e tirohanga �oroa I � m�tou �ahi �atoa A LONG TERM VIEW IN EVERYTHING WE DO

2015 ANNUAL REPORT

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$38.6M 49% Paid to iwi reduction in to date waste and increase in recycling 80% of all fishers nationwide first stat e completed of the art seabird smart fishing boat training being built in new zealand with cutting edge seabird mitigation, complete in mid-2016

WHAKAHARAHARATANGA NUI KEY HIGHLIGHTS $ 3Minvested in new chatham Islands processing facilities

Towards integrated reporting $ In addition to letting you know how our business has performed over the last year and sharing our highlights, you’ll notice that this year’s report also includes a lot more information about what we’re doing with regard 52M to sustainability.

For us, that means not only the sustainable operation of our business as joint a whole in order to ensure longevity, efficiency and best practice, but our role as kaitiakitanga to protect and maintain the domain of Tangaroa and Investment the environment for future generations.

We want to show that we live our goal of having ‘a long term view in in precision everything we do’ and are committed to being the best in the world when it comes to sustainability, which means integrating it into our seafood strategy and performance.

For us, sustainability is at the heart of what we do, and we want to be harvesting telling a more complete story about sustainable seafood and the role we play in producing that. We’ll be providing more information about our people and the role they play, as well as how we operate.

To achieve this, we are moving towards an Integrated Report, which we believe is the most transparent way of showing everyone how Aotearoa Fisheries creates value across environmental, social and economic performance, based on a broad range of factors.

In addition to putting in place a new human resources and payroll system that will tell us more about our people, we are currently largest m�ori looking at measurement tools to ensure we can gather the additional data we need in order to give you as much information as possible.

In the meantime, we hope you enjoy reading more in this owned lobster year’s report about our sustainability initiatives across all parts of our business. business with Port nicholson fisheries

AOTEAROA FISHERIES LIMITED INTERIM REPORT 2015 3 TĀ TE HEMANA PŪRONGO 4 CHAIRMAN’S REPORT TĀ TE TUMUAKI PŪRONGO 6 CEO’S REPORT AFL INSHORE 12 AFL INSHORE PREPARED FOODS 16 PREPARED FOODS AFL AQUACULTURE 18 AFL AQUACULTURE SEALORD 20 SEALORD HĪTORI O AOTEAROA FISHERIES 24 HISTORY OF AOTEAROA FISHERIES HE TANGATA 26 PEOPLE HEI WHAKĀPOPOTO 30 IN SHORT I ROTO I TE HAPORI 36 IN THE COMMUNITY OHU TUMU 40 BOARD OF DIRECTORS WHAKAHAERENGA RANGATŌPŪ 42 CORPORATE GOVERNANCE NGĀ ĀPIHA WHAKAHAERE 44 EXECUTIVE TEAM KUPU TAKA O TE PŪNAHA WHAKAHAERE ROHEROHENGA 46 QUOTA MANAGEMENT SYSTEM TERMINOLOGY TAUKI TAHUA PŪTEA 47 FINANCIAL STATEMENTS RĀRANGI KUPU MĀORI 96 GLOSSARY OF MĀORI TERMS PUKATAKI RANGATŌPŪ 100 CORPORATE DIRECTORY long term view

4 CHAIRMAN’S REPORT 6 CEO’S REPORT 12 AFL INSHORE 16 PREPARED FOODS in everything 18 AFL AQUACULTURE 20 SEALORD 24 HISTORY OF AOTEAROA FISHERIES 26 PEOPLE we do 30 IN SHORT 36 IN THE COMMUNITY 40 BOARD OF DIRECTORS 42 CORPORATE GOVERNANCE 44 EXECUTIVE TEAM 46 QUOTA MANAGEMENT SYSTEM TERMINOLOGY 47 FINANCIAL STATEMENTS 96 GLOSSARY OF MĀORI TERMS 100 CORPORATE DIRECTORY

chairman’s report: safety, always number one

He tau pai tēnei mō Aotearoa Fisheries. E piki haere tonu ana tō mātou whanonga puta i te Kāhui, ā, ahakoa he nui kē te mahi, he whakakoakoa kē te whakatutukitanga o wō mātou whāinga haumarutanga.

Ko ngā kōkiritanga o te whanaketanga o wō mātou tāngata, te huanga i tutuki, e ai ki te mahere, me te otinga o wētehi mahinga nunui te whakatinanatanga o te āheinga me te raukaha e tupu tonu nei kia auau ai te whakaotinga, me te hanganga o te ahurea ahurei e wawatatia nei e mātou.

Hauora me te Haumarutanga He take matua pūmau te Hauora me te Haumarutanga ki a mātou, ā, me mahi mātou i te katoa o tā mātou e āhei ai ki te piki tonu i te taumata. He nui rawa te kotahi taotū mahue wā mahi. He kino te pai o wētehi o wā mātou mahi hei whakawhāiti tonu atu i ngā taotū ruarua nei.

Ko te tohu ko te pūrongotanga me te wherawheranga o ngā mea katoa, ahakoa te iti me te hauwarea te āhua ki te hunga i pāngia atu. I tēnei tau i whakahaeretia he wānanga i waenga i ngā māngai Hauora me te Haumarutanga o ngā tari katoa hei arataki i ō mātou herenga hou.

Ka piki ngā herenga pūrongo, ka uru te hiahia ki te pūrongotanga pakari o te Hauora me te Haumarutanga i te wā e taka ai. E haere tonu ana te pūnaha whakarewa i te maitai ā ipurangi, Ecoportal, e tutuki ai taua whāinga.

E haere ana a Carl Carrington rāua ko Allyn Glaysher ki te hōtaka Takitaki Hauora me te Haumarutanga, mā reira mātou e mōhio ai ki ngā mahinga hou me ngā mahi papai. Waihoki e toro tonu atu ana ngā Tumu me ngā Āpiha katoa ki tēnā tari, ki tēnā tari tirotiro ai i te Hauora me te Haumarutanga. 2015 Arotake ā Ture Kei te mōhio kē te nuinga o kōtou kua oti te arotake ā ture o te hanganga taunga i raro i Ture Mahinga Ika Māori. Kāore mātou i te marohi kia tāruatia ngā putanga o taua arotake i whakamanahia e kōtou katoa i te hui motuhake. E pai ana kia takoto i konei te mihi ki ngā panonitanga matua, pēnei me te rironga o te mana whakahaere o Aotearoa Fisheries i ngā iwi, me te mana o ngā iwi ki ō rātou rawa taunga mahinga ika. Moni hua I tauākitia e te Ohu Tumu o Aotearoa Fisheries he moni hua e $6.4 miriona te nui mō te tau i oti i te 30 o Hepetema 2015, koia rā te 40% o te huanga a te kāhui e ai ki te Ture Mahinga Ika Māori. Ka whakautua te moni hua hei te waenga o Tihema 2015, ā, he whiwhinga tāke Mana Māori ōna. Panonitanga Ohu I paetara ā whare ngā rākau a Fred Cookson rāua ko Wayne Peters i te 30 o Noema 2015, e waru tau te roa o te noho hei tumu. Kei te mihi mātou ki a Fred rāua ko Wayne mō rāua i whakapau kaha kia angitū ai a Aotearoa Fisheries, ā, mō rāua i whakatakoto i ngā kupu whānui, mārama, pono hoki i runga i ō rāua tūranga hei tumu.

Kei te mihi mātou ki ngā tumu hou i whakatūria i te 1 o Tihema 2015, arā ko Mr Craig Ellison rāua ko Ms Rachel Taulelei.

Ko Craig te Heamana o Ngāi Tahu Seafood Limited me te Heamana o te Kaunihera Taumata Kaimoana o Aotearoa. He mema o mua a Mr Ellison o te poari o te Komihana Mahinga Ika o te Tiriti o Waitangi ō mua, ā, nāna i tū ai a Aotearoa Fisheries nā runga i te tukanga mātoha Taunga Mahinga Ika Māori.

Inatata tonu nei a Ms Taulelei i whakatūria hei Tumu Whakahaere o Kono NZ LP, ā, koia te kaiwhakatū o Yellow Brick Road Limited, he kamupene tautōhito mō te whakarato kaimoana kounga ki ngā wāhi kai puta i Aotearoa.

E rua e rua ngā tumu hou he piringa whaimana ki te Ohu Tumu o Aotearoa Fisheries.

Kei te tīni haere a Aotearoa Fisheries i wana tumu whakarite o Sealord. Kāore he tumu rāwaho, engari kē ia ka ahu mai ngā tumu i te Ohu o Aotearoa Fisheries. Mā konei e tānekaha ai ngā hononga ā mahinga i waenganui i Aotearoa Fisheries me Sealord, ā, e whai wāhi nui atu ai wō Aotearoa Fisheries wawata ki Sealord.

4 AOTEAROA FISHERIES LIMITED INTERIM REPORT 2015 4 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 TĀ TE TIAMANA PŪRONGO CHAIRMAN’S REPORT

Aotearoa Fisheries has had a good year. We continue to improve our performance across the Group and although there is more to do, particularly pleasing is achieving our targets on safety.

Our advances in our people’s development, the profit achieved versus against plan and completion of significant projects reflect the growing capability and capacity to execute consistently and build the culture of excellence that we aspire to.

Health and Safety The Health and Safety of our people is always a top priority for us, and we need to do everything we can to continually improve. Even one injury is one too many. We have some excellent initiatives in place to reduce the few we do have.

The key to this is ensuring all incidents, no matter how small or insignificant they may seem to the persons involved, are reported and investigated. This year a workshop was held with Health and Safety representatives from all sites to provide direction on our new requirements.

With higher reporting comes the need for robust Health and Safety reporting in real-time. We are in the process of implementing an online tool, Ecoportal, to enable this.

Carl Carrington and Allyn Glaysher are attending the Health and Safety Leadership programme to ensure we stay abreast of new initiatives and best practice. In addition, all Directors and Executive team members continue with their Health and Safety site visits. 2015 Statutory Review As most of you are aware the 2015 statutory review of the settlement structure carried out under the Māori Fisheries Act was completed. We don’t propose to repeat the results of that review that were endorsed by you all at the special meeting. It is appropriate to state here that Aotearoa Fisheries welcomes the key changes such as their vesting of control of Aotearoa Fisheries in Iwi and in the control by Iwi of their fisheries settlement assets. Dividend Aotearoa Fisheries’ Board of Directors declared a dividend of $6.4 million for the year ended 30 September 2015, which in accordance with the Māori Fisheries Act is 40% of the consolidated profit. The dividend was paid in mid-December 2015, and had full Māori Authority imputation credits attached to the payment. Board Changes Fred Cookson and Wayne Peters retired from the Board on 30 November 2015, after serving as directors for eight years. We thank both Fred and Wayne who have worked hard for the success of Aotearoa Fisheries, always giving full, clear and frank advice and comment in their role as directors.

We welcome two new directors who were appointed effective 1 December 2015, Mr Craig Ellison and Ms Rachel Taulelei.

Craig is currently the Chairman of Ngai Tahu Seafood Limited and the Chairman of the New Zealand Seafood Standards Council. Mr Ellison was also a board member of the former Treaty of Waitangi Fisheries Commission and instrumental in establishing Aotearoa Fisheries through the Maori Fisheries Settlement allocation process.

Ms Taulelei was recently appointed the Chief Executive of Kono NZ LP and is the founder of Yellow Brick Road Limited, a company that specialises in supplying quality seafood direct into restaurants throughout New Zealand.

Both new directors are powerful additions to the Aotearoa Fisheries Board.

Aotearoa Fisheries is also making changes to its appointed directors to Sealord. Instead of having independent directors, these directors will now be from the Aotearoa Fisheries Board. This will help to increase the operational linkage between Aotearoa Fisheries and Sealord, and ensure that Aotearoa Fisheries’ expectations are better represented at Sealord.

Whaimutu Dewes, Tiamana Chairman

AOTEAROA FISHERIES LIMITED INTERIM REPORT 2015 5 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 5 ceo’s report: A long term view

Kātahi anō ka pēnei rawa te hāngai o te kōrero ‘he tirohanga roroa i ā mātou mahi katoa’ ki Aotearoa Fisheries. 100% nō te Māori anake, he wāhi tātou o te taunga mahinga ika Māori nunui mō ngā whakatupuranga. Nā te āhua o taua taunga e pūmau ai te wāhi o te Māori ki te mahinga ika, ā, nā konei i roroa ai te tirohanga mō ngā mahi me ngā whakangaonga, he tirohanga e whaikoha ai ngā mahinga ika me ō rātou pūnaha rauropi.

E kite nei mātou ko te huarahi ki ngā hua pai kē ā haere ake nei ko te uara nui kē, kaua ko te rōrahinga nui kē, nā runga i te whai mutunga o ngā pūnaha rauropi. Ahakoa rā, e māia ana a Aotearoa Fisheries i te rauora o ngā rauemi māori o Aotearoa, ā, e mārō ana te haere a te Pūnaha Whakahaere Roherohenga (PWR) hei whakapūmau i taua āhuatanga.

E tukuna ai taua uara me whakangao atu tātou ki ō tātou hanganga, he mahi e mahia nuitia ana e mātou i ngā tau kua hipa nei, ā, ka mahia tonutia hei tiaki i tō tātou rauemi, tērā ko te pupuritanga o te taiao horomata, me te whai i ngā hangarau hei tautoko i a mātou kia māia tonu atu ai ā mātou mahi.

Waihoki, ko wētehi atu whāinga hei tāpiri uara ko te āta tipako i te kiritaki kia tika ai te tohanga o ngā hua ki te hunga e pai ana ki tō mātou ratonga auau ka tahi. Ka rua ko te kounga, te takenga me te toitū oranga. Ka toru ko te whanaketanga hua, hei tauira ko te rāngai hua kai whakahauora. Ka whā ko te hoko puta noa i ngā wāhanga ūmanga.

I Aotearoa Fisheries, e mōhio ana mātou ki te kore mātou e āta hauhake i raro i ngā tikanga, ka kore he tūāpapa e pai ai te whakarato ki te kiritaki me te kaihoko. Ka ahu mai i ngā tikanga, tō mātou kaitiakitanga, me te whakatupuranga e ora tonu ai ngā whakareanga. Huanga ā Pūtea E rua rawa ngā wāhanga nunui o te huanga o Aotearoa Fisheries, arā te huanga o wō Aotearoa Fisheries ake mahinga pākihi e hui mai ai a AFL Inshore, Prepared foods me AFL Aquaculture; ā, te āpititanga huanga o te 50% whakangaonga o Sealord Group Limited. Aotearoa Fisheries Mō ngā mahinga pākihi o Aotearoa Fisheries ake, he pai te whanonga o te Kamupene katoa, ā, i tutuki tana whāinga, arā e $10.2 miriona te huanga katoa mō te tau i muri mai i te tāke.

E piki haere tonu ana te whanonga huanga i AFL Inshore, ā, ko te tau 2015 he wāwāhi rikoata. Ko te whanonga nei te whakatinanatanga o ngā kaupapa hihiko rautaki e haere tonu nei i whakaritea, e whakaritea tonutia ana i tēnei Wāhanga. Kei tua i tā te mahere i tohu ai te whanonga o Prepared Foods ahakoa te whakataetae kaha i Āhia o te haonga pāua whakatupu, ā, i whānui kē atu ngā hokonga o ngā kai rite-kia-kainga nā te whakawhānuitanga o tana huinga kiritaki. Ka aroha hoki, kei raro i te matapae tō te AFL Aquaculture whanonga, tērā ia ko ngā taumahatanga o te whakatupu tio me te pāua.

He whakakoakoa te whanonga ā pūtea o te kāhui o Aotearoa Fisheries nā te haupāuma o te uara nui rawa o te tāra o Aotearoa ki ō mātou moni tauhoko matua, arā ngā tāra o Amerika me Ahitereiria. Ahakoa te ngoikoretanga haeretanga o tō Aotearoa tāra ki tō Amerika, e kore e puta ngā hua taea noatia te tau e heke nei nā te hōtaka rauhipūtea o Aotearoa Fisheries.

6 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 TĀ TE TUMUAKI PŪRONGO CEO’S REPORT

A long term view

Never more has the approach of taking ‘a long term view in everything we do’ been more relevant for Aotearoa Fisheries. Being 100 per cent māori owned, we are part of an important inter-generational māori fisheries settlement. The nature of that settlement means that māori will always be involved in fisheries, and therefore all our activities and investments have a long term perspective that is respectful of fisheries and the ecosystems they are part of.

We recognise that improved future benefits will be delivered to Iwi through increasing value, rather than volume, given finite marine ecosystems. Having said that, Aotearoa Fisheries is confident that New Zealand’s natural resources are in good shape, and that the Quota Management System (QMS) is working to ensure this.

In order to provide this value we have to invest in our infrastructure, something we have been doing heavily in recent years and will continue to do, protect our resource in terms of maintaining our pristine environment, and keep ahead with technology that can help us ensure we’re operating as efficiently as possible.

In addition, strategic customer selection to ensure the correct allocation of products to those that value our consistent supply, high quality, provenance and sustainability, product development, for example in the nutraceutical sector, and cross divisional selling are also a focus to add value.

At Aotearoa Fisheries we realise that unless we harvest with care and compliance we will not have the platform from which to service customers and consumers. How we do this is intrinsic to our tikanga, our role as responsible kaitiaki, and whakatipuranga to ensure prosperity for future generations. Financial Results Aotearoa Fisheries’ profit is made up of two major components: the profit from Aotearoa Fisheries own direct business activities encompassing AFL Inshore, Prepared Foods and AFL Aquaculture; and the profit contribution from Aotearoa Fisheries’ 50% investment in Sealord Group Limited. Aotearoa Fisheries AoteAroa fisheries’ For Aotearoa Fisheries’ direct business activities, the Company in operations aggregate has performed well, and exceeded its target, with net profit after tax of $10.2 million for the year.

The profit performance from AFL Inshore continues to increase and 2015 was another record year. This performance reflects the ongoing $ strategic initiatives that have been made, and are continuing to be made in the division. Prepared Foods performed ahead of plan 10.2M despite strong competition in Asia from farmed pāua supply, and saw increased sales of the ready-to-eat meals as its customer base continues to expand. AFL Aquaculture unfortunately performed below expectations, highlighting the difficulties of farming Pacific profit oysters and pāua.

The aggregate Aotearoa Fisheries profit performance is pleasing % given the headwind of the high value of the New Zealand dollar 24 above against our major trading currencies of the US and Australian dollars. While the New Zealand dollar has recently weakened against the US dollar, owing to Aotearoa Fisheries’ hedging programme, the benefits are not fully realised until the following year. plan

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 7 Sealord Group Limited He whakatukaru kē te āpititanga huanga o Sealord Group Limited, arā e $5.8 miriona, ā, kei raro rawa atu i te whāinga o te $9.6 miriona. He huhua kē ngā waka i pakaru i te roa o te tau, ka whai pānga ki te raukaha haonga, ā, ki te hokonga me te āheinga huanga. Kei te wāhanga Sealord i raro iho nei te roanga o ngā kōrero.

I puta i tā te Heamana pūrongo hoki, e tānekaha ai te hononga i waenga i Aotearoa Fisheries me Sealord, haere ake nei ko ngā Tumu e whakatūria ana e Aotearoa Fisheries ki te Ohu o Sealord ka ahu mai i ngā Tumu o Aotearoa Fisheries. Mā konei ngā wawata o Aotearoa Fisheries e kotahi atu ai ki te Ohu o Sealord. Huinga Huanga Nā runga i te putanga whakatukaru o tō Sealord huanga, kei raro te huinga huanga $16.0 miriona i tā te Mahere i tohu ai, $17.8. Aurere Pūtea He autāia tonu te aurere pūtea i wā Aotearoa Fisheries ake mahi, e $9.9 miriona, ā, he hāngai ki te Mahere. Ahakoa te whakangaonga ki te whakahounga hanganga ki te whakahou waka, me te timatanga o te hanganga o te whare hou ki Waitangi, Rekohu, kāore i piki te huinga nama. Whāinga Rautaki I tērā tau i pūrongotia e mātou te whakahounga hanganga, ā, e koa ana te ngākau i te kōkiritanga pai i konei. E pakari ai te tūāpapa o te pākihi ki te tupu, kua kaha whakangao a Aotearoa Fisheries i ngā tau e whā kua pahure hei whakahou rawa. Kua eke te tau tuarua e mahi ana te whare hou ki Te Papaioea, ā, kua tata oti te whare hou ki te Rekohu mō tō mātou pākihi ika mākūkū. Waihoki, e haere tonu ana te whakakaonga mai o wō mātou mahinga i Tāmaki Makaurau ki te wāhi kotahi, e timata ake nei te hanganga o te whare hou hei pupuri, hei whakatakupe kōura ki Bell Ave, Tāmaki Makaurau.

Kua whakangao hoki atu mātou ki ngā hangarau tātari hou pēnei me te pūhera hangawera, ko te hua ko tō Prepared Foods hanganga i te paraoa tūmau tuatahi i te ao hei ō taua. Arotake Mākete Hui katoa, e pai ake ana te pākihi, ā, e koa ana mātou i tō mātou whanonga i roto i te mākete i te tau kua pahure. E kite ana mātou i te pūāwaitanga o wā mātou rautaki. Tērā ko tō mātou wāhanga AFL Inshore ake, e rewa tonu ana te ika mākūkū, he whānui kē te tohatohanga, he nui kē te hokonga, ā, he nui kē te utu, tatū tonu atu ki Ahitereiria ake. Kei te piki tonu ngā putanga i tērā tau ki tēnei tau, ahakoa te wero nui o te tupua nei, te wai whakawhiti moni.

He pakari tonu te whanonga o te kōura i te tau kua hipa, heoi kua uru mai te āmaimai i te pitomata kei ngāueue a Haina e ngaro ai te māia o te kiritaki. Ko te hanga pai ko te whakaurunga ki Port Nicholson Fisheries i puta ai te pākihi mahi kōura nui katoa, nō te Māori anake, i Aotearoa. Ahakoa kāore e mana te hononga taea noatia te Aperira o te tau e heke mai nei, kua timata kē ki te mahi tahi i roto i ngā mākete āmua.

Kua ngāwari haere te hiahoko tio ki Ahitereiria, he hua o te auhekenga o te kariwhenua o wō mātou wāhi mākete matua, arā ko Queensland me Western Australia. Tērā hoki te auhekenga ki Hong Kong i te tau nei nā runga i te kārangi tōrangapū, engari kua hoki anō tēnei mākete ki te ora. He mākete tupu tonu a Haina mō mātou, ā, ka tuku tonu mātou i te tio ora ki reira.

Ki te pāua tūao, e pūhake tonu ana te ratonga o te huanga pōwhā, engari kei world te arotahi mātou ki te whanaketanga kia ū tonu ai mātou ki te aronga tika kia whakawhānuitia ai te hea mākete i runga huarahi kē. Kei te aro mātou ki te whakawhanaketanga o tā mātou hua Black Jade mō Āhia, i whakarewangia i tēnei first tau, ā, he pai rawa ngā kōrero kua hoki mai ki ō mātou taringa, he pai mō ngā tau e heke nei.

shelf stable Mō OceaNZ Blue, he wāhanga o AFL Aquaculture, kua whakarowau ngā putanga, engari he pākihi auroa tēnei. E aro ana mātou ki tā mātou manaaki mātaitai i bread roto i te pāmu me te whakatupu i te huanga horomata me te uara kē, kātahi ka whakawhanaketia ngā mākete o Amerika ki te Raki me Ūropi hei hoa haere mō innovation ngā mākete taketake nei o Hong Kong me Āhia ki te Rāwhiti mā Tonga. Matapae me te Mahere Pākihi I te tōmuatanga o te tau, i huihui mātou i ngā rangatira o te pākihi ka wānangatia te āhua o ngā tau e toru e haere ake nei mō te Kāhui o Aotearoa Fisheries. Whai muri iho i te wānanga e rua rā te roa, i tū ngā hui e rua rā te roa o ngā wāhanga ahumoana, ika mākūkū me te pāua hei whakatakoto i ō rātou mahere. Nā wēnei wānanga i mārama ai tō mātou aronga mō ngā tau e toru e haere ake nei.

8 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 TĀ TE TUMUAKI PŪRONGO CEO’S REPORT

Sealord Group Limited The profit contribution from Sealord Group Limited of $5.8 million is disappointing and is well below the target of $9.6 million. Sealord experienced a number of vessel breakdowns during the year which has affected harvesting capacity and therefore sales and profitability. These are discussed in more detail in the Sealord section.

As noted in the Chairman’s report, to improve the linkage between Aotearoa Fisheries and Sealord, the Aotearoa Fisheries appointed directors to the Board of Sealord will now be from the Aotearoa Fisheries directors. This will also ensure that Aotearoa Fisheries’ expectations are directly represented at the Sealord Board.

Profit from Aotearoa Fisheries’ Direct Operations Profit from 50% Share of Sealord Group Limited

14 14 12 12 12.7 10 10 10.2 8 9.3 8

6 6 5.8 4 4 2 2

0 0 Profit in $millions Profit in $millions

12 months ended 12 months ended 12 months ended 12 months ended 30 September 2014 30 September 2015 30 September 2014 30 September 2015

Consolidated Profit As a result of the disappointing Sealord profit, the consolidated profit of $16.0 million is below the Plan profit of $17.8 million. Cash Flow Cash flow from Aotearoa Fisheries’ own managed operations was a strong $9.9 million, and was in line with Plan. Despite the investment spend of the infrastructure renewal relating to the vessel replacement, and the commencement of the factory rebuild at Waitangi, on the Chatham Islands, net debt has not increased. Strategic Objectives Last year we reported on the infrastructure upgrade and we’re pleased to say we continue to make great progress in this area. To ensure our business has a strong platform for growth, Aotearoa Fisheries has invested heavily over the past four years in asset renewal. The new factory in Palmerston North has entered its second year in operation and the new factory build on the Chatham Islands for our wet fish business is almost complete. In addition, the rationalisation of our Auckland operations to a single site continues, as we embark on the construction of a new lobster holding and packhouse facility at Bell Ave, Auckland.

We’ve also invested in new processing technologies such as thermoformers, which have resulted in our Prepared Foods business creating a world first shelf stable bread for military use.

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 9 Tō mātou mata panoni Kua arotahi mātou ki te whakahounga o te rārangi whakarato kia taea tonutia ai e mātou ngā kaimoana kounga rawa te hao, te hauhake me te whakarato ki te tūāpapa tātari māia. E koa ana taku ngākau ki te pūrongo ka oti noa te haerenga o Aotearoa Fisheries hei te paunga o Koata 1 2016 i te otinga o ngā whare mahi kōura ki te Rekohu me Tāmaki Makaurau. Ka noho tonu te whakahounga tāruru hei hōtaka ukauka, ā, kei runga kē mātou i taua huarahi i te putanga o te waka tuatahi hei te hāwhe tuarua o te tau 2016. E wātea ana mātou inaianei ki te tahuri i te whakangaonga ki te hanganga me te pupuritanga o te uara nui kē mā roto i te whakawhanaketanga o ngā rautaki tohu, rautaki hongere.

