GROUPANNUAL REPORT

2019

AGM MINUTES 7TH DEC 2018

TE KAPU O WAITAHA ANNUAL GENERAL MEETING I DECEMBER FRIDAY 7TH 2018 I HEI MARAE

OPENING KARAKIA 6.00pm

PRESENT

Vivienne Robinson, Frank Grant (#), Tom Davies, Tapua Te Amo (#), Liz Te Amo, Wena Harawira, Whareoteriri Rahiri (#), Veroni Leota (#), Parekura Whareaorere (#), Carol Whare (#), Ngarohaere Whare (#), Joshua Grant (#), Alexis Whare (#), Tamakaimoana Whareaorere (M), Takakopiri Whareaorere (M), Hakaraia Whareaorere (M), Rangiheuea Whareaorere(M), Wiremu Tame Murray, Virginia Church (#), Gloria Clarke (#), Tracey Clarke, Gloria Hirini (Kelly) (#), Gloria Hirini, Areta Gray (#), Matewai Karaka-Clarke (#), Carol Hirini (#), June Clarke (#), Lee Aumihi Williams, Hineata Heyblom (#), Mitchell Te Aonui, Joan Ngawhika, Legend Karauna, Duncan Karauna, Alistar Karauna, Maru Tapsell (#), Wharekonehu Te Moni (#), Tui Gray (#), Bubs Aroha Gray, Raewyn Whare (#), Broughton Whare (#), Manawa Palmer (M) Te Auera Palmer (M), Koha Daniels (#), Petipeti October (#), Sandy Potaka (#),Dennis Minarapa (#), P.Pitman, Noorod Ngariki, June Pitman (#), Cindy Pitman, Ngaro Ngariki, Frances Teinakore-Curtis (#), Anahera Teinakore-Curtis (#), Lesley Clarke, Mohi Potaka (#), Te Hauki Whareaorere (#), Elizabeth Te Aonui (#), Andrew N Clarke (#), Ben-TKOW COMMS.

1. APOLOGIES

Tame McCausland, Punohu McCausland, Heni Potene, Hirini Potene, Riana Rameka, Shaun Potaka, Rangiwhakairi Walker, Hone Karaka, Tame Minarapa, Edward October, Horomona Soloman October.

RESOLUTION

Apologies m oved and accept ed

Moved: W.Rahir i/N.Whare

Against : NIL

CARRIED 2

2. PREVIOUS MINUTES

RESOLUTION

Previous m inut es of AGM 16.12.2017 approved as a t rue and cor rect record

Moved: P.Oct ober /R.Whareaorere

Against : NIL

CARRIED

3. MATTERS ARISING

Meeting noted the following:

Correction to spelling of names in attendance record; Melis Kaere should be Melis Kapene, Alex Whare replace with Alexis Whare.

RESOLUTION

Previous m inut es of AGM 16.12.2017 approved w it h not ed am endm ent s

Moved: W.Rahir i/W. Te Moni

Against : NIL

CARRIED

4. TRUST GROUP AUDITED ACCOUNTS

Trust Group Audited Accounts, and financial performance ending 30.06.2018 presented by Shelley Cunningham (GHA).

Audited accounts were reported for the year ended 30 June 2018, audited by Cookson Forbes & Associates with a clear audit opinion.

· Total Assets $22,347,221

· Total Liabilit ies $84,935

· Total Net Assets $22,347,221

3

Responses to questions raised, explained that the deficit in TKOW Group was attributed to unanticipated cost of Te Houhou due dilligence. Additional deficits were due to the History and Social endowments which have minimal and or no revenue as these are project based.

RESOLUTION

Trust Group Audit ed Account s ending 30.06.2018 received and accept ed

Moved: W.Rahir i/N.Whare

Against : NIL

CARRIED

5. RECONFIRM TRUST GROUP ACCOUNTANT

RESOLUTION

GHA Char t ered Account ant s is reconf irm ed and approved as Trust Group Account ant

Moved: M.Tapsell/W. Te Moni

Against : NIL

CARRIED

6. RECONFIRM GROUP AUDITOR

RESOLUTION

Fred Cookson of Cookson & Forbes Opot ik i Char t ered Account ant s is reconf irm ed and approved as Trust Group Audit or

Moved: M.Tapsell/W.Rahir i

Against : NIL

CARRIED

4

7. ANNUAL REPORT ENDING 30 JUNE 2018

TKOW GM presented Annual report ending 30.06.2018. Six key areas; Governance, Finance & Investment, Communications, Iwi register, Digital Communications, Environmental.

