,122 917

569,215 986

591,039

570,201

Equity Trust Funds in Perpetuity Capital Reserve Asset Revaluation Reserve Hedge Reserve Associate’s Share of Foreign Translation Reserve Retained Earnings Tribal Equity Minority Interest

Funds received from the Crown including Claim Settlement $170m and Fisheries and Aquaculture Settlements.

Includes the difference between the current market value and the prices paid for Ryman Shares.

Represents unrealised losses on foreign currency and interest rate hedges.

The net worth of Ngäi Tahu as measured in the Group Financial Accounts.

Total Equity

17 September 2011

Mark Solomon Kaiwhakahaere

Mike Sang Chief Executive Officer

This Statement is to be read in conjunction with the Summary Statement of Accounting Policies and Notes to the Summary Group Financial Statements attached.

29

TE RÜNANGA O NGÄI TAHU AND NGÄI TAHU CHARITABLE TRUST

Summary Group Statement of Cash Flows FOR THE YEAR ENDED 30 JUNE 2011

NOTES

Cash Flows from Operating Activities Cash was provided from: Cash receipts from Customers Sale of Inventories – Property Dividends received Aquaculture Settlement received Earthquake Insurance Proceeds received Interest received

Includes sales of residential development sections.

Cash was applied to: Cash paid to Suppliers and Employees Purchase of and Expenditure on Development Properties Earthquake Remediation Repairs Tribal Distributions Interest paid Taxation paid Net Cash Inflow from Operating Activities

JUNE 2011 $ 000s

Includes purchases of residential development sections.

14

Cash Flows From Investing Activities Cash was provided from: Sale of Property, Plant and Equipment Loans repaid Sale of Forests Sale of Investment Sale of Carbon Credits

Cash was applied to: Purchase of Property, Plant and Equipment Loans advanced Acquisition of Businesses Purchase of Investments Purchase of Fish Quota and Marine Farm Licences Purchase of Biological assets Purchase of Intangibles Investment Properties Expenditure Net Cash (Outflow) Investing Activities

30

Includes capital costs associated with Christchurch City Council JV and other property investments.

JUNE 2010 $ 000s

143,185 21,408 3,750 0 1,763 576

133,367 18,626 2,875 5,914 0 415

170,682

161,197

111,117 16,493 2,173 14,260 8,820 557

108,098 9,349 0 14,854 7,966 461

(153,420)

(140,728)

17,262

20,469

984 205 165 165 17,765

1,534 562 1,088 0 0

19,284

3,184

6,069 49 0 827 557 668 2 12,792

2,375 483 60 185 32 543 50 36,168

(20,964)

(39,896)

(1,680)

(36,712)

This Statement is to be read in conjunction with the Summary Statement of Accounting Policies and Notes to the Summary Group Financial Statements attached.

TE RÜNANGA O NGÄI TAHU AND NGÄI TAHU CHARITABLE TRUST

Summary Group Statement of Cash Flows (continued) FOR THE YEAR ENDED 30 JUNE 2011

Cash Flows From Financing Activities Cash was provided from: Syndicated Debt Facility loans

JUNE 2011 $ 000s

JUNE 2010 $ 000s

0

19,000

0

19,000

8,000 43 4,000 0

0 0 0 773

(12,043)

(773)

(12,043)

18,227

Net Increase In Cash Held Add balance at beginning of year

3,539 4,241

1,984 2,257

Balance at end of year

7,780

4,241

Represented by: Cash and cash equivalents Bank Overdraft

8,191 (411)

4,493 (252)

7,780

4,241

Cash was applied to: Repayment of Syndicated Debt Facility loans Payment of Distribution to Minority shareholder Distribution of Aquaculture Settlement to Rünanga Repayment of other loans Net Cash (Outflow) / Inflow From Financing Activities

This Statement is to be read in conjunction with the Summary Statement of Accounting Policies and Notes to the Summary Group Financial Statements attached.

31

TE RÜNANGA O NGÄI TAHU AND NGÄI TAHU CHARITABLE TRUST

Summary Statement of Accounting Policies FOR THE YEAR ENDED 30 JUNE 2011

1.

BASIS OF PREPARATION

1.1.

REPORTING ENTITY

These Summary Group Financial Statements have been prepared for the purpose of giving information about the Group to Ngäi Tahu Whänui.

The Summary Group Financial Statements for Te Rünanga o Ngäi Tahu and Ngäi Tahu Charitable Trust include Te Rünanga o Ngäi Tahu and its subsidiaries, including Ngäi Tahu Charitable Trust, Ngäi Tahu Holdings Corporation Limited and its subsidiaries and the trusts for which the company and its subsidiaries act as trustee, and the subsidiaries and associates of those trusts (“the Group”), adjusted to eliminate the effect of significant intra-group transactions.

1.2.

STATEMENT OF COMPLIANCE

Te Rünanga o Ngäi Tahu is responsible for the overall governance of Ngäi Tahu’s affairs, the representation of the tribe’s interests, the protection and advancement of the rights of the members of Ngäi Tahu Whänui, and delivering social, cultural and development programmes to Ngäi Tahu members and their communities. Ngäi Tahu Holdings Corporation manages the commercial activities and assets that have been placed in the Ngäi Tahu Charitable Trust, being primarily property investment, property development, tourism, fishing and investment activity in New Zealand. Te Rünanga o Ngäi Tahu is a body corporate incorporated in New Zealand by section 6 of the Te Rünanga o Ngäi Tahu Act 1996. It is a public benefit entity and is domiciled in New Zealand.

Te Rünanga o Ngäi Tahu and the Ngäi Tahu Charitable Trust have common beneficiaries.

The Summary Group Financial Statements for the Group have been prepared in accordance with generally accepted accounting practice in New Zealand (“NZ GAAP”) as it relates to Summary Financial Statements as appropriate for Public Benefit Entities. They comply with FRS-43: Summary Financial Statements.

The full financial statements were authorised for issue by Te Rünanga o Ngäi Tahu on 17 September 2011.

1.3.

BASIS OF MEASUREMENT

The Summary Group Financial Statements have been prepared on the basis of historical cost, except for the revaluation of certain non-current assets and financial instruments.

Cost is based on the fair value of the consideration given in exchange for assets.

Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions and other events is reported.

32

The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2011 and the comparative information presented in these financial statements for the year ended 30 June 2010.

1.4.

CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of financial statements in conformity with NZ IFRS 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 full financial statements provide detail behind critical estimates and judgements. These summary group financial statements should be read in conjunction with the full financial statements.

The estimates and judgements are reviewed by management on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised unless the revision impacts on future periods as well in which case it is recognised in current and future periods.

The following are the critical estimates and judgements management have made in the process of applying the Group’s accounting policies and that have the most significant impact on the amounts recognised in the financial statements: Impairment of Goodwill and Other Intangibles The Group determines whether intangibles with an indefinite useful life are impaired at least on an annual basis. This requires the estimation of the recoverable amount of the cash generating units to which these intangibles are allocated.

Fair value of Investment Properties Investment properties of the Group are valued at fair value at least on an annual basis. This requires the estimation of current market values by independent registered valuers.

Impairment of Quota The Group determines whether fish quota is impaired at least on an annual basis. Impairment of quota has been assessed by comparing the book value to a three year rolling average of broker prices.

Fair value of Carbon Credits Carbon credits of the Group are initially valued at fair value.

This requires the estimation of current market values.

Insurance Recognition Insurance proceeds have been recognised on the basis that sufficient support has been obtained to satisfy the virtual certainty test that costs incurred will be met by insurance cover in place and an insurance proceeds receivable would be recognised at balance date. However, where virtual certainty does not exist, no insurance proceeds receivable have been recognised.

TE RÜNANGA O NGÄI TAHU AND NGÄI TAHU CHARITABLE TRUST

Summary Statement of Accounting Policies (continued) FOR THE YEAR ENDED 30 JUNE 2011

1.5.

2.

PRESENTATION CURRENCY

(b)

The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($000) unless otherwise stated.

Associates are all entities in which the Group has significant influence, but not control, over the financial and operating policies. Investments in associates are accounted for using the equity method of accounting and are initially recorded at cost.

SIGNIFICANT ACCOUNTING POLICIES

The Group’s share of its associates’ post-acquisition profits or losses is recognised in profit and loss and its share of postacquisition reserves is recognised in other comprehensive income and accumulated as a separate component of equity in the appropriate reserve. The cumulative post-acquisition movements are adjusted against the carrying value of the investment.

The following significant accounting policies have been adopted in the preparation and presentation of the financial report: 2.1.