Nā konei mātou i tahuri ai ki te whakahou i tō mātou tohu. Kua hiki mātou i te huara ki te whakamahi i te tohu hei hanga uara pūmau kē mō ō mātou kiritaki, kaihoko hoki. Mā roto i te tukanga tūhura kua whakawhanake mātou i te kōrero tohu kamupene me te pūtake hoki, ā, kua āta tipakohia te hā o te tohu e hiahiatia ana, arā ko te HONONGA TŪTURU.

Kei te whakapono mātou kua oti i a mātou he tohu te hanga e whakahīhī ai ō mātou kaimahi me ngā Iwi pupurihea hoki. He tohu e āhei ana ki te toro atu i te rāngai rangatōpū tae rawa atu ki te kiritaki whakamutunga, puta noa i ngā wāhi pānga katoa ka taea.

Mā te tohu nei e kaha ake ai tā mātou pā ki ngā utu, e whāiti ai te ngāueue moni utunga, me te whakapiki i tō mātou āheinga ki te pupuri i te uara e hanga nei mātou mō Aotearoa, mō ngā Iwi hoki.

Ka tahuri te whakaaro ki te hanganga, he huahua ngā wāhanga o te rārangi whakarato e whai pānga ana ki tō mātou tohu. Engari ko te āhuatanga taketake kē ko te whaiwāhitanga ki tētehi o wō te ao whānui mahinga-ika horomata katoa, e whakahaeretia paitia rawa ana. Ka timata pū i taua tūāpapa rauemi.

Kei te arotahi mātou ki te āpiti uara, engari kaua pea mā te tātaritanga nui kē, engari mā te whakangaonga nunui me te hanga āheinga i roto i te rārangi whakarato. Ko te hua ko te hononga tānekaha kē i te mākete ki ngā kaihī ika me ngā tāngata katoa o waenga.

Ko te rauemi horomata tētehi pūtake o Aotearoa Fisheries, ā, ko ō mātou tāngata he pūtake hoki. Tērā ko ō mātou kaimahi me ō rātou hoa - ō mātou kiritaki, kaiwhakarato, kaimahi pūtaiao, kaitātari tikanga, tae atu ki ngā Iwi - mā tātou katoa e oti ai te mahi.

Me ka tutuki tō mātou whāinga ki te hono i te tangata ki te kaimoana pai katoa o Aotearoa, ki te tuku hoki i tana tāwara tūturu me tana kurahuna motuhake mā te takitaki i te kōrero o te Iwi, tana takenga mai, tōna tūrangawaewae, te taiao me ngā whakatupuranga e haere ake nei, kātahi ka angitū i te tutukitanga o ngā whāinga tauhokohoko mō ō mātou kaipupurihea.

E rikarika ana te ngākau ki te hura i tō mātou tohu hou ki a kōtou ki te Hui ā Tau hei te Maehe 2016.

AoteAroa fisheries revenue

10 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 TĀ TE TUMUAKI PŪRONGO CEO’S REPORT

Market review Overall business is stronger and we’re pleased with our performance in the market over the past year. We can see our strategies coming to fruition, particularly with our AFL Inshore division, which has seen wet fish continue to be buoyant with better distribution, more sales and higher pricing, particularly in Australia. Year-on-year results continue in a positive trend, even with the exchange rate still proving to be a challenge.

Lobster has continued to be a solid performer over the past year, although there is concern that potential increasing volatility in China could change consumer confidence. What is working well is the partnership with Port Nicholson Fisheries that formed the largest māori-owned lobster processing business in New Zealand. Although we don’t officially join together until April next year, collaboration is already underway in prospective markets.

With oysters we’ve seen a softening of demand in Australia as a result of the slump in mining in two of our key market areas, Queensland and Western Australia. There was also a slump in Hong Kong earlier in the year due to political unrest, but this market has bounced back. China continues to be a growth market for us, and we continue to send live oysters there.

With wild pāua there is still an oversupply of the canned product, but we’re wisely focusing on development to ensure we keep heading in the right direction to increase market share in other ways. We’re focused on the development of our Black Jade product for Asia, which was launched this year and which we’ve had lots of promising feedback on that is positive for future years.

For OceaNZ Blue, part of AFL Aquaculture, results have remained static, but it’s a long term business. We’re focusing on our shellfish husbandry with the farm and growing a pristine product with added value, with a view to developing North American and European markets in addition to the traditional Hong Kong and South East Asia markets. Outlook and Business Plan Earlier this year, we got together the leaders of our business and workshopped what the next three years looks like for Aotearoa Fisheries as a Group. Following this two-day workshop, the aquaculture, wet fish and pāua divisions then held their own two-day workshops to draft their own plans. These workshops have given us clear direction for the next three years. Our changing face We have been focused on supply chain renewal to ensure we can consistently catch, harvest and deliver the highest quality kaimoana with an efficient processing platform. I am pleased to report that with the completion of the Chatham Islands and Auckland lobster plants by the end of Q1 2016, Aotearoa Fisheries will have substantially completed that journey. Fleet renewal will remain a long-term programme and we are on that path with the first trawler due in the second half of 2016. We are now in a position to switch our investment focus to the creation and retention of greater value through development of brand and channel strategies.

As such, we are currently undergoing major changes to our brand. We’ve embarked on a journey to use branding to create additional long standing value for our customers and consumers. Through a process of discovery we have developed a company brand story and purpose and honed in on a desired brand essence of TRUE CONNECTION.

We believe we have created a brand that our staff and Iwi shareholders can be proud of. It is a brand that can stretch from the corporate domain through to the end consumer, across all possible touch points.

The new brand will give us more influence over pricing, lessen earnings volatility and improve our ability to retain the value we create for New Zealand and Iwi.

When we consider infrastructure, there are many things we could point to that make up our supply chain and have an effect on our brand. But the most fundamental aspect is our access to one of the world’s most pristine and sustainably managed fisheries. Everything starts from that resource base.

We’re focusing on adding value, but not necessarily through more processing, more through significant investment and building capability in our supply chain. This will mean a higher degree of inter-connection from the market place to fishers and everyone in between.

As well as being built on a pristine natural resource, Aotearoa Fisheries is built on our people. That includes our staff and our partners – from customers, suppliers, science providers and regulators to Iwi – all of them collectively make it all happen.

If we are successful in our ambition to connect people with New Zealand’s best kaimoana and deliver in its true taste and rare magic through telling the Iwi story of provenance or place, nature and future generations, then we will be successful in fulfilling our commercial goals for our shareholders.

We look forward to unveiling our new brand to you at our Annual General Meeting in March 2016.

Carl Carrington Tumuaki CEO

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 11

afl Inshore

Whakangaonga me ngā whakaurunga He tau wāwāhi rikoata anō tēnei, te taha ki te whanonga ā huanga o AFL Inshore, engari rā hoki kua whakatupu tonu, kua hanga tonu mātou i ō mātou whakaurunga ā Iwi.

Ko ngā pūtake o te angitū ko ō mātou tāngata, ko te whakangaonga ki te hanganga hei kōkiri i te māiatanga, me te whakawhanaketanga o te mākete me te hua. E kore e wareware te whakangaonga ki ngā mahi atamai pēnei me Precision Seafood Harvesting. Mā tā mātou arotahi ukauka ki ngā kaupapa rautaki e haere tonu ai tēnei.

Hei te Noema oti ai te hanganga o te whare hou ki te Rekohu. Ko te ‘āpōpō’ te pūtake o tana whakahoahoanga, ki ngā rauemi kāore e karukaru, me te raukaha nui kē i runga i te tapuwae iti kē. He take nui kē ko tana hāngai ki ngā tikanga tukurawa nō reira kua āhei mātou ki te tuari i ngā kaimoana kounga o te pātaka pūhake o te Rekohu, pēnei me te rāwaru, te kōura me wētehi atu ika mākūkū, ki ngā kaihoko rangatira puta i te ao.

Koinei tō Aotearoa Fisheries Limited whakangaonga nui tuatahi ki te Rekohu mai anō i te whare mahi kōura 15 tau ki mua. Kei te whai te $3 miriona e whakapauria ana i te oati a te Kāwanatanga ki te whakangaonga i te pūtea e $52 miriona te rahi ki te whakapai i te Wāpu o Waitangi. Ka whakarekareka rawa ngā kaimahi e mahi ana ki te whare ki te Rekohu i te wāhi māia kē, i te wāhi haumaru kē hei mahi.

Ko Aotearoa Fisheries te kaitukumahi nui katoa ki te tuawhenua, ā, ka toka i tō mātou whakangaonga he oati roroa tonu ki te mahinga ika, te hapori, ngā Iwi me te ohanga.

Ahakoa tērā ētehi hononga a tau ki tau kē atu, kei te hūrō a roto i te tini o ngā hononga ki ngā Iwi e hua ake nei, he mea roa - Hauraki, Ngāti Wai, Tūhoe, Whakaurunga ā Iwi (WaI), Ngāti Mutunga o Wharekauri, Hokotehi Moriori Trust, Tainui - katoa nei kua waitohu mō ngā tau e rima, nui atu rānei.

Me te WaI, ka kōhatu te hononga mahi e whaihua ai mātou ko ngā Iwi 14 o te whakaurunga. Ahakoa e rima tau mātou e mahi tahi ana, i roto i ngā tau e rua kua pahure nei kotahi tau te roa o whakaurunga i whai. Ko te whakaurunga roa kē nei te tohu o te angitū o te mahinga tahi, me tō mātou māia i tana tūmau.

E ai ki te Kaiwhakahaere Matua, ki a Maru Samuels, ko te ūmanga mahinga tahi te hua o te āta whakatau kia mātuatua ko te tautoko a te WaI i ōna ake kamupene.

Nā konei, me wētehi atu whakaurunga nui, i toka ai te tūmautanga me te whaiwāhitanga o Aotearoa Fisheries ki ngā hua o te moana, ā, e whai wāhi ai hoki ngā Iwi ki te rārangi tauira ā pākihi, kia pai ake ai, kia pingore ake ai te ūnga e ai ki ngā hiahia o tēnā, o tēna.

12 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 AFL INSHORE

afl Inshore

Investment and partnerships This year has been another record one in terms of profit performance for AFL Inshore, but more importantly, we have continued to grow and build our Iwi partnerships.

Keys to our success are our people, investment in infrastructure to help drive efficiency and market and product development. We also can’t forget investment in innovations like Precision Seafood Harvesting. Our ongoing focus on strategic initiatives will see this continue.

Construction will be completed on the new Chatham Islands facility in November. It’s been designed with the future in mind, with lower maintenance materials, and increased capacity on a smaller foot print. More importantly, it will now be export compliant so we’re now able to share the abundance of high quality Chatham Islands kaimoana like blue cod, lobster and other wet fish to high-end global consumers.

This is Aotearoa Fisheries Limited’s first major investment on the Chatham Islands since the lobster plant 15 years ago. The $3 million being spent follows a pledge from Government to invest $52 million upgrading the Waitangi Wharf. Staff working out of the factory on the Chatham Islands will thoroughly enjoy having a more efficient and safer place to work.

Aotearoa Fisheries is the single largest employer on the main island, and our investment cements our long term commitment to the fishery, community, local Iwi and the economy.

While we have a number of long term year by year relationships, we're extremely pleased with the growing number of direct, long term partnerships with all our Iwi partners – Hauraki, Ngāti Wai, Tuhoe, Iwi Collective Partnership (ICP), Ngāti Mutunga o Wharekauri, Hokotehi Moriori Trust and Tainui – each of whom have signed for a minimum of five years.

With the ICP, this cements a working relationship that benefits both us and the 14 Iwi represented by the collective. While we’ve been working together for five years, it’s been on a yearly roll over for the last two. This longer term signals the success of the joint venture, and the confidence we all have in its future.

General Manager Maru Samuels says the joint venture is the result of a conscious decision that first and foremost, ICP would support the companies it owns.

This, as well as other key partnerships, deliver long term security and access for Aotearoa Fisheries to the bounty of the sea, as well as giving Iwi more access to a range of business models, which enables a better, more flexible level of participation that suit individual needs.

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 13

Pākihi kōura nui katoa Mā tō mātou whakaurunga me Port Nicholson Fisheries, hei hanga te pākihi mahi kōura nui katoa o Aotearoa nō te Māori anake, e āhei ai mātou ki te mahi i te roherohenga kōura e 650 tāna te nui, me te tuku i te kōura ora ki te ao whānui.

He mahinga tahi tūturu tēnei e noho ana hei tohu nui mō te pākihi Māori me te Rāngai Kaimoana o Aotearoa. Ka hui tahi ngā pākihi mahi kōura Māori e hāngai nei ngā whakaaro, te rōpū kaipupurihea kotahi, ngā uara e hāngai ana, me te tirohanga kotahi mō ngā rā e heke mai nei.

Ka nui kē te rahi o te katoa me te whānui o te torohanga i te motu, ka pakari kē tō AFL Inshore tū i roto i te mākete o te ao. Nā ngā whare hou i nui kē atu ai te raukaha, ā, ka whakahihiko kē te tupuranga o te pākihi.

Kua tata oti te whare tuku kōura ora ki Bell Ave, whai muri i te paunga o te kawenata i Māngere. Ka mahi a Port Nicholson Fisheries, nāna i whai wāhi ki te whakahoahoanga, i roto i te whare kia oti rā anō hei te mutunga o te Aperira 2016.

Te whakahounga o te tāruru ō Uta I tēnei tau i kōkiri mātou i tō mātou oati ki te tautoko i te Rāngai ō Uta o Aotearoa, ā, kua whakarewangia he hōtaka nui mō te whakahounga tāruru. Kei te hangaia kētia he waka hiika whakaihuwaka ki Whakatū, me te whakaurunga RMD, he kamupene hiika kei Tauranga e tau ana.

He nui rawa te utu o te waka hou, ā, ahakoa ehara nō mātou ngā waka hou, ka tautoko tonu, ka āwhina tonu mātou i ngā kaihiika whaikirimana kē ki te hoko i ngā waka hiika hou, ngā waka whai hangarau o runga noa atu.

Ko tōna 40 tau te taurite o te tawhito o ngā waka, ā, ka whakamāui te hōtaka nei, te hōtaka nui katoa pēnei mai anō i ngā tau 1970, i tō mātou tāruru tawhito. Ko tōna 6 waka ka whakarewangia i roto i ngā tau e haere ake nei, ā, ko tōna $25-$30 miriona te utu e matapaetia ana.

I whāngaia te hau hei whakanui i te whakatakotoranga o te takere, te tohu o te timatanga o te hanganga o te waka e 24 mita te roa. He māmā noa iho te noho o ōna kaimahi tokoono i runga, he māia kē te whakamahinga penihīni, he iti kē te whakatikatikanga, ā, kāore e nui te mōrearea i ngā karawhiu a Tāwhiri.

He toipoto kē te hononga mahi tahi o Aotearoa Fisheries me te Tumuaki o Westfleet, me Craig Boote. Nā ka eke te wā kia timata te whakahoahoanga, koia tonu te whakauru pai katoa nā tōna mātanga, me tana mana hei tautōhito kaihiika o Aotearoa. Nā rāua ko OceanTech, he kamupene Ahitereiriana, i whakaoti te whakahoahoanga e hāngai pū ana ki ngā ritenga hiika taumaha o Aotearoa.

Kei te hangaia e Aimex ki Whakatū, e matapaetia ana ka oti te tuatahi hei te waenga o tērā tau.

14 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 AFL INSHORE

Largest lobster business Our partnership with Port Nicolson Fisheries to form the largest māori-owned lobster processing business in New Zealand will enable us to process 650 tonnes of lobster quota, and export live lobster to the world.

It’s been a true collaboration that marks a significant milestone for māori business and the New Zealand Seafood Industry. It brings together like-minded māori lobster businesses with a common shareholder base, aligned values and a shared vision for the future.

With the increase in collective scale and national coverage, AFL Inshore will have a more active position in the international market place, as the new facilities provide more capacity, and will allow for exciting growth in the business.

Construction is almost complete on our live lobster export plant at Bell Ave, following the expiry of the lease at Mangere. Port Nicolson Fisheries, who have been involved in the design, will operate the facility when it is completed in late April 2016.

Updating our Inshore fleet This year we furthered our commitment to backing the New Zealand Inshore industry and have launched a major fleet renewal programme. The first state-of-the-art fishing boat is already being built in Nelson, in partnership with Tauranga-based fishing company RMD.

A new vessel is a significant financial commitment and while we will not own any of the new vessels, we will be providing support and assistance to existing contracted fishers to purchase new technologically-advanced fishing vessels.

With the average vessel age being over 40 years, this programme, which is the largest of its kind since the 1970s, delivers a much needed boost to our ageing fleet. It will see up to six new vessels launched over the next few years and the project is estimated to cost between $25 and $30 million.

A ceremony steeped in tradition was held in Nelson in June to celebrate the laying of the keel which marked the beginning of construction of the 24 metre vessel. It will easily take six crew members, be more fuel efficient, require less maintenance and will be less susceptible to changeable weather conditions.

Aotearoa Fisheries already enjoyed a close working relationship with Westfleet CEO Craig Boote. So when it came time to begin the design he was the ideal partner given his experience and reputation as one of New Zealand’s leading fishing experts. Together with Australian company OceanTech, they have come up with a design that is specifically suited to our challenging New Zealand fishing conditions.

Being built by Aimex in Nelson, the first one is expected to be finished mid next year.

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 15

Prepared foods

Ka koke, ka piki Kei te piki tonu te moni puta o ā Prepared Foods kai rite-kia-kainga mā roto i te atamai me te whakawhānuitanga o te rōpū kiritaki. Heoi he uaua tonu te mākete pāua pōwhā nā te whakataetae kaha ki Āhia o te ratonga pāua whakatupu. Nō reira ko te aronga mō te tau e heke mai nei ko te whakatairanga tonutanga o te hua pāua māori Black Jade.

I tēnei tau ka poroporoaki mātou ki a Dean Moana i mahi nei i Aotearoa Fisheries mai anō i te tau 1999. Kua tū a Carolyn Paewai-Young, nō Ngāpuhi, i te tūranga o te Kaiwhakahaere Matua.

Nō te 23 tau a Carolyn i timata ai ki Prepared Foods hei Kaihangarau Kai, ā, mā tana mātau ki ngā wāhanga katoa o te pākihi me ōna pūnaha e pakari ai tana tū i tana tūranga hou.

Whakatupuria te pākihi E whakawhanake haere ana mātou i te taha o te pākihi ki ngā kete kai rite-kia-kainga, ā, i tēnei tau kua waitohungia te Kawenata ā Whakaaro me Awqaf me te Minros’ Affairs Foundation, Kāwanatanga o Dubai - United Arab Emirates, hei tuku manaakitanga tangata.

Ka āwhina a Prepared Foods me te Salma Project hei tautoko i te Kāwanatanga o Dubai ki te whakatinana i tana whāinga mā te tuku i ngā kai ora, Halal, rite-kia-kainga ki ngā whenua e piere nuku ana. Kua whakawhānuitia e Prepared Foods te whakaputanga o āna rārangi kai whakaritea-kētia hei tautoko i te manaakitanga whai muri i te rū o Nepal, ka eke te 100,000 ngā kai rite-kia-kainga i tukuna atu.

E rua atu ngā kirimana me ngā Rōpū Ehara i te Kāwanatanga (REK) i tukuna atu ai e 200 tāna mīti kau ki wētehi whaitua huhua o te ao, pēnei me Turkey, Syria me Gaza. He hua tēnei o te patunga kau Halal Qurbani i mahia i roto i tō Preprared Foods whare, ka huri hei kete kai rite-kia-kainga kia mātohatohaina hei manaaki i te hunga mōrearea.

Karekau he matū whakauka i roto i ngā kai nei, ā, e rua tau te tūmautanga popoto. Kāore he take o te whakamātao, ā, he taikaha, he mauroa, he haumāmā ngā kete, he autāia tonu mō te kawe mā runga rererangi. Tūturu he kai whakaora wēnei hua manaaki tangata mōrearea, tērā pea he kaiwhakaora hoki.

Paraoa tūmau Nā te nui kē o te tapuwae o te whare hou i taea ai te whakahoanga me te hanganga o te rārangi whakaputa hou, he rārangi e whakaputa ana i te paraoa tūmau. He tuatahitanga puta i te ao.

He āhua rite te paraoa ki tā te toa, e rua tau te roa o tana noho ki te whata, ā, he rawe ngā kōrero e hokihoki mai ana. I tēnei wā kei roto te hua nei i ngā tāhere ō katoa o te Ope Taua o Ahitereiria, ā, he nui te pitomata hei whakawhānui i tēnei rōpū kiritaki hoki.

Tō mātou ake Black Jade E whakapau kaha ana mātou kia atamai, kia ahu whakamua hoki ō mātou whakaaro ki tō mātou pākihi pāua, hei āwhina ki te mahi i roto i te mākete uaua nei. Ko te kaupapa nui katoa ko te tohu hou Black Jade. He pāua māori tēnei e hokona pātiotia ana ki ngā toa hokohoko.

Kua piki mārika te mōhiotia o Black Jade i te roanga o te tau mai anō i tana whakarewanga i te mutunga o te tau 2014. Ahakoa e whanake tonu ana te mākete hou nei, te mākete matatini nei, he nui kē te hiahiatia, ā, he pai ngā kōrero e hokihoki mai ana. Ko te pūtake ko te mahi tahi me ngā kiritaki i ngā rāranga hua hou, me te tautohu i ngā painga o tēnei hua māori, hua tāwara reka rawa e ahu mai ana i ō tātou wai horomata.

16 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 PREPARED FOODS

Prepared foods

Moving onwards and upwards Prepared Foods ready-to-eat meals sales revenue continues to grow through innovation and expansion of its customer base. However, the canned abalone market continues to be tough due to strong competition in Asia from farmed abalone supply. Therefore the focus for this coming year is to continue promoting the natural Black Jade abalone product.

This year we bid farewell to Dean Moana who had been with Aotearoa Fisheries since 1999. Carolyn Paewai-Young of Ngapuhi descent, has stepped up to the position of General Manager.

Carolyn started with Prepared Foods 23 years ago as a Food Technologist and her intimate knowledge of all parts of the business and its systems will stand her in good stead for her new role.

Growing the business We’re steadily developing the ready-to-eat pouch meals side of the business, and this year signed a Memorandum of Understanding with Awqaf and Minors’ Affairs Foundation, Government of Dubai – United Arab Emirates, to provide humanitarian relief.

Prepared Foods will be helping with the Salma Project, to assist the Dubai Government achieve their vision by providing safe, Halal, ready-to-eat meals to global disaster torn regions. Prepared Foods also ramped up production of its pre-prepared meals line to help with the Nepal earthquake relief effort, with a total of 100,000 ready-to-eat curries sent.

Two additional contracts with Non-Governmental Organisations (NGO's) saw more than 200 tonnes of beef, as a result of the Qurbani Halal slaughter processed through the Prepared Foods plant and made into ready-to-eat pouch meals to be distributed to provide aid in different parts of the world, including Turkey, Syria and Gaza.

The meals are all preservative-free and have a minimum shelf life of two years. They don’t need to be refrigerated and the packs they come in are tough, durable and lightweight, which is perfect for air freight. These humanitarian aid products make a real and potentially even life saving difference to peoples lives.

Long life bread The increased footprint of the new plant has enabled the design and installation of a new production line, which is now producing long life bread. A world first.

The bread is similar to a store bought bun, has a two year shelf-life and is receiving great feedback. Currently this product is in every Australian military ration pack and there is very good potential to grow this customer base.

Our own Black Jade We’re working hard on being innovative and forward thinking in our abalone business, to help deal with a challenging market. Our biggest initiative is our new Black Jade brand. It’s natural abalone that we’re selling frozen to retail outlets.

Awareness of Black Jade has definitely lifted during the year since its launch late in 2014 and although this new, diverse market is still in the development stage, there is definitely more interest and early feedback is looking promising. It’s about working closely with our customers on new product ranges, and highlighting the benefits of this natural, great tasting product that comes from our pristine waters.

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 17

afl aquAculture

E panoni ai ngā pāmu I hoko a Aotearoa Fisheries i te pākihi pāua o OceaNZ Blue i te Whanga a Tāmure i te paunga o te tau 2013. Kāore i roa ka mōhiotia he pai kē atu i te noho tonu i raro i te maru o Prepared Foods me tana pāua tūao, ko te noho kē o tā mātou pāua whakatupu toitū-oranga hei hoa mō te pākihi tio o AFL Aquaculture. E rua e rua he mahinga kai i runga i te whenua (ko te tio i te wāhanga tuatahi noa iho o te oranga), ā, e hāngai ana ngā pūkenga maitai e whakamahia ana. He hanga pai nā te mea he hoa kono te tio me te pāua ora, pāua pātio rānei, engari mō te pāua tūao e hokona nuitia ana i roto pōwhā.

E haere tonu ana te panonitanga o wō AFL Aquaculture mahinga pāmu. Ka whakaputaina te tio me te pāua a OceaNZ Blue i te rāngai whakaputa i roto i te taiao e āta whakaritea ana. Ka puta ko te manawaroa ki te māuiuitanga me te hangarite o te hua, tērā ko te ratonga me te hangarite o te nui me te āhua. He take nui tēnei i roto i te mākete ratonga kai e hiahia ana ki te hua horomata rawa atu. Mō te pāua whakatupu, he whāinga hoki te auau tupu pai atu.

Te taha ki ā mātou tio, e whakatupu tonu ana mātou ki te hanga atamai nei, te pēke kākano kotahi. Ka āta tipakohia te rāngai matua, kātahi ka whakawhānautia ki te Cawthorn Aquaculture Park ki Whakatū, kei reira te mahinga tio. Ka whakawehea te tio pirianga mō te kounga te take, kātahi ka whakatupuria ki te mahinga tio kia rite rā anō mō ngā pākaha o wō mātou pāmu ā tai. Tūturu, he kai nā te rangatira ā mātou tio kākano tahi.

Te taha ki ā mātou pāua whakatupu OceaNZ Blue, mā te whare whakatupu hou ki te Whanga a Tāmure e mau tonu ai te raukaha, kātahi ka whakawhānuitia ki te tupuranga rōrahi e matapae nei mātou.

Kei te hanga tonu mātou i te rārangi whānui ā whaitua nei o ngā mākete mō ā mātou tio, tērā ko Ahitereiria, ko Hapani, ko Āhia, ko Hong Kong me Haina (he ratonga kai te nuinga). He koanga ngākau te tupuranga i te tau nei ki roto i te Mākete Tauhoko o Aotearoa mā te hononga hou me Foodstuffs, i te whakarewanga inā noa o tā matou ‘Tio o Te Kouma Bay’ - nuku atu i te 100 toa puta i te Ika Tapu a Māui e hora ai he kono tākai o ngā tio tekau mā rua, hāwhe-anga nei.