Key responses;

· Confirmed that iwi consultation would occur prior to the Charter review voting

· Koeke role to provide guidance on matters of tikanga and reo clarified

· Agreement that it would be beneficial to explain the WGHLP SIPO to beneficiaries

RESOLUTION

Trust Group Annual Repor t ending 30.06.2018 received and approved

Moved:N.Whare/W.Rahir i

Against : NIL

CARRIED

Acknowledgements by Ted and Areta, thanking the governance and staff for the mahi. Further acknowledgements by the Chair noted; Marae komiti, nga koeke, whanau, trustees, Directors, staff, and professiional advisors.

Closing karak ia 7:46pm

5

TABLE OF CONTENTS09 -15

27 - 30

26

16- 25

Governance Report

Education Report

Iwi Register Report

Environment Report

GROUP

ANNUAL REPORT

31 - 34Finance Report

6

1 Role

The Board's role is to ensure benef its are successf ully real ized f or Trust benef iciaries, through the administration, and management of Trust assets, throughout the Group.

3 Pol icy

The Board Pol icy Governance is a practical approach f or enabl ing trustees to ensure organizational perf ormance that ref lects outcomes f or benef iciaries. As such, the model provides an internally consistent f ramew ork of Waitaha-A-Hei tik anga principles and Trust practices

2 RegulationsThe Board is regulated by its' constitution, the Settlement Act, a range of other Acts, and Common law .

4

TrainingThe Board sets aside an allocation each year to undertak e training. This year the Board, staf f , and Directors attended a w ork shop presented by Dr.Kiri Dell w hich dril led dow n, values, dynamics, and diversity w ithin the Group.

Principles

Te pae taw hiti ma roto i nga tik anga me nga w hak aritenga o Waitaha-A-Hei

ValuesMa muri k a tik a a mua, ma mua k a tik a a muriRuia he k ak ano k a tupu, a

k onei nga hua. Apopo he ngaherehere ora!

Goals FYR19

- Approve WGHLP 5YR Investment strategy and KPIS

- Integrate Group Plans that clearly l ink entity goals to TKOW primary goals

- Allocation f or Hei Marae insurance

- Charter Review- Elections- Board delegates- Koha contribution - k oek e- Increase allocation purposes

Board & Governance

Vision

5

Tapua Te Amo

Chairman

& Director member

Carol Whare

Trustee & Chair

Grant Committee

Joshua Grant

Trustee

& Grant Committee

Frank Grant

Trustee

& Grant Committee

7

STRATEGICALIGNMENT

8

The Board's role is to ensure strategic al ignment throughout the Group plans. This strengthens its' purpose by the collective contributions of each entity emphasized through a single f ocus, and that is to manage, control , invest, grow , and del iver the trick le dow n w ithin the regulated f ramew ork s. An important aspect of this is to ensure Waitaha-A-Hei tik anga remains the principles by w hich all is executed, including considerations to "w hat benef its, f or w hat cost, and w ho are the recipients?".

The Board recently approved the Group Holdings f ive year strategy w hich seek s to achieve a basel ine 6% return in the short term, increased w ith long run returns over time. A proportion of prof it is transf erred to Te Kapu O Waitaha as the shareholder. Te Kapu O Waitaha distributed $500 ,000 f rom surpluses to support Charitable Trust del ivery of a range of other grants and programmes..

REPORTING

6bi-monthly

hui w ith k oek e

6hui-a-iw i reports

1Special General

Meeting & 2 inf ormation

hui

92people

attended the AGM Dec 2018

13Panui

del ivery & publ ic

new spapernotices

9

CHARTER REVIEW

It had been the strong desire of the pae tapu and k oek e since 2014, to init iate change in order to encourage w hanau to return to the marae, become engaged and reconnect. The w ay Trust elections rolled out w as a part of this aspiration. The Charter review w as an opportunity to seek benef iciary response, and real ize that aspiration. The proposed resolution f or a nominee candidate meeting w as included in the Charter review .

A series of meetings and inf ormation pack s w ere mailed and notif ied through the new spapers, the Trust w ebsite, and f acebook explaining this change, prior to benef iciary postal vote.