(a)

Associate Companies

BASIS OF COMBINATION

Basis of Combination

When the Group’s share of losses exceeds the carrying amount of the associate, the carrying amount is reduced to nil and recognition of further losses is discontinued except to the extent that the Group has incurred obligations in respect of the associate.

The Summary Group’s financial statements incorporate the financial statements of the Te Rünanga o Ngäi Tahu and Ngäi Tahu Charitable Trust, and entities which they control (its subsidiaries). Control is achieved where the Entity has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The acquisition method has been used in the combination of the results and financial position of subsidiaries and joint ventures, while the equity method has been adopted for use in the incorporation of the results and financial position of associate companies.

Where an entity within the Group transacts with an associate of the Group, profits and losses are eliminated to the extent of the Group’s interest in the associate. (c)

The trusts have been aggregated by combining on a line by line basis the financial statements of the trusts and their subsidiaries and associates with the consolidated financial statements of Te Rünanga o Ngäi Tahu and Ngäi Tahu Charitable Trust and its subsidiaries.

The results of subsidiaries acquired or disposed of during the year are included in profit or loss from the effective date of acquisition or up to the effective date of disposal, as appropriate.

Where an entity within the Group transacts with a joint venture of the Group, profits and losses are eliminated to the extent of the Group’s interest in the joint venture.

2.2.

FOREIGN CURRENCY

Transactions in foreign currencies are converted at the New Zealand rate of exchange ruling at the date of the transactions.

Assets and liabilities expressed in foreign currencies are translated to New Zealand currency at exchange rates ruling at balance date. Realised and unrealised gains or losses due to movements in exchange rates are included in profit or loss, except for exchange differences on transactions entered into in order to hedge certain foreign currency risks.

Where necessary, adjustments are made to the financial statements of the subsidiaries to bring their accounting policies into line with those used by other members of the Group.

All intra-group transactions, balances, income and expenses are eliminated in full on combination.

Non-controlling interests in subsidiaries are identified separately from the Combined Group’s equity therein. The interests of non-controlling shareholders may be initially measured either at fair value or at the non-controlling interests’ proportionate share of the fair value of the acquiree’s identifiable net assets. The choice of measurement basis is made on an acquisition-by-acquisition basis. Subsequent to acquisition, the carrying amount of non-controlling interests is at initial recognition plus the non-controlling interests’ share of subsequent changes in equity. Total comprehensive income is attributed to non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Joint Ventures The Group’s interests in jointly controlled entities are accounted for by proportionate consolidation. The Group combines its share of joint venture’s individual income and expenses, assets and liabilities on a line-by-line basis with similar items in the Group’s financial statements.

2.3.

INVENTORIES

Inventories have been valued at the lower of cost, on a standard or weighted average basis, and net realisable value after due allowance for damaged or obsolete inventory.

Costs include a systematic allocation of appropriate production overheads that relate to putting inventories in their present location and condition.

Inventories classified as annual catch entitlement (ACE) are the rights to catch fish that are attached to the fish quota shares.

33

TE RÜNANGA O NGÄI TAHU AND NGÄI TAHU CHARITABLE TRUST

Summary Statement of Accounting Policies (continued) FOR THE YEAR ENDED 30 JUNE 2011

Properties classified as inventories are properties intended for sale in the ordinary course of business or are in the process of being constructed or developed for such a sale.

2.4.

PROPERTY, PLANT AND EQUIPMENT

(a)

Recognition and Measurement Property, Plant and Equipment is stated at historical cost less accumulated depreciation and provision for impairment.

Historical cost includes expenditure that is directly attributable to the acquisition of the items.

(b)

at the original fair value less any accumulated impairment losses.

Carbon credits have an indefinite useful life and are tested for impairment annually or when an indication of impairment exists. The useful life of carbon credits with an indefinite life is reviewed each reporting period to determine whether the indefinite life assessment continues to be supportable. (b)

Goodwill arising on the acquisition of businesses or subsidiaries represents the excess of the cost of acquisition over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the business or subsidiaries recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less any accumulated impairment losses.

Subsequent costs Subsequent costs are included in the asset’s carrying value or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

(c)

(d)

Goodwill is not subject to amortisation, but is tested annually for impairment and whenever there is an indication that the goodwill may be impaired. Any impairment is recognised immediately in profit or loss and is not subsequently reversed.

Depreciation Land has not been depreciated. Depreciation on other assets is calculated on a straight line basis to allocate their cost to their residual values over their estimated useful lives. The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period.

Disposal

(c)

(d)

Brands, river rights, concessions and consents have an indefinite useful life and are recorded at cost less impairment.

Computer Software Computer software and licences are capitalised on the basis of the costs incurred to acquire and bring to use the specific asset. These costs are amortised on a straight line basis over the assets estimated useful life of one to five years.

INVESTMENT PROPERTY

Investment properties are measured initially at its cost, including transaction costs. Subsequent to initial recognition, investment property is measured at fair value. The fair value represents the market value determined annually by external valuers.

2.7.

INTANGIBLE ASSETS

(a)

Carbon Credits Carbon credits acquired by way of a government grant are initially recognised at the date of entitlement at fair value.

Subsequent to initial recognition, carbon credits are measured

34

BORROWING COSTS

All borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use, are added to the cost of those assets, until such time as the assets are substantially ready for use. All other borrowing costs are recognised in profit or loss in the period which they are incurred.

2.8.

REVENUE RECOGNITION

Revenue comprises the fair value of the consideration received or receivable for the sale of goods and services, net of goods and services tax (GST), rebates, discounts and after eliminating sales within the Group. Revenue is recognised as follows:

Any gains or losses arising from a change in fair value are recognised in profit or loss.

2.6.

Other Intangible Assets Brands, River Rights, Concessions and Consents

Surpluses and deficits on disposal are determined by comparing proceeds with carrying amount. These are included in profit or loss.

Investment Property includes properties held to earn rental income and/or for capital appreciation (including property being constructed or developed for future use as investment property). A property is also classified as an investment property if it does not have an operating lease in place, but is held with the intention of securing an operating lease.

Quota and Marine Farm Licences Quota and marine farm licences are both indefinite life intangible assets. They are both recorded at cost less impairment.

An asset’s carrying value is written down immediately to its recoverable amount if the asset’s carrying value is greater than its estimated recoverable amount.

2.5.

Goodwill

(a)

Rental Income Rental income is recognised on a straight line basis over the lease term. Lease incentives and initial direct costs incurred in negotiating and arranging an operating lease are added to

TE RÜNANGA O NGÄI TAHU AND NGÄI TAHU CHARITABLE TRUST

Summary Statement of Accounting Policies (continued) FOR THE YEAR ENDED 30 JUNE 2011

the carrying amount of the leased asset and recognised on a straight line basis over the lease term. (b)

Sale of goods

is payable by Ngäi Tahu Charitable Trust and its subsidiaries as they all have charitable status for Income Tax purposes.

2.11. STATEMENT OF CASH FLOWS

Sale of goods are recognised when the Group has transferred the significant risks and rewards of ownership of the goods sold. (c)

The Statement of Cash Flows has been prepared using the direct method. For the purposes of the statement of cash flows, cash comprises cash and bank balances and bank overdraft which form part of the day-to-day cash management.

Sale of services Sale of services are recognised in the accounting period in which the services are rendered, by reference to completion of the specific transaction assessed on the basis of the actual service provided as a proportion of the total services to be provided.

(d)

Once a financial asset or a group of similar financial assets has been written down as a result of an impairment loss, interest income is recognised using the original effective interest rate.

Dividend Income Dividend income is recognised when the right to receive payment is established. (f)

Government Grant Government grants are not recognised until there is reasonable assurance that the Group will comply with any conditions attached to them and that the grants will be received.

Government grants are assistance provided by the Government in the form of transfers of resources to the Group in return for past or future compliance with certain conditions relating to the operating activities of the Group. Government grants are recognised in profit or loss.

2.9.

Financing activities are those activities relating to changes in the equity and debt structure of the Group and the cost of servicing the Group’s equity capital.

Interest Income Interest income is recognised on a time proportion basis using the effective interest method.

The effective interest method allocates the interest income over the life of the contract or, when appropriate, a shorter period using the effective interest rate. The effective interest rate is the discount rate at which the present value of the future cash flows equals the net carrying amount of the financial asset. When calculating the effective interest rate the Group estimates the future cash flows considering all the contractual terms of the contract but does not include future credit losses.

The calculation of the effective interest rate includes all fees, transaction costs and all other premiums or discounts that are an integral part of the effective interest rate.

(e)

Investing activities are those activities relating to the acquisition and disposal of current and non-current investments and other non-current assets.

PAPATIPU RÜNANGA DISTRIBUTIONS

Distributions are recognised as an expense in the period that individual contracts have been entered into. Distribution payments are made in accordance with the contract terms.