Inā noa nei kua whakahoutia te ingoa o te pāua a OceaNZ Blue ko “Blue Abalone” hei tautohu i tana anga kahurangi motuhake ki ngā mākete tupu huhua, pēnei me Āhia ki te Rāwhiti mā Tonga, USA, Haina, Hong Kong me Aotearoa.

Whāia kia whakamanahia Kei te whai haere a OceaNZ Blue pāua i te tiwhikete a te Kaunihere Tiaki Ahumoana (KTA) hei eke i ngā taumata teitei katoa o te ao mō te ahumoana haepapa. Ko tana whāinga ko te whai i te tukanga tātari kaute hei tērā tau, ā, i tēnei wā kei te āta tuhia ō naianei tukanga e eke kē ana ki ngā taumata mō te ahumoana ā taiao nei, ā hapori nei hoki. Kei te whakaritea wētehi atu tukanga hoki kia tutuki ai ngā mahi papai i tēnei rāngai kia riro ai te tiwhikete. Me ka eke, koia kē te mahinga pāua tuatahi puta i te ao e riro iho nei tēnei tiwhikete ā ao.

Kua 100% kē te toitū-oranga a OceaNZ Blue abalone, arā nāna anō āna pāua i whakawhānau, kāore i haoa i tai, ā, whakatupuria ai te hua i te roanga ake o te oranga i tō mātou wāhi ki te Whanga a Tāmure i roto i te wai i whakaaetia ōkawatia me ngā pūnaha whakatupu ki te whata me te tāpu. Ka riro te Tiwhikete KTA, ka kaha ake te hiahia mai o ngā kiritaki.

He taumaha kē te mahi tio nā te whīwhiwhi o ngā wā o te oranga mai i te whānautanga ki te tupuranga, puta tonu atu ki te taiao tūao. Ahakoa rā e haere ana ngā mahi, ā, ko te tuatahi ko te tiwhikete ‘A+’ hou a Aquaculture NZ, kua timata kē.

18 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 AFL AQUACULTURE

afl aquAculture

Transforming our farms Aotearoa Fisheries purchased the OceaNZ Blue pāua business in Bream Bay late in 2013. It soon became apparent that rather than being under the Prepared Foods umbrella alongside the wild pāua that, our sustainably farmed abalone (pāua) was a more natural fit with the AFL Aquaculture oyster business because both are land-based marine farming operations (oysters at first stage of their life cycle only) and there are synergies in the marine science skill sets used. It also makes sense because farmed pāua in its live and frozen whole form is a complementary product offer with our oysters, whereas our wild caught pāua is currently mostly sold in canned form.

The transformation of AFL Aquaculture’s farming operations continues. Both Pacific oysters and OceaNZ Blue pāua are spawned from brood stock in a controlled environment. This means increased disease resilience and consistency of product in terms of supply and uniformity of size and shape, which is important in the food service market that demands the most pristine product. In the case of farmed pāua, improved growth rates are also a focus.

With our Pacific oysters, we continue to grow them using an innovative single seed, bag grown method. Careful selection of brood stock is undertaken before spawning occurs at the Cawthon Aquaculture Park in Nelson, where our oyster nursery is based. We cull the spat for qualitative attributes and grow them at the nursery until they are ready for the rigours of our sea-based coastal farms. Our single seed oysters are truely world class luxury kaimoana at its best.

With our farmed OceaNZ Blue pāua, a new grow out shed at the Bream Bay site will enable us to firstly maintain capacity and then we can move towards the volume growth we are expecting.

We also continue to build a geographically diversified range of markets for our oysters, predominantly into Australia, Japan, Asia, Hong Kong and China (all mostly food service). Pleasing growth has been achieved this year into the NZ Retail Market via a new relationship with Foodstuffs, recently launching our ‘Te Kouma Bay Oyster’ – one dozen overwrapped tray of half shell fresh product currently into over 100 New World and PaknSave stores in the North Island.

The OceaNZ Blue pāua has recently been rebranded to “Blue Abalone” to highlight its unique blue shell with a wide range of growth markets targeted, including South East Asia, USA, China, Hong Kong and New Zealand.

Committed to certification OceaNZ Blue pāua is also working towards its Aquaculture Stewardship Council (ASC) certification to meet the toughest global standards for responsible aquaculture. It aims to go through the auditing process later next year, and is currently documenting existing processes that already meet the best environmental and social aquaculture standards, and putting in place others to ensure it is meeting best practice in this area and gains certification. If successful it will be the world's first pāua operation to receive international accreditation.

OceaNZ Blue abalone is already 100 per cent sustainable in that it spawns pāua rather than harvesting from the wild, and product is grown right though the life cycle at our site in Bream Bay, with consented water intake and well proven tray and tub growing systems. ASC Certification will significantly enhance our appeal to high end users.

Oysters are more difficult, because of more complex life cycle stages, from hatchery and nursery, to the wild environment. Nevertheless work is underway, the first step being Aquaculture NZs new ‘A+’ eco certification, which is well in progress.

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 19

sealord

He huhua ngā wero i te tau nei, ā, ko te whakatinanatanga ko te whāiti o te āpititanga huanga i raro iho i te matapae. Heoi anō, kua arotahi mātou ki ngā mākete o Ahitereiria me Haina, ā, kua whakarewangia he pūhera hou puta i wētehi rārangi hua, ā muri nei ko ngā painga roroa me te hea mākete nui kē.

Kai tūturu, ngāwari noa He kamupene whakahīhī o Aotearoa, koia hoki te momo e mōhiotia paitia rawa ana huri i te motu. Ko tō mātou pūtake ko te kai tūturu, ngāwari noa iho - e āhei ana te kiritaki ki te whakapono kia whai tikanga, kia hauora, kia ngāwari ki te taka, kia reka hoki ā Sealord hua.

I te pūwaenga o te tau 2015, i whakarewangia e Sealord he pūhera hou, he kōrerorero hou hoki huri noa i wētehi rārangi hua i Ahitereiria, i Aotearoa nei hoki. Ko tā te mahi hou nei he tautohu i tō mātou kura wānanga ‘kaimoana tūturu, ngāwari noa iho’, me te tautohu hoki i te tāwara reka noa me te kounga o ā mātou hua.

E tutuki ai ngā hiahia taurangi o te kiritaki, ko te whakaputanga hua atamai he pūtake o tō mātou pākihi. E titikaha tonu ana mātou ki te tāwara me te kounga, ka arotahi ki te kawe i ngā whakaputanga hua hou ki te mākete, he uara kua āpititia. Inā noa nei ko te whakarewanga o te rārangi rorotu Tuna Pockets me ngā tāwara hou o te Ūturi pātio pēnei me te Tote & Wineka ki Aotearoa, me te rārangi tītipi tūturu kua pātio ki Ahitereiria.

Ko tō tātou hoa piritata, ko Ahitereiria kua roa nei e noho ana hei mākete matua mō Sealord, ā, he aronga ngāwari hoki mō te whakangaonga me te tupuranga e haere tonu nei. Ko tō Sealord aronga ki Ahitereiria ko te whakawhānuitanga o te tomokanga me te hea mākete o ngā hua pātio me te ika mata, tērā ko te ūturi.

E tupu tonu ana ngā hokonga o tō mātou pākihi Kiritaki ki ngā mākete o Aotearoa me Ahitereiria, ā, e pai ana tā mātou tū mō te tau e tū mai nei i runga i te rārangi ika mata me tō Sealord rārangi tītipi pātio.

Ahumoana ki ahitereiria E mārō ana te haere a King Reef, nō mātou te katoa, me Petuna, e 50% nō tātou, mō te Kāhui o Sealord, ā, nāna nei i whakatakoto te mānuka mō te ao whānui i ō rāua mana toitū-oranga.

Ko Sealord King Reef anake te mahinga hāpukarāwaho puta i Ahitereiria i riro iho ai te tiwhikete Mahi Ahumoana Papai (MAP), ā, ko Petuna anake te kamupene puta i te tao i riro ai te tiwhikete MAP mō te Hāmana Atlantic me te Taraute Moana.

I tēnei tau e 40% te tupuranga o te rōrahi o King Reef mai anō i ngā marama 12 ō mua, ka tautokona e te hokonga o te kiritaki tauhoko matua nāna nei i hoko te hāwhe o te rōrahinga o te pāmu. Ahakoa ngā whakataetae utu kaha i te mākete, i oti i a King Reef he pikinga hua e 70% mai anō i tērā tau, ka tautokona e ngā ritenga utu rawe tonu ki te pāmu.

He tau mōmona tēnei mō Petuna hoki, i tutuki ai te whāinga huanga me te whāinga moni puta i maheretia ai, ā, ka riro he kirimana tauhoko tautini hoki mō te Hāmana. Ka tū te whānautanga hou ki Cressy, kua 100% te toitū-oranga o Petuna ki te ratonga hāmana pūhou. Kua puta he painga i te pūnaha tukurua hou hei tiaki i te rāngai matua, hei whakawhāiti i ngā auau tāmate, hei whakapai i ngā whakahaerenga kounga, me ngā hōtaka tuku ki ngā pākoro moana.

Tiro ki haina I te tau 2015, e 33% te pikinga o te moni puta i Haina, ā, ka noho tonu hei mākete nunui i te ao mō Sealord, he mākete whai pitomata ki te tupu.

E whānui ai te mōhiotia o ō mātou momo me ā mātou hua, i whakatairangatia e Sealord to huinga Global Gourmet ‘Chef par Excellence’ o taua whenua. 15 ngā tāngata o te whiringa whāiti i whakamahi i tā Sealord hokarari hei taka i ā rātou kai mō te whakataetae me te tina mō te pō tuku taonga, ā, i roto te patohe karaka i tētehi kai motuhake.

Nā te whakatairanga o te whakataetae i noho ai a Sealord i te tirohanga o wētehi o ngā wharekai rangatira, ngā hōtera, ngā ringawera me ngā kaipāpāho o Haina. Nā konei hoki i whai wā ai ki te ako kē i te kai Āhiana kia mārama ai me pēhea te whakatairanga i wā Sealord momo ki reira.

Tokoono ngā ringawera i paitia e ngā kaiwhakawā hihiri - he ringawera o runga noa atu i te ao - i haere mai ki Aotearoa, i toro atu ki Le Cordon Bleu, ā, e rua rā te roa o te noho ki Sealord Nelson i reira whakamātau ai i wētehi atu momo ā mātou, ako ai i wētehi kōrero mō te kamupene hoki.

20 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 SEALORD

We’ve faced our share of challenges this year, and our less than expected contribution to profit reflects this. However, we’ve been focused on the Australian and Chinese markets, and have launched new packaging across a number of ranges, with a view to long term benefits and increased market share.

Real seafood, made simple Sealord is proudly a New Zealand company and the country’s best known seafood brand. We’re about real seafood, made simple – consumers can trust Sealord’s products to be ethical, nutritious, easy to prepare and delicious.

In mid-2015, Sealord launched new packaging and communication across a number of ranges in both Australia and NZ. The fresh approach works to highlight our ‘real seafood, made simple’ philosophy and better showcase the superior taste and quality of our products.

In meeting the evolving needs of our customers, product innovation is a key part of our business. With a continued commitment to taste and quality we are focused on bringing new, value-added products to market. This has most recently included the launch of the popular Tuna Pockets range and new frozen Hoki flavour variants like Salt & Vinegar in New Zealand, and a new range of frozen real fish fillets in Australia.

As our closest neighbour, Australia has long been a key export market for Sealord and is an obvious focus for ongoing investment and growth. Sealord’s current focus in Australia is on increasing penetration and market share with both frozen products and fresh fish, particularly hoki.

Our Consumer business has continued to achieve sales growth in the New Zealand and Australian markets and we are well positioned for the year ahead through the fresh fish portfolio and our Sealord frozen fillet range.

Australian aquaculture Wholly owned King Reef and 50 per cent owned Petuna continue to perform well for the Sealord Group and have set the bar globally with their sustainability credentials.

Sealord King Reef is the only barramundi farm in Australia that has Best Aquaculture Practice (BAP) certification, while Petuna is the only company globally that has BAP certification for both Atlantic Salmon and Ocean Trout.

This year King Reef achieved 40 per cent volume growth over the previous 12 months, supported by the acquisition of a key retail cornerstone customer who purchases half of the farm’s volume. While there was competitive pricing in the market, King Reef realised a 70 per cent profit improvement year-on-year, aided by excellent cost controls on the farm.

It was a positive year for Petuna too, meeting both planned profit and revenue targets, along with securing multi-year retail contracts in Salmon. The new hatchery in Cressy means Petuna is 100 per cent self-sufficient on smolt supply. The new recirculation system also has additional benefits of protecting brood stock, improving mortality rates, and providing more control around quality and release programs to sea cages.

China in focus In 2015, revenue from China was up by 33 per cent and it continues to be an important international market for Sealord, one which holds growth potential.

To grow awareness of our species and products, Sealord sponsored the country’s annual Global Gourmet ‘Chef par Excellence’ event. Sealord's ling was used by the 15 finalists to create their dish for the competition and for the evening's prize-giving dinner ceremony, and orange roughy was featured in a signature dish.

This competition sponsorship gave Sealord excellent exposure to some of the top restaurants, hotels, chefs and media in China. It also provided an opportunity to learn more about Asian cuisine and understand how Sealord’s species can best be promoted there.

The six chefs who successfully won the admiration of the discerning judges - top international chefs - travelled to New Zealand, visiting Le Cordon Bleu and spending two days at Sealord Nelson where they trialled more of our species and learnt more about the company.

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 21

Rangahaua te patohe karaka Ka mahi tahi me Sealord, ka oti i te Rōpū o Ngā Whenua Here ki te Kuini o Ingarangi Rangahau i te Pūtaiao me te Ūmanga te POO te whakawhanake - he Pūnaha Ōmata Ōoro (POO) auau-rau whakaihuwaka e taea ana te tuku iho ki te hōhonutanga i te kaharunga o te kūpenga.

Ka āhei ngā kāpene ki te whakamahi i te hangarau nei ki te tautohu i ngā patohe karaka me ngā oreo kuparu, he momo e rua e taumaha nei te whakawehe tētehi i tētehi i raro i te wai.

Ahakoa te korekore noa iho o ngā raraunga papai i ngā wā o mua e whakapono ai te tokorahi o te ūmanga kei te ngarongaro haere te patohe karaka, he nui rawa te wāhi ki te POO hei whakaatu i te ora o te mauri me te whakawhānuitanga hoki.

Kei te aromatawaitia ki ngā pae a te Kaunihera Tiaki Moana te whanonga o ngā mahinga patohe karaka nui katoa e toru o Aotearoa, ā, e matapaetia ana te putanga o te kōrero hei te hāwhe tuatahi o te tau 2016.

Ka whakaatu ngā huanga pēnei me te POO i te tūranga nunui o te rāngai mahiika i roto i te pūtaiao e ū ai te toitū-oranga ki ngā mahinga ika puta noa i te ao. Me whai whakaaro ki ngā whakatupuranga o muri nei i te hīnga o ngā moana o te ao - he kawa whakaaro tēnei e arataki ana i ngā mahi a Sealord hei kamupene.

Arotahi ki te haumarutanga Kei te arotahi tonu atu a Sealord ki te Hauora me te Haumarutanga, ka mutu i te paunga o te tau ā pūtea ko te auau o te taotū mahue wā mahi ko te 2.3 i te miriona hāora i mahia, ā, ko tōna 21 i te miriona hāora i mahia te auau o ngā taotū i tuhia.

He nui ngā panonitanga ki te whakahaerenga me te herenga o te Hauora me te Haumarutanga i Aotearoa e haere ana, ā, hei te tau e heke mai nei ka arotakea, ka whakaūngia hoki ngā pūnaha haumaru ā tai, ā uta hoki ki Sealord. Ko wētehi o ngā pānonitanga ture ko Maritime New Zealand hei kawe i te tūranga o te Safe Ship Management o naianei, me te whakamananga inā noa nei o te Ture Hauora me te Haumarutanga ki te Mahi, ka mana hei te 4 o Aperira 2016.

Ka noho tonu mai te wero ki te tautohu me te whakahaere i te mōreareatanga i roto i te taiao hihiko o te hī me te mahi i te ika o te moana uriuri; pēnei anō i te hiahia kia whakapaitia tonutia ngā rākau hei whakahaere i te Hauora me te Haumarutanga.

Ko te mōhiotanga me te kōrerorero ka noho mātuatua tonu, te taha ki te ture me te taha ki ngā mahi papai. Ka eke te 2016, ka arotahi iho ki te kohinga māia o te raraunga, te whakangungu hou, te tātari kaute pai kē, me te whakatūturutanga. Mā konei tātou e eke ai ki te taumata o ngā anga ā ture hou, e puta ai hoki he painga kē pēnei me te whaiwāhi ki ngā pitopito kōrero whāiti hei tautoko ki te tautuhi i te pū o wētehi take.

Sealord i te hapori He mea nui ki a Sealord tana tūranga me tana haepapa i roto i te hapori, hei tautoko i ngā hōtaka me ngā kaupapa e puta ai ngā hua i ngā wāhi whakahirahira ki ō mātou tāngata.

E tukuna tonutia ana ngā akoranga kaukau e te Whakaurunga Sealord Swim for Life mō ngā tamariki manotini huri noa i Aotearoa, ā, kua āpiti ki te auhekenga 19% o ngā torengitanga Māori i roto i ngā tau e rima kua pahure nei.

Kei roto te Sealord Scholarship i tana tau tuarima hoki, i whakatūria nei hei tautoko ā pūtea nei i ngā tamariki me ngā mokopuna a ngā kaimahi o Sealord e kore pea e āhei atu ki te ako. Arotakea ai ngā tono katoa e te ohu whiriwhiri rāwaho o Tā Tipene O’Regan rāua ko Terry Horne, mā rāua e whakaaro ki tō te kaitono pūmanawa, manaaki i te hapori me wētehi atu āhuatanga pai.

He iti rourou te Sealord Scholarship, he nui te koha hei tautoko i ngā rangatahi kia rite ai rātou mō ngā mahi angitū hei painga mō rātou, mō ō rātou whānau me ō rātou hapori.

22 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 SEALORD

Researching orange roughy Working in partnership with Sealord, CSIRO has developed the AOS - a world leading multi-frequency Acoustic Optical System (AOS) that can be deployed at depth on the headline of a trawl net.

This technology has enabled skippers to identify which fish are orange roughy, and which are oreo dory, two species that are otherwise difficult to distinguish from one another underwater.

While the lack of sophisticated data available in the past had led many in the industry to believe the numbers of orange roughy were diminishing, the AOS has been crucial in showing that their numbers are healthy and rising.

The performance of the three largest orange roughy fisheries in New Zealand are currently being assessed against the Marine Stewardship Council standards, with the outcome expected in the first half of 2016.

Developments such as the AOS demonstrate the important role the fishing industry has to play in contributing to science that can help ensure sustainable fisheries globally. The world’s oceans have to be fished with future generations in mind – a philosophy that governs what Sealord does as a company.

Safety focus Sealord continues to maintain a strong focus on Health & Safety with the Group ending the financial year with a lost time injury rate of 2.3 per million hours worked and a total recordable injury rate in the region of 21 per million hours worked.

With significant changes in Health & Safety management and regulation in New Zealand underway, the next financial year will see the revision and re-implementation of both maritime and land-based safety systems at Sealord. Legislative changes include Maritime New Zealand replacing the existing Safe Ship Management regime with the Maritime Operator Safety System, and the recent passing of the Health and Safety at Work Act, which comes into force on 4 April 2016.

The challenge to continually identify and control risk in the dynamic environment that is deep sea fishing and processing remains; as does the need to continually improve the tools we use to manage Health & Safety.

Information and communication will continue to be key, both from a legislative and best practice perspective. As we move into 2016, Sealord will be particularly focused on efficient data collection, refreshed training and improved audit and verification. Not only will this see us meet the requirements of the new regulatory frameworks, but will deliver added benefits in having access to more detailed information to help target the root of any potential issues.

Sealord in the community Sealord takes its role and responsibility within the community seriously, supporting programmes and initiatives that drive results in areas that matter to our people.

The Sealord Swim for Life Partnership has continued to provide much needed swimming lessons for thousands of tamariki across New Zealand, and more specifically, has contributed to a 19 per cent reduction in māori drownings over the last five years.

Also in its fifth year is the Sealord Scholarship, which was set up to financially assist children and grandchildren of Sealord employees. All applications are reviewed by an independent selection panel of Sir Tipene O’Regan and Terry Horne, who consider applicants’ aptitude, community contribution and other positive attributes.

The Sealord Scholarship is a small but powerful way we can help young people to prepare for successful careers that will benefit them, their families and their communities.

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 23 the beginning Mid 1980’s – NZ high court finds the Crown failed to protect māori commercial fishing interests.

1989 –interim settlement agreed and māori were returned fishing quota, shares in fishing companies and cash. 2004 Māori Fisheries Act passed including a method to allocate fisheries assets equitably among all Iwi. Formation of Aotearoa Fisheries and Te Ohu Kaimoana. history of aotearoa fisheries

2007 2008 2009 2011

Purchase Purchase Purchase Iwi Collective Kia Ora Seafoods Ocean Ranch 50% share Partnership of PrePack agreements put Purchase Establish Moana in place OPC Fish Pacific Fisheries and Lobster retail stores in Purchase of Wellington Sanford oyster Significant farms Inshore and pāua quota New fish parcel acquired processing facility in Whitianga opened OPC Fish and Lobster

24 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 HĪTORI O AOTEAROA FISHERIES HISTORY OF AOTEAROA FISHERIES Assets managed by treaty of waitangi fisheries commission 1990 1992 1995 1996 Purchase Moana Final settlement Purchase Purchase Pacific Fisheries reached. Māori Prepared Pacific (Full ownership were provided $150 Foods Marine took place in 2003 million used to Limited Farms with the purchase purchase of 16% from a 50% of Sealord and minority received a shareholder, guarantee for Te Kupenga) future quota (other 50% owned by Nissui) history of aotearoa fisheries

2012 2013 2014 2015

Precision Sign deal to Hikoi ki te Ora, New fleet renewal Seafood secure Cawthron wellness project Harvesting oyster hatchery programme is is launched project launched in Nelson launched Moana Pacific and OPC merge to form New Inshore AFL and AFL Inshore processing Port Nicholson factory and Fisheries lobster OceaNZ Blue, abalone head office partnership agreed farm in Bream Bay opened in purchased Auckland New Inshore processing Greenfields factory for factory opened Prepared Foods opens in on the Palmerston North Chatham Islands

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 25

People

Hikoi ki te Ora I roto i ngā marama 12 kua hipa, kua kawe tonu mātou i tō mātou hōtaka Hikoi ki te Ora me te akiaki hoki i ō mātou kaimahi kia kakama mō tō rātou oranga, hauora hoki. He huhua tonu ngā wāhi pēnei me ngā whakamātautau mate huka kore-utu i te wāhi mahi, ngā tirohanga oranga karu, me ngā whakataetae peke taura hei whakatairanga i te korikoringa, ā, i wātea hoki rātou ki te haere ki wētehi kauwhau mātauranga.

I oti i tētehi kaimahi wētehi panonitanga tini i te oranga. Whai muri iho i ngā tirohanga oranga kore-utu, i haria pāwawetia ia ki te tākuta nā te pēhitanga toto teitei. I titi tonu te whakatūpato nei ki te manawa, kua whāia ngā kupu āwhina, ā, kua uru atu ki ngā mahi o Hikoi i te Ora. Nā te korikori auau me te whakawhāititanga o ngā kai, e whakahīhī ana ia ki te pūrongo atu kei raro te pēhitanga toto inaianei, ā, nuku atu i te 12kg kua heke.

Ehara i te mea ko te kai me te korikori noa iho te hōtaka nei nā. Kua whakatau a Aotearoa Fisheries ko te katoa o te hauora hei whai, ā, i te roa o te Ākuhata i kauwhau a Vic Tāmati nō te rōpū It’s Not Okay e pā ana ki te tūkino whānau puta i tō mātou Kāhui. Kātahi anō ka pēnei te pai mō te tokorahi o te hunga i puta me te pai o ngā kōrero i hoki mai.

Ka mihi te Pirīmia ki te ohu atamai He tau nui tēnei mō te Kaiwhakahaere Matua hou o Prepared Foods, mō Carolyn Paewai-Young, i riro hoki i a ia tētehi o ngā Karahipi Pākihi a te Pirīmia. E rua wana haerenga ki Wīwī hei tērā tau ki tētehi o ngā kura pākihi mana nui rawa atu o te ao, ā, ka āwhina ngā kai hou o tana kete kōrero ki te whakatupu i Prepared Foods.

Ko Carolyn tētehi o te 12 i riro ai te karahipi nei e tautoko ana i ngā tumu koi rawa me ngā tāngata whai pākihi ki te whakawhānui i tō rātou mātanga puta i te ao, me te whakatupu hoki i wō rātou pūkenga pākihi kia kaha ake ai ngā pākihi o Aotearoa i ngā whakataetae o te ao. Nā te Kāwanatanga te 50% o te utu o ngā akoranga, ā, kua whakatau a Carolyn ki te ako i te Panonitanga ki te Whakahaerenga Matua ki INSEAD.

Āwhina ki te hura i ngā kurahuna o te panonitanga āhuarangi He kaiahumoana tō mātou Kaiwhakahaere Whakawhanaketanga Whakaputanga-hua, a Emmanuel Malpot, ā, he mōhio ia ki ngā ika moroiti e noho ana hei tūāpapa mō te tāhuahua ā tai. He mema ia o te taumahi pūtaiao kirirau o te ao ‘Plankton Planet’, e tautoko ana ia i ā te taumahi mahi i te Uru mā Tonga o te Moana a Kiwa. Nā te ika moroiti te hāwhe o te hauora e whakahī nei tātou, ā, kawea atu ai te CO2 i te kōhauhau ki ngā pae hōhonu o te moana uriuri ia tau, ia tau. Mārama tonu te kitea koia te kaikōkiri i ngā pūnaha āhuarangi, engari he iti tā tātou e mōhio nei mōna. Kātahi ka whakaeke mai a Plankton Planet.

Kei te whakapā atu ia ki ngā waka teremoana 10,000 e whakawhiti haere ana i ngā moana o te ao i ngā wā katoa hei āwhina ki te kohikohi kōrero.

Ka whakangungua rātou ki te kohikohi tautauira ika moroiti ki te kete māmā. Katoa ngā tautauira ka wetewetea e ngā tohunga pūtaiao whakaihuwaka o te ao e puta ai he māramatanga mō te pēheatia o te kukuwha o ngā hapori ika moroiti, te pānga ki te panonitanga āhuarangi me te nui o te CO2 e piki haere nei i roto i te moana.

“Ka kawe taku remurere mō te moana i ahau ki runga rānei, ki raro rānei i te wai ā pau noa te nuinga o aku wā whakatā. He hēramana kamakama ahau, he huhua tonu aku tāroinga ki tai, ki uta. Ko taku mahi matua mō Plankton Planet ko te tautoko i ā te taumahi mahi i te Uru mā Tonga o te Moana a Kiwa,” tā Emmanuel.