89.22%

Vot ed "YES"

for change

Panuiw hak amara

Post

Websit e

Facebook

em ail

Newspapers

10

The Charter review vote approved that all qual if ying nominees w ere required to attend a Candidate meeting w ith registered benef iciaries. The new process achieved;

- benef iciaries returning back to the marae to participate- opportunity f or questions and answ ers- promote tik anga, w hak aw hanaunga, pono

There w as a turn out of 80 plus people at the meeting. Given this w as the inaugural meeting f or a new process, the attendance w as signif icant and symbol ic of the drive by the pae tapu and k oek e to inf use tik anga into a process that determ ines a f orm of leadership through selection by the people, rather than an election in the f irst instance.

APPROVED

Equal to the number of

positions f or election

Candidate MeetingBoard Elections

2019

5 NOMINEES

FOR 3 YR TERM

TRUSTEE POSITIONS

Duly Elected

FRANK GRANTJOSHUA GRANTCAROL WHAREKUINI TE AMO

11

COMMUNICATIONS & THE BOARDS

WORK

The Group is f ortunate to have a dedicated communications role. Investing in this capabil ity assures us that the w ork of the Trust is communicated in a timely w ay, on a number of communication platf orms, and in a w ay that engages tw o w ay communication.

In addition, the Trust is able to analyse communication data to help us mak e f urther decisions on how w e can improve to meet the obvious pref erences of how people l ik e to receive inf ormation, and on w hat devices. This also helps to direct w hat w e need to invest in the f uture, and more importantly w hat not to invest in.

We have previously communicated that w e w ill move f or example into electronic election voting by 2021-22. This is now included in the approved changes of the Charter. Data analyzed via social media w here most of our communications appear tells us that an overw helm ing majority access inf ormation f rom their cell phone devices. This is a compell ing reason to investigate and develop an iw i APP f or multi-purposes in the f uture.

All meetings, hui, and events w ere communicated 12 months in advance on the Trust w ebsite, and f acebook

In addition to hui-a-iw i, Trust notices by the Board w ere communicated through the Trust w ebsite, Facebook page, bulk emails, and panui. These measures are to ensure transparency, and accessibil ity by benef iciaries to inf ormation no matter w here they l ive.

PANUI

WEB

SITE

FACEB

OOK

WEB

SITE

CALENDAR

EMAIL

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FUTURE OF COMMUNICATION

Why look at an APP?

- Our stats tell us more people access our inf ormation via a cell device than any other device

- People tried but could not apply f or grants on the w ebsite via their cellphones

- People tried but could not register on the w ebsite via their cell phones

- Most age groups have a cell phone than a computer device

- Mobil ity, ef f iciency- Convenience and user f riendly

w ebsitecreates

an aw areness

f acebookcreatesmore

visibil ity

Mobile App puts the

control in your hands

24/ 7"personal ized"

"convenient"

SUBMIT

- Trust elect ions

- Updat e your record

- Not ices

- Apply for a grant

- Regist er

"Each device is specif ic to w hat they can be ef f ectively used f or".

13

GOVERNANCE GOAL

ACHIEVEMENTS

$15,000

HEI MARAEpreservation & protection

$$2,000k oha

support Koek e roles

DELEGATESHUI-A-IWI

KOEKE HUI

Tapua Te AmoCarol Whare

DELIVERED MORE

grants &programmes

than w e did last

Year

14

00,000,000

Ter t iary Educat ion and

Apprent iceship funding

allocat ed was up 310% com pared

w it h t he previous year $$ 86,200

Successful applicat ions t rebled f rom t he previous year . Survey repor t s indicat ed t hat t he applicat ion process was sim ple and easy t o fol low

31 appl icants

EDUCATIONGOAL

ACHIEVEMENTS

Learner & Rest r ict ed Licenses 2 school leavers funded and a fur t her 6 allocat ions in July

Kapa Haka - al locat ed t o Wait aha Reo Program m e

Bi-Lingual Holiday Program m es - delivered in Oct ober

Fur t her funding for 6 new apprent iceships w il l be funded in t he New Year

DISTRIBUTION FRAMEWORK

While the Board mak es distributions, there are many cogs w hich churn aw ay in the back ground. Each grant requires a criteria, an amount, an open and closing date, a suitable appl ication f orm, inf ormation accessible by benef iciaries, accountabil ity, investment, budgets, and so on. In addition each time w e conclude f unding partnerships f or joined contributions, w e also have to build a new set of criteria, pol icy, f inancial commitments, administration and accountabil ity back to those partners.

We have become "champions at w hat w e do" in the distribution space. If w e didn't w e w ould not be able to attract substantial partnership f unding f rom a number of Universities. Those relationships are important to us and mok opuna w ho w ant to study at a University. The value is beyond just f inancial , it is also about w hanaungatanga. We have developed those partnerships w hereby w e are able to util ize that as an extension of manaak i to our people in those Universities. Below is a snap shot of w hat goes on behind the scenes.