2.10. TAXATION

Te Rünanga o Ngäi Tahu is taxed on its business income at the Mäori Authority rate. This taxation is accounted for on the comprehensive basis, using the liability method. No taxation

Operating activities include all transactions that are not investing or financing activities.

3.

CHANGES IN ACCOUNTING POLICIES

There have been no changes in accounting policies.

4.

DETERMINATION OF FAIR VALUES

A number of the Group’s accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. Where applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.

Investment Properties The fair values of investment properties are based on market value, being the estimated amount for which a property could be exchanged on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction where the parties have each acted knowledgeably, prudently and without compulsion.

The valuations are prepared by considering the aggregate of the net annual rents receivable from the properties and where relevant, associated costs. A yield which reflects the risks inherent in the net cash flows is then applied to the net annual rentals to arrive at the property valuation.

The impact of the recent Canterbury earthquakes have added further complication to the valuation process and have had a significant impact on investment property yields, capitalisation and discounted cash flow rates. Refer note 9.

Derivatives The fair value of forward exchange contracts is based on their quoted market price, if available. If a quoted market price is not available, then fair value is estimated by discounting the difference between the contractual forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate (based on government bonds).

35

TE RÜNANGA O NGÄI TAHU AND NGÄI TAHU CHARITABLE TRUST

Summary Statement of Accounting Policies (continued) FOR THE YEAR ENDED 30 JUNE 2011

4.

DETERMINATION OF FAIR VALUES (continued)

The fair value of interest rate swaps is based on broker quotes.

Those quotes are tested for reasonableness by discounting estimated future cash flows based on the terms and maturity of each contract and using market interest rates for a similar instrument at the measurement date.

Carbon Credits The fair value of carbon credits has been assessed by independent valuers with reference to the NZU carbon register and domestic and international carbon markets and has factored in downward adjustments for time value of money, market risk, mapping risk and selling cost to arrive at the fair value.

It is considered that there is no active market for carbon credits and therefore this asset is not revalued on an annual basis, but is assessed annually for impairment.

Investments in Equity Instruments The fair value of investments traded in an active market is based on the end of trade bid price at the measurement date.

Notes to the Summary Group Financial Statements JUNE 2011 $ 000s 5.

JUNE 2010 $ 000s

INCOME AND EXPENSES

All revenue is from continuing operations and consists of the following items: (a)

(b)

36

Revenue and other Income Revenue for the sale of goods Revenue from the rendering of services Rental received from properties Recoverable Property Operating Expenses Foreign exchange gains on sale of goods Dividends – on available for sale financial assets Interest revenue Hedge effectiveness on foreign exchange contracts Time value on foreign exchange options Other revenue

Net Gain / (Loss) on Sale of Non Current Assets Property, Plant and Equipment Investments Carbon Credits Investment Properties

94,542 39,095 22,948 1,692 54 2,880 587 0 0 833

84,174 37,523 18,870 1,126 470 2,440 415 10 135 606

162,631

145,769

(78) 165 5,181 91

613 0 0 524

5,359

1,137

TE RÜNANGA O NGÄI TAHU AND NGÄI TAHU CHARITABLE TRUST

Notes to the Summary Group Financial Statements (continued) FOR THE YEAR ENDED 30 JUNE 2011

5.

INCOME AND EXPENSES (continued)

(c)

The following expenses are included in the determination of Group profit:

Finance costs: Interest paid on bank loans Interest paid on interest rate swaps Bank facility fees Amount of interest capitalised (1)

JUNE 2011 $ 000s

JUNE 2010 $ 000s

4,812 2,617 1,383 (343)

3,863 2,717 1,308 (3,072)

8,469

4,816

Direct operating expenses of investment properties: Properties generating rental income

2,460

1,705

Depreciation and Amortisation: Depreciation of property, plant and equipment Amortisation of intangible assets

3,695 57

3,745 238

3,752

3,983

10 0 0

3,909 997 2,561

10

7,467

0 10

7,457 10

10

7,467

29 517 697 744 9 1,915 2,060 166

178 493 607 791 0 2,655 2,100 170

2,953 (2,954)

0 0

Impairment Losses on Non-Current Assets: Impairment of investments Impairment of goodwill Impairment of other intangibles

Represented by: Trading Operations Tribal Activities

Other expenses Bad and doubtful debts Defined contribution plans Fees paid to directors of trustees (note 16) Fees paid to Te Rünanga o Ngäi Tahu Representatives (note 16) Time value on foreign exchange options Leasing and rental charges Tourism concessions Other employee benefits Earthquake Building Remediation costs and Insurance Proceeds Received Earthquake Building remediation costs – paid and accrued (note 9) Earthquake Insurance proceeds-received and receivable (note 9)

(1) The weighted average capitalisation rate on funds borrowed is 7.16% per annum in the year ended 30 June 2011 (2010: 7.14%).

37

TE RÜNANGA O NGÄI TAHU AND NGÄI TAHU CHARITABLE TRUST

Notes to the Summary Group Financial Statements (continued) FOR THE YEAR ENDED 30 JUNE 2011

6.

FISHERIES AND AQUACULTURE SETTLEMENTS

During the year the Crown settled further the Mäori Commercial Aquaculture Claims. This included the following assets: SETTLEMENT VALUE $000S

FAIR VALUE ADJUSTMENT $000S

FAIR VALUE

2010

$000S

$000S

Aquaculture asset money

1,263

0

1,263

5,914

Aquaculture Settlement Income

1,263

0

1,263

5,914

Section 161 of the Mäori Fisheries Act 2004 states that settlement quota sales can only be made to another mandated iwi organisation or an entity within Te Ohu Kai Moana Group.

Such sales are possible two years after the first transfer of settlement quota by Te Ohu Kai Moana Limited to the mandated iwi organisation. Settlement quota cannot be gifted.

Donal Boyle from Quota Management Systems Limited determined the fair value of fish quota at the time of settlement with reference to market evidence of current market prices.

Donal Boyle is an independent valuer not related to the Group.

He has 28 years experience in the fishing industry and 15 years valuing fish quota.

38

The Fish Quota sits in Ngäi Tahu Fisheries Settlement Ltd (NTFSL). Ngäi Tahu Fisheries Settlement Ltd (NTFSL) is Ngäi Tahu’s asset holding company under the Mäori Fisheries Act 2004. Details of NTFSL’s annual plan for FY11 and its performance against that annual plan can be found on the Ngäi Tahu CommunityNet along with NTFSL’s annual plan for FY12. NTFSL’s annual plans are developed using the Letter of Expectation (issued by Te Rünanga) and Statement of Corporate Intent (issued by NTFSL) process used throughout the Te Rünanga Group. During FY11 NTFSL did not sell or exchange any settlement quota, nor did NTFSL (or its subsidiaries) change its constitutional documents and there are no plans to make such changes in FY12. NTFSL and Ngäi Tahu Seafood Ltd (NTS) have entered into a Management Agreement and a ACE Sales Agreement whereby NTS manages NTFSL’s operations and ACE (excluding regional development fish stocks). During FY11, NTFSL continued the process of repatriating residual fisheries assets that are held by Te Ohu Kai Moana.

TE RÜNANGA O NGÄI TAHU AND NGÄI TAHU CHARITABLE TRUST

Notes to the Summary Group Financial Statements (continued) FOR THE YEAR ENDED 30 JUNE 2011

7.

JUNE 2011 $ 000s

JUNE 2010 $ 000s

TRIBAL, RÜNANGA AND WHÄNAU DISTRIBUTIONS

Income relating to Tribal, Rünanga and Whänau Distributions

3,126

2,093

Expenses Rünanga Distributions & Development Culture and Identity Social Independence Natural Resources, Tribal Properties and Mahinga Kai Cultural parks Strategy and Influence Whai Rawa Distributions and Development Tribal Representation

4,498 1,508 2,501 861 523 2,754 1,615

4,445 1,775 1,987 696 753 2,383 1,689

14,260

13,728

11,134

11,635

Net Expenses

The above costs represent the direct costs of the programmes only and do not include an allocation of general operational and administrative expenses.

8.

PROPERTY, PLANT AND EQUIPMENT – NET BOOK VALUE

Land and Buildings Plant, Office and Computer Equipment Motor Vehicle

9.

28,376 6,999 1,221

28,131 5,183 841

36,596

34,155

110,894 112,605 65,693 15,110

119,310 70,065 83,511 70,708

304,302

343,594

INVESTMENT PROPERTIES – AT FAIR VALUE

Investment Property – Commercial Investment Property – Crown / Local Authority Investment Property – Forestry Land Investment Property under Construction

39

TE RÜNANGA O NGÄI TAHU AND NGÄI TAHU CHARITABLE TRUST

Notes to the Summary Group Financial Statements (continued) FOR THE YEAR ENDED 30 JUNE 2011

9.