Linda Grave of AFL Inshore

26 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 HE TANGATA PEOPLE

Hikoi ki te Ora Over the past 12 months we’ve continued with our wellness programme Hikoi ki te Ora and encouraging our staff to be proactive about their health and wellbeing. Staff had a number of different opportunities including having free on-site diabetes tests, eye health checks, skipping competitions to promote movement and could also attend a number of educational presentations.

One staff member in particular has made life changing improvements. Following the free health checks they were rushed to the doctor due to high blood pressure. They took this warning very seriously and have listened to advice and participated in activities through Hikoi ki te Ora. Through regular exercise and reduced portion sizes, they proudly report their blood pressure is now normal and they have lost over 12kg.

The programme is not just about eating and exercise. Aotearoa Fisheries has chosen to take a holistic approach and through the month of August, Vic Tamati from It’s Not Okay campaign did presentations on family violence right across our Group. The participation and feedback was one of the most positive to date.

PM recognises our smart executive It’s been a big year for new Prepared Foods General Manager Carolyn Paewai-Young, who was also the recipient of one of the Prime Minister’s Business Scholarships. This means two trips to France next year to one of the world’s most prestigious business schools, and the added knowledge to help grow Prepared Foods.

Carolyn is one of just twelve to receive the scholarship which allows New Zealand’s smartest executives and business owners to expand their international expertise, and grow their business skills to help make Kiwi firms more internationally competitive. Fifty per cent of the cost of the study is funded by the Government, and Carolyn has chosen to study Transition to General Management through INSEAD.

Helping unlock climate change secrets As an aquaculturist our Product Development Manager at AFL Aquaculture, Emmanuel Malpot, is no stranger to planktonic forms of life that are the base of the aquatic food chain. He’s part of the global citizen science project ‘Plankton Planet’, supporting the project’s activities in the South-West Pacific region. Plankton produces half of the oxygen we breathe, and exports CO2 from the atmosphere into deep oceanic layers every year. Clearly it’s a driver of climate mechanisms, but not much is known about it. That’s were Plankton Planet comes in.

It is tapping into up to 10,000 sailboats crossing the world’s oceans at any given time to help gather information.

They’re trained to collect plankton samples with a simple kit. All samples are analysed by world-leading scientists to get a better understanding of how oceanic plankton communities evolve and the effect of climate change and rising CO2 levels on the ocean.

“My passion for the sea also leads me to spend most of my recreational time on or under the water. A keen sailor, I have embarked in many coastal and offshore passages. My primary role with Plankton Planet is to support the project’s activities in the South-West Pacific region,” says Emmanuel.

Emmanuel (left) and CawthronAOTEAROA Mirino FISHERIES Scientist LIMITED Xavier ANNUAL Pochon REPORT (right). 2015 27 Photo courtesy of RNZ Tracy Neal

Toro mai tō Nissui tauira ki ō Aotearoa Fisheries wāhanga Kotahi tau me te hāwhe te roa e mahi ana a Masa Shinto san me Sealord ki Whakatū hei māngai mō Nissui, Hapani. Ko tana tino mahi ko te hoko i ngā hua mātao ki ngā mākete hou.

I tēnei tau, i pau i a Masa san wētehi marama i waenga i ngā wāhanga mahi puta noa i te kāhui o Aotearoa Fisheries ki te ako e pā ana ki tō mātou kamupene me te whaiwāhi o te Māori ki te rāngai hiika i Aotearoa.

“He nui tāku i ako ai mō tō pākihi i wēnei marama kua pahure. He rawe kē aku wheako i runga waka hiika. E whakahaeretia paitia ana te ika, ā, i mīharo ahau i te kaha o tēnā me tēnā i pau kia pūhou tonu ai te whakaputanga hua. Tae rawa atu te ika ki te wheketere, e ātaahua tonu ana te ika. Kei te mōhio ahau e āhei ana koe ki te tuku tonu atu i ō ika huhua ki Hapani,” hei tā Masa san.

Tauira Māori ki Rangahau Ahumāra Kai E manaaki ana te Wāhanga Rangahau Kaimoana o Rangahau Ahumāra Kai ki Whakatū i ngā tauira tokorima mō te raumati 2015-16. Tokorua o aua tauira ko Tia Herekiuha rāua ko Peter Edwards, nā Aotearoa Fisheries te pūtea tautoko.

E whai ana a Tia, nō Ngāti Tamaterā, Ngāti Tara Tokanui me te Whakatōhea, i te Tohu Paetahi Pūtaiao ki te Whare Wānanga o Tāmaki Makaurau, ā, ko te Ōmataora Moana tana kaupapa matua. Ko te wāhi ki a Tia i roto o Aotearoa Fisheries ko te whakamātau hua-kē. Ka mahi ia hei mema o te rōpū rangahau e whakarite ana, e tātari ana i ngā tautauira, e āwhina ana hoki ki te tātari raraunga me te pūrongo.

E whakaoti ana a Peter, nō Ngāti Toa Rangatira, Ngāti Kahungunu me Ngāi Tahu, i tana Tohu Paerua Tiaki Moana, ā, ka mahi ia i te taumahi Mangō-Pounamu. Ka tautohua e tā te Manatū Ahu Matua Mahere ā Motu Mahi Mangō 2013 i te hiahia ki te “rangahau me te whanaketanga o ngā mākete hou rānei, ki ngā pūkenga ahunga mahi kia tika ai te whakamahinga o te mangō”. Ko tā Peter taumahi ko te hora kōrero hei tautoko i te whakamātauranga o ngā wā hei ahunga, hei whakamahinga i te katoa o te mangō-pounamu.

Wheakoranga whakahirahira ki OceaNZ Blue E koa ana te ngākau ki te tautoko i a Alyx Pivac ki te whakarite i a ia anō mō tana Global Fisheries Scholarship nā Te Ohu Kaimoana, arā ka whai wāhi ia ki te wheako ā ringa tonu nei ki OceaNZ Blue i mua i tana haere ki Hapani. He rawe rawa atu ki te tauira puta i te Mātauranga Rauropi i te Whare Wānanga o Tāmaki Makaurau e whakaoti nei i tana Tohu Paerua Pūtaiao.

“I aku mahi ki OceaNZ Blue ka riro mai he pūkenga hei kawe ki wāhi kē, ā, he māramatanga hoki ki ngā tukanga i roto o te ahumoana o Aotearoa e pai ai aku whakaritenga i ahau e mahi ana ki Hapani. He nui te whakahīhī, te mahara me te remurere hoki o te hunga o reira ki wā rātou mahi,” hei tā Alyx.

Te hokinga mai ki Aotearoa whai muri iho i te karahipi, kei te pīrangi ia ki te whakamahi i ngā pūkenga, mātauranga, wheakoranga hoki i riro rā i a ia ki te whakapūmau i te tupuranga o te ohanga hei hoa haere mō te toitū-oranga o te taiao. Kei te pīrangi hoki ia ki te tautoko i tōna iwi (Ngāti Whātua) i roto i wā rātou mahi, me te akiaki hoki i te Māori ki te uru ki te rāngai ahumoana, kaimoana hoki.

28 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 Tia Herekiuha HE TANGATA PEOPLE

Nissui intern visits Aotearoa Fisheries divisions Masa Shinto san has been working with Sealord in Nelson for the past year and a half as a representative from Nissui, Japan. His main job has been selling chilled products into new markets.

This year, Masa san has spent a couple of months with divisions across the Aotearoa Fisheries group to learn more about our company and Māori participation in the New Zealand fishing industry.

“I’ve learnt a lot about your business over the last couple of months. My experiences on the fishing vessels were amazing. The fish is very well managed and I was impressed that every person does his/her best to maintain freshness of the product. Even when it arrived in the factory, the fish was still very beautiful. I’m sure you are able to export more of your fish to Japan,” says Masa san.

Masa Shinto san at Prepared Foods Māori interns at Plant and Food Research Plant and Food Research’s Seafood Research Unit in Nelson is hosting five interns for the summer of 2015-16. Two of these interns are Tia Herekiuha and Peter Edwards, sponsored by Aotearoa Fisheries.

Tia, of Ngāti Tamaterā, Ngāti Tara Tokanui and Whakatohea descent, is currently studying at the University of Auckland towards a Bachelor Science degree majoring in Marine Biology. Tia will be contributing to the Aotearoa Fisheries by-product assessment. She will work as part of the research team, preparing and analysing samples and assisting with data analysis and reporting.

Peter, of Ngāti Toa Rangatira, Ngāti Kahungunu, and Ngāi Tahu descent is completing his Masters in Marine Conservation and will be working on the Blue Shark project. MPI’s National Plan of Action Sharks 2013 identifies the need for “research and development of new markets or processing techniques to increase the utilisation of sharks”. Peter’s project is to provide information to help assess the feasibility of opportunities to process and fully utilise the entire blue shark.

Gaining valuable experience at OceaNZ Blue We were delighted to help Alyx Pivac prepare for her Global Fisheries Scholarship from Te Ohu Kaimoana by offering her the chance to get some practical experience at OceaNZ Blue before she goes to Japan. The Auckland University Ecology graduate, who is currently completing her Masters in Science, found it invaluable.

“Working at OceaNZ Blue provided me with transferable skills, and insight to processes we use in New Zealand aquaculture so I can make some comparisons when I’m working in Japan. The people there also have an incredible pride, care and passion in their mahi,” says Alyx.

When she comes back to New Zealand following the scholarship she wants to use the skills, knowledge and experience she’s gained to ensure economic growth alongside environmental sustainability, as well as continue assisting her Iwi (Ngati Whatua) with their ventures and encouraging Māori involvement in the aquaculture and fisheries sector.

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 29 In short

Mata hikohiko ki te wai E titikaha ana te ngākau kia manaakitia ngā manu moana i a mātou e hiika ana, nā reira e mahi tahi ana mātou me Southern Seabird Solutions Trust ki te whakamātau i te aromātaitanga hikohiko hei oko i te mauranga manu moana i runga ahoroa.

He rite te hanga o ngā manu raranga ki tō te manu moana mate i runga i te matau, ā, ka rikoata te kāmera i te aho te tōia ana ki runga i te waka. Ka arotakea te whitiata i muri iho, ā, kāore te kaiarotake e mōhio e hia ngā manu raranga i whakairia ki te aho. Ka whakaatu mai ngā kāmera i te pai o te kāmera ki te kohikohi kōrero e pā ana ki te hopukanga manu moana, ā, i te māmā rānei, te pēhea rānei o te kitea e ngā kaiarotake.

50% te hekenga o te para i te tukurua Kua oti i ngā tātaritanga para, i ngā wāhi mahi ika e rua noa iho, he whakahekenga o ngā rawa tukurua i roto i ngā ipu para whānui, e 50% nuku atu rānei. Ko te mahi tuatahi mō wētehi kaimahi ki ngā whare ki Bell Avenue, Tāmaki Makaurau, me Lorne Street, Pōneke, ko te mau kākahu haumaru me te āwhina i Global Action Plan Oceania ki te wherawhera i ngā para kia kitea ai e hangā ana ki te aha.

Ki Pōneke, i kitea ko te kāri me te kirihou angiangi mā ngā rawa tukurua e rua e tino whakakī ana i te ipu. Me te mea nei i tangohia ngā ipu para i raro i ngā tēpū, ka noho mai ko ngā ipu tukurua nui kē. Waihoki kua whakaritea he korapa tukurua ki waho kia whāiti ai te para e rukea ana ki te ipu para rahi.

Ko tētehi o wō mātou whāinga toitū-oranga ko te whakawhanake i ngā waeine hei whakahaere i tā mātou haere, hei aromatawai i a mātou anō, hei piki taumata hoki, ā, he timatanga rawe ngā tātaritanga pēnei nā e tutuki ai taua whāinga. Ka taea hoki wēnei kaupapa te kawe ki wētehi atu wāhanga o te pākihi pea.

Whakamanahia te taiao i ngā whakatau Kei te mōhio kē kōtou i oti i a mātou he Arotake Ratonga Pūnaha Rauropi (ARPR) o tō mātou pākihi pāua i tērā tau hei taonga mō te iwi, he hua maimoa e whakahirahira ana ki tā mātou ripanga kaute. Ko tana aronga ko te āhua o te panoni o ngā pūnaha rauropi pāua me ngā take i tautohua, hei tauira ko te whakawhāititanga ko ngā haonga pāua me te ngaromanga o te nohoanga papakā ki Ngā Whanga o Te Tau Ihu o Te Waka a Māui.

Me te mea nei kua whāia ko te mahi tahi hei wherawhera i aua take e Terra Moana Ltd, te Ringa Atawhai, te Sustainable Business Council, te Manatū Ahu Matua me Hīkina Whakatutuki. Nā he huhua ngā taumahi ka puta i tēnei kaupapa pea.

Ko te tino hua o tā te ARPR mahi ko ngā whakatau pai kē, nā te mea kua tahuri ngā whakaaro i te pāua hei whakaputanga hua, ki te mōhio ki te hiahia kia mārama ake ai, kia kaha ake ai te mātaitanga hoki, o te oranga o te taiao e whakaputa ana i te pāua. Mā konei tātou e tino kaitiaki tūturu ai, kia ora tonu ai te pāua mō ngā whakatupuranga e haere ake nei hoki.

30 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 HEI WHAKARĀPOPOTO IN SHORT

Electronic eyes on the water We’re committed to ensuring fishing is carried out in a seabird-friendly way, so we’re working with the Southern Seabird Solutions Trust to find out if electronic monitoring can be used to detect seabird captures on longlines. A trial is underway on Whitianga fisherman Adam Clow’s boat where woven flax, proxy seabirds are being attached to the fishing line.

The woven seabirds have the same profile as a dead seabird on a hook and the camera records the line being hauled on board. The footage is later reviewed without the reviewer knowing how many seabird proxies were added to the line. The cameras will tell us how well the cameras collect information on seabird captures and how easily they are picked up by reviewers.

Recycling cuts 50 per cent of waste Waste audits at just two processing sites have seen a reduction of at least 50 per cent of recyclable material in general waste bins. The first step for some staff at the Bell Avenue, Auckland, and Lorne Street, Wellington, sites was to put on PPE gear and help Global Action Plan Oceania sort the waste to see what it was made up of.

In Wellington this revealed that cardboard and clean plastic film were the two recyclable items taking up the most space in the bin. Consequently, under desk bins in the office were replaced with larger, mixed recycling bins, and recycling cages have been added outside to reduce material going into the general waste skip.

One of our sustainability objectives is to develop metrics to manage our journey, self-assess and continuously improve, and audits like this are a great starting point for achieving this. These initiatives may also be able to be applied to other parts of the business.

Valuing nature in our decisions As you know we undertook an Ecosystem Service Review (ESR) of our pāua business last year as taonga for Iwi, and a prized product that is important to our balance sheet. It looked at how pāua ecosystems are changing, and identified issues, including declining pāua catches and kelp habitat loss in the Marlborough Sounds.

Consequently a collaborative approach to look at addressing these issues has been taken by Terra Moana Ltd, the Department of Conservation, the Sustainable Business Council, the Ministry for Primary Industries and the Ministry for Business Innovation and Employment. As a result we’ve got several potential projects emerging in this area.

What the ESR has done is improved our decision making, because it’s shifted our thinking from considering pāua as a product, to recognising the need to better understand and monitor the health of the environment that produces it to ensure we are truly kaitiaki, and that pāua is there for generations to come.

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 31 E whakapono mai ai te marea Noho ai te kaihiika tauhokohoko i raro i te rau o te patu, ā, me kakama tātou ki te tiaki i tā rātou ‘raihana hapori ō uta’ e mārama ai ki te marea he aha kē te mahi i roto i ngā mahinga ika tauhokohoko. Kei te pīrangi mātou ki te takitaki i ngā kōrerorero mō te kaitiakitanga o wō tātou taimoana me ngā rauemi ō roto, ka timata ki te mahinga ika nui katoa, SNA1.

Kua piri mātou ki a Sanford hei timata ki te kohikohi kōrero e tautuhi ana i wētehi o ngā mahi papai e mahi nei te rāngai hiika tauhokohoko hei tiaki i tō tātou katoa rauemi. Kua timata mātou ki te whakamōhio i te marea kua kaha ake ō mātou kāpene ki te āta whakamahuki i ngā mahi a te tāruru ō uta, arā ko te whakaurunga o te Pūnaha Aromātai Waka (PAW).

He āhua rite ngā PAW ki te pūnaha urungi amiorangi o te motukā. Tukuna mai ai he raraunga, ka taea te aromātai i te ao i te pō e te hunga nōna te waka, e te Manatū Ahunga Matua me te kamupene rangahau mahinga ika, me Trident Systems. Ko te wāhi ki a Trident ko te kohinga māia o te raraunga me ngā kōrero pai hei whakahaerenga whaihua i ngā rāngai ika.

Nā ngā kaipupuri roherohenga me te hunga nōna ngā waka te pūtea mō te taumahi nei, ā, he nui whakaharahara te whakangaonga. Ka whai i te kōrero nei nā ko tā mātou whakamahea i ngā kōrero teka e pā ana ki ngā tāmure iti kē i roto i te mahinga tāmure 1 (SNA1).

12 marama te roa o te hōtaka e whakaatu ana e hia ngā tāmure iti kē e haoa ana, kātahi ka whakahokia ki te moana. I whakaatu ngā raraunga, he mea kohi nā ngā kaihiika mō te Manatū Ahunga Matua, hui katoa e 3% noa iho o te taumaha o te haonga tāmure katoa he iti rawa. E hākoakoa ana mātou ko Sanford ki te timata tūao noa ki te tuhituhi me te pūrongo i te rahi o te tāmure poto iho i te pae hiika tauhokohoko, arā te 25cm.

Kei hea mai te pai o wēnei momo kōrero papai hei ako i te marea ki wētehi o ngā mahi pai e mahia ana e tō tātou ūmanga ki te tiaki i ō tātou moana.

Precision Seafood Harvesting Kei te kite mātou i te hua pai o tō mātou whakangaonga ki Precision Seafood Harvesting (PSH). I tēnei tau i whakaputaria e PSH he raraunga e whakaatu ana i te pikinga o te pitomata kia makorea ai te tāmure pūhouhou nōna i haoa ki ngā pūnaha hao kōwae hou (PHK). Koinei te whakatinanatanga o te wāhanga tuatahi o te pūnaha whakawhanake, e toru ōna wāhanga, mō te hao me te nanao i ngā ika ki tai.

Ko te wāhanga tuarua ko te whanaketanga o ngā hangarau nanao (māhiti me te wehewehe) i runga waka e toitū ai taua pitomata kia makorea ai puta noa i ngā mahi tauhokohoko. Ko te wāhanga tuatoru, te wāhanga whakamutunga, ko te whanaketanga o ngā pūnaha mō te rokiroki me te kawekawe kia kounga tonu ai te ika i te rokinga me te tohanga ki te mākete.

Ko tōna 50 tāna kua haoa i te tau nei ki te whakamātauranga tauhokohoko o te tāmure ki ngā pūnaha hao PSH. E mārō ana te haere a ngā putanga tauhokohoko o te ūturi mō te whakaurunga PSH. Nuku atu i te 2,700 tāna i haoa i te tau nei i ngā tāroinga whakamātau tauhokohoko ūturi.

Pākihi hou i ngā pānga-rauropi ā tai Hei te tau e heke mai nei ka whai a Aotearoa Fisheries i te pitomata kia pai ake ai te whakamahinga o tēnā ika, o tēnā ika, arā ko te tahuri ki te whakaputa i ngā hua kai whakahauora e takea mai ana i ngā pānga-rauropi ā tai. Ko te pānga-rauropi ko ngā mea e mōhiotia nei ōna painga hauora, hei tauira ko te whakamauru i te pauku. Ko ngā hua kai whakahauora i marohitia, arā ngā āpititanga matūkai, ka takea mai i ngā konga pānga-rauropi o roto o wētehi momo ika, mātaitai, tuaiwi-kore ongeonge hoki.

Ko wētehi o ngā whakaputanga hua e whakaarohia ana ko te rārangi hinu ika e nui nei te omeka-3, he māori, kāore i pāngia e te matū whakatupu, ā, i “kūtia mātaotaotia”. Mā konei te kaihoko e āhei ai ki te kōwhiri i ngā hinu i mahia i Aotearoa, kaua i ā Chile, Amerika ki te Raki, Ūropi hinu rānei. Kei te whāia rawatia ko ngā hua kai whakahauora e takea mai ana i ā Aotearoa ake mātaitai, tuaiwi-kore hoki.

32 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 HEI WHAKARĀPOPOTO IN SHORT

Building public confidence Commercial fishers are often under fire and we need to be pro-active in protecting their ‘inshore social license’ and ensuring the wider public know what is really happening in commercial fisheries. We want to lead conversations about the guardianship of our marine environments and resources, starting with our largest fishery, SNA1.

We’ve teamed up with Sanford to start putting together stories that outline some of the positive things the commercial fishing industry is doing to protect our shared resource. We started by letting people know about our skippers stepping up their efforts to bring greater transparency into the inshore fleet by installing Vessel Monitoring Systems (VMS).

The VMS units are a little bit like a sat nav system in a car. They send back data, 24/7 which can be monitored by the COMMERCIAL AREA vessel owner, Ministry for Primary Industries and fisheries SNAPPER 1 EAST NORTHLAND TO BAY OF PLENTY EXPOSING THE MYTHS AROUND research company, Trident Systems. Trident’s role is to COMMERCIAL SNAPPER CATCH IN efficiently gather data and information that can be used THE SNAPPER 1 FISHERY to more effectively manage fish stocks.

This project is being co-funded by quota owners and vessel owners, and the investment is significant. This story was then followed up with us dispelling myths about THE THE undersized snapper in the snapper 1 fishery (SNA1). MYTH REALITYONLY A 12-month monitoring programme showed how many JUST UNDER HALF THE FISH undersize snapper are being caught and returned to the CAUGHT GET THROWN BACK sea. The data, collected by fishers for the Ministry for % OF THE Primary Industries, showed that over the year, the total COMMERCIAL 3.3SNAPPER CATCH IS percentage by weight of undersized snapper was just three UNDERSIZED AND RETURNED TO THE per cent of the total snapper catch. Along with Sanford we SEA AS LEGALLY REQUIRED were happy to volunteer to start recording and reporting the amount of snapper under the commercial fishing limit of 25cm. MPI COMMERCIAL CATCH DATA FROM 01 MARCH 2014 TO 28 FEBRUARY 2015 Good news stories such as these go a long way to educating the public on some of the good things our industry is doing to look after our oceans.

Precision Seafood Harvesting We’re seeing good progress through our investment in Precision Seafood Harvesting (PSH). This year PSH has released data which shows the improved potential for survivability in juvenile snapper when harvested using the new modular harvest systems (MHS). These results represent stage one of a three stage development process for the harvesting and handling of fish at sea.

Stage two will see the development of improved on-board handling (grading and sorting) technologies to maintain this survivability potential throughout commercial applications. The third and final stage is to develop the storage and transportation systems to maintain the standard of fish during storage and distribution to market.

The commercial testing of snapper using PSH harvest systems has landed approximately 50 metric tonnes this year. The commercial outcomes for hoki are also progressing very well for the PSH partnership. Commercial testing trips on hoki have landed over 2,700 metric tonnes this year.

New business in marine bio-actives In the coming year at Aotearoa Fisheries is exploring the potential to get better utilisation from each fish through a move to production of nutraceutical products based on marine bio-actives. Bio-actives are elements known to have particular health benefits, such as an ability to reduce inflammation. The proposed nutraceuticals, or nutritional supplements, will be based on bio-active elements derived from certain fairly unique fish, shellfish and invertebrate species.

Among the products under consideration are a range of “cold-pressed” natural, organic fish oils rich in omega-3. This will provide consumers the ability to opt for New Zealand produced oils over those produced in Chile, North America or Europe. Nutraceuticals based on endemic shellfish and invertebrates are also high on the agenda.

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 33 Korowai mō Hosomi san I roto i te tau nei i whakakahangia tō mātou hononga ki tō mātou whakaurunga mahinga tahi, ki a Nissui, nōna tētehi hāwhe o Sealord. Rikarika ana te ngākau o Norio Hosomi san, tōna Tumu Whakahaere, i te rironga iho o te koha nei, te korowai e kīa nei ko Te Kauika a Tangaroa i Tokyo i te Aperira o tēnei tau.

Ko te tikanga ia kia tukuna iho te korowai i te Tumu Whakahaere ki te Tumu Whakahaere, ā, haere ake nei.

I whatua te kaupapa o te korowai ki te ‘whatu aho rua’ e paiheretia ai te whenu me te aho. Ko ngā miro kahurangi me te mā kei te kakī ko Ranginui, atua nui o te rangi, ā, ko ngā hukahuka kei runga, kei raro ko ngā tae kahurangi, kākāriki o te moana. Ko ngā whatunga kahurangi me te mā e taiapa ana i te raro ko ngā ngaru pukepuke, ā, ko te tohu ‘Ara moana’ kei mua ko ngā tae o ngā ika me tā rātou haere i raro i te moana hōhonu.

Nā te ata whakahoahoa me te whatunga i whakamahia i rite ai te korowai ki ngā wai tāhekeheke.

Riro he tohu anō i OPC E whakahīhī pai ana mātou i te rironga anō i OPC Fish and Lobster te tohu mō te Kaiwhakarato Pai Katoa nō Rohe Kē, Whenua Kē Rānei mō te wā tuaono i te huinga Sydney Fish Market Seafood Excellence Awards. I riro kē i a mātou taua tohu nui i ngā tau 2001, 2003, 2009, 2011, 2013.

Whakahaeretia ai ia rua tau mai anō i te tau 1996, ka mihi, ka whakamānawa hoki ngā tohu nei i ngā hai o te rāngai kaimoana. Ka tītohua hoki te Rāngai Kaimoana o Ahitereiria, tōna uara ki te ohanga ā motu, te ngāiotanga me te manawa tītī ki te whakarato i wētehi o ngā kaimoana kounga rawa o te ao ki ngā mākete ā rohe, ā motu, rāwaho hoki.

I tukuna i te Ākuhata, ā, i te Kura Kaimoana o Poihākena mātou kia riro mai ai te tohu i te hui tapu nei, mā te pōhiri anake e uru ai te tangata, i puta ai wētehi o ngā pou o te ūmanga pēnei me ngā kaihiika tauhokohoko, ngā kaiahumoana, ngā kaihoko, ngā kaituku, ngā kaihokomaha, ngā tāngata o ngā whare kai, ngā māngai o te Kāwanatanga me ngā rōpū taiao, me te hunga pāpāho hoki.

Oranga hou mō ngā kamupūtu tawhito He tohu te kamupūtu o tō mātou oranga i wētehi o wō tātou wāhi nā te tikanga kia mau kākahu haumaru. Ka kite ngā kaimahi o OceaNZ Blue i ngā kamupūtu nawewe huhua i roto i te ipu para whānui, ka toko te whakaaro me pai kē te mahi.