SETTING TRANSPARENT CONSENSUS OBJECTIVES

- Iw i consensus - Hakaraia Educat ion Policies are t o be endorsed by t he iw i

- Transparency of out com es - Out com es w il l be repor t ed t hrough t he Annual repor t at a not if ied AGM

- Transparency of com m uicat ion - All scholarships, grant inform at ion w il l be prom ot ed at hui-a-iw i, and Trust com m unicat ion plat form s, as well as not if ied in News papers

1

PICKING THE RIGHT MODEL

- Scholarship/grant scope- Scholarship/grant t enure- Scholarship/grant adapt abil i t y

2

PLANNING FOR THE FUTURE

- Incorporat ing object ives int o invest m ent st rat egy

- Legal, regulat ory, and policy f ram eworks- Roles and responsibil i t ies

3

FINDING AND KEEPING THE RIGHT PARTNERS

- Knock ing on doors- Relat ionship building- Relat ionship m aint enance- Sizing pot ent ial- Managing t he

adm inist rat ion process- Negot iat ion of par t nership

funding- Par t nership Agreem ent s

4

FINANCIAL FORECASTING

- Com par isons and project ions- Risks, rest ruct ur ing expenses and

st randed cost s- Tim ing of invest m ent draw downs

5

MANAGING REGULATORY AND

PARTNERSHIP RISKS

- Qualit y adm inist rat ion & policies- Invest m ent r isk ret urn - Qualit y of f inancial com m it m ent- Com pet ent and st rong regulat ion- Cham pions at grant dist r ibut ion

6

MEASURING IMPACT

- Follow ups- Suppor t- Incent ives- Back up plans

7

16

PARTNERSHIP SCHOLARSHIPS

WORTH$91,000

2 Scholarships w ith a combined value of $ 30 ,000 f or 12 months accommodation in the Halls of residence and

$500 cash, Free WIFI, meals, and Student Services costs

2 Scholarships w ith a combined value of $ 27,000 f or 12 months accommodation in the Halls of residence and

$500 cash, Free WIFI, meals, 12 month gym subscription, and Student Services costs

2 Scholarships w ith a combined value of $ 34,000 f or 12 months accommodation in the Halls of residence, f ree gym, meals, WIFI, $500 cash, $1,200 travel assistance

VICTORIA UNIVERSITY OF WELLINGTON

Ahiri Heyblom - Bachelor Law s

Xanthe Barton - Bachelor Commerce Major Accounting

UNIVERISTY OF WAIKATO

Travis Mok e - Bachelor Sciences Major Chemistry

Shyanne Erueti - Bachelor Arts, Major Drama

UNIVERSITY OF OTAGO

Teina Grant - Bachelor Computer Sciences & Maori Studies

"Com plet ed 2 sit e visit fol low ups w it h st udent s and Universit y st udent services reps"

"Wait ahaTauira net work facebook was launched and is m anaged by t he st udent s"

17

RelationshipAgreements

We commenced negotiations f or the possibil ity of a scholarship Partnership Agreement w ith Lincoln University to be del ivered by Fruition Horticulture in Tauranga. The f ocus is to develop Orchard Management opportunity f ollow ing the recent acquisit ion of Te Kopuroa Orchard by Waitaha Group Holdings LTD Partnership. The Degree is a three Year Horticulture degree. To date this has been agreed to in principle. We hope to f inal ize the Scholarship Partnership Agreement by the end of the year, and in time f or appl ication in January 2020 . The Scholarship partnership w ill aim to f und 100% course costs and w ould be suitable f or mature adults, w ith orchard experience and w ho w ish to pursue a career in Orchard Management. The vision is to create management opportunities f or Waitaha benef iciaries in Te Kopuroa Orchard and possibly other Waitaha ow ned orchards in the f uture.

The Sale & Purchase Agreement of a portion of Te Houhou to Summerset Retirement Village, included a Health & Well being Scholarship exclusively f or Waitaha-A-Hei benef iciaries. The Health Scholarship f ramew ork has now been approved by Summerset, and w ill roll out December 2019 f or allocation in February 2020 . The Scholarship has been named Te Houhou Health Scholarship, and w ill be administered by the Trust. The total value sponsored by Summerset is $200 ,000 over the next 20 years.