INVESTMENT PROPERTIES – AT FAIR VALUE (continued) CHRISTCHURCH EARTHQUAKE

Christchurch city and the wider Canterbury region suffered a 7.1 magnitude earthquake on 4 September 2010 followed by a more destructive 6.3 magnitude earthquake on 22 February 2011, resulting in significant property damage and catastrophic loss of life and injury. The Group’s investment property suffered damage during these earthquakes.

Access to some buildings has been restricted following both earthquakes while repairs have been carried out for reinstatement of the buildings. The buildings are expected to be fully reinstated once repairs are complete.

On 13 June 2011 two significant earthquake aftershocks of 6.3 and 5.6 magnitude were suffered by the Christchurch city and the wider Canterbury region causing further damage to property.

The Group’s investment property suffered further damage as a result of these events. These earthquake aftershocks have been classed as a new event and a new insurance claim for repairs to reinstate the building will be submitted to the insurer once the damage has been assessed.

Investment properties are required to be carried at fair value under NZ IAS 40. At balance date, and at the date of issuing these financial statements, the full economic and market impacts of the earthquakes on these assets, and the wider market, is still being determined and it is expected to be some time before the full impacts are known. Investor confidence towards significant property assets in the Christchurch and Canterbury region, in the short term is likely to remain weak, while building remediation repair programmes are completed and properties are restored to a fully remediated condition in a post-earthquake environment. Following completion of property remediation repair programmes and settlement of insurance proceeds from insurers, it is anticipated that there will be a recovery of investment property fair values.

Therefore, the valuations for these assets necessarily require significant estimation based on a series of detailed assumptions and reflect the risk around the numerous resulting unknowns.

If any of these assumptions were to change or prove to be inaccurate the impact on the valuation may be significant.

The approach by the valuers, and the Group, has been to value the buildings at a fully repaired market value that reflects the post-earthquake market environment, less the estimated costs to remediate the investment property. This assessment has been made irrespective of whether insurance proceeds will cover the cost of repairs, as this is a separate economic event; however it is the expectation of the Group that the insurance cover up to and including the date of damage will be adequate to cover estimated damage. Upon the renewal of the Group’s insurance policy cover on 30 June 2011, covering the physical asset and the property rental streams, this has been obtained but it provides only 60% cover for Combined Business Interruption and Material Damage insurance for all natural disasters in the Christchurch region from 30 June 2011. This gap is being sought from the London market however uncertainty exists as to whether this 40

will be obtainable. Remediation repair work has commenced prior to balance date and is on-going, and insurance proceeds are being received following acceptance by the insurer of claims submitted.

Insurance proceeds received are being taken to the Statement of Comprehensive Income as claims are agreed by the insurer.

Critical general assumptions The critical general assumptions included in the Group’s investment property valuations are as follows: – The improvements and land forming the properties are structurally sound and not detrimentally affected by the earthquakes; – It is expected that insurances will meet any capital remediation expenditure repair requirements and/or loss of rental income; – There is likely to be no tenant failure. In addition, any risk of a shifting tenant is incorporated in the capitalisation rate to determining fair value; – There is further assumption that the properties will continue to generate rentals in the foreseeable future and any change to the city plan will not adversely affect rental streams.

Specific assumptions and impact The impact of the earthquakes while significant has been assessed by qualified quantity surveyors (Rider Levett Bucknall) as repairable and as a consequence the valuer has been able to base their valuation on a relatively predictable set of assumptions.

Insurance and Remediation Costs Insurance proceeds have been received or accrued to date of $2,954,000 under the Group’s Material Damage policy for earthquake building remediation claims following the 4 September 2010 and 22 February 2011 earthquakes. This amount comprises insurance proceeds received of $1,763,000 and insurance proceeds receivable of $1,191,000, following claim submission at balance date. Earthquake building remediation costs are claimed under the Group’s Material Damage insurance policy.

Insurance proceeds have been received or accrued to date of $1,329,171 for loss of rents suffered as a result of the 4 September 2010 and 22 February 2011 earthquakes. At balance date there was an insurance receivable for earthquake loss of rents of $651,154, following insurance claim submission. The Group’s insurance policy provides cover for the loss of rents situation resulting from natural disaster events such as earthquakes. There is insurance cover for a period of 24 months for loss of rents cover (gross rentals).

TE RÜNANGA O NGÄI TAHU AND NGÄI TAHU CHARITABLE TRUST

Notes to the Summary Group Financial Statements (continued) FOR THE YEAR ENDED 30 JUNE 2011

9.

INVESTMENT PROPERTIES – AT FAIR VALUE (continued)

It has been estimated that a further amount of $9,315,000 for earthquake building remediation repair costs are still to be completed for full reinstatement of the investment property.

Investment properties Turners Auctions and Bunnings have in place leases with tenants who are responsible for insuring the buildings under the tenancy for building damage, including damage caused by natural disasters such as earthquakes. The tenants have their own external insurance cover in place for earthquake building remediation costs and in total these costs are estimated at $2,180,000. (Bunnings $2,000,000, Turners Auctions $180,000). The tenants have accepted the building remediation costs and work has commenced on the buildings earthquake remediation programme.

Tenant Insured Buildings

Sensitivity analysis for Christchurch properties

The investment property Christchurch Courts has in place a crown lease tenancy with the Ministry of Justice and this lease provides that the tenant has the responsibility for insuring the building for any damage incurred, including damage caused by natural disasters such as earthquakes. The tenant has its own insurance in place through the Crown for the earthquake building remediation costs and these costs are estimated at $11,000,000. The tenant has accepted the building remediation costs and work has commenced on the building earthquake remediation programme.

A change of 50 basis points higher/lower on the capitalisation rate would result in the following change to the total value of Christchurch property valuations:

Earthquake building remediation costs of $2,953,000 have been incurred at balance date, comprising building remediation costs paid $2,173,000 and building remediation costs accrued $780,000 for work completed but not yet invoiced. The earthquake building remediation costs amount includes an insurance excess payable amount of $63,612 and this excess is payable by the Group pursuant to the Group insurance policies.

10.

– Investment properties would decrease by $(9,144,782) following a 50 basis point increase in the capitalisation rate and increase by $10,254,275 following a 50 basis point decrease in the capitalisation rate.

INVESTMENTS IN EQUITY INSTRUMENTS

Available for sale investments carried at fair value Aotearoa Fisheries Limited income shares Ryman Healthcare Limited shares

Available for sale investments carried at cost less accumulated impairment

JUNE 2011 $ 000s

JUNE 2010 $ 000s

4,500 110,800

4,500 79,600

115,300

84,100

1,753

1,005

117,053

85,105

An impairment loss of $nil (2010: $3,909,000) was recognised in the current year to write down various equity investments to the recoverable value determined by the Group. The recoverable values were based on management’s past experience.

There was no intention to dispose of any investments in equity instruments at balance date.

41

TE RÜNANGA O NGÄI TAHU AND NGÄI TAHU CHARITABLE TRUST

Notes to the Summary Group Financial Statements (continued) FOR THE YEAR ENDED 30 JUNE 2011

11.

INTERESTS IN JOINT VENTURES

The joint ventures are:

PERCENTAGE OWNED

OWNED BY

PRINCIPAL ACTIVITY

BALANCE DATE

OTHER JV PARTNER

Kayaking Abel Tasman Joint Venture

50.00%

Abel Tasman Tourism Kayaking Limited

Tourism Operators

30 June

Wakatu Incorporation

The Station

50.00%

Ngäi Tahu Tourism Limited

Booking Office

30 June

Totally Tourism Limited

Southern Lakes Information Centre

50.00%

Ngäi Tahu Tourism Limited

Booking Office

30 June

Real Journeys Limited

Experience Taupo 2009 Limited

33.33%

Hukafalls Jet Limited

Booking Office

31 March

Tandem Skydiving Limited & Taupo Tourism Holdings Limited

Christchurch Civic Building Joint Venture

50.00%

Ngäi Tahu Property (CCC JV) Limited

Property Developer

30 June

Civic Building Limited (previously Tuam 2 Limited (Christchurch City Council)

Lincoln Land Development Joint Venture

50.00%

Ngäi Tahu Property Joint Ventures Limited

Property Developer 31 December

Lincoln University Property Joint Venture Limited

Lincoln Development Joint Venture No. 2

50.00%

Ngäi Tahu Property Joint Ventures (No. 2) Limited

Property Developer 31 December

Lincoln University Property Joint Venture Limited No 2

Allandale Joint Venture

50.00%

Ngäi Tahu Property Limited

Property Developer

30 June

Allandale Property Limited

Prestons Road (1)

33.33%

Ngäi Tahu Property Limited

Property Developer

31 March

Foodstuffs (South Island) Properties Limited CDL Land New Zealand Limited

(1)This Joint Venture is a cost sharing venture for pursuit of zone change from rural to residential for the Prestons Road area.