Whai muri iho i te tātaritanga para tūao, ko te kamupūtu tētehi o ngā rawa i tautohua hei tango i te para whānui ka whai oranga anō. Inaianei ka horoia, ka tangohia te raparapa rāroto, kātahi ka waiho ki te amohanga mō te kamupūtu anake.

Ka kī noa ana, ka haria ki Matta Products ki reira tangohia ai te kapumatu maitai, ka wāwāhia kia 3-4mm ngā maramara, ka ranumia me wētehi atu PVC me ngā tāpiringa, kātahi ka whakawerangia, ka huri hei whāriki haumaru kē.

He kaupapa whakawhāiti para e remurere ai ngā kaimahi nā te mea ka kite rātou ehara i te mea mō te mahinga ika anake te toitū-oranga, engari kē ia mō te āhua o ā rātou mahi hoki.

34 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 HEI WHAKARĀPOPOTO IN SHORT

Korowai for Hosomi san Earlier this year we strengthened our relationship with our joint venture partner Nissui, who owns the other half of Sealord. Its Managing Director, Norio Hosomi san, was delighted to receive the gift of the korowai titled Te Kauika a Tangaroa, or fish bearing currents of Tangaroa, in Tokyo in April this year.

It is intended that the korowai will be passed from Managing Director to Managing Director.

The kaupapa (or body) of the korowai utilises a technique called ‘whatu aho rua’ to bind the whenu (warp thread) with the aho (weft thread). The blue and white cords at the neck represent Ranginui, the God of the Sky, and the top and bottom fringes the blue and green hues of the sea. The blue and white roll framing the bottom fringe represents the rolling waves, and the ‘Ara moana’ design of the front reflects the colours of the fish and their pathway through the deep sea.

The design concept and techniques used mean the korowai resembles cascading waters.

OPC win another award We’re very proud that once again OPC Fish and Lobster has taken out the Best Interstate or Overseas Supplier Award for the sixth time in the Sydney Fish Market Seafood Excellent Awards. We had previously won the prestigious award in 2001, 2003, 2009, 2011 and 2013.

Held biannually since 1996, the awards recognise and reward the seafood industry’s top achievers. They also showcase the Australian Seafood Industry, its value to the national economy, professionalism and commitment to supplying some of the finest seafood in the world to local, national and international markets.

Awarded in August, we were there at the Sydney Seafood School to receive the award, at an exclusive, invitation only evening that included the industry’s top players including commercial fishers, aquaculturists, retailers, exporters, wholesalers, restauranteurs, Government and environmental agency representatives and media.

Old gumboots given new life Gumboots are a fact of life at many of our sites Andrew Oliver and Reena Narayan as PPE is often compulsory. At OceaNZBlue staff had of AFL Inshore been noticing plenty of worn out ones ending up in the general waste skip, and thought there must be a better way.

Following a voluntary waste audit, gumboots were one of the items identified that could be taken out of the general waste stream and given a new life. Now they are cleaned and the innersole is taken out before being added to a specific pallet with only gumboots on it.

When that’s full, it will go to Matta Products where the gumboots will have the steel toe cap removed, be chipped into 3-4mm pieces, mixed with other PCV and additives and then heated and moulded into safety mats.

It’s a waste minimisation initiative that staff are passionate about, because they see that sustainability is not only crucial to how they farm, but how they operate too.

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 35 In the community

E manawa tītī ana a Aotearoa Fisheries ki te tautoko i ngā kaupapa ā hapori e hāngai pai ana, e haepapa nei, e mārama nei. Ko tētehi āhuatanga o te tautoko nei nā ko te tuku i te tahua pūtea me te kete kaimoana hei tautoko i ngā taumahi i roto i ngā hapori e hāngai nei ngā tikanga ki ā tātou.

I te tau kua hipa nei, e tautoko tonu ana mātou i te Rōpū Wakatopatopa Whakarauora o Tāmaki e tiaki ana i te rohe whānui o Tāmaki Makaurau mai i Te Hana i te raki ki Meremere i te tonga, tae rawa atu ki te Pare Hauraki me ōna moutere.

He huhua ngā kaupapa ā iwi, ā hapū i tautokona e mātou, ā, e tautoko tonu ana mātou i ngā rōpū āwhina me ngā huinga pēnei me Inzone Education, Ngā Manu Kōrero ā Motu, te huinga Ngā Whetū Hei Whai, te huinga Tikanga Tangata Māori, te Rōpū Korowhā Māori, me te huhua tonu atu.

Pai tū, pai hinga mō te Kapa Ō Pango Māori E hia nei ngā e tāria ana, ka tākaro rawa iho te Kapa Ō Pango Māori ki te kāinga i tēnei tau.

I timata te tāroinga 2015 i te kēmu ki a Whītī i Suva. Kāore anō a Whītī kia turaki i te Kapa Ō Pango Māori mai anō i te tau 1957, nā whai anō ka ohorere i te piro tuatahi ki a Whītī. Heoi, ka aruaru tonu atu te Kapa Ō Pango Māori, ka toa ahakoa te iti o te wehenga 27-26.

Heoi anō kāore i pērā rawa te waimārie i te wiki ō muri iho i Tāmaki Makaurau i Eden Park ka hinga ki te kapa New Zealand Barbarians 43-17. Nō te huarere pea te hē!

He kaitautoko pūmau tonu a Aotearoa Fisheries me ōna kaipupurihea i te Kapa Ō Pango Māori, ā, e rikarika ana te ngākau ki te huanga o te tāroinga 2016, ā, me te whakaeketanga mai o te kapa Raiona hei te tau o tua atu.

Tūtohi Te Reo ki rō kura I tērā tau i whakamāoritia e mātou ngā tūtohi mātauranga kaimoana. Nā runga i te kaha angitū, e rima atu ngā tūtohi i whakamāoritia kia oti noa te huinga, ā, kua whakaputaina hei tūtohi nunui mō roto akomanga.

Taea noatia tēnei rā, nuku atu i te 30 ngā kura me ngā wāhanga reorua kua tono mō aua tūtohi huri noa i te motu, ā, e rere tonu mai ana ngā tono.

E ai ki ngā kaitito kōrero, kaitohatoha kōrero, ki a Ministry of Done:

“Arā hoki te angitū o aua rauemi - tae rawa ki ngā kura. Ko te āheinga ki te takitaki i ngā kura ki te rauemi o runga noa atu me āna kōrero papai me te whakahoahoanga papai te take e iri nei i runga pakitara i ngā akomanga rau tini nei. Ka kōrero ngā kura mō te ātaahua me te pai hoki kia whai rauemi e hāngai tonu nei ngā kōrero, ā, kua whakamāoritia.”

Nā te kaha paitia, kua tono wētehi atu kiritaki o Ministry of Done pēnei me Dairy NZ kia whakamāoritia ā rātou rauemi hoki.

36 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 I ROTO I TE HAPORI IN THE COMMUNITY

Aotearoa Fisheries is committed to supporting well aligned community initiatives in a way that is accountable and transparent. As part of this support, we provide an allocation of funding and kaimoana to assist community-based projects that reflect our shared tikanga.

In this past year, we have continued to support the Auckland Rescue Helicopter Trust that services the wider Auckland region as far north as Te Hana and as far south as Meremere, including Coromandel and the Gulf Islands.

As well as a number of Iwi and hapu-based kaupapa, we have also continued to support organisations and events like Inzone Education, Ngā Manu Kōrero ā Motu, the Ngā Whetu Hei Whai and Māori Human Rights conferences, and the Māori Golf Association, to name just a few.

One up, one down for Māori All Blacks After waiting several years, we were lucky enough to get a home game for the Māori All Blacks this year.

The 2015 tour began with a match against Fiji in Suva. Fiji haven’t won against the Māori All Blacks since 1957 so the opening try from Fiji came as a surprise. But, the Māori All Blacks came from behind and narrowly won the match 27-26.

However, they weren’t so lucky the following weekend in Auckland at Eden Park where they were beaten by the New Zealand Barbarians 34-17. Let’s blame the bad weather!

Aotearoa Fisheries and their shareholders remain staunch supporters of the Māori All Blacks and we look forward to the 2016 tour announcement and of course the Lions, who tour the year after. KĀTU REHE

Te Reo posters into schools Kaimoana Last year we translated seafood education posters into te reo māori. They were so successful that we had an additional five posters translated to complete the set and have also had them printed in large poster format for classrooms.

To date they have been requested by over 30 kura and bi-lingual units across the country and we continue to receive more requests. 1-5 TĀNGATA, HE KAI MOANA TE KAIKIKO MATUA.

KĀORE E ĀTAMŌHIONGIA ANA Content creators and distributors, Ministry of Done, say: NŌNAHEA TE TOA HOKO IKA “The resources are incredibly successful - especially in kura. ME NGĀ MARAMARA RĪWAI % I HUAKINA AI KI AOTEAROA, 90 HOI ANŌ KI TĀ KAIRANGAHAU To be able to introduce schools to such a high quality resource HĪTORI A TOBY SIMPSON, NŌ O NGĀI MUA NOA ATU I TE PAKANGA that has great information as well as design levels, has meant TUATAHI O TE AO. HE PŌ KAI AOTEAROA HE IKA TE KAI IKA ME NGĀ MARAMARA RĪWAI that they are on walls in hundreds of classrooms. Kura comment KOTAHI WĀ NEKE ATU RĀNEI I TE NGĀ PARAIRE MŌ TĒTEHI MARAMA, HE KOTAHI HAURUA WĀHANGA NUI O TE IWI, MŌ about how beautiful they are and how nice it is to have relevant TĀNA KAI HE IKA KOTAHI WĀ NGĀ PIKOPŌ PŪ MĀRIKA I NEKE ATU RĀNEI I IA WIKI WHAKAHAUNGIA KIA KAUA E materials that have been translated into te reo māori.” KAI MĪTI I NGĀ PARAIRE.

They’ve been so well received, that Ministry of Done clients KA NUI NGĀ HUA like Dairy NZ have requested translations of their resources HAUORA O NGĀ KA TOKONA AKE: into te reo as well. MOMO KAIMOANA:

HE PŪTAKE NŌ TE: SELENIUM, IODINE, HE ITI: POTASSIUM, NGĀ HINU IRON, KA NUI NGĀ KAIMOANA MĀRO KA TOKO AKE I TE VITAMINS B & D, WHAKATUPU NGAO, PROTEIN, WHAKAHEKE RŪHĀ. OMEGA 3. www.seafood.co.nz

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 37 Ako ana i ā tātou tamariki Kua puta atu ngā kaimahi o Aotearoa Fisheries Inshore ki te hapori, hari atu ai i te kōrero mō ā tātou kaimoana toitū-oranga ki te akomanga.

He whakahirahira tonu wēnei toronga kura ki ngā tamariki e ako ana i te toitū-oranga me ngā rauemi ā tai, tahuri tonu ki ngā take e pā ana ki a tātou i Aotearoa nei, me te āhua o te whakangāwari me te wherawhera i aua take e te rāngai.

Hei tā Jay Warren, kaiako ki te Kura o Ōtorohanga: “Koinei a Hōhepa i pai ai. I roto i te akoranga nei nā i riro i ngā ākonga ngā raraunga taketake hei tautoko i ā rātou aromatawai e pā ana ki te kaupapa nei, ngā take toitū-oranga moroki noa nei. Ki te kore aua raraunga taketake, ka kore ngā ākonga e āhei ki te eke ki te Kairangi, nā reira he whakahirahira ake nei tēnei mō rātou.”

Ahakoa kei uta te Kura o Ōtorohanga, he kaha tonu tana hononga ki te moana, arā e karangahia ana ōna ākonga e noho ana ki te kura ko ngā “tamariki ā tai.”

“He kura tēnei e hono kaha ana ki te taimoana. Ahakoa te tawhiti o konei i te moana, kei te kuku o te manawa te moana nā runga i tā mātou mōhio ki tana whakahirahira, ā ahurea, ā hapori, ā, ā ohanga hoki rā.”

He wā pai tēnei kia tata rawa nei ngā tamariki ki ā tātou kaimoana kounga noa, pēnei i wēnei pikitia nei nā.

Tohu Hākinakina Māori Kei te tautoko tonu a Aotearoa Fisheries i wēnei tohu, arā te wāhanga ki te Kaitākaro Māori o te Tau, me te tuku i te kai hīramoramo i kōrerohia nuitia.

I te tau 2015, i riro te tohu nei i a Nehe Milner- Skudder mō te hutupōro. Nō Tapuika me Ngāti Porou a Nehe.

I ngā Tohu Hākinakina Māori o tēnei tau i te Noema ka whakanuitia ngā tau e 25, ā, i tēnei tau i hoki ki te wāhi i timata ai, ki Tūrangawaewae Marae.

38 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 I ROTO I TE HAPORI IN THE COMMUNITY

Educating our tamariki Aotearoa Fisheries Inshore staff have been out and about in the community taking our sustainable seafood story to the classroom.

For children learning about sustainability and marine resources, with a particular focus on issues we are facing in New Zealand and how these issues are being mitigated and addressed by the industry, these school visits are proving invaluable.

Otorohanga School teacher Jay Warren says: “This was where Hohepa was brilliant. In this lesson the students gained the primary data to support their assessment on the topic of contemporary sustainability issues. Without this primary data students would have been unable to achieve at Excellence level so this was massive for them.”

While Otorohanga School is inland, it has a close connection with the sea as its hostel students are described as “coast kids.”

“As a school we are closely affiliated with the coast. Our location might be some distance from the ocean, but we hold it dear and close as we recognise the importance of the ocean, culturally, socially and of course economically.”

It’s also a great opportunity for tamariki to get up close with some of our premium kaimoana, as these pictures show.

Māori Sports Awards Aotearoa Fisheries continue to support these awards through the Māori Sportsman of the Year category, and also by providing the much talked about kaimoana entrée.

The 2015 Māori Sportsman of the year was Nehe Milner-Skudder for rugby. Nehe is of Ngāti Porou and Tapuika descent.

This year’s Māori Sports Awards in November proudly celebrate 25 years and was returned to where it all started, at Turangawaewae Marae.

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 39

board of directors

Whaimutu Dewes Fred Cookson Alan Gourdie Tony Hannon Tiamana Chairman Ngāti Uenukukōpako, Ngāti Alan is an internationally Tony is a director of Bancorp Ngāti Porou, Ngāti Rangitihi Kahungunu ki Te Wairoa experienced CEO and Global Merchant Bankers with Whaimutu Dewes is constantly Fred is the senior partner in Marketing Director of high 25 years experience in all facets reminded of the strictures of Opotiki accountancy firm profile large national and global of corporate finance. He was on his elders to realise the Cookson Forbes & Associates. organisations within the Sealord deal team in 1992 aspirations of the people for He works mainly throughout the telecommunications when the historic acquisition the generations that follow. the Waiariki District, alongside and FMCG industries. was made. He served on the Treaty of many Iwi organisations which He is currently Principal of He is currently Chairman of Waitangi Fisheries Commission, actively own and manage his own consultancy, Gourdie TBD Holdings, Healthpoint is a former director of Moana primary sector-based assets. and Associates, specialising Partners, Omni Health and Pacific Fisheries and was Deputy Fred is also a director of in business development and Snow Sports New Zealand, Chair of Sealord Group Ltd from Te Arawa Group Holdings brand design for companies also serving as a Director of 1992 to 2008. Limited. He holds a Bachelor wishing to expand their reach Radius Residential Care and Whaimutu is also a current of Commerce degree and beyond New Zealand into CBL Insurance. He has been director of Contact Energy and is a member of the global markets. a director of well known Housing New Zealand and New Zealand Institute of Alan is also an Independent companies such as Jucy has held directorships with Chartered Accountants and Director for New Zealand's Rentals, AJ Hackett Bungy Television New Zealand and NZ Institute of Directors. largest Strategy and Design and Jade Software. the AMP New Zealand Advisory He is married to Alison company Designworks and He Tumu a Tony o Board, and senior management (27 years) and they have the Chairman of Parrot Bancorp Merchant Bankers, roles at Fletcher Challenge and five children. Analytics, a successful ā, e 25 tau te roa o tana mahi in the public service. "big data" start up. Ko Fred te whakauru mātāmua i ngā kawekawe katoa o te E whakamaharatia tonutia ana a i Cookson Forbes and Associates. Toro tonu atu ō Alan pūtea tauhokohoko. I roto ia Whaimutu Dewes ki ngā kupu a Kei te rohe o te Waiariki ia e kawekawe ki te ao whānui i te kapa o te kawenata Sealord ōna mātua e whakahau ana i a ia mahi ana i te nuinga o te wā mō ngā mahi Tumuaki, Tumu i te tau 1992 i oti ai te ki te whakatinana i ngā wawatā i te taha o wētehi Rōpū ā Iwi Whakatairanga ki te Ao hoki hokonga whakahirahira. o te iwi mō ngā whakatupuranga e whakahaere ana i wō rātou o wētehi kamupene ā motu, Koia te Heamana o TBD e haere ake nei. I mahi ia i te ake rauemi o te ahu taiao. ā ao rongonui i roto i ngā Holdings, Healthpoint Partners, kōmihana kaimoana o te Tiritiri rāngai whakapānga hikohiko Ko Fred te tumuaki o Te Arawa Omni Health me Snow Sports o Waitangi, he Tumu o mua o me te Rawa Kiritaki Hohoro. Group Holdings Limited. New Zealand, ā, koia hoki te Moana Pacific Fisheries, me te Koia te mataamua o tōna ake He tohu mātauranga o te Tumu o Radius Residential Tiamana Tuarua o Sealord Group kamupene akoako, Gourdie Tauhokohoko tōna, ā, he mema Care me CBL Insurance. I mua, Ltd i te tau 1992 ki te tau 2008. and Associates, mātanga o te hoki ia o te Pūtahitanga koia te Tumu o ngā kamupene whanaketanga pākihi me te He tumu hoki a Whaimutu kaitatau Whai kawenata o rongonui pēnei me Jucy whakahoahoa tohu mō ngā o Contact Energy me te Aotearoa, me te Pūtahitanga Rentals, AJ Hackett Bungy kamupene o Aotearoa e hiahia kaporeihana ā Whare o Tumu o Aotearoa. me Jade Software. Aotearoa, ā, i tū ia hei tumu mō ana ki te whātoro ki waho o Ko Alison tana hoa wahine te reo Tātaki me tō AMP Poari Aotearoa ki ngā mākete o te ao. (27 tau), ā, tokorima wā Tohutohu o Aotearoa, me ngā Ko Alan tētehi Tumuaki Rāwaho rāua tamariki. tūranga whakahaere mātāmua i o tō Aotearoa kamupene Fletcher Challenge me te rāngai Rautaki & Whakahoahoa nui tūmatanui hoki. katoa, ko Designworks, me te Heamana o Parrot Analytics, he kamupene “raraunga nunui” hou e eke ana.

40 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 OHU TUMU BOARD OF DIRECTORS

Wayne Peters Hinerangi Raumati Jamie Tuuta Liz Ward Ngātiwai Ngāti Mutunga, Waikato Ngāti Mutunga, Taranaki Iwi, Ngāti Porou Wayne is a solicitor/barrister Hinerangi Raumati is a Ngāti Maru Sydney-based Liz Ward is with over 30 years experience Chartered Accountant with Jamie Tuuta is the Māori currently the CEO of Kennards in commercial, property, significant investment and Trustee and also holds a range Hire. Liz was previously the and financial law. In 2007, financial management and of governance positions in Director Customer Service for he opened his own legal governance experience. health, Iwi development, Australia’s Sydney Trains. Liz has practice. This approach has Her current roles include Chair fishing, agribusiness and previous fisheries experience seen the practice grow to of Parininihi ki Waitotara Inc investment sectors. as the Chief Executive of Deep incorporate a partner, two other and Trustee of the Parininihi ki Jamie chairs Parininihi ki Cove Fisheries. solicitors, and back up staff Waitotara Trust, Chair of P.K.W Waitotara Incorporation and Liz is a commercially pragmatic of eight. Farms Ltd, Chair of Nga Miro is a former Chair of Te Runanga senior executive with extensive Early 2009 saw Wayne Trust, director on the Te Ohu o Ngati Mutunga. He is a experience driving business elected to the New Zealand Kai Moana board and director member of the Government- growth and improvement Rugby Union Board after of Te Ohu Kai Moana Portfolio appointed Bioprospecting within a diverse range of being engaged in rugby Management Services Limited. Taumata, the Government's industries. Liz has wide and administration at a provincial Hinerangi has been the PEAK Group for Sustainable varied experience in a range of level for some years. Wayne Executive Director Operations Land Management and the different industries, including has also been instrumental in at Te Wananga o Aotearoa Investment Advisory Panel transport and logistics; the development and growth and is a member of the for the Primary Growth telecommunications; property of Ngāti Wai in fishing as well New Zealand Institute of Partnership. development and management, as in the current venture into Chartered Accountants. Ko Jamie Tuuta te Kaitiaki and primary production. tourism investment. He Kaitatau Whai Kawenata a Māori, ā, he huhua wōna Liz is a current member of Nuku atu i te 30 tau tā Wayne Hinerangi Raumati, ā, kua roa ia tūranga whakahaere i roto New Zealand Institute of roa e mahi ana hei rōia i te ture e mahi ana i te whakangaonga, i ngā rāngai hauora, wha Directors, and Women on tauhokohoko, rawa, whenua, whakahaerenga pūtea me te naketanga Iwi, kaimoana, Boards, Australia. pūtea hoki. I te tau 2007, i kāwanatanga. pāmu, whakangaonga hoki. Kei Poihākena a Liz Ward e whakatūria e Wayne tōna ake Ko wētehi o wōna tūranga o Ko Jamie te heamana o te noho ana, ā, koia te Tumuaki o tari ture. Nā tēnei whakaaro ōna naianei ko te Hea o Parininihi Rūnanga o Parininihi ki Kennards Hire. I mua ko Liz te i tupu ai te tari kia kuhu atu he ki Waitōtara Inc, te Kaitiaki o Waitōtara, ā, he Heamana ia o Tumu Ratonga Kiritaki mō tō whakauru, tokorua ngā rōia, ā, te Rūnanga o Parininihi ki te Rūnanga o Ngāti Mutunga Ahitereiria Sydney Trains. I mua tokowaru ngā kaimahi taunaki. Waitōtara, Hea o P.K.W. Farms i ngā wā o mua. He mema ia o tonu atu, ko Liz te Tumuaki o I te tau 2009, ka whiria a Ltd, Hea o te Rūnanga o Ngā te Taumata Mōtirotiro koiora Deep Cove Fisheries. Wayne hei mema o te Ūniana Miro, tumu o te poari o Te (Bioprospecting Taumata) i tohua Ā tauhokohoko nei, he tumu e Whutupāoro o Aotearoa whai Ohu Kai Moana, me te tumu e te kāwanatanga, te rōpū PEAK warea nei ngā whakaaro e te muri i ngā tau huhua e mahi o Te Ohu Kai Moana Portfolio mō te Whakahaerenga Whenua mahi whaihua, ā, kua roa ia e ana ia i ngā whakahaerenga Management Services Limited. Tikanga Toitū, ā, o te kauhanga kōkiri ana i te whanaketanga whutupāoro i te taumata o te Tohutohu i ngā Whakangaonga Ko Hinerangi te Tumu pākihi me te whakapikinga rohe. He nui hoki te wāhi ki a (Investment Advisory Panel) Whakahaere Mahinga i i roto i ngā ūmanga huhua, Wayne i te whanaketanga me mō te Whakaurunga Te Wānanga o Aotearoa. pēnei me te kawenga me te te tupuranga o Ngāti Wai Whanaketanga Matua. He mema ia o te Wānanga mō whakahaerenga kawenga i roto i te hī ika, me tana ngā Kaitatau Whai Kawenata rawa; hangarau kawe toronga inaianei ki roto i te o Aotearoa. kōrero; whanaketanga me te whakangaoranga tāpoi. whakahaerenga whenua, me te ahunga matua. He mema a Liz o te Wānanga o ngā Tumu o Aotearoa, me te rōpū Wahine Runga Poari, Ahitereiria.