We are pleased to f inally announce that w e have f ormal ized a Relationship Agreement w ith Te Puk e High school Board. The benef its of this agreement means that w e w ill be able to share , discuss and report on mutual education interests, as w ell as support the School , and Waitaha students. Trust management and the Chair w ill meet w ith the Board quarterly. In addition w e w ill be communicating events, and success stories of past Waitaha students w ho w e have assisted through the school new s letter.

We continue to reduce the burden of f unding appl ications by our benef iciaries to Te Araw a Fisheries(TAF).

We manage that by email ing consented registration inf ormation to TAF. This el im inates the need benef iciaries to provide the same inf ormation tw ice. In addition, those records w ould have al ready been val idated by the Trust w hak apapa committee theref ore speeds up the registration process, and access to TAF Scholarships f or our benef iciaries.

18

University of Waikato Gloria Clarke PHD Sport & Leisure

University of Waikato Tracey Clarke BA Major Te Reo

University of Waikato Nathan Grant Bach Business Major Te Reo Maori

University of Waikato Aroha Kara BA Major Maori & Indigenous study

University of Waikato Travis Moke BSc. Major Chemistry

University of Waikato Shyanne Erueti BA Major Drama

University of Waikato Anahera Teinakore-Curtis BA & Communications

University of Waikato Alexis Whare BEd Kakano Rua

University of Waikato Centrie Newdick BEd. Kakano Rua

Toi Ohomai Parekura Whareaorere Dip.Environmental studies

Toi Ohomai Melissa Tupaea Bachelor Applied Mgmnt

Toi Ohomai Jennifer Walker Bachelor nursing

Victoria University Ahiri Heyblom Bachelor Laws

Victoria University Xanthe Barton BCom. Major Accounting

University of Otago Liam Wairepo BSc & Bachelor Laws

University of Otago Teina Grant Bachelor computer science

University of Otago Aliyah Thocolich BSc. Health Science

University of Otago Riria Mohi BMed. & Bach. Surgery

Massey University Bonnie Boyd Bach. Communications

Massey University Tyler Grant Bachelor of nursing

BCITO Te Hira Tawhara Trade Cert Carpenter

BCITO Cruise Clarke Trade Cert Plaster

NZI of Sport Shaye Moana Whareaorere

Dip.Sport

Whare Wananga O Awanuiarangi

Frances Teinakore-Curtis

PHD Environmental Studies

AUT Mereana Te Pere Masters Educational Leadership

Tertiary Recipients

Most of the education grants are f unded f rom the Hak araia Endow ment f und.

Hak araia w as a Waitaha leader w ho f ought f or land retention in the early-m id 1800 's. He w as classif ied by the Crow n as a "rebel " w as tragically k il led by Crow n soldiers. An Endow ment f und in his name w as negotiated as part of the Waitaha Treaty Claim.

19

20

Their stories

Te Hira Clarke was raised on Manoeka Road, and is completing a final year in a carpentry apprenticeship with Anamata builders based in Hamilton. Te Hira enjoys the learning, his highlight being the completion of a winery on Waiheke Is. He recently offered time to come and talk about his journey with six Waitaha school leavers currently on a forestry course. He strongly advocates Trade apprenticeships as a great opportunity, and speaks often of his dream to contribute back through maintenance on the kaumaatua flats, and Hei.

Liam Wairepo is of Waitaha descent, and was raised in Matapihi, and has been studying at Otago University. Liam was lucky enough to Board with a kuia who was a long time friend of the whanau. He tells us that living with the kuia, became "home away from home" . He enjoyed running errands for his kuia, picking up prescriptions, running her to town, and other odd jobs. Before her passing away, she gave Liam what he describes as his runabout car which to this day he still has. Liam works three part time jobs, and is completing a treble degree, and has a particular interest in Governance and politics.

Jennifer Walker is a mama as well as studying for her Nursing degree at Toi Oho Mai. Caring for a young family and study can be extremely challenging. While student loans are available to assist with study, Jennifer states expenses such as petrol to travel to study on a daily basis soon adds up. The scholarship contributes to minimizing some of that pressure. Jennifer is in her second year of study .

21

Discretionary Grant

Recipients

Rangipare Ngaropo Modern day Indigenous Youth Mobilsation

Japan

Hannah Grant HWA CHOW Institute Student Leaders Convention

Singapore

Jericho Yorke Cultural exchange & Representation ANZAC WW1 commemorations

Europe

Te Hamana Te Aute Cultural exchange & Representation ANZAC WW1 commemorations

Europe

Tamakaimoana Whareaorere

Cultural exchange & Representation ANZAC WW1 commemorations

Europe

Discretionary Grants are at the sole discretion of the Board. The 2019 distributions were based on Education cultural experiences, and leadership.