JUNE 2011 $ 000s

42

JUNE 2010 $ 000s

The Group’s share of the assets, liabilities, revenues and expenses are incorporated into the Group financial statements on a line-by-line basis using the proportionate method as below: Total Assets Less Current Liabilities

56,472 (3,670)

61,910 (3,189)

Net Investment in Joint Ventures

52,802

58,721

Contingent Liabilities Capital Commitments

0 2,400

0 6,600

Included in the Financial Statements are the following revenue and expenses: Share of Revenue Share of Expenses

7,179 8,807

6,871 7,689

TE RÜNANGA O NGÄI TAHU AND NGÄI TAHU CHARITABLE TRUST

Notes to the Summary Group Financial Statements (continued) FOR THE YEAR ENDED 30 JUNE 2011

12.

JUNE 2011 $ 000s

JUNE 2010 $ 000s

TERM LOANS

Syndicated Debt Facility

106,000

114,000

Ngäi Tahu Holdings Corporation Limited, for itself and acting in its capacity as Trustee of Ngäi Tahu Holdings Corporation, the Bank of New Zealand (lead arranger), Commonwealth Bank of Australia and ANZ National Bank Limited entered into an agreement on 29 October 2008 for a maximum facility of $200,000,000. The facility is split between Tranche A of $50,000,000 expiring 27 October 2009 and Tranche B of $150,000,000 expiring 29 October 2011. In the previous financial year, Tranche A was rolled over with the same syndicate banks for a further one year to expire 27 October 2010. On the expiration of Tranche A in the current financial year, a new bilateral debt facility was entered into with Westpac banking Corporation for the same amount $50,000,000 (not currently utilised) to expire on 29 October 2011.

Interest is currently payable at between 3.37% – 3.99% per annum (2010: 3.45% – 3.88% per annum).

At 30 June 2011, the facility of $106,000,000 relates only to the syndicated debt facility, maturing 29 October 2011.

The facilities are secured by a deed of negative pledge and guarantee over all the assets of Ngäi Tahu Holdings Corporation Limited and its guaranteeing subsidiaries.

Refinancing – on 30 June 2011the existing facilities were refinanced with a syndicated debt facility of $200,000,000 entered into with Bank of New Zealand (lead arranger), Commonwealth Bank of Australia and Westpac Banking Corporation. This facility will come into effect on the expiration of the existing two facilities on 29 October 2011.

13.

TAXATION

Income tax recognised in profit or loss Tax expense/(income) comprises: Current tax expense Adjustments recognised in the current year in relation to the current tax of prior years

541 11

589 16

Total tax expense

552

605

(4,173) (13,987) (67) 21,003

27,851 (46,011) (24) 21,205

2,776

3,021

541

589

The prima facie income tax expense on pre-tax accounting profit from operations reconciles to the income tax expense in the financial statements as follows: (Loss) / Profit before taxation Less: Non-taxable income Less: Taxation Losses Brought Forward Plus: Non-deductible expenses Income tax expense calculated at 19.5%

43

TE RÜNANGA O NGÄI TAHU AND NGÄI TAHU CHARITABLE TRUST

Notes to the Summary Group Financial Statements (continued) FOR THE YEAR ENDED 30 JUNE 2011

14.

JUNE 2010 $ 000s

RECONCILIATION OF PROFIT AFTER TAXATION TO NET CASH INFLOW FROM OPERATING ACTIVITIES

(Loss) / Profit after taxation

(4,725)

27,246

Non-Cash items: Depreciation Amortisation of intangible assets Net loss/(gain) on sale of property, plant and equipment Government grant income Net gain on sale of investment properties Net gain on sale of investments Net gain on sale of Carbon Credits Net loss from fair value adjustments on investment properties - market Net loss from fair value adjustments on investment properties – specific earthquake impact Net (gain) / loss from fair value adjustments on biological assets Biological assets natural decrease Losses/(gains) on derivative instruments Distribution to Minority Shareholder relating to prior financial year Impairment of investments Impairment of goodwill Impairment of other intangibles Borrowing costs capitalised Equity accounted earnings of associate

3,695 57 78 (63) (91) (165) (5,181) 18,818 9,315 (360) 55 9 (181) 10 0 0 (343) (631)

3,745 238 (613) (16,162) (524) 0 0 1,815 0 77 58 (145) 0 3,909 997 2,561 (3,072) (1,072)

25,022

(8,188)

(4,881) 312 844 752 (1,906) (447) (5) 1,203

1,885 (30) 320 4,840 (3,235) 251 144 (4,259)

Movement in working capital arising from operating activities Accounts Receivable Non-Current Account Receivable Inventories Inventories – Property Non-Current Inventories –Property Other Current Assets Taxation Creditors and Accruals

Working capital classified movements arising from financing and investing activities Net cash inflow from operating activities

44

JUNE 2011 $ 000s

(4,128)

(84)

1,093

1,495

17,262

20,469

TE RÜNANGA O NGÄI TAHU AND NGÄI TAHU CHARITABLE TRUST

Notes to the Summary Group Financial Statements (continued) FOR THE YEAR ENDED 30 JUNE 2011

15.

RELATED PARTY TRANSACTIONS

(a)

Transactions with related parties

There have been material transactions with related parties during the year. The related parties involved were Ngäi Tahu Charitable Trust, Ngäi Tahu Development Corporation and Te Rünanga o Ngäi Tahu. The types of transactions involved include rent received, IT service fees, management fee expenses, interest expenses, and distributions.

Related parties not part of the Group Financial Statements include Whai Rawa Fund Trust (Distributions Paid or Declared 2011: $1,934,793, (2010: $1,576,000)).

Terms under which related party transactions were entered into

No write-downs of receivables in respect of related parties have occurred and no amounts were provided for in doubtful debts relating to debts due from related parties at balance date (2010: $nil). (b)

Key management personnel

Details of key management personnel remuneration are disclosed in note 16.

45

TE RÜNANGA O NGÄI TAHU AND NGÄI TAHU CHARITABLE TRUST

Notes to the Summary Group Financial Statements FOR THE YEAR ENDED 30 JUNE 2011

16.

KEY MANAGEMENT PERSONNEL COMPENSATION

The short-term employee benefit compensation of the Directors and executives, being the key management personnel of the Group, is set out below: Independent Directors of Ngäi Tahu Holdings Corporation Limited, Ngäi Tahu Capital Limited, Ngäi Tahu Property Limited, Ngäi Tahu Property (CCC – JV) Limited, Ngäi Tahu Seafood Limited, Ngäi Tahu Tourism Limited and Ngäi Tahu Tribal Services Limited.

TREVOR BURT

JUNE 2011 $ 000s

JUNE 2010 $ 000s

70

64

83

84

30

39

40

37

Ngäi Tahu Holdings Corporation Limited

Chair. Appointed 1 August 2009 NTHC Audit, Finance & Risk Committee. Member. Appointed 25 September 2009 NTHC Remuneration Committee. Member Ngäi Tahu Capital Limited

Director. Appointed 25 September 2009 LINDA CONSTABLE

Ngäi Tahu Holdings Corporation Limited

Director. Appointment ended 30 June 2011 Interim Chair from 22 February 2009 to 31 July 2009 Ngäi Tahu Capital Limited

Director. Appointment ended 30 June 2011 Ngäi Tahu Property Limited

Chair. Appointed 27 June 2006 NTP Remuneration Committee. Member Ngäi Tahu Property (CCC – JV) Limited. Director. Appointed 29 November 2007 Ngäi Tahu Seafood Limited

Director. Appointed 27 June 2006. Resigned 27 August 2009 Ngäi Tahu Tourism Limited

Director. Appointed 27 June 2006. Resigned 9 November 2009 GERRY COATES

Ngäi Tahu Holdings Corporation Limited

Director. Appointed 19 November 2008 NTHC Audit, Finance & Risk Committee. Member from 26 February 2009 to 24 September 2009 NTHC Remuneration Committee. Member CATHERINE DRAYTON

Ngäi Tahu Holdings Corporation Limited

Director. Appointed 1 August 2009 NTHC Audit, Finance & Risk Committee.