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 41

corporate governance

TŪRANGA MAHI O RUNGA I Aotearoa Fisheries. I tēnei tau i Ngā Ohu o te Mana rīanga te mahi a te Ohu Whāiti TE MANA WHAKAHAERE ārahi ai te Mana Whakahaere i te Whakahaere Tātari and Arotake Mōrearea. ka Ko Te Ohu Kai Moana Trustee ahunga o Aotearoa Fisheries me E rua ngā ohu o te Mana whakahaere tonutia a Aotearoa Limited (Te Ohu Kai Moana) te te āwhina i te taha whakahaere Whakahaere hei āwhina hei Fisheries i ngā hōtaka tātari hei kaipupurihea whai mana o rautaki. whakapakari ake i tōna awhina i te kamupene kia Aotearoa Fisheries ā māna ngā kaitiakitanga i ngā wāhi nui mangoro te whanonga. Paerewa Matatika tūranga ki te Mana Whakahaere e e toru nei – mana tahua pūtea, Kua whakatauiratia, kua poipoia e He hōhonu, he whānui nga whakatau. He mana ā ture tō te mōrearea pākihi me ngā ngā Tumu ēnei paerewa matatika mōhiotanga tauhokohoko, tātari Mana Whakahaere mō ngā take utunga āpiha. e ai tā te Ritenga me te mahi tahi me te taha ture e tokohia ake ana me ngā mahi o Aotearoa Fisheries. i runga i te ngākau pono, Ohu Hauora me te e ngā Tumu o te ohu, e whā ā Ko tā ngā Tumu he mātai, he whakapono hoki. Haumarutanga rātau hui i tēnei tau. Anei ngā hautū, he whakahaere E rua ngā wā e hui ai te Ohu mema o te ohu o te tau mutunga i ngā mahi a Aotearoa Fisheries Whakawhanaungatanga ā Iwi Hauora me te Haumarutanga i ki te 30 o Mahuru 2015. kia eke tonu ki te teiteitanga o te Kua ngana anō ngā Tumu kia te tau. Ko ngā mema o te Ohu Fred Cookson (Tiamana) tikanga whakahaere rangatōpū hei mahi tahi a Aotearoa Fisheries Hauora me te Haumarutanga Wayne Peters painga mō ngā kaipupurihea. me ngā Iwi, kia eke tonu ki ngā taea noatia te tau i mutu i te 30 Hinerangi Raumati ritenga o te Ture Mahinga Ika Ka wānangātia e te Mana o Hepetema 2015 ko: Tony Hannon Whakahaere te mahere pākihi ā Māori (MFA) me whakahaere Jamie Tuuta (Tiamana) tau i mua i te tīmatanga o te tau tikanga tauhokohoko i ngā rawa. Ohu Whakatau Utu Āpiha Whaimutu Dewes ki te whakatau i ngā whāinga Whakahaere Wāhi Kaiwhaipānga Alan Gourdie ā tau mō Aotearoa Fisheries. ka Kua tuhia e te Ohu Whakatau Utu E whai koha ana te Mana Liz Ward whakatau anō te Mana Āpiha Whakahaere ētahi tikanga Whakahaere ki ngā wāhi ō ngā Whakahaere i te ara o Aotearoa whakahaere kaupapa ko āna kaiwhaipānga i roto i te wairua o Ohu Tātari Kaute – Mōrearea Fisheries mā te whakatau whāinga mahi ka arotakengia e te Mana te pānga motuhake me tōna tino He tuhinga tikanga whakahaere e me te tuku whakaaetanga mō ngā Whakahaere katoa. Kei te Ohu kaupapa. ārahi ana i ngā mahi a te ohu rautaki hei painga mō te pākihi. ko whāiti nei, ā ka pūrongotia kia Whakatau Utu Āpiha Whakahaere te tino mahi a te Tumuaki me ngā Pūrongotanga me ngā arotakengia e te Mana te mana hei whakatau, hei kaiwhakahaere matua he Whakapūakitanga Whakahaere katoa. ko ngā Tumu arotake i te utu o te Tumuaki me whakawhanake i te rautaki me te He kawenga matua te kawenga Aotearoa Fisheries kāore i roto i ngā āpiha whakahaere me te āta whakahaere i ngā mahi o ia rā. haepapa kia tika te whakahaere te ohu whāiti e wātea ki te tiki i tiro i ngā kaupapa here me ngā rangatōpū me te tohe tonu a te ngā pepa katoa o te ohu whāiti, e tikanga i ngā taumata katoa o RITENGA WHAKAHAERE Mana Whakahaere kia mana tonu wātea ana hoki ki te haere ki ngā ngā whakahaerenga. Ka tuku RANGATŌPŪ te hāpai i ngā tikanga, tauki tahua hui. tūtohinga te Ohu Whakatau Utu E ai ki te tūtohinga o te Mana pūtea me ngā whakapūakitanga Āpiha Whakahaere ki te Mana Whakahaere, kua whakamanahia He āwhina tā te ohu whāiti nei i kia huatau tonu. Whakahaere katoa mō ngā take te Mana Whakahaere kia huatau he Ritenga Whakahaere katoa kia kōwhiria, kia ai te pūrongo tahua pūtea kia Rangatōpū (me tētahi Ritenga Kaitātari Kaute whakataungia. Matatika). kua whakaputaina E kī taurangi ana te Mana taea hoki ana haepapa i raro E rua ngā hui a te Ohu Whakatau tēnei ritenga ki te paetukutuku o Whakahaere ka whai mana, i te ture Financial Reporting Act Utu Āpiha Whakahaere i te tau. Aotearoa Fisheries e tōkeketanga me te 1993 me te Companies Act 1993. Anei ngā mema o te tau mutunga whakaata ana i ngā tikanga motuhaketanga o te ka arotake hoki te ohu whāiti nei ki te 30 o Mahuru 2015. hangarite mō ngā kamupene tātaringa kaute. i ngā mahi me ngā kitenga e rarangitia ana i runga i te o te kaitātari rāwaho, Ernst and Whaimutu Dewes (Tiamana) New Zealand Stock Exchange. Whakahaere Mōrearea Young. kotahi tonu atu te kaitātari Liz Ward I ia tau ka whakatūturutia e te kaute, mā te Tiamana, ki te Ohu Jamie Tuuta Ko te mana me ngā kawenga tika Mana Whakahaere he kaupapa me te mea ka haere hoki a Kauwhata o Ngā Hui i Tae ai ngā mātāpono i whakatūria ai te here rite me ngā tikanga e āhei Deloitte ki ngā hui o te Ohu Ngā Tumu Ritenga Whakahaere ana ki te tautuhi me te Tātari Kaute - Mōrearea. Kei raro nei te pūrongo rārangi kamupene. Mā te āta mōhio ki whakahaere i ngā mōrearea katoa Me whai whakaaetanga ā tuhi ingoa e pā ana ki ngā hui a te ngā kawenga tōtika, ngā matatika e rite ana, ka tūpono noa mai mai i te Mana Whakahaere katoa i Mana Whakahaere me ngā Ohu i me te ū tonu ki ngā herenga e rānei. mua i ngā mahi tātari a ngā tae ai rātou tae noa ki te 30 o āwhina i te kamupene kia whai Utunga kaitātari o waho ki te mahi Hepetema 2015. tautoko mai i te Iwi me ngā Ko ngā utunga āpiha e pūataata i ētehi mahi tātari kaute kāore kaiwhaipānga mō ngā rautaki a ana ki te titiro, e tika ana, e rite i waho atu o te ūmanga nei. te kamupene. ana hoki. I whakatauria tēnei i runga i te He whakarāpopototanga tēnei arotakenga e titiro ana ki te tika, e whai ake nei o ngā wāhanga NGĀ OHU O TE MANA WHAKAHAERE ki te hē rānei o te tiki kaitātari mai i te Ritenga Whakahaere o waho mō ētahi mahi kāre e pā Rangatōpū o Aotearoa Fisheries: Whakamahi ai te Mana Whakahaere i ētahi wāhi ana ki te mahi tātari, he pai ake Kaupapa o Te Mana motuhake me ka whakapaihia pea mā ngā mea o Aotearoa Whakahaere ake te whanonga o Aotearoa Fisheries tonu e mahi, mā ētahi He whakaatanga te Mana Fisheries me te pupuri tonu i atu o waho rānei. Kāore ngā Whakahaere nō ngā tūnga ngā kawenga tūturu a te Mana kaitātari i pērā mō te tau. motuhake, pūkengatanga, Whakahaere mō ngā kōwhiringa He arotake i te rawakatanga o ngā mātauranga, wheako me ngā whakahaere katoa. whakahaerenga o roto o Aotearoa tirohanga kē kia mahi tika ai a Fisheries me ngā kaupapa here

42 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 WHAKAHAERENGA RANGATŌPŪ CORPORATE GOVERNANCE

ROLE OF THE BOARD The following is a summary Remuneration Prior written approval of the Te Ohu Kai Moana Trustee Limited of the sections from the Remuneration of executives is Board is required before the is the controlling shareholder of Aotearoa Fisheries Corporate transparent, fair, and reasonable. external auditors are able to Aotearoa Fisheries and is Governance Code: perform any non- external audit BOARD COMMITTEES responsible for appointments work. This decision is based on a Board Composition and The Board uses committees in to the Board. The Board has review of the appropriateness of Performance key areas where this enhances statutory responsibility for engaging the external auditors for The Board represents a balance of Aotearoa Fisheries’ overall the affairs and activities of the specified non-audit work as independence, skills, knowledge, effectiveness while retaining Aotearoa Fisheries. Directors are opposed to Aotearoa Fisheries experience, and perspectives full Board responsibility for required to monitor, direct, and carrying out the work in-house or ensuring Aotearoa Fisheries all governance decisions. control the activities of Aotearoa through other external parties. works effectively. During the Fisheries and to ensure a high Board Committees The Auditors did not carry out any course of the year the Board standard of corporate governance The Board has two Committees non-audit work during the year. has guided the direction of is exercised in the interests of the to assist and enhance its Aotearoa Fisheries and provided The Audit and Risk Committee Company and shareholders. stewardship in three key areas – oversight to management at reviews the adequacy of financial integrity, business risk The Board considers the annual a strategic level. Aotearoa Fisheries’ internal business plan prior to the and executive remuneration. controls and insurance policies. beginning of the financial yearin Ethical Standards The Company has an ongoing Health and Safety Committee order to determine the annual Directors have demonstrated and internal audit programme to The health and safety committee targets for Aotearoa Fisheries. fostered ethical standards as assist in ensuring the Company’s met on two occasions during The Board also sets the direction required by the Code and acted performance is robust. the year. The Health and Safety of Aotearoa Fisheries by agreeing honestly and in good faith. committee members during the A good cross section of objectives and approving Relationships with Iwi year ended 30 September 2015 commercial, accounting, finance strategies for the benefit of the Directors have ensured that were: and legal experience is provided business. It is the role of the Aotearoa Fisheries uses its best by Directors of the Audit and Risk Chief Executive Officer and Jamie Tuuta (Chairman) endeavours to work co-operatively Committee, who met on six senior management to develop Whaimutu Dewes with Iwi, consistent with the occasions during the year. the strategy and manage the Alan Gourdie requirement of the Māori The Audit and Risk Committee day-to-day operations of Liz Ward Fisheries Act to manage members during the year ended Aotearoa Fisheries. Aotearoa Fisheries assets in Audit and Risk Committee 30 September 2015 were: a commercial manner. Written terms of reference guide CODE OF CORPORATE Fred Cookson (Chairman) the activities of the Audit and GOVERNANCE Wayne Peters Stakeholder Interests Risk Committee and these As required by our constitution Hinerangi Raumati The Board respects the interests activities are reported to and the Board has implemented a Tony Hannon of all stakeholders within the reviewed by the full Board. Code of Corporate Governance context of Aotearoa Fisheries’ Aotearoa Fisheries Directors who Executive Remuneration (incorporating a Code of Ethics). special type of ownership and its are not members of the Audit and Committee This code is published on the fundamental purpose. Risk Committee receive all The Executive Remuneration Aotearoa Fisheries website Committee has written terms Reporting and Disclosure Committee papers and are free to www.afl.māori.nz and reflects of reference and its activities Accountability is a principal attend meetings. accepted best practice among are reviewed by the full Board. companies listed on the incentive for good corporate The Audit and Risk Committee The Executive Remuneration New Zealand Stock Exchange. governance and the Board assists the Board in financial demands integrity both in reporting compliance and Committee is responsible for The guiding principles upon financial reporting and in the meeting its responsibilities under setting and reviewing the which the Company Governance timeliness and level of disclosure. the Financial Reporting Act 1993 remuneration of the CEO and Code is based, includes integrity and the Companies Act 1993. executive management as well as and accountability. A clear Auditor The Audit and Risk Committee overseeing remuneration policies understanding of moral and The Board ensures the integrity, also reviews the work and findings and practices at all levels of ethical responsibilities and strict objectivity and independence of the external auditor, Deloitte. management. The Executive observance of these obligations of the external audit process. The Auditor has direct access, via Remuneration Committee makes will assist the Company in gaining the Chairman, to the Committee recommendations to the full support from Iwi and other Risk Management and Deloitte attend the Audit and Board on all matters requiring stakeholders for the Company’s The Board will annually verify Risk Committee meetings. a decision. strategies. that Aotearoa Fisheries has appropriate policies and processes The Executive Remuneration that identify and manage all Committee met twice during the potential and relevant risks. year. The members during the year ended 30 September 2015 Health & Safety Audit & Risk Remuneration were: Directors Appointed Board Committee Committee Committee Whaimutu Dewes (Chairman) Attended Required Attended Required Attended Required Attended Required Liz Ward W Dewes 01/10/2011 8 8 2 2 4 - 2 2 Jamie Tuuta F Cookson 26/11/2007 8 8 - - 4 4 - - A Gourdie 01/11/2013 7 8 1 2 - - - - Table of Meeting Attendance T Hannon 01/11/2013 8 8 - - 4 4 - - for Directors W Peters 26/11/2007 7 8 - - 3 4 - - Attendance records of Board and H Raumati 29/11/2012 7 8 - - 3 4 - - Committee meetings for the year J Tuuta 15/07/2011 7 8 2 2 - - 2 2 ended 30 September 2015 are L Ward 01/11/2013 8 8 2 2 - - 2 2 provided in the table opposite.

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 43

executive team

Carl Carrington Simon Jones Allyn Glaysher Don Collier Tumuaki CEO Tumu Pūtea Kaiwhakahaere Matua o te Rōpū, Kaiwhakahaere Matua, Carl joined Aotearoa Fisheries Chief Financial Officer Rauemi Tangata Aquaculture in June 2012. Of Te Whakatohea Simon has been involved in Group General Manager, General Manager, Aquaculture and Ngaiterangi descent on his the primary sector for many Human Resources and Of Ngāti Porou descent on his mother's side, he was raised years and his experience Corporate Affairs father’s side and Kahungūnu and educated in Auckland. includes previous CFO roles Allyn has worked in the and Rongomaiwahine on his He holds a Bachelor of Chemical and working in the USA for manufacturing and FMCG mother’s, Don holds a Commerce and Materials Engineering a public company where he sector throughout his career. He degree from Victoria University from Auckland University managed an international originally held operations roles and maintains his Chartered and a Masters of Business finance and IT team in the USA, in the printing industry before Accountant qualification. Administration from Cranfield Russia, Chile, Japan and Canada. moving to New Zealand Steel. A chartered accountant, Don School of Management. Simon has also spent time with After New Zealand Steel, was Commercial Manager at Carl is committed to the an international accountancy Allyn spent six years travelling the former Treaty of Waitangi development of organisations firm in New Zealand, Canada and exploring the world. Fisheries Commission (Te Ohu like Aotearoa Fisheries, that and the USA. Allyn took up an operations Kaimoana) from 2002-2004 provide not only ongoing value Simon is a regular presenter role with Hansells where he and was part of the initial to shareholders, but also bright at conferences and is a moved into Human Resources management team when career prospects for Maori. He is Chartered Accountant, Management and went on Aotearoa Fisheries was formed. married to Alison and has two with Master of Business to hold senior HR roles at Don is truly passionate about daughters, Sophie and Elizabeth. Administration and Cadbury Confectionery and our tio repe and our sustainably I uru a Carl ki roto o Aotearoa Master of Commerce (Honours) Fletcher Building. farmed pāua – possibly the best Fisheries i te Pipiri 2012. Nō degrees. Simon is married to Allyn is passionate about an kaimoana in the world – and he Te Whakatohea me Ngāi Te Tina and has two boys. equal opportunities culture and his team are excited by the Rangi ia i tōna taha ūkaipō, ā, E hia ngā tau e mahi ana a and a safe workplace. possibility of making them an i whakatupuria ia, i kuraina Simon i te rāngai ahu taiao, Kua mahi a Allyn i ngā rāngai even more globally recognised hoki ia i Tāmaki Makaurau. He ko ngā tūranga Tumu Pūtea, waihanga, rawa kiritaki hohoro and appreciated delicacies. Tohu Paetahi tōna i te Rāweke hei tauira ko tētehi kamupene (FMCG) hoki mō te roa o tana Kei tōna taha ure tārewa ko Matū mai i te Whare Wānanga tūmatawhāiti i Amerika i mahi. I timata ia i roto i ngā Ngāti Porou te iwi, kei tōna taha o Tāmaki Makaurau, ā, he Tohu whakahaere ai ia i te tīma tūranga mahinga i roto i te ūkaipō ko Ngāti Kahungūnu Paerua tōna i te Whakahaere hangarau mōhiohio i Amerika, ūmanga tā, kātahi ka tahuri ki rāua ko Ngāti Rongomaiwahine. Pākihi mai i te Cranfield School Rūhia, Chile, Japan me Canada. New Zealand Steel. He tohu Tauhokohoko tō Don nō of Management. Kua noho hoki a Simon mō Whai muri i New Zealand Steel, te Whare Wānanga o te Ūpoko tētehi wā i te kamupene kaute E ūpoko mārō ana a Carl ki ka pau te ono tau i a Allyn e o te Ika, ā, kei te pupuri tonu ā ao i Aotearoa, Canada me te whakawhanake i ngā rōpū tāroi ana i te nuku o te whenua. ia i tana tohu Kaitatau Whai Amerika hoki. pēnei i a Aotearoa Fisheries Ka whai tūranga mahi ia i roto Kawenata. e tuku uara ukauka ana ki He huhua tonu ngā huihuinga o Hansells, i reira tahuri ai ki He kaitatau whai kawenata a ngā kaipupurihea, e pai ai ngā i kauhau ai ia i Aotearoa me te Whakahaerenga Rauemi Don, ā, koia te Kaiwhakahaere huarahi mahi mō Ngāi Māori. Ahitereiria. He Kaitatau Whai Tangata, ā, e hia nei ōna tūranga Tauhokohoko o Te Komihana Ko tana hoa wahine ko Alison, Kawenata ia, he Tohu Paerua i te mātaamua i te rauemi tangata Kaimoana o Te Tiriti o Waitangi ā, tokorua wā rāua tamāhine, Tauhokohoko (Hōnore), he Tohu ki Cadbury Confectionery me (kua whakakorengia inaianei) i ko Sophie rāua ko Elizabeth. Paerua i te Whakahaere Pākihi Fletcher Building. te tau 2002-2004, ā, he mema ia hoki āna hoki. Kua moea rāua ko E remurere ana a Allyn ki te o te tīma whakahaere tuatahi Tina, ā, tokorua ā rāua tama. ahurea wā taurite me te wāhi i te whakatūranga o Aotearoa mahi haumaru. Fisheries. Ko tana remurere ki te tio repe me tā tātou pāua whakatupu - ko te kaimoana reka katoa o te ao pea - ā, e oho ana te mauri o tana rōpū i te wāhi kia nui kē te mōhiotia me te paitia puta i te ao.

44 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 NGĀ ĀPIHA WHAKAHAERE EXECUTIVE TEAM

Carolyn Paewai-Young Steve Tarrant Craig Orr Kaiwhakahaere, Prepared Foods Kaiwhakahaere Matua, Inshore General Manager General Manager, Prepared Foods General Manager, Inshore Group Business Development Carolyn was appointed to the Steve, a South Islander born Craig is a third generation role in July 2015, having been in Temuka, brings to Aotearoa Taupo-nui-a-Tia local with with Prepared Foods for almost Fisheries over 20 years Cook Island whakapapa. 20 years. experience in the seafood Graduating with a Bachelor Of Ngapuhi descent on her business plus five years with of Management Studies at mother’s side and Guangzhou the Port of Wellington. University of Waikato, on her father’s side, Carolyn was He previously worked at Craig has worked in senior raised and educated in Levin. Deep Cove Fisheries, which FMCG roles with Nestle, later became part of the Lion and SunRice. Carolyn started her career Talleys Group. with Prepared Foods as a His seafood industry work has Food Technician after One of the attractions of been establishing the business graduating with a Bachelor Aotearoa Fisheries was the development strategy, brand of Food Technology at chance to work under a different development, marketing and Massey University. model – a 100% Maori owned innovation for Prepared Foods company. Married to Kim and including the expansion of the No stranger to hard work, father to three children, Steve ready to eat meals business. while working full time, feels he’s in the right niche – Craig is married to Jenny and Carolyn also completed working in a company that is has two children. at Post Graduate Diploma striving to be here for future in Nutrition. Nō te whakatupuranga tuatoru generations. o tōna whānau e noho nei ki Carolyn is married and I whānau a Steve i Te Umu Taupō Nui a Tia a Craig, ā, he is a devoted mother of Kaha (Temuka) i te Moana whakapapa Kuki Airani tōna. I three children. Pounamu, ā, e 20 tau tana roa puta ia i te Whare Wānanga o I whakatūria a Carolyn i te i te ūmanga kaimoana, e rima Waikato me te Tohu Akoranga Hūrae 2015, tata tonu ki te tau tana roa e mahi ana i te Whakahaere, ā, kua mahi ia i 20 tau ia i Prepared Foods. taha o Te Whanganui a Tara/ ngā tūranga mātaamua Rawa Kei tōna taha ūkaipō nō Port Wellington. I mua atu, i Kiritaki Hohoro i Nestle, Lion Ngāpuhi ia, kei tōna taha mahi ia i Deep Cove Fisheries, me SunRice. uretārewa nō Guangshou, i whakakaongia rā ki roto o te Ko tana mahi i te ūmanga ā, i tupu ake ia i Taitoko, i Talleys Group. kaimoana ko te whakatū i te kuraina ia ki reira hoki. Ko tētehi o wō Aotearoa rautaki whakawhanake pākihi, I timata ia i Prepared Foods Fisheries painga ko te whai wāhi te whakawhanake tohu, te hei Kaihangarau Kai whai muri ki te mahi i raro i tētehi tauira whakatairanga me ngā mahi iho i te putanga i te Kunenga ki kē – 100% nā te Māori. E mārena atamai mō Prepared Foods Pūrehuroa me te Tohu Hangarau ana a Steve ki a Kim, ā, tokotoru pēnei me te whakawhānuitanga Kai. āna tamariki. E whakapae ana a o te pākihi kai rite-kia-kainga. Steve kei te whaitua tōtika ia – Kua moea rāua ko Jenny, ā, Koia rā he ringa raupā, i a ia e mahi ana i roto i te kamupene tokorua ngā tamariki. e mahi ana ka oti i a ia te Tohu e tohe ana kia toitū mō ngā Pōkairua o te Kaiora. whakatupuranga e haere Kua mārena a Carolyn, ā, ake nei. he whaea aroha ia o ngā tamariki tokotoru.

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 45 KUPU TAKA O TE PŪNAHA WHAKAHAERE ROHEROHENGA QUOTA MANAGEMENT SYSTEM TERMINOLOGY

Pūnaha Whakahaere Quota Management System Haonga Tauhokohoko Katoa Maximum Sustainable Yield Roherohenga (PWR) (QMS) e Whakaaetia ana (HTKW) (MSY) I whakaurua mai te (PWR) i te The QMS was introduced in Ko te wāhanga o te HIKW MSY is the largest average catch tau 1986 ki te whakahaere, ki te 1986 to manage and conserve ka tohaina ki te hunga hī or yield that can continuously be tiaki hoki i ngā mahinga ika New Zealand’s commercial tauhokohoko e mōhingia ana taken from a fish stock each year tauhokohoko o Aotearoa. He fisheries. It is based on the concept he HTKW. without depleting that stock. mea whakarite i runga i te ariā of creating property rights in Huanga Toitū Deemed Values waihanga tika rawa i roto i ngā Individual Transferable Quota Ikeike (HTI) Deemed values are civil Roherohenga Tauhoko (ITQ) and ensuring sustainability HTI, ko te huanga rarahi rawa payments made to the Crown Motuhake (RTM) kia toitū tonu by setting an annual limit on total ka taea tonutia te mau i tētahi as a defence for landing catch ai mā te whakarite rāhui ā tau commercial catches from each rāngai ika i ia tau i runga i te of QMS species for which the mō ia momo ika tauhokohoko. fish stock. korenga o taua rāngai ika individual fisher holds no ACE. Roherohenga Tauhoko Individual Transferable Quota e heke rawa. They are designed to act as an Motuhake (RTM) (ITQ) incentive for fishers to obtain Utunga Hara I tohaina ngā RTM mō ngā ika o ITQ was allocated for all main ACE which matches their catch Ko te utunga hara he utu ka tae uta katoa me ngā h ī nga ika wai inshore and deepwater fisheries, for each fishing year. ki te Kāwanatanga hei karo mō hōhonu, na i tēnei rā e 100 ngā and today 100 species, or groups te hī pokanoa i te ika kāre i te momo ika, huinga momo ika of species, are managed as 636 HIT o te tangata nāna i hopu. rānei, e whakahaeretia ana i ngā separate fish stocks under the I waihaNgātia hei akiaki i ngā rāngai ika 636 motuhake i raro i QMS. The quota allocated for each kaihī ki te hoko HIT e rite ana te RTM. Ko ngā roherohenga o ia fish stock is in perpetuity, and is ki a rātau hopunga i ia tau. rāngai ika i tohaina mō ake tonu measured in a fixed number of atu, he mea ine mā ngā hea quota shares. Quota owners are roherohenga ukauka. Ka taea e able to buy, sell and lease their ngā kaipupuri roherohenga te quota or catch rights, and to hoko atu, te rīhi i aua choose the method and the time roherohenga, tika hopu ika of year they harvest their catches rānei, me te whiriwhiri mō āhea within these limits. o roto i te tau hauhaketia ai Annual Catch Entitlement aua roherohenga. (ACE) Haonga Ika ā Tau (HIT) At the beginning of each fishing I te tīmatanga o ia tau hī ika, year, quota owners are entitled ka taea e ngā kaipupuri to ACE generated from their roherohenga te HIT i puta mai i quota shares. The ACE gives a rātau hea roherohenga. He a right to harvest a specified tika tā te HIT kia hauhaketia he quantity of a fish stock in an tūtanga ika rite i tētahi rohe mō area for one year. ACE varies te tau kotahi. Ka rerekē te HIT from year to year depending mai i tētahi tau ki tētahi tau, on the Total Allowable inā te nui o te Haonga Commercial Catch (TACC) level Tauhokohoko Katoa e set by the Minister of Fisheries. Whakaaetia ana (HTKW) ka Total Allowable Catch (TAC) whakaritea e te Minita Tautiaki The TAC is the total regulated i Ngā Tini a Tangaroa. catch from a fish stock in a Haonga Ika Katoa e given time period, usually Whakaaetia ana (HIKW) a year, and is allocated to Ko te HIKW te huinga o ngā ika commercial, customary and ika ka mau mai i tētahi rāngai recreational fishers. This catch ika i tētahi wā, he tau te roa i te limit is set by the Minister of nuinga o te wā, ka tohaina ki te Fisheries after consultation with hunga hī tauhokohoko, tikanga, fishers, and is generally set at the rēhia rānei. Mā te Minita maximum sustainable yield. Tautiaki i NgāTini a Tangaroa Total Allowable Commercial tēnei e whakarite ka mutu ana Catch (TACC) te kōrerorero ki te hunga hī, ka The proportion of the TAC whakatauria ki te taumata allocated to commercial fishers teitei e whakaaetia ana i te is known as the TACC. nuinga o te wā.