Other Grant Recipients

Hei Marae Committee

Cultural heritage preservation

$ 15,000

Other Contributions

Waitaha Kohanga Reo

Tickets to the Matariki Glow Show

Hei Marae Committee

Waitaha-A-Hei Anzac

22

Scholarshipand grant

Communications

Scholarship inf ormation is promoted via the;

- w ebsite- f acebook- panui- advertisements (Hak araia)- Hui-A-Iw i

Appl ications

- appl ications are onl ine

Approvals

- Grants committee approve onl ine

Most popular

- video promotions remain the most popular

23

E-CULTURAL RESOURCES

We made a start on creating e-cultural resources, that w ill soon be uploaded into the digital space, being the Trust w ebsite. The resources include story book s, and recordings. More w ill be added over time. such as Te Araw a and Waitaha w aiata moteatea, tauparapara. The aim of this project is to provide access to learning in the home.

These include;

- Waitaha stories suitable f or tamarik i - Recorded m ihi- Recorded Waitaha pepeha- Recorded Whak aw hetai k ai

24

IWIREGISTER

The iw i database is an important aspect of the Trusts mahi. Individual registrations and accumulative data plays a central role in social , and economic inf luences in the context of the Trust "purposes" and strategies.

It is important that inf ormation held is accurate and current. For this purpose w e w ill investigate the possibil it ies of including the abil ity to register, update records, add children, and notif y deceased via mobile APP. This moves tow ard people being more in control of their ow n record at any time in any space w ithout having to rely on a computer device, w hich is more often than not desk bound.

CHARTER CHANGES

To be be included on the Register, people now MUST

be val idated as being a descendant of

WAITAHA-A-HEI

25

ENVIRONMENT

135 notif ied resource consents

5cultural impact

assessments

1,288cultural monitor

hours

6major projectcultural

input

6f orums

- Whak airinga k orero are the principles by w hich w e manage environmental impacts, and decisions concerning consenting, and development appl ication responses

- The Trust continues to w ork w ith k oek e, iw i reps, and cultural monitors on most environmental responses and representations

- We continue to attend meetings w ith Local and regional council projects such as the landscaping design of Papamoa Hills, Pourepo 28 ha. w etland restoration project located at the Kaituna, the Kaituna re-diversion scheme, to name a f ew

- A matter yet to be resolved is how Waitaha-A-Hei is represented on the Kaituna River Authority Board.

- We hosted Te Puk e Primary school , w ith Whareoteriri speak ing to the students about the history of Ohineanaanga Stream. The students have establ ished a group Nga ringa manaak i, to care f or the stream through planting and restoration

- We maintain our w ork ing relationships w ith DOC, Otanew ainuk u Trust, and others w hile encouraging young people to become more involved in conservation

26

CULTURALMONITORS

We are extremely fortunate to have experienced and knowledgeable cultural monitors. This skill is particularly scarce in terms of understanding the cultural indicators of the landscape, the history, and management of discoveries.

Waitaha-A-Hei monitors are co-ordinated between the Trust and Whareoteriri. The Trust manages all Cultural Monitor Agreements on their behalf.

WAIARIPIPELINEPROJECT

SUMMERSET DEVELOPMENT

PAPAMOA HILLS

TE TUMU KAITUNA 14

TE OKUROA

DRIVE27

WHAKAIRINAGAKORERO

IN ACTION

We continue to participate in matters of bio-security and iw i input. This year w e also concentrated on encouraging more conservation aw areness among our rangatahi.

Henare Tuanau, Te Riit i Karak a-Clark e, Kiahn Rew ita, Wiremu Heyblom, Kerei Whareaorere, and Isaiah McNeil are completing a Forest Operations course. They volunteered to undertak e some pest control mahi alongside DOC on Otaw a in their ow n time.

In addition they have met w ith David Brow n of Otanew ainuk u k iw i Trust, w ho talk ed to them about protection of k iw i and restoring habitat.

The Trust commends these boys f or getting involved in protecting the w ildl if e on Otaw a. They are the f irst to have put up their hands, and did the mahi.