Chair. Appointed 25 September 2009 Ngäi Tahu Capital Limited

Director. Appointed 25 September 2009

46

TE RÜNANGA O NGÄI TAHU AND NGÄI TAHU CHARITABLE TRUST

Notes to the Summary Group Financial Statements FOR THE YEAR ENDED 30 JUNE 2011

16.

KEY MANAGEMENT PERSONNEL COMPENSATION (continued)

ROSS KEENAN

JUNE 2011 $ 000s

JUNE 2010 $ 000s

107

105

28

0

0

1

0

22

30

26

Ngäi Tahu Holdings Corporation Limited Director. Re-appointed 19 June 2009 NTHC Audit, Finance & Risk Committee. Member NTHC Remuneration Committee. Member until 24 September 2009 Ngäi Tahu Capital Limited

Director. Resigned 27 August 2009 Ngäi Tahu Property Limited

Director. Resigned 27 August 2009 Ngäi Tahu Seafood Limited

Director. Appointed 26 February 2009. Chair from 26 February 2009 to 30 August 2009 NTS Audit & Risk Committee. Chair NTS Remuneration Committee. Member Ngäi Tahu Tourism Limited

Chair. Appointed 29 May 2006 NTT Remuneration Committee. Chair NTT Audit & Finance Committee. Member NTT Safety & Risk Committee. Member Ngäi Tahu Tribal Services Limited. Director. Appointment ended 8 July 2010 SAMFORD MAIER

Ngäi Tahu Holdings Corporation Limited

Director. Appointed 1 September 2010 NTHC Audit, Finance & Risk Committee. Member Ngäi Tahu Capital Limited

Director. Appointed 19 November 2010 MARK TUME

Ngäi Tahu Holdings Corporation Limited

Director. Appointment ended 30 June 2009 NTHC Audit & Finance Committee Chair. Appointment ended 25 August 2009 DONALD COUCH

Ngäi Tahu Holdings Corporation Limited

Director. Appointed 19 April 2006. Resigned 31 October 2009 RICHARD BRADDOCK

Ngäi Tahu Property Limited

Director. Appointed 1 September 2009 NTP Audit and Risk Committee. Member

47

TE RÜNANGA O NGÄI TAHU AND NGÄI TAHU CHARITABLE TRUST

Notes to the Summary Group Financial Statements FOR THE YEAR ENDED 30 JUNE 2011

16.

KEY MANAGEMENT PERSONNEL COMPENSATION (continued)

BARRY BRAGG

JUNE 2011 $ 000s

JUNE 2010 $ 000s

32

28

30

26

37

32

27

20

45

37

27

20

27

16

Ngäi Tahu Property Limited

Director. Appointed 1 September 2009 NTP Audit and Risk Committee. Chair LEX HENRY

Ngäi Tahu Property Limited

Director. Appointed 1 September 2009 NTP Audit and Risk Committee. Member DAVID KENNEDY

Ngäi Tahu Property Limited

Director. Appointed 1 September 2009 NTP Remuneration Committee. Chair ROBERT POOLEY

Ngäi Tahu Seafood Limited

Director. Appointed 1 October 2009 NTS Audit & Risk Committee. Member NTS Remuneration Committee. Member BRIAN RHOADES

Ngäi Tahu Seafood Limited

Chair. Appointed 1 September 2009 NTS Audit & Risk Committee. Member NTS Remuneration Committee. Chair COLIN TOPI

Ngäi Tahu Seafood Limited

Director. Appointed 1 October 2009 NTS Audit & Risk Committee. Member NTS Remuneration Committee. Member PHILLIP BROUGHTON

Ngäi Tahu Tourism Limited

Director. Appointed 1 December 2009 NTT Audit & Finance Committee. Chair NTT Remuneration Committee. Member NTT Safety & Risk Committee. Member

48

TE RÜNANGA O NGÄI TAHU AND NGÄI TAHU CHARITABLE TRUST

Notes to the Summary Group Financial Statements FOR THE YEAR ENDED 30 JUNE 2011

16.

KEY MANAGEMENT PERSONNEL COMPENSATION (continued)

DAVID CLARKE

JUNE 2011 $ 000s

JUNE 2010 $ 000s

27

14

27

14

27

18

3

4

697

607

Ngäi Tahu Tourism Limited

Director. Appointed 1 December 2009 NTT Audit & Finance Committee. Member NTT Remuneration Committee. Member NTT Safety & Risk Committee. Member ELIZABETH HIRST

Ngäi Tahu Tourism Limited

Director. Appointed 1 December 2009 NTT Audit & Finance Committee. Member NTT Remuneration Committee. Member NTT Safety & Risk Committee. Chair ANTHONY MARKS

Ngäi Tahu Tourism Limited

Director. Appointed 1 December 2009 NTT Audit & Finance Committee. Member NTT Remuneration Committee. Member NTT Safety & Risk Committee. Member KYPROS KOTZIKAS

Ngäi Tahu Fisheries Settlement Limited

Director. Resigned 31 March 2011 Total Group Directors Fees

Note 5 (c)

49

TE RÜNANGA O NGÄI TAHU AND NGÄI TAHU CHARITABLE TRUST

Notes to the Summary Group Financial Statements FOR THE YEAR ENDED 30 JUNE 2011

16.

JUNE 2011 $ 000s

JUNE 2010 $ 000s

KEY MANAGEMENT PERSONNEL COMPENSATION (continued) TE RÜNANGA O NGÄI TAHU REPRESENTATIVES MARK SOLOMON

– Kaiwhakahaere, Member Te Apärangi – Representative Fees

155 30

155 30

STEWART BULL

Member of Te Apärangi and Te Here Committees

33

35

GERRY COATES

Member of Te Apärangi Committee

34

36

DONALD COUCH

Term Finished October 2009

0

45

TUTEHOUNUKU KORAKO

Appointed 6 October 2009, Member of Te Apärangi Committee

30

20

CHARLES CROFTS

Term finished 14 October 2009

0

24

31

22

ELIZABETH CUNNINGHAM Appointed 14 October 2009 JAMES DANIELS

Member of Audit & Risk, Contract Review and Te Apärangi Committees

36

31

MATAPURA ELLISON

Member Te Apärangi, Te Here and Contract Review Committees

35

36

QUENTIN HIX

Appointed 13 December 2009, Member of Audit & Risk and Te Here Committees

31

17

HINE FORSYTH

Term finished October 2009

0

9

DAVID HIGGINS

Term finished April 2010

0

27

SANDY LOCKHART

Member Contract Review Committee

35

30

TERRY NICHOLAS

Member of Audit & Risk, Contract Review and Te Here Committees

38

32

MARIA PERA

Chairperson Treaty Tribes Coalition Limited, Member Te Apärangi Committee

33

31

TAHU POTIKI

Appointed 20 October 2009, Chairperson Te Apärangi, Member Ngäi Tahu Fund and Audit & Risk Committees

31

22

TIM ROCHFORD

Member of Te Apärangi Committee

32

36

MICHAEL SKERRETT

Member of Audit & Risk and Te Here Committees

33

31

WALLY STONE

Appointed 30 October 2009

30

20

NGÄIRE TAINUI-WYBROW

Appointed June 2011, Member Te Here and Audit & Risk Committees

32

0

GEORGE TIKAO

Term finished June 2010

0

37

GAIL TIPA

Appointed 17 April 2010, Member Te Apärangi Committee

31

8

LISA TUMAHAI

Chairperson Te Here Committee

32

30

GARY WAAKA

Resigned October 2009

0

8

CLARE WILLIAMS

Member Te Apärangi, Rünanga Representative term finished October 2009

2

19

744

791

Short term employee benefits (senior management positions)

2,387

2,177

Total Key Management Personnel and Directors Fees Compensation

3,828

3,575

Total Representative Fees

50

TE RÜNANGA O NGÄI TAHU AND NGÄI TAHU CHARITABLE TRUST

Notes to the Summary Group Financial Statements FOR THE YEAR ENDED 30 JUNE 2011

16.