46 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 TAUKI TAHUA PŪTEA FINANCIAL STATEMENTS

Total Revenue Financing Cost 200 10 180 9 160 8

140 174.9 7 161.1 162.3 120 6 7.1 154.1 100 152.4 5 5.4 $million $million 80 4 4.5

60 3 4.0 3.8 40 2 20 1 0 0 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015

Profit Contribution from Sealord Profit for the Year 20 30 18 27 16 24 14 21 12

18 22.8 21.9

10 12.7 15 17.1 10.3

$million 8 12 $million 16.0 6 9

4 5.8 6 4.6 2 3 2013 2013 0 0 2011 2012 2014 2015 2011 2012 2014 2015 -6.0 -23.0

Operating Cash Flow Total Assets 20 600 18 540 16 480

14 420 532.2 524.5 503.3 502.6 499.0 14.4 12 14.4 360 10 300

8 $million

$million 240 9.9 9.1 6 9.1 180 4 120 2 60 0 0 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015

Total Shareholders' Equity Bank Debt (Net of Cash) 400 100 360 90 412.7 404.1 404.5 408.5 320 393.9 80 280 70

240 60 70.8 70.6 200 50 61.2 62.2

$million 160 40 $million

120 30 47.8 80 20 40 10 0 0 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 47 FinAnciAl StAtements

TAUKI TAPATAHI MONI WHIWHI 50 CONSOLIDATED INCOME STATEMENT RIPANGA KAUTE TAPATAHI O TE TŪRANGA PŪTEA 51 CONSOLIDATED STATEMENT OF FINANCIAL POSITION TAUKI TAPATAHI TŪTANGA REREKĒTANGA 52 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY TAUKI TAPATAHI AURERE PŪTEA 53 CONSOLIDATED STATEMENT OF CASHFLOWS PITOPITO KŌRERO MŌ NGĀ TAUKI PŪTEA 54 NOTES TO FINANCIAL STATEMENTS PURONGO A TE KAITATARI KAUTE 92 INDEPENDENT AUDITOR'S REPORT Ē TAHI ATU WHAKAPŪAKITANGA O TE PŪRONGO Ā TAU 93 OTHER ANNUAL REPORT DISCLOSURES

48 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 49 tauki tapatahi moni whiwhi consolidated income Statement FOR THE YEAR ENDED 30 SEPTEMBER 2015

$000’s Note 2015 2014 Sale of goods 168,286 154,542 Other revenue 4 6,629 7,762 Total revenue 174,915 162,304 Cost of sales 6 (134,796) (124,540) Gross profit 40,119 37,764 Other (expenses) / income 5 (536) 3,192 Distribution expenses 6 (6,330) (5,228) Administrative expenses 6 (18,990) (19,689) Finance expenses 6 (3,809) (4,457) Share of Sealord profit 14 5,852 12,678 Share of profit of associates and joint ventures 15 521 280 Profit before income tax 16,827 24,540 Income tax expense 7 (864) (2,583) Profit for the period 15,963 21,957

The above Consolidated Income Statement should be read in conjunction with the accompanying notes.

tauki tapatahi whanui moni whiwhi Consolidated Statement of comPrehensIve income FOR THE YEAR ENDED 30 SEPTEMBER 2015

$000’s Note 2015 2014 Profit / (Loss) for the year 15,963 21,957

Other comprehensive income Items that may be reclassified subsequently to profit or loss (Losses) / gains from: Cash flow hedges 25 (2,216) (3,138) Share of Sealord other comprehensive income 14 (11,900) (2,356) Income tax relating to components of comprehensive income 7 & 25 388 549 Other comprehensive income for the year net of tax (13,728) (4,945) Total comprehensive income for the year net of tax, attributable to the shareholders 2,235 17,012

The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

50 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 ripanga kaute tapatahi o te turanga Putea consolidated Statement of financial Position AS AT 30 SEPTEMBER 2015

$000’s Note 2015 2014 Assets Current assets Cash and bank balances 9 856 3,278 Trade and other receivables 10 20,133 18,854 Inventories 11 9,618 8,497 Biological assets 12 8,347 7,032 Current tax asset 655 554 Derivative financial instruments 27 348 145 Total current assets 39,957 38,360 Non-current assets Property, plant and equipment 13 46,423 43,554 Investment in Sealord Group Limited 14 169,378 180,676 Investments in associates and joint ventures 15 5,010 4,489 Quota shares 16 243,027 242,985 Goodwill 17 10,772 10,772 Intangibles 18 5,690 5,838 Financial assets 19 2,240 2,882 Derivative financial instruments 27 - 189 Deferred tax asset 7 2,002 2,478 Total non-current assets 484,542 493,863 Total assets 524,499 532,223

Liabilities Current liabilities Trade and other payables 20 11,734 12,272 Provisions 21 8,809 11,293 Redeemable preference shares 22 20,000 20,000 Derivative financial instruments 27 1,538 1,536 Total current liabilities 42,081 45,101 Non-current liabilities Borrowings 23 71,500 74,125 Derivative financial instruments 27 2,354 283 Total non-current liabilities 73,854 74,408 Total liabilities 115,935 119,509 Net assets 408,564 412,714 Equity Shareholders’ equity Capital contributed 25 286,979 286,979 Cash flow hedging reserve 25 (2,637) (809) Associates’ derivative financial instruments and other reserves (27,969) (16,069) Retained earnings 152,191 142,613 Total shareholders’ equity 408,564 412,714

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes. For and on behalf of the board, who authorised the issue of these Financial Statements on 25 November 2015

Whaimutu Dewes Fred Cookson Chairman Chairman of the Audit and Risk Committee

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 51 tauki tapatahi tutanga rereketanga consolidated Statement of Changes In equitY FOR THE YEAR ENDED 30 SEPTEMBER 2015

Associates’ derivative Cash flow financial Capital hedging instruments & Retained Total $000’s Note contributed reserve other reserves earnings equity Balance at 1 October 2014 286,979 (809) (16,069) 142,613 412,714 Net profit - - - 15,963 15,963 Other comprehensive income for the year, net of tax - (1,828) (11,900) - (13,728) Dividend provision 21 - - - (6,385) (6,385) Balance at 30 September 2015 286,979 (2,637) (27,969) 152,191 408,564

Balance at 1 October 2013 286,979 1,780 (13,713) 129,439 404,485 Net profit - - - 21,957 21,957 Other comprehensive income for the year, net of tax - (2,589) (2,356) - (4,945) Dividend provision 21 - - - (8,783) (8,783) Balance at 30 September 2014 286,979 (809) (16,069) 142,613 412,714

The above Consolidated Statement of Changes in Equity above should be read in conjunction with the accompanying notes.

52 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 tauki tapatahi aurere Putea consolidated Statement of cash Flows FOR THE YEAR ENDED 30 SEPTEMBER 2015

$000’s Note 2015 2014 Cash flows from operating activities Cash was provided from: Receipts from customers 168,544 157,051 Interest received 83 73 168,627 157,124 Cash was disbursed to: Payments to suppliers and employees 154,821 142,933 Interest paid 3,809 4,457 Taxation paid 100 600 158,730 147,990 Net cash flows from operating activities 26 9,897 9,134 Cash flows from investing activities Cash was provided from: Dividends received 5,250 - Sale of property, plant and equipment 22 2,078 5,272 2,078 Cash was disbursed to: Purchase of property, plant and equipment 5,924 15,949 Acquisition of intangibles 252 3,222 Acquisition of investments - 668 6,176 19,839 Net cash flows from investing activities (904) (17,761) Cash flows from financing activities Cash was provided from: Proceeds of borrowings - 10,000 - 10,000 Cash was disbursed to: Repayment of borrowings 2,625 - Payment for debt issue - 184 Dividends paid to shareholders 8,790 - 11,415 184 Net cash flows from financing activities (11,415) 9,816 Net (decrease) / increase in cash held (2,422) 1,189 Cash at the beginning of the period 3,278 2,089 Effects of exchange rate on cash held in foreign currencies - - Cash at the end of the year 9 856 3,278 Comprising: Cash and bank balances 856 3,278

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 53 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

1. Corporate Information Aotearoa Fisheries Limited (the Company) was incorporated in New Zealand on 26 November 2004. The Aotearoa Fisheries Limited Group of Companies consists of the Company, its subsidiaries and associates (the Group).

On 29 November 2004, the Company was the recipient of assets and liabilities transferred under the Maori Fisheries Act 2004. The transfer was accounted for as a purchase transaction and the net fair value of the assets received by the Company was treated as capital contributed to the Company.

The Group supplies sustainably produced seafood to consumers in domestic and major international markets. The registered office of the Group is 1-3 Bell Avenue, Mt Wellington.

2. Summary of Significant Accounting Policies

(a) Basis of Preparation

The financial statements have been prepared on the historical cost basis except where indicated otherwise within the specific accounting policies.

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

(b) Statement of Compliance

These general purpose financial statements for the year ended 30 September 2015 have been prepared in accordance with New Zealand generally accepted accounting practice (NZ GAAP), and comply with New Zealand equivalents to International Financial Reporting Standards (NZ IFRS), and other applicable Financial Reporting Standards as appropriate for profit-oriented entities.

The financial statements comply with International Financial Reporting Standards (IFRS).

The financial statements have been prepared in accordance and comply with the requirements of the Companies Act 1993, the Financial Reporting Act 2013 and the Maori Fisheries Act 2004.

(c) New Accounting Standards and Interpretations

The Group adopts new standards and interpretations in the period in which they become mandatory.

All mandatory Standards, Amendments and Interpretations have been adopted in the current year. None had a material impact on these financial statements.

There are a number of Standards, Amendments and Interpretations which have been approved but are not yet effective. The Company expects to adopt these when they become mandatory. None are expected to result in a material impact on the Company’s financial statements except IFRS 15 Revenue, the impact of which is yet to be assessed.

(d) Accounting Policies

There have been no changes in accounting policies.

(e) Basis of Consolidation The financial statements incorporate the financial statements of the Company and all subsidiaries (these are entities controlled by the Company and significant subsidiaries are listed in Note 15 collectively the Group). Control is achieved where the Company has power over the investee, is exposed,or has rights to variable returns from its involvement with the investee and has the ability to use this power to influence these returns. All significant inter-company transactions are eliminated on consolidation. Subsidiaries’ accounting policies are consistent with the policies adopted by the Group.

54 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

(f) Business Combinations

The acquisition method of accounting is used to account for all business combinations regardless of whether equity instruments or other assets are acquired. Cost is measured as the fair value of the assets given or liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquiree at the date of exchange. Acquisition related costs are recognised in profit and loss as incurred. Transaction costs arising on the issue of the equity instruments are recognised directly in equity.

All identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination that meet the conditions of recognition under NZ IFRS 3 Business Combinations are recognised at their fair values at the acquisition date except for deferred tax assets or liabilities and assets and liabilities related to employee benefits arrangements, which are measured in accordance with NZ IAS 12 Income Taxes and NZ IAS 19 Employee Benefits respectively, and assets (or disposal groups) that are classified as held for sale in accordance with NZ IFRS 5 Non Current Assets Held for Sale and Discontinued Operations, which are measured at fair value less costs to sell.

The excess of the cost of the business combination, any non controlling interests of the acquiree and the fair value of the acquirers previously held equity interest in the acquiree over the net fair value of the Group’s share of the identifiable net assets acquired is recognised as goodwill. If the cost of the acquisition is less than the Group’s share of the net fair value of the identifiable net assets, the difference is recognised as a gain in profit or loss in the Income Statement, but only after a reassessment of the identification and measurement of the net assets acquired. The Group’s goodwill accounting policy is set out in Note (t) to follow.

(g) Revenue Recognition

(i) Revenue from the sale of goods is recognised when all the following conditions are satisfied: » The Group has transferred to the buyer the significant risks and rewards of ownership of the goods; » The Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control; » The amount of revenue can be measured reliably; » It is probable that the economic benefits will flow to the entity; and » The costs incurred or to be incurred in respect of the transaction can be measured reliably. Revenue is shown net of any goods and services tax, rebates and discounts, measured at fair value of the consideration received or receivable.

(ii) Rental income from operating leases is recognised on a straight line basis over the lease term.

(iii) Dividend income is recognised when received.

(iv) Interest received is accrued on a time basis using the effective interest method.

(h) Leases

The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement and requires an assessment of whether the fulfilment of the arrangement is dependent on the use of specific asset or assets and if the arrangement conveys a right to use the asset.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the leasee. All other leases are classified as operating leases.

Operating lease payments are recognised as an expense in profit or loss in the Income Statement on a straight line basis over the lease term. Operating lease incentives are recognised as a liability when received and subsequently reduced by allocating lease payments between rental expenses and reduction of the liability.

(i) Foreign Currency Translation

(i) Functional and Presentation Currency

The financial statements are presented in New Zealand dollars, which is the Group’s functional and presentational currency. Items included in the financial statements are measured using the currency of the primary economic environment in which the Group operates.

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 55 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

(ii) Transactions and Balances

Transactions in foreign currencies are recorded using the exchange rates prevailing at the dates of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at the end of the reporting period.

Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate prevailing at the date when the valuation was determined (spot rate at the transaction date or a rate approximating that rate). Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Any foreign exchange gains and losses arising from these transactions are recognised in profit or loss in the Income Statement, except when deferred in equity as qualifying cash flow hedges as outlined in Note (ab).

(j) Income Tax and Other Taxes

Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities based on the current period’s taxable income. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the balance sheet date.

Deferred tax is provided on all temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred tax liabilities are recognised for all taxable temporary differences except:

» when the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and that at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or

» when the taxable temporary difference is associated with investments in subsidiaries, associates, or interests in joint ventures, and the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax assets are recognised for all deductible temporary differences, carry-forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry-forward of unused tax credits and unused tax losses can be utilised, except:

» when the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or

» when the deductible temporary difference is associated with investments in subsidiaries, associated or interests in joint ventures, in which case a deferred tax asset is only recognised to the extent that it is probable that the temporary difference will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilised.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax to be utilised.

Unrecognised deferred tax assets are reassessed at each balance sheet date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date. Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority.

(k) Goods and Services Tax

Revenues, expenses, and assets are recognised net of the amount of the Goods and Services Tax (GST) except:

» when the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and

» receivables and payables, which are stated with the amount of GST included.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the Statement of Financial Position.

56 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

(I) Receivables

Receivables are initially recorded at fair value. Receivables are reviewed periodically for impairment and a provision for impairment of receivables is established when there is evidence that the Group will not be able to collect all amounts due according to the original terms of the receivable. Bad debts are written off in the period in which they are identified.

(m) Inventory

Inventory is stated at the lower of cost or net realisable value.

Cost is determined on a weighted average basis and includes the expenditure incurred in bringing inventory to its existing condition and location. Costs include an appropriate share of fixed overheads, which are allocated on the basis of normal production capacity. Net realisable value is the estimated selling price in the ordinary course of business less any applicable selling expenses.

(n) Biological Assets

Biological assets relate to the Group’s inventories of live shellfish growing on farms owned and operated by the Group. Biological assets are stated at fair value less point-of-sale costs, with any change therein recognised in profit or loss in the Income Statement. Biological assets are transferred to inventory at the time of harvest.

(o) Impairment

The carrying amounts of the Group’s assets other than inventories, biological assets and deferred tax assets are reviewed at each balance date to determine whether there is any indication of impairment. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. If it is not possible to estimate the recoverable amount of the individual asset, the Group determines the recoverable amount of the cash generating unit to which the asset belongs.

Impairment losses directly reduce the carrying amount of assets and are recognised in profit or loss, in the Income Statement. Impairment losses of trade and other receivables are determined by an evaluation of the exposures on a line by line basis.

(p) Property, Plant and Equipment

Property, plant and equipment are stated at cost less accumulated depreciation and any impairment losses. Any gains and losses on the disposal of property, plant and equipment are recognised in profit or loss in the Income Statement. The gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sale proceeds and the carrying amount of the asset. Impairment is tested when there are indicators of impairment.

(q) Depreciation of Property, Plant and Equipment

Depreciation is calculated using a combination of straight line rates and diminishing values to write-off the cost of depreciable assets over their expected useful economic life. Depreciation rates and the expected useful economic life of depreciable assets are regularly reviewed and adjusted as and when required. The effect of any changes in estimates are accounted for on a prospective basis.

All assets are depreciated on a straight line basis with the exception of motor vehicles, which are depreciated on the diminishing value basis.

Years Buildings 10-50 Leasehold improvements 3-30 Furniture, fittings, and office equipment 2-10 Marine farm structures 14 Motor vehicles 3-8 Plant and machinery 2-20 Vessels 2-14

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 57 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

(r) Associate Companies and Joint Ventures

An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an interest in a joint arrangement. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies.

A joint arrangement is a contractual arrangement whereby the Group and other parties undertake economic activity that is subject to joint control, which is when the decisions relating to the relevant activities of the joint arrangement require the unanimous consent of the parties sharing control.

The Group’s interest in associates and joint ventures is accounted for using the equity method of accounting in the consolidated financial statements . Under the equity method, investments in associates and joint ventures are carried in the Statement of Financial Position at cost and adjusted for post-acquisition changes in the Group’s share of net assets of associates and joint ventures, less any impairment in the value of individual investments. The Group’s share of profits or losses of associates and joint ventures is recognised in the Income Statement, and its share of movements in reserves is recognised in other comprehensive income.

Goodwill relating to an associate or a joint venture is included in the carrying amount of the investment and is assessed for impairment as part of that investment.

When the Group’s share of losses in an associate or a joint venture exceeds its interest in the entity, including any unsecured long term receivables and loans, the Group does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture.

The accounting policies of associates and jointly controlled entities conform to those used by the Group for like transactions and events in similar circumstances.

(s) Quota Shares

Quota shares are treated as an asset with an indefinite life, as the shares are issued under the Quota Management System, which is based on the concept of property rights in individual transferable quota. Quota shares purchased are recorded at cost. Quota shares are not amortised and are carried at cost less any accumulated impairment losses.

Impairment losses are recognised whenever the carrying amount of an asset exceeds its recoverable amount. Quota shares are tested for impairment annually or whenever there is an indication of impairment on an individual basis or at a cash- generating unit level. The indefinite life assessment is reviewed annually to determine whether it continues to be supportable.

(t) Goodwill and Intangibles

(i) Goodwill

Goodwill arising on the acquisition of a subsidiary represents the excess of the sum of the consideration transferred, the amount of any non controlling interest in the acquiree and the fair value of the acquirer’s previously held equity interest (if any) in the acquiree, over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the subsidiary 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.

For the purpose of impairment testing, goodwill is allocated to each of the Group’s cash-generating units expected to benefit from the synergies of the combination. Cash-generating units to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. The recoverable amount is the higher of fair value less cost to sell and value in use. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. Any impairment loss is recognised immediately in profit and loss and is not reversed in a subsequent period.

On disposal of a subsidiary, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.

(ii) Intangibles

Intangible assets are reported at cost less accumulated amortisation and accumulated impairment losses. Amortisation is charged on a straight-line basis over their estimated useful lives. The estimated useful lives, residual values and amortisation method are reviewed at the end of each reporting period, with the effect of any changes being accounted for on a prospective basis.

58 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

(u) Marine Farm Licences

Marine farm licences are treated as an asset with an indefinite life as it is highly probable that the licences will be renewed and the costs of renewal are minimal. Marine farm licenses purchased are recorded at cost less any accumulated impairment losses. Marine farm licenses are tested for impairment annually or whenever there is an indication of impairment.

(v) Cash and Bank Balances

Cash and bank balances in the Statement of Financial Position comprise cash at bank and short-term deposits with an original maturity of three months or less.

(w) Trade and Other Payables

Trade and other payables are carried at amortised cost and due to their short term nature they are not discounted. They represent liabilities for goods and services provided to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecured and are usually paid within 30 days of recognition.

(x) Provisions

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

(y) Employee Entitlements

Liabilities for annual leave, long service leave, and accumulating sick leave are accrued and recognised in the Statement of Financial Position. The liability for annual leave is measured at the amount expected to be paid when the leave liability is settled.

The liability for long service leave is recognised and measured at the present value of expected future payments made in respect of services provided by employees up to reporting date. Consideration is given to expected future wage and salary levels and probability of employee departures and periods of service.

The liability for accumulating sick leave is recognised based on what expectation that the Group has that it will pay sick leave with respect to the unused entitlement that has accumulated at the reporting date. Liabilities for non-accumulating sick leave are recognised when the leave is taken and measured at the rates paid or payable.

Contributions to defined contribution retirement benefit plans are recognised as an expense when employees have rendered service entitling them to contributions.

(z) Finance Costs

Interest expense is accrued on a time basis using the effective interest method.

The effective interest method is a method of calculating the amortised cost of financial asset or financial liability and of allocating interest income over the relevant period (including all fees and points paid or received between the parties to the contract that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial instrument, or, where appropriate, a shorter period to the net carrying amount of the financial instrument.

All other borrowing costs are recognised in the Income Statement, in the period in which they are incurred.

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 59 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

(aa) Redeemable Preference Shares

The component of the redeemable preference shares that exhibits characteristics of a liability is recognised as a liability in the Statement of Financial Position. On issuance of the redeemable preference shares, the fair value of the liability component is determined using a market rate for an equivalent bond and this amount is carried as long-term liability on the amortised cost basis until extinguished on redemption. The increase in the liability due to the passage of time is recognised as a finance cost. Refer also to Note 22. The difference between the fair value of the redeemable preference shares and the component treated as a liability is treated as an equity component. It has been recognised and included in equity, net of income tax effects and is not subsequently remeasured.

(ab) Derivative Financial Instruments

The Group uses derivative financial instruments such as forward exchange contracts, currency options and interest rate swaps to hedge its risk associated with foreign currency and interest rate fluctuations. Such derivative financial instruments are initially recognised at fair value on the date a derivative contract is entered into and subsequently re-measured at their fair value at each reporting date. The Group designates certain derivatives as either hedges of the fair value of recognised assets or liabilities or firm commitments (fair value hedges), hedges of highly probable forecast transactions or hedges of foreign currency risk of firm commitments (cash flow hedges). A derivative is presented as a non-current asset or a non-current liability if the remaining maturity of the instrument is more than 12 months and it is not expected to be realised or settled within 12 months. Other derivatives are presented as current assets or current liabilities. Refer also to Note 27. The Group’s policy is to apply cash flow and fair value hedging in accordance with NZ IAS 39. The Group designates certain hedging instruments, which may include derivatives, embedded derivatives and non-derivatives in respect of foreign currency exchange risk, as either fair value hedges or cash flow hedges. Hedges of foreign currency exchange risk on firm commitments are accounted for as cash flow hedges. At the inception of the hedge relationship, the entity documents the relationship between the hedging instruments and the hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents whether the hedging instrument that is used in a hedging relationship is highly effective in offsetting changes in fair values or cash flows of the hedged item.

Cash Flow Hedges

Cash flow hedges are hedges of the Group’s exposure to variability in cash flow that is attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction and that could affect profit or loss. The effective portion of any gain or loss on a hedging instrument is recognised in other comprehensive income and accumulated as a separate component of equity in the cash flow hedging reserve, while the ineffective portion is recognised in the profit or loss in the Income Statement. Amounts taken to equity through the cash flow hedging reserve are transferred to the profit or loss in the Income Statement when the hedged transaction affects profit or loss, such as when a forecast sale or purchase occurs. If a forecast transaction is no longer expected to occur, amounts previously recognised in the derivative financial instruments reserve are transferred to profit or loss in the Income Statement. If a hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or if its designation as a hedge is revoked, amounts previously recognised in equity in the cash flow hedging reserve remain in equity until the forecast transaction occurs.

Fair Value Hedges

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in profit or loss immediately, together with any changes in the fair value of the hedged item that are attributable to the hedged risk. The change in the fair value of the hedging instrument and the change in the hedged item attributable to the hedged risk are recognised in the line of profit or loss relating to the hedged item. Hedge accounting is discontinued when the Group revokes the hedging relationship, the hedging instrument expires or is sold, terminated, or exercised, or no longer qualifies for hedge accounting. The adjustment to the carrying amount of the hedged item arising from the hedged risk is amortised to profit or loss from that date.

(ac) Guarantees

Financial guarantees provided by the Group are recognised at their fair value. Fair value is assessed using a probability weighted Financial guarantees provided by the Group are recognised at their fair value. Fair value is assessed using a probability weighted discounted cash flow approach. Subsequently, they are measured at the higher of the amount of the obligation as determined in accordance with NZ IAS 37 Provisions, Contingent Liabilities and Contingent Assets and the amount initially recognised less, where appropriate, cumulative amortisation recognised in accordance with the revenue recognition policies outlined above.

60 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

3. Significant Accounting Judgements, Estimates and Assumptions The preparation of the financial statements requires management to make judgements, estimates, and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue, and expenses. Management bases its judgements and estimates on historical experience and on other various factors it believes to be reasonable under the circumstances, the result of which form the basis of the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions and conditions. Management has identified the following critical accounting policies for which significant judgements, estimates, and assumptions are made. Actual results may differ from these estimates under different assumptions and conditions and may materially affect financial results or the financial position reported in future periods.

Further details of the nature of these assumptions and conditions may be found in the relevant notes to the financial statements.

(i) Significant Judgements

Taxation

Judgement is required in assessing whether deferred tax assets and certain deferred tax liabilities are recognised on the balance sheet. Deferred tax assets, including those arising from unrecouped tax losses, capital losses and temporary differences, are recognised only where it is considered more likely than not that they will be recovered, which is dependent on the generation of sufficient future taxable profits. Assumptions about the generation of future taxable profits and repatriation of retained earnings depend on management’s estimates of future cash flows. These depend on estimates of future production and sales volumes, operating costs, restoration costs, capital expenditure, dividends and other capital management transactions. Judgements are also required about the application of income tax legislation. These judgements and assumptions are subject to risk and uncertainty, hence there is a possibility that changes in circumstances will alter expectations, which may impact the amount of deferred tax assets and deferred tax liabilities recognised in the Statement of Financial Position and the amount of other tax losses and temporary differences not yet recognised. In such circumstances, some or all of the carrying amounts of recognised deferred tax assets and liabilities may require adjustment, resulting in a corresponding credit or charge to the profit or loss in the Income Statement.

(ii) Significant Estimates and Assumptions

Estimation of Useful Lives of Assets

The estimation of the useful lives of assets has been based on historical experience as well as manufacturers’ warranties (for plant and equipment), lease terms (for leased equipment), and turnover policies (for motor vehicles). In addition, the condition of the assets is assessed at least once per year and considered against the remaining useful life. Adjustments to useful lives are made when considered necessary.

Impairment of Quota

Determining whether the carrying value of quota is impaired is based on an estimation of the value in use or fair value less costs to sell of the quota. Fair value is determined by taking the average of three independent market valuations on each species. The carrying amount of quota at 30 September 2015 was $243.0 million (2014: $243.0 million). No impairment was recorded for the year ended 30 September 2015 (2014: Nil). Refer to Note 16.

Impairment of Goodwill

Determining whether goodwill is impaired requires an estimation of the value in use of the cash-generating units to which goodwill has been allocated. The value in use calculation requires an estimate of the future cash flows expected to arise from the cash-generating unit and a suitable discount rate in order to calculate present value.

The carrying amount of goodwill at 30 September 2015 was $10.8 million (2014: $10.8 million). No impairment loss has been recognised. Refer to Note 17.

Marine Biological Investment

Marine biological assets are stated at fair value less estimated point of sale costs of oysters. Judgement is made over market prices ruling at balance date. Point of sale costs are best estimates made by management and based on historical and known future costs.

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 61 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

4. Other Revenue

$000’s Note 2015 2014 Dividends received 1 1 Interest received 83 73 Other income 121 128 Rental income 227 236 Revenue from related parties 28 6,197 7,324 6,629 7,762

5. Other (Expenses) / Income

$000’s 2015 2014 Net foreign currency exchange (loss) / gain (566) 2,624 Net foreign currency exchange gain / (loss) on hedged sales 30 (126) Net gain on disposal of assets - 694 (536) 3,192

6. Expenses

(a) Expenses

The following items are included in cost of sales, distribution expenses, and administrative expenses: $000’s Note 2015 2014 Amortisation of intangibles 18 357 82 Audit fees 140 140 Bad debts 31 34 Defined contribution expense (Kiwisaver) 461 350 Depreciation 13 3,126 3,200 Directors’ fees 451 430 Donations 13 11 Doubtful debts 10 45 42 Employee benefits expense 25,690 23,497 Net loss on disposal of assets 77 - Rental and operating lease costs 24 1,305 1,622 Research and development 599 687

(b) Finance expenses $000’s 2015 2014 Bank loans and overdrafts 3,809 4,457

62 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

7. Income Tax

(a) Income Tax Expense

$000’s 2015 2014 Current tax expense Current period - 1,288 Use of imputation credits and loss carried forward - (1,242) - 46 Deferred tax expense 864 2,537 864 2,537 Total income tax expense/(benefit) 864 2,583

Reconciliation of effective tax rate

The tax on the profit before tax differs from the theoretical amount that would arise using the applicable New Zealand Corporation tax rate or Māori authority tax rates as follows: $000’s 2015 2014 Profit / (Loss) before tax 16,827 24,540 Income tax at applicable rate 3,215 5,800 Expenses not deductible/taxable income not included in accounting profit (296) (3,735) Other (13) 518 Imputation credits (2,042) - Total income tax expense/(benefit) 864 2,583

The Company is a Māori authority and is taxed at the Māori authority tax rate. Other entities in the Group are taxed at the corporate tax rates.