30

BLESSINGS

Waiari Water Treatment Plant

Waiari Pipel ine Poplar Lane

Waiari Pipel ine No.1 Road

Summerset development

Papamoa Domain

RSA ANZAC Memorial Papamoa

Ultra f ast Fibre - Te Puk e tow nship

Te Kopuroa Orchard

Papamoa Regional Park

Wairak ei Reserve

VICTORIA UNIVERSITY FUNDED 2 WAITAHA RANGATAHI TO ATTEND THE SUSTAINABLE FUTURE SYMPOSIUM

- Travis Mok e- Parek ura Whareaorere

29

FINANCEAT A GLANCE

GROUP SPECIAL PURPOSE FINANCIAL REPORTING

The Trust employs a shared services model , w hich administrates all entity f inancial accounting and investments. Each entity f inancial results and activity is consol idated to f ormulate the Group's f inancial perf ormance f or the year;

- Te Kapu O Waitaha- Waitaha Group Holdings LTD Partnership (WGHLP). Te Kopuroa Orchard is a cost centre

w ithin WGHLP.

WAITAHA CHARITABLE TRUST FINANCIAL REPORTING

Waitaha Charitable Trust is treated as a separate Entity f rom the consol idated Group Accounts, as this entity is Charitable, theref ore a "not f or prof it" Trust.

MANAGED INVESTMENT FUNDS

Craigs Investment Partners are responsible f or the management of managed investment f unds f or Te Kapu O Waitaha and Waitaha Charitable Trust. Investment includes, shares, equities, term deposits, and bonds. Income f rom these investments f inance grants, scholarships, and other distributions previously mentioned in this report. In addition the investment model tak es into consideration

TE KOPUROA - GROWTH ASSET

The iw i resolved to approve the sale of 14.3ha; a proportion of Te Houhou to Summerset Retirement in 2017. The sale gave impetus to investment f or WGHLP by replacing the sale w ith a larger block of land being a Kiw if ruit orchard located on w hat w as traditionally a part of Waitaha tribal w henua during the m id 1800 's. The Orchard w as given the name Te Kopuroa by the k oek e, (ref erring to the river that f low ed through the Orchard land local ity, and w as a popular place f or catching eels.

The Orchard is 18ha. w ith both Hayw ard green and Gold f ruit, and is an early start orchard. Acquisition being $9.5mill ion w ill appear in next years f inancial report.

Plans are underw ay to promote f uture employment opportunity.

GROUPEQUITY$40m

Excludes Waitaha Chartiable Ttust

GROUPEBITDA

$243,734

Excludes Waitaha Chartiable Ttust

WCTSURPLUS$469,236

Exempt f rom Tax

WGHLPEBIT

$99,724

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FINANCIALPERFORMANCE

TRUST EQUITY GROWTH

Assets settled f rom the Waitaha Treaty Claim in 2013 w as $ 11,497,860 . Since then equity has increased signif icantly. This is largely driven by commercial property appreciation, and the gain on sale relating to a 14.3ha proportion of Te Houhou. The Trust has retained 12.16ha of Te Houhou.

MANAGED FUNDS

The Trust has the f ollow ing Managed Funds w ith Craigs Investment Partners.

- Te Kapu O Waitaha- Social Endow ment- Hak araia Endow ment

Each year the Funds are revalued as at balance date. In the 2017 audit w e saw a substantial dip in re-value. This w as due to the mark et volatil ity, and unreal ized losses in those years. Te Kapu O Waitaha has recently review ed its investment portf ol io increasing the risk threshold f rom low / medium to medium/aggressive. The new regime w ill f ocus more on grow th than revenue returns. Waitaha Charitable Trust Endow ment portf ol io w ill remain at low risk investment.

Te Kapu O Waitaha Portf ol io Hak araia Endow ment Portf ol io

Social Endow ment Portf ol io

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PARTY RELATED LOANS

With the establ ishment of the Waitaha Charitable Trust in 2015, the Endow ments w ere transf ered f rom Te Kapu O Waitaha to the Charitable Trust. The Endow ments w ere accounted f or on the Charitable Trust balance sheet as a Party related Loan. The purposes of the Hak araia Endow ment is f or Education as per the Treaty Claim. The Board strategy is to ensure that remains in perpetuity. The Board w ill review the Endow ment f rom being a party related loan into becoming part of the Charitable Trust equity.

CHANGES TO

HAKARAIAENDOWMENTSTRATEGY

PROPERTY REVALUATIONS

Revaluation of Trust properties are at cost. each year. This is considered a f air value f or accounting purposes. Mark et revaluations w ill be undertak en periodic and al igned to strategy.

Current Trust properties are;

Hinepoto - zoned residential

Ohineangaanga - zoned Industrial

Te Houhou - Wairak ei zoned residential .

The decl ine on Trust Commercial Property value is due to the sale of the 14.3ha proprtion of Te Houhou. This w as later replaced by the acquisit ion of Te Kopuroa Orchard w hich w ill appear in the accounts in the next f iscal year.

TRUST PROPERTIES

ARE HELDIN

CUTSTODIALTRUSTEE

ENDOWMENTSARE

ADMINSITEREDSEPERATELY

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FINANCIALPERFORMANCE

WGHLP

Te Kapu o Waitaha capital ized $ 1,000 ,000 in 2017, and a f urther $ 20 ,000 ,000 in 2019.

Much of the year has been f ocused on development of the Statement of Intent, and the completion of the Annual Business plan f or 2019-2020 .

The WGHLP investment portf ol io and target returns are establ ished through its' approved SIPO. 2019, w ill concentrate an the development of an investment strategy of w hich a review of the Trust property assets w ill be the primary f ocus. The review w ill target maxim izing value and return, w hile the Investment strategy w ill investigate other investment opportunities in al ignment w ith the company SIPO.

The company has begun to build its portf ol io w ith the acquisit ion of Te Kopuroa Orchard w hich w as settled post end of the Financial year (30 .06.2019). A f ive year strategy has been establ ished by Prospa Orchard Management aimed at increasing vine health and f urther maxim izing f ruit production.

The current Orchard gate return, (OGR) f or the orchard is $ 1.1 m ill ion. The Orchard w as purchased w ith inclusive of crop and GOLD License.

Equity$20 .4M

EBIT$99.7K

Director & Chair

Tom Davies

Director

Liz Te Amo

Board Member Director

Tapua Te Amo

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COMMERCIALACTIVITY

STATEMENT OF INVESTMENT (SIPO)

We reported at last years AGM the approval of the WGHLP SIPO. The SIPO pol icies w ill provide guidance to investment decisions. These include;

- Values statements al igned to the overall strategy of Te Kapu O Waitaha- Investment portf ol io, oultining the current and f uture asset and investment targets- Risk adjusted mark et returns betw een 6-7%- Asset classif ications- Direct Investment - Risk thresholds and risk management- Distribution pol icy to the shareholder (Te Kapu O Waitaha)

The SIPOs w ill act as a 5-year guide, and annual plans. The business case process f or acquisit ions w ill also include updating the impact on asset allocation guidel ines, long run (normal ised f or long run expectations) net operating prof it and w orst-case scenario testing.

OPERATIONAL GROWTH ASSETS

The SIPO outl ines that the WGHLP portf ol io f or operational grow th assets consist of but not l im ited to;

- tourism- landbased agri/ horticulture- property development

We reported last year the release of 14.3ha of the Te HouHou block in Papamoa to Summerset Retirement Village. The process leading up to settlement took longer than expected to ensure all inf ormation ref lected optimal outcomes in particular tax advice and valuation content.

In addition, the Trust had undertak en a boundary adjustment w hich more clearly def inded the development lands, f rom conservation and green belt areas. Another benef it of the boundary adjustment w as that the 14.3ha, released f or sale to Summerset Retirement w as separated out f rom the Trust retained lands w ith new ly registered tit les. Other outcomes as reported previously has been the successf ul negotiation of a Te Houhou Health Scholarship of $200 ,000 , $ 20 ,000 f or the w ritten history of Te Houhou, and $ 50 ,000 tow ard landscaping the sw amp pa, located on the Trusts retained land. The WGHLP f inal ised settlement in July 2018.

Part of the sale proceeds f rom Te Houhou has been re-invested in the acquisit iion of Te Kopuroa Kiw if ruit Orchard located at 52B Te Puk e Highw ay. The WGHLP due dill igence included, a property valuation, orchard assessment by a qual if ied consultant, legal and tax advice. The orchard consists of 5.79 canapoy ha. Hayw ard Green, and 5.85 cnopy ha. Gold3. The orchard settlement occured inJuly 2019.. A f ive year strategy to increase vine health, and production w ill be managed by Propsa orchard management. The WGHLP has also contracted Fruition Horticulture to provide expert advice, and support, in relation to industry changes, impacts, f orecasting, as w ell as monitoring of KPI against orchard management plans. The WGHLP is also a co-op member of EastPack w ho are also the orchards Post Harvest provider. Te Kopuroa mak es up the greater proportion of Operational Grow th assets in relation to the LP SIPO.

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NOTES

NOTES

w w w .w aitaha-iw i.org.nz