JUNE 2011 $ 000s

JUNE 2010 $ 000s

KEY MANAGEMENT PERSONNEL COMPENSATION (continued) EMPLOYEES REMUNERATION

The number of employees or former employees of the Group, not being directors, who received remuneration and other benefits valued at or exceeding $100,000 during the financial year under review were: Remuneration

$490,000 - $499,999 $470,000 - $479,999 $380,000 - $389,999 $350,000 - $359,999 $340,000 - $349,999 $320,000 - $329,999 $310,000 – $319,999 $300,000 - $309,999 $290,000 - $299,999 $280,000 - $289,999 $270,000 - $279,999 $260,000 - $269,999 $250,000 - $259,999 $240,000 – $249,999 $230,000 - $239,999 $220,000 - $229,999 $210,000 - $219,999 $200,000 - $209,999 $190,000 - $199,999 $180,000 - $189,999 $170,000 - $179,999 $160,000 - $169,999 $150,000 - $159,999 $140,000 - $149,999 $130,000 - $139,999 $120,000 - $129,999 $110,000 - $119,999 $100,000 - $109,999

JUNE 2011 NUMBER OF EMPLOYEES

JUNE 2010 NUMBER OF EMPLOYEES*

1 1 0 1 1 1 0 1 1 0 0 1 2 2 1 1 1 2 2 2 5 3 2 5 7 8 9 1

0 0 1 0 1 0 1 1 0 2 2 0 0 1 0 1 1 3 0 3 3 4 1 2 1 10 8 8

*The employees remuneration table has been restated in the comparative financial year 30 June 2010.

51

TE RÜNANGA O NGÄI TAHU AND NGÄI TAHU CHARITABLE TRUST

Notes to the Summary Group Financial Statements FOR THE YEAR ENDED 30 JUNE 2011

JUNE 2011 $ 000s

JUNE 2010 $ 000s

17.

COMMITMENTS FOR EXPENDITURE

(a)

Capital expenditure commitments Acquisition of Property, plant and equipment

10,799

421

Other expenditure commitments Investments Investment Properties Inventories – Properties

15,175 2,892 2,400

0 6,600 8,533

20,467

15,133

31,266

15,554

(b)

18.

19.

There is a contingent asset at balance date of $9,315,000 in respect of insurance proceeds that are expected to be recovered once insurance claims have been submitted and paid by the insurer for the estimated earthquake remediation repairs still to be completed on the investment properties.

An interim claim for Business Interruption insurance of $3.02m under the Group policy had been filed with the insurer at balance date and the receipt of these claim proceeds are expected to be received in the next financial period. At balance date the claim was still being assessed by the insurer and there has been no receipt of acceptance of any part of the claim.

There are no other contingent assets at 30 June 2011 (2010: $nil).

There are no other material events subsequent to balance date.

CONTINGENT ASSETS

CONTINGENT LIABILITIES

There are no contingent liabilities at 30 June 2011 (June 2010: $nil).

20.

EVENTS SUBSEQUENT TO BALANCE DATE

On 28 June 2011, the shareholders of PGG Wrightson approved Ngäi Tahu Capital Limited’s proposed purchase of 7.24% of the total shares in Agria Asia Investments Limited held

by Agria Group Limited. Following shareholders’ approval the shareholders agreement became unconditional and the consideration amount of NZ$15,000,000 was payable five days after the agreement becoming unconditional. Payment of NZ$15,000,000 was made on 5 July 2011 and title to the shares was transferred to Ngäi Tahu Capital Limited on that date.

The sale of the Canterbury Foothills Forest assets was settled on 12 August 2011, as per the agreed contract price.

Earthquake building remediation repairs still to be completed to fully reinstate investment property has been estimated at $9,315,000 (refer note 9) and is currently being carried out at balance date with this work expected to be fully completed in the following financial period. This earthquake building remediation repair on completion of work will be met from the Group’s Material Damage and Business Interruption insurance policies.

Earthquake building remediation repairs for tenant self-insured investment property has been estimated at $13,180,000 and this work is currently being carried out by the tenant in accordance with the building remediation programme as agreed. The earthquake building remediation repair costs will be met by the tenant insurance cover in place.

52

21. SIGNIFICANT EVENTS

Christchurch City and the wider Canterbury region suffered earthquakes of 7.1 magnitude on 4 September 2010 and 6.3 magnitude on 22 February 2011. On 13 June 2011 two significant earthquake aftershocks of 6.3 and 5.6 magnitude were also suffered by Christchurch City and the wider Canterbury region causing further damage to property. The Group has assessed the impact from these natural disaster events and damage has been incurred to the investment properties as set out in note 9 however it is expected full reinstatement will be met from insurance.

The Group has full insurance cover in place with the exception of only having 60% cover for material damage and business interruption for all natural disasters in the Christchurch region from 30 June 2011. The 40% gap is being sought from the London market however uncertainty exists as to whether this will be obtainable.

It is noted that the Christchurch Civic Building is insured under a separate insurance program and the Christchurch Civic Building Joint Venture has secured 100% insurance cover, including all natural disaster events in the Christchurch City and the wider Canterbury region, from the insurance renewal period from 31 July 2011.

INDEPENDENT AUDITOR’S REPORT ON THE SUMMARY FINANCIAL STATEMENTS TO THE MEMBERS OF TE RŪNANGA O NGĀI TAHU AND NGĀI TAHU CHARITABLE TRUST Report on the Summary Financial Statements The accompanying summary group financial statements of Te Rūnanga o Ngāi Tahu and Ngāi Tahu Charitable Trust (“the Group”) on pages 25 to 52, which comprise the summary group statement of financial position as at 30 June 2011, and the summary group statement of comprehensive income, summary group statement of changes in equity and summary group statement of cash flows for the year then ended, and related notes, are derived from the audited group financial statements of Te Rūnanga o Ngāi Tahu and Ngāi Tahu Charitable Trust for the year ended 30 June 2011. We expressed an unmodified audit opinion on those financial statements in our report dated 17 September 2011.

The summary group financial statements do not contain all the disclosures required for full financial statements under generally accepted accounting practice in New Zealand. Reading the summary group financial statements, therefore, is not a substitute for reading the audited group financial statements of Te Rūnanga o Ngāi Tahu and Ngāi Tahu Charitable Trust.

This report is made solely to the members, as a body, for the purpose of expressing an opinion on the summary group financial statements for the year ended 30 June 2011. Our audit has been undertaken so that we might state to the members those matters we are required to state to them in an auditor’s report on summary group financial statements and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the members as a body, for our audit work, for this report, or for the opinions we have formed.

Rūnanga Representatives’ Responsibility for the Summary Financial Statements The Rūnanga Representatives are responsible for the preparation of a summary of the audited group financial statements, in accordance with FRS-43: Summary Financial Statements.

Auditor’s Responsibility Our responsibility is to express an opinion on the summary group financial statements based on our procedures, which were conducted in accordance with International Standards on Auditing (New Zealand) (ISA (NZ)) 810: Engagements to Report on Summary Financial Statements.

Our firm carries out other assignments for Te Rūnanga o Ngāi Tahu and Ngāi Tahu Charitable Trust in the area of risk management advice, review of controls and other assurance services. In addition to this, partners and employees of our firm deal with Te Rūnanga o Ngāi Tahu and Ngāi Tahu Charitable Trust on normal terms within the ordinary course of trading activities of the business of Te Rūnanga o Ngāi Tahu and Ngāi Tahu Charitable Trust. The firm has no other relationship with, or interests in, Te Rūnanga o Ngāi Tahu and Ngāi Tahu Charitable Trust.

Opinion In our opinion, the summary group financial statements derived from the audited group financial statements of Te Rūnanga o Ngāi Tahu and Ngāi Tahu Charitable Trust for the year ended 30 June 2011 are consistent, in all material respects, with those financial statements, in accordance with FRS-43: Summary Financial Statements.

Chartered Accountants 17 September 2011 Christchurch, New Zealand This audit report relates to the summary group financial statements of Te Rūnanga o Ngāi Tahu and Ngāi Tahu Charitable Trust for the year ended 30 June 2011 included on Te Rūnanga o Ngāi Tahu and Ngāi Tahu Charitable Trust’s website. Te Rūnanga o Ngāi Tahu and Ngāi Tahu Charitable Trust’s governing body is responsible for the maintenance and integrity of Te Rūnanga o Ngāi Tahu and Ngāi Tahu Charitable Trust’s website. We have not been engaged to report on the integrity of Te Rūnanga o Ngāi Tahu and Ngāi Tahu Charitable Trust’s website. We accept no responsibility for any changes that may have occurred to the summary group financial statements since they were initially presented on the website. The audit report refers only to the summary group financial statements named above. It does not provide an opinion on any other information which may have been hyperlinked to/from these summary financial statements. If readers of this report are concerned with the inherent risks arising from electronic data communication they should refer to the published hard copy of the audited summary group financial statements and related audit report dated 17 September 2011 to confirm the information included in the audited summary group financial statements presented on this website. Legislation in New Zealand governing the preparation and dissemination of financial statements and summary group financial statements may differ from legislation in other jurisdictions.