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 63 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

(b) Deferred Income Tax

The movement in deferred tax assets during the year, without taking into consideration the offsetting of balances within the same tax jurisdiction, is as follows:

Deferred tax asset Derivative Tax financial Tax losses Provisions $000’s depreciation instruments recognised and other Total At 1 October 2014 93 260 2,206 (81) 2,478 Movement – Income Statement (76) (28) (226) (534) (864) – Equity - 388 - - 388 At 30 September 2015 17 620 1,980 (615) 2,002

At 1 October 2013 174 (395) 3,320 1,367 4,466 Movement – Income Statement (81) 106 (1,114) (1,448) (2,537) – Equity - 549 - - 549 At 30 September 2014 93 260 2,206 (81) 2,478

All deferred tax assets are recognised. Deferred tax assets are recognised for tax loss carrying-forwards to the extent that the realisation of the related tax benefit through the future taxable profits is probable.

All deferred tax liabilities are recognised.

(c) Income Tax Effects Relating to Comprehensive Income

Tax Tax Before (expense)/ Net of tax Before (expense)/ Net of tax tax amount benefit amount tax amount benefit amount $000’s 2015 2015 2015 2014 2014 2014 Cash flow hedges (2,216) 388 (1,828) (3,138) 549 (2,589) Associates’ derivative financial instruments (11,900) - (11,900) (2,356) - (2,356) (14,116) 388 (13,728) (5,494) 549 (4,945)

64 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

8. Imputation Credit Account

$000’s 2015 2014 Balance at beginning of year 5,117 6,935 Imputation credits attached to dividends received 2,042 - Imputation credits attached to dividends paid and accrued (1,354) (1,863) Imputation credits attached to tax paid 100 600 Imputation credits accrued on tax receivable (100) (555) Balance at end of year 5,805 5,117

Imputation credits available to shareholders of the Company through: Company 5,805 5,117 Subsidiaries - - 5,805 5,117

9. Cash and Bank Balances

$000’s 2015 2014 Cash at bank and in hand 937 3,280 Bank overdraft (81) (2) Total cash and bank balances 856 3,278

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 65 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

10. Trade and Other Receivables

$000’s 2015 2014 Trade receivables 10,155 10,326 Allowance for doubtful debts (110) (118) Other receivables and prepayments 9,095 7,737 Receivables – Joint ventures 993 909 Total receivables and prepayments 20,133 18,854

(a) Bad and Doubtful Trade Receivables

The average credit period on sales of goods is 21 days (2014: 25 days). No interest is charged on trade receivables. The Group has provided for certain receivables. These were determined by consideration of the amounts and past payment history and default experience of each customer.

Before accepting a new customer the Group performs credit checks, including, but not limited to verifying credit references, performing company checks and investigating any previous defaults, to assess the creditworthiness of the new customer. In determining the recoverability of a trade receivable the Group considers any change in the credit quality of the trade receivable from the date credit was initially granted up to the reporting date.

The Group has recognised a loss of $0.076 million (2014: $0.076 million) in respect of bad and doubtful trade receivables during the year ended 30 September 2015. The Group does not hold any collateral in respect of the balances above.

Movement in the allowance for doubtful debts $000’s 2015 2014 Balance at 1 October 118 106 Impairment losses recognised on receivables (Note 27(e)) 45 42 Amounts written off as uncollectible (20) (12) Amounts recovered during the year (33) (18) Balance at 30 September 110 118

(b) Related Party Receivables

For details of related party transactions refer to Note 28.

(c) Fair Value and Credit Risk

Due to the short-term nature of these receivables, their carrying value is assessed at their fair value including receivables from related parties. The maximum exposure to credit risk is the carrying value of receivables.

(d) Impaired Receivables

See Note 27(e).

(e) Foreign Exchange

A summarised analysis of the sensitivity of trade and other receivables to foreign exchange can be found in Note 27.

66 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

11. Inventories

$000’s 2015 2014 Raw materials at cost 785 657 Finished goods at cost 7,256 6,221 Finished goods at net realisable value 530 861 Packaging materials and fish bins 1,047 758 Total inventories 9,618 8,497

The cost of inventories recognised in the Group as an expense during the year was $90.17 million (2014: $92.33 million), and includes $0.273 million (2014: ($0.204) million) in respect of uplift of inventory to net realisable value.

12. Biological Assets

$000’s 2015 2014 Balance at beginning of year 7,032 4,735 Change in values less estimated point-of-sale costs 4,754 4,889 Harvested produce transferred to inventories (3,439) (2,592) Total biological assets 8,347 7,032

Biological assets relate to the Group’s inventories of oysters and pāua growing on marine farms in New Zealand which are owned and operated by the Group.

The Group is exposed to financial risk in respect of the aquaculture activity. The primary financial risk associated with this activity occurs during the time of expending cash on the purchase of oyster spat, the maintenance of the water space growing areas and farms, and ultimately receiving cash from the sale of oysters and pāua to third parties. This risk includes exposure to adverse movements in foreign exchange rates arising from sales to parties located overseas. The Group’s strategy to manage this financial risk is to actively review and manage its working capital requirements.

The fair value less estimated point of sale costs of oysters and pāua is determined by reference to market prices and a calculation of the point of sale costs, with any resultant gain or loss recognised in the income statement. Point of sale costs include all other costs that would be necessary to sell the assets.

The following valuation assumptions have been adopted in determing the fair value of the Group’s biological assets:

(a) Costs are based on current average costs and are variable depending on the biological assets location and age being assessed.

(b) Revenue is based on current pricing and expected levels of production, with an assessment made about the long term future returns for each product.

Biological assets are measured at Level 3 valuations (refer Note 27 (g)) and there were no transfers between levels during the year.

The following unobservable inputs were used to measure the Group’s biological assets:

Fair value at 30 September Relationship of unobservable inputs to Description $’000 Valuation technique Unobservable inputs fair value Oysters 2015: 6,183 Estimated market price Annual oyster yield The higher the yield the higher the fair value 2014: 4,692 of volumes produced Annual price per dozen The higher the price the higher the fair value per season Pāua 2015: 2,164 Estimated market price Annual pāua yield The higher the yield the higher the fair value 2014: 2,340 of volumes produced Annual price per kg The higher the price the higher the fair value per season

Included in the cost of sales in the Group is a fair value uplift of $1.3 million (2014: $2.3 million) in relation to biological assets.

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 67 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

13. Property, Plant and Equipment Furniture, fittings, Marine Capital Leasehold and office farm Motor Plant and work in $000’s Land Buildings improvements equipment structures vehicles machinery Vessels progress Total Year ended 30 September 2015 Opening net carrying amount 3,049 13,291 35 2,359 1,005 1,020 8,715 188 13,892 43,554 Additions 5,412 6,951 35 372 281 630 3,159 - (10,889) 5,951 Disposals - (38) (1) (37) - (20) (28) - - (124) Depreciation charge for the year - (558) (41) (487) (128) (287) (1,599) (26) - (3,126) Impairment reversal / (losses) charged to Income Statement - 220 11 (14) - (4) (45) - - 168 Closing net carrying amount 8,461 19,866 39 2,193 1,158 1,339 10,202 162 3,003 46,423 Balance at 30 September 2015 Cost 8,461 21,352 46 3,432 4,341 1,961 18,662 677 3,003 61,935 Accumulated depreciation - (1,486) (7) (1,239) (3,183) (622) (8,460) (515) - (15,512) Net carrying amount 8,461 19,866 39 2,193 1,158 1,339 10,202 162 3,003 46,423

Furniture, fittings, Marine Capital Leasehold and office farm Motor Plant and work in $000’s Land Buildings improvements equipment structures vehicles machinery Vessels progress Total Year ended 30 September 2014 Opening net carrying amount 3,690 14,218 127 1,788 974 1,080 9,590 203 1,568 33,238 Additions - 506 3 864 169 239 823 11 12,350 14,965 Disposals (641) (1,099) (42) (111) (2) (34) (221) - (26) (2,176) Depreciation charge for the year - (725) (95) (475) (136) (265) (1,478) (26) - (3,200) Impairment reversal / (losses) charged to Income Statement - 391 42 293 - - 1 - - 727 Closing net carrying amount 3,049 13,291 35 2,359 1,005 1,020 8,715 188 13,892 43,554 Balance at 30 September 2014 Cost 3,049 16,183 435 3,989 4,060 4,051 20,890 677 13,892 67,226 Accumulated depreciation - (2,892) (400) (1,630) (3,055) (3,031) (12,175) (489) - (23,672) Net carrying amount 3,049 13,291 35 2,359 1,005 1,020 8,715 188 13,892 43,554

68 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

14. Investment in Sealord Group

(a) Investment Details

$000’s 2015 2014 Kura Limited 169,378 180,676

Kura Limited is the 100% owner of Sealord Group Limited (Sealord), with Aotearoa Fisheries Limited owning a 50% interest in Kura Limited. Kura Limited is a joint venture, with Nippon Suisan Kaisha Limited (Nissui) owning the other 50% ownership interest and voting rights. The principal activities of Sealord are catching, procurement, processing and marketing of seafood in New Zealand and internationally.

(b) Movements in Carrying Amount

The movement in the carrying value of the investment in Kura Limited is as follows:

$000’s 2015 2014 Balance 1 October 180,676 170,354 Share of profit / (loss) after tax 5,852 12,678 Share of other comprehensive income (11,900) (2,356) Share of dividends (5,250) - Balance at 30 September 169,378 180,676

(c) Summarised Financial Information

The summarised financial information is extracted from Kura Limited Statement of Financial Position.

$000’s As at 30 September 2015 As at 30 September 2014 Current assets 207,391 212,619 Non-current assets 567,963 535,264 775,354 747,883 Current liabilities (146,628) (80,610) Non-current liabilities (244,123) (258,074) (390,751) (338,684) Net assets 384,603 409,199

For the year ended For the year ended $000’s 30 September 2015 30 September 2014 Revenue 431,207 448,193 Expenses 421,093 (422,838) Profit for the year 10,114 25,355 Other comprehensive income / (expenses) (23,800) (4,711) Total comprehensive income / (loss) for the year 13,686 20,644

The Company’s share of contingent liabilities is disclosed in Note 30.

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 69 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

15. Investments in Subsidiaries, Associates and Joint Ventures

(a) Investment Details

$000’s 2015 2014 Investments in associates 1 1 Investments in joint ventures 5,009 4,488 Total 5,010 4,489

(b) Investment in Subsidiaries

Details of the Group’s significant subsidiaries are as follows:

Significant Subsidiary Principal Activity AFL Investments Limited Investment company Moana Pacific Fisheries Limited Non trading company, licensed fish receiver OPC Quota Limited Quota owner Pacific Marine Farms Limited Investment company pāua Holdings New Zealand Limited Holding company Prepared Foods Processing Limited Investment company Pupuri Taonga Limited Quota owner Prepared Foods 2009 Limited Owns the Prepared Foods trading name

All subsidiaries are 100% owned, direct subsidiaries of the Parent, and are incorporated in New Zealand. All have a balance date of 30 September.

(c) Investment in Associates

Details of the Group’s associates are as follows:

Ownership interests Associate 2015 2014 Principal Activity Trident Systems Limited Partnership 16% 16% Inshore fisheries research Area 2 Inshore Finfish Management Company Limited 2% 2% Industry group

The associates are incorporated in New Zealand and have a 30 September balance date.

$000’s 2015 2014 Investment in associates Share of associates equity at beginning of year 1 1 Acquisition of Associate - - Total investment in associates 1 1

70 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

The summarised financial information in respect of the Group’s associates is set out below:

$000’s 2015 2014 Investment in associates Current assets 358 328 Non-current assets - - 358 328 Current liabilities 302 (325) Non-current liabilities - - 302 325) Net assets 56 3

Revenue 1,045 890 Expenses (1,015) (890) Profit for the year 30 -

(d) Investment in Joint Ventures

Details of the Group’s joint ventures are as follows:

Ownership Interests Joint Venture Balance Date 2015 2014 Principal Activity Auckland Fishing Port Limited 31 March 33% 33% Holds an Auckland fishing wharf lease Inshore Fisheries JV Limited Partnership 30 September 50% 50% Harvests and markets wet fish Jemco Limited 30 September 40% 40% Market aquaculture products Oceanz Seafood Licensing 30 September 50% 50% Seafood franchise operator Prepared Foods Limited 30 September 50% 50% Markets canned abalone Prepack Limited 30 June 50% 50% Assembles ration packs Precision Seafood Harvesting JV Limited Partnership 30 September 33% 33% Harvesting, research and development

All the joint ventures are incorporated in New Zealand and have a 30 September balance date, with the exception of Auckland Fishing Port Limited and Prepack Limited.

The movement in the carrying value of the investment in joint ventures (excluding Kura Limited) is as follows:

$000’s 2015 2014 Balance 1 October 4,488 3,540 Share of profit after tax 521 280 Share of dividends - - Acquisition of investment - 668 Balance at 30 September 5,009 4,488

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 71 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

The summarised financial information in respect of the Group's joint ventures (excluding Kura Limited) is set out below:

$000’s 2015 2014 Current assets 14,054 11,130 Non-current assets 443 506 14,497 11,636 Current liabilities (4,156) (4,418) Non-current liabilities (10) (297) (4,166) (4,715) Net assets 10,331 6,921

Revenue 30,811 56,667 Expenses (30,383) (55,895) Profit for the year 428 772

16. Quota Shares

(a) Reconciliation of Carrying Amounts at the Beginning and End of the Period

$000’s 2015 2014 Carrying amount at 1 October 242,985 240,485 Additions 42 2,500 Impairment losses charged to administration expenses - - Carrying amount at 30 September 243,027 242,985

(b) Impairment Testing

Quota is tested for impairment annually by independent valuation (fair valued less costs to sell).

Quota was valued by three independent brokers. These valuations were based on historical and current FishServe data, market intelligence and advice from professional industry valuers. Adjustments were made for current knowledge of market values on certain species.

The three brokers who provided valuations were:

» Aotearoa Quota Brokers Limited;

» Finest Kind Limited; and

» Quota Management Systems Limited.

The carrying amounts were determined to be lower than their recoverable amount for all quota. An impairment of $0.35m was booked in the previous year relating to Australian quota and included in administration expenses in the Income Statement.

(c) Option to Buyback Quota

The Group purchased 20 tonne of cray quota in 2009 under an agreement, where the vendor has an option to buyback quota at fair market value. The option can be exercised on 31 March each year until 31 March 2019. The option purchase price is determined by mutual agreement. If agreement cannot be reached the price will be determined by an expert industry valuer.

(d) Sale of Quota

The Group sold 9 tonnes of cray quota in March 2011 under an agreement whereby the Group and the purchaser have granted options in favour of each other, whereby the Group can require the purchaser to sell the quota to the Group at fair market value, and the purchaser may require the Group to purchase the quota at fair market value, within the election period being the period commencing two calendar months and ending one calendar month, prior to the start of the fishing year.

72 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

17. Goodwill

(a) Reconciliation of Carrying Amounts at the Beginning and End of the Period

$000’s 2015 2014 Opening net carrying amount 10,772 10,772 Additions recognised from business combinations occurring during year - - Closing net carrying amount 10,772 10,772

(b) Impairment Testing

The aggregate carrying amount of goodwill relating to each division is as follows:

$000’s 2015 2014 AFL Inshore 710 710 AFL Prepared Foods 4,888 4,888 AFL Aquaculture 1,174 1,174 Closing net carrying amount 6,772 6,772

During the year the Group assessed the recoverable amount of goodwill and determined that no write-down of the carrying amounts was necessary.

The recoverable amount of cash-generating units is determined based on value in use calculations. A discount factor of 7.00% per annum (2014: 7.50% per annum) was applied in the value in use models.

Cash flows were projected based on actual 2015 operating results and the 2016 financial budget approved by the directors. Value in use calculations cover a 5-year period with forecasted cash flows through to 2020 with a terminal value.

The 2016 budget EBIT is applied out to 2020 assuming 1% (2014: 0%) growth. The cash flows beyond that five year period have been extrapolated, assuming 1% growth. Any reasonably possible change in the key assumptions on which recoverable amount is based would not cause the aggregate carrying amount to exceed the aggregate recoverable amount of cash-generating units.

The carrying amounts of the divisions were determined to be lower than their recoverable amount and no impairment loss was recognised (2014: Nil).

The key assumptions used in the value in use calculations: (i) Sales growth – growth in sales was a conservative factor determined by management who have in-depth experience in the industry; (ii) Budget margins – based on historical margins; and (iii) Price inflation – forecast consumer price indices were applied to raw material costs and overheads.

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 73 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

18. Intangibles

2015 2014 Marine Marine $000’s farm licences Software Total farm licences Software Total Opening net carrying amount 5,160 678 5,838 5,160 38 5,198 Additions - 210 210 - 726 726 Disposals - (1) (1) - (4) (4) Amortisation charge for the year - (357) (357) - (82) (82) Closing net carrying amount 5,160 530 5,690 5,160 678 5,838

Cost 5,160 2,939 8,099 5,160 2,729 7,889 Accumulated amortisation - (2,410) (2,410) - (2,051) (2,051) Net carrying amount 5,160 529 5,689 5,160 678 5,838

Marine farm licences are covered in Note 2(v).

The amortisation charge for the year of $0.357 million (2014:$0.082 million) is an administration expense in the Income Statement.

The carrying value of marine farm licences are reviewed annually for impairment by reference to current market valuation for the licences.

Key assumptions used in the valuation of the marine licenses: (i) Estimates were based on historic trends and known metrics from valuing similar enterprises; (ii) Adjustments made for reductions in productivity, yield and extra costs of production; and (iii) Revenue streams were updated to current prices.

19. Other Assets Other assets comprise of long-term advance payments.

20. Trade and Other Payables

$000’s 2015 2014 Trade payables 4,429 6,107 Sundry payables and accruals 7,264 5,696 Payables to related party – Joint ventures 41 469 Total Payables 11,734 12,272

(a) Fair Value

Due to the short-term nature of these payables, their carrying value is assessed as their fair value.

(b) Interest Rate, Foreign Exchange and Liquidity Risk

Information regarding foreign exchange, and liquidity risk exposure is set out in Note 27. Related party payables are on normal trade terms.

74 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

21. Provisions

(a) Description of Provisions

Employee Benefits

The Group is required to accrue for accumulating benefits such as annual leave, long service leave and sick leave. Long service leave is recognised and measured at the present value of expected future payments made in respect of service provided by employees.

Dividend Obligation

The obligation to pay a dividend pursuant to section 76 (2) of The Māori Fisheries Act 2004, has been recognised.

(b) Analysis of Provisions

$000’s 2015 2014 Employee benefits 2,424 2,503 Dividend obligations 6,385 8,790 Total provisions 8,809 11,293

(c) Movements in Provisions

Movements in each class of provision during the financial year are set out below: Employee $000’s benefits Dividend Total Year ended 30 September 2015 Carrying amount at start of year 2,503 8,790 11,293 Additional provision recognised 1,418 6,385 7,803 Utilised during the year (1,497) (8,790) (10,287) Carrying amount at end of year 2,424 6,385 8,809 Year ended 30 September 2014 Carrying amount at start of year 2,364 7 2,371 Additional provision recognised 1,556 8,783 10,339 Utilised during the year (1,417) - (1,417) Carrying amount at end of year 2,503 8,790 11,293

22. Redeemable Preference Shares On 22 December 2004, AFL Investments Limited issued $20 million redeemable preference shares to Aotearoa Fisheries Limited. Contemporaneously the $20 million redeemable preference shares were transferred to Te Ohu Kai Moana Trustee Limited as repayment of a $20 million shareholder loan transferred to Aotearoa Fisheries Limited as part of the assets transferred under the Māori Fisheries Act.

The redeemable preference shares contain a guarantee provided by Aotearoa Fisheries Limited with a put option exercisable by Te Ohu Kai Moana Trustee Limited effective from 29 November 2011. The put option may be exercised at any time in an 8 year period ending on 29 November 2019. The put option must be exercised in parcels of at least 5 million shares on any given exercise date.

At 30 September, the $20 million face value of the redeemable preference shares is composed of several components within the balance sheet.

$000’s 2015 2014 Current liabilities – Redeemable preference shares 20,000 20,000 Shareholders' equity – Redeemable preference shares (transferred to Retained Earnings) - 4,125 Shareholders' equity – Retained earnings - (4,125) Total face value of the redeemable preference shares 20,000 20,000

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 75 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

23. Borrowings $000’s 2015 2014 Bank loans (secured) 71,500 74,125

Less than Between Between Greater 2015 Repayable as follows: one year 1-2 years 2-5 years than 5 years Bank loans (secured) - - 71,500 -

Less than Between Between Greater 2014 Repayable as follows: one year 1-2 years 2-5 years than 5 years Bank loans (secured) - - 74,125 -

(a) Assets Pledged as Security

Bank loans are secured by a general security agreement over the assets of the Group and a mortgage over the quota shares.

The Group borrows under a secured revolving credit agreement, which includes a negative pledge arrangement with its bank loan provider, which with limited exceptions does not permit the Group to grant any security interest over its assets. The negative pledge deed requires the Group to maintain certain levels of shareholders’ funds and operate within defined performance ratios. The banking arrangements also create restrictions over the sale or disposal of assets.

(b) Bank Loans

The Group has its banking facilities with Westpac New Zealand Limited. These facilities mature on 30 November 2017.

The loans drawn down bear interest at a weighted average interest rate of 4.43% as at 30 September 2015 (2014: 4.94%).

The loans are subject to a floating interest rate. To hedge future interest rate risk, the Company has entered into a series of interest rate swap arrangements (refer Note 27(c)). These hedging arrangements transform the future variable debt interest cash flows, attributable to changes in the bank-to-bank rate, back to a known fixed debt interest cash flow based on the relevant swap rate existing at the inception of the hedge relationship.

Interest is paid on the core bank loans and cash flow hedgings swap arrangements quarterly in arrears.

Throughout the period the Company has complied with all covenant requirements by the lender.

(c) Defaults and Breaches

During the current and prior year, there were no defaults or breaches in respect of any of the loan conditions.

24. Operating Lease Arrangements Operating leases relate to offices, warehouse and processing facilities, retail shops and vehicles.

(a) Payments Recognised as an Expense

$000’s 2015 2014 Minimum lease payments 1,305 1,622 Sub-lease payments received (183) (212) 1,122 1,410

76 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

(b) Non-cancellable Operating Lease Commitments $000’s 2015 2014 Lease commitments under non-cancellable operating leases: Less than one year 1,193 1,257 Between one and two years 939 971 Between two and five years 1,792 1,724 Greater than five years 3,215 3,409 Total operating lease commitments 7,139 7,361 c) Sublease Payments Expected $000’s 2015 2014 Sublease Payments expected: Less than one year - - Between one and two years - (30) Between two and five years - - Greater than five years - - Total operating lease commitments - (30)

The Group sold nine tonne of cray quota in March 2011 under an agreement that gives the Group a right of first refusal to purchase the annual catch entitlement derived from the quota and also requires the Group to purchase from the buyer the annual catch entitlement derived from the quota sold at fair value for a period of ten years. The price paid for nine tonne of cray ACE during the year was $0.453 million (2014: $0.345 million).

25. Shareholders’ Equity

(a) Capital Contributed

Aotearoa Fisheries Limited was incorporated on 26 November 2004 and in accordance with the Māori Fisheries Act on 29 November 2004 the Company received certain assets and liabilities. The net fair value of the assets received pursuant to the Māori Fisheries Act 2004, was treated as capital contributed to the Company by its shareholders. The following tables provide both a summary of the total shares and details of ownership of the voting and income shares.

$000’s 2015 Number 2014 Number Number of shares Voting shares 125,000 125,000 Income shares 250,000 250,000 Shares at end of year 375,000 375,000

$000’s 2015 2014 Book value of shares 250,000 fully paid income shares 286,979 286,979

(b) Voting Shares

All the voting shares are held with Te Ohu Kai Moana Trustee Limited, and confer all the rights to vote as under the Companies Act. The voting shares have no rights to dividends or other distributions.

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 77 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

(c) Income Shares

Under the Māori Fisheries Act, 80% of the income shares are to be held with mandated iwi organisations, with Te Ohu Kai Moana Trustee Limited holding 20%. Te Ohu Kai Moana Trustee Limited is still holding income shares in trust for iwi that have yet to be allocated under the Māori Fisheries Act. Income shares carry an equal right to dividends and shares in other distributions, including assets on a wind-up.

2015 2015 2014 2014 Number % of total Number % of total $000’s of Shares Shares of Shares of Shares Voting Shares Te Ohu Kai Moana Trustee 125,000 100.00% 125,000 100.00% Income Shares Te Ohu Kai Moana Trustee Limited (to be allocated) 3,332 1.44% 3,332 1.44% Te Ohu Kai Moana Trustee Limited (held on trust) 50,000 20.00% 50,000 20.00% Atiawa Ki Whakarongotai Holdings Limited 146 0.06% 146 0.06% Atiawa Nui Tonu Fisheries Limited 518 0.21% 518 0.21% Hokotehi Settlement Quota Holding Company Limited 176 0.07% 176 0.07% Ika Toa Limited 1,532 0.61% 1,532 0.61% Kahungunu Asset Holding Company Limited 15,748 6.30% 15,748 6.30% Koata Limited 260 0.10% 260 0.10% Maruehi Fisheries Limited 486 0.19% 486 0.19% Muaupoko Trading Company Limited 560 0.11% 560 0.11% Ngai Tahu Fisheries Investments Limited 12,220 4.89% 12,220 4.89% Ngai Tamanuhiri Asset Holding Company Limited 356 0.14% 356 0.14% Ngaitakoto Holdings Limited 150 0.06% 150 0.06% Ngai Te Rangi Fisheries AHC Limited 3,078 1.23% 3,078 1.23% Ngapuhi Asset Holding Company Limited 31,582 12.63% 31,582 12.63% Ngaruahine Fisheries Limited 964 0.39% 964 0.39% Ngāti Apa Developments Limited 724 0.29% 724 0.29% Ngāti Apa Ki Te Ra To Assets Holding Company Limited 192 0.08% 192 0.08% Ngāti Awa Asset Holdings Limited 3,902 1.56% 3,902 1.56% Ngāti Kahu Fisheries