53

TE RÜNANGA O NGÄI TAHU

Directors and Key Positions AS AT 1 OCTOBER 2011

NGÄI TAHU DIRECTORS

Ngäi Tahu Holdings Corporation Board

Ngäi Tahu Fisheries Settlement Limited Board

NGÄI TAHU SUBSIDIARY BOARDS

TE RÜNANGA O NGÄI TAHU

Ngäi Tahu Property

Mark Solomon Kaiwhakahaere

Mark Solomon, Chair Appointed 8 August 2007

Linda Constable, Chair Appointed 27 June 2006

Ross Keenan Re-appointed 19 June 2009

Kypros Kotzikas Appointment ended 31 March 2011

Richard Braddock Appointed 1 September 2009

Linda Constable Appointment ended 30 June 2011

Anake Goodall Appointment ended 31 March 2011

Gerry Te Kapa Coates Appointed 19 November 2008

Mike Sang Appointed 16 April 2011

Catherine Drayton Appointed 1 August 2009

Greg Campbell Appointed 16 April 2011

Trevor Burt, Chair Appointed 1 August 2009

Samford Maier Appointed 1 September 2010

Barry Bragg Appointed 1 September 2009 Lex Henry Appointed 1 September 2009 David Kennedy Appointed 1 September 2009 Ngäi Tahu Seafood

Whai Rawa Fund Limited Board

Dr Brian Rhoades, Chair Appointed 1 September 2009

Ngäi Tahu Communications Limited Board

Diana Crossan, Chair Appointed March 2006

Robert Pooley Appointed 1 October 2009

Anake Goodall, Chair Appointment ended 31 March 2011

Tim McGuinness Appointed March 2006

Colin Topi Appointed 1 October 2009

Sir Tipene O’Regan Appointed March 2006

Ross Keenan Appointed 29 May 2006

Hon. David Caygill Appointed March 2006

Ngäi Tahu Tourism

Mike Sang Appointed 16 April 2011

Ross Keenan, Chair Appointed 29 May 2006 Anthony Marks Appointed 1 December 2009 Phillip Broughton Appointed 1 December 2009 David Clarke Appointed 1 December 2009 Elizabeth Hirst Appointed 1 December 2009 Ngäi Tahu Capital

Trevor Burt Appointed 25 September 2009 Catherine Drayton Appointed 25 September 2009 Linda Constable Appointment ended 30 June 2011 Ross Keenan Appointed 29 May 2006 Samford Maier Appointed 19 November 2010

54

Deputy Kaiwhakahaere Position currently not filled Anake Goodall Resigned March 2011 Interim Chief Executive Mike Sang Appointed March 2011 Te Rünanga Company Secretary Mike Sang NGÄI TAHU HOLDINGS CORPORATION

Greg Campbell Chief Executive Ngäi Tahu Holdings Group Subsidiary Chief Executives

Tony Sewell Ngäi Tahu Property Brian Moriarty Ngäi Tahu Seafood John Thorburn Ngäi Tahu Tourism

TE RÜNANGA O NGÄI TAHU CHARITABLE TRUST

Organisational Structure TE RÜNANGA O NGÄI TAHU NGÄI TAHU CHARITABLE TRUST

OFFICE OF TE RÜNANGA O NGÄI TAHU

NGÄI TAHU HOLDINGS CORPORATION

Whai Rawa Fund Limited

Governance

Investment and Financial Strategy

Ngäi Tahu Communications

Strategy and Monitoring

Capital Allocation

Ngäi Tahu Fisheries Settlement Ltd

Distribution

Investment Performance

Te Tapuae o Rehua

Representation and Advocacy

He Oranga Pounamu

STRATEGY & INFLUENCE

TRIBAL INTEREST

WHAKAPAPA & MEMBER SERVICES

OFFICE OF THE CEO

LEGAL

PEOPLE AND PERFORMANCE

SERVICE DELIVERY

NGÄI TAHU CAPITAL

NGÄI TAHU PROPERTY

NGÄI TAHU SEAFOOD

NGÄI TAHU TOURISM

Strategy and Influence

Toitü Te Whenua

Whakapapa

Te Rünanga Group Monitoring

Legal Services

Human Resources

Finance

Ryman

Property Development

Seafood Operations

Tourism Operations 4 Regional Clusters

External Issues

Toitü Te Käinga

Contact Centre

Te Rünanga Secretariat

Leadership Programme

Communications

Agria/PGGW

Investment Properties

Quota Management

Brand Management

Toitü Te Kura

Te Rünanga Advice & Support

Payroll

Business Information Servcies

Equities

Rural Lands

Administration & Procurement

General Investments

Whai Rawa and Direct Distributions

55

TE RÜNANGA O NGÄI TAHU & NGÄI TAHU CHARITABLE TRUST

Rünanga Representatives 2010 – 2011

KAIKÖURA

NGÄTI WAEWAE

MAKAAWHIO

Representative Mark Solomon

Representative Lisa Tumahai

Representative Tim Rochford

Alternative Representative Raewyn Solomon

Alternative Representative Ben Hutana

Alternative Representative None

WAIREWA

TAUMUTU

ÖNUKU

TE NGÄI TÜÄHURIRI

TE HAPÜ O NGÄTI WHEKE

Representative Tutehounuku Korako (Nuk)

Representative Wally Stone

Representative Elizabeth Cunningham

Alternative Representative Gail Gordon

Alternative Representative Kyle Osbourn

AROWHENUA

WAIHAO

MOERAKI

Representative Gerry Te Kapa Coates

Representative Gail Tipa

Alternative Representative Clare Williams

KOUKOURARATA

Representative James Daniels

Representative Sandy Lockhart

Representative Ngaire Tainui

Representative Quentin Hix

Alternative Representative Iaean Cranwell

Alternative Representative Te Mairiki Williams

Alternative Representative Ariana Tikao

Alternative Representative Dana Jackson

Alternative Representative Jo McLean

Alternative Representative Moana-o-Hinerangi

KÄTI HUIRAPA KI PUKETERAKI

ÖTÄKOU

HOKONUI

WAIHÖPAI

ÖRAKA-APARIMA

AWARUA

Representative Tahu Pötiki

Representative Terry Nicholas

Representative Michael Skerrett

Representative Stewart Bull

Representative Maria Pera

Alternative Representative Hoani Langsbury

Alternative Representative Rewi Anglem

Alternative Representative Cyril Gilroy

Alternative Representative Ann Wakefield

Alternative Representative None

Representative Matapura Ellison Alternative Representative Dr Katharina Ruckstuhl 56

Te rÜNANGA O NGÄi Tahu

Ngä Papatipu Rünanga Map

Te Rünanga o Kaiköura Te Rünanga o Ngäti Waewae

Te Ngäi Tüähuriri Rünanga Te Rünanga o Makaawhio

Te Hapü o Ngäti Wheke (Räpaki) Wairewa Rünanga Te Taumutu Rünanga

Te Rünanga o Koukourarata Önuku Rünanga

Te Rünanga o Arowhenua

Te Rünanga o Waihao

Te Rünanga o Moeraki Käti Huirapa Rünaka ki Puketeraki Te Rünanga o Ötäkou

Hokonui Rünanga Öraka-Aparima Rünaka

Waihöpai Rünaka Awarua Rünanga

57

Directory Auditor

50 Corsair Drive Wigram PO Box 13-046 Christchurch Telephone: 03 366 4344 Facsimile: 03 341 6792 Website: www.ngaitahu.iwi.nz Email: info@ngaitahu.iwi.nz

Deloitte Chartered Accountants 60 Grove Rd Christchurch

Registered Office for Ngäi Tahu Holdings Corporation Limited

50 Corsair Drive Wigram PO Box 13-575 Christchurch Telephone: 03 366 4344 Facsimile: 03 341 6792 Enrolment on Te Rünanga o Ngäi Tahu Whakapapa database

If you require information on, or an enrolment form for the Ngäi Tahu Whakapapa database, please visit www.ngaitahu.iwi.nz or phone 03 366 4344 or 0800 KAI TAHU (524 824) and ask for the Whakapapa Unit.

Solicitors

Bell Gully Buddle Weir HP Tower 171 Featherston Street Wellington

Annual Report 2011 For the full online Annual Report please visit www.ngaitahu.iwi.nz

ANNUAL REPORT 2011

Corporate Office

TE RÜNANGA O NGÄI TAHU

TE RÜNANGA O NGÄI TAHU

Buddle Findlay 245 St Asaph St Christchurch Saunders & Co 162 Kendal Avenue Burnside Christchurch Wynn Williams & Co Homebase, Unit B 195 Marshlands Rd Christchurch Bankers

ANZ National Bank Limited 97 Riccarton Rd Christchurch Bank of New Zealand 81 Riccarton Road Christchurch Commonwealth Bank of Australia Level 27, 201 Sussex Street Sydney, Australia Westpac Institutional Bank Level 8 16 Takutai Square Auckland

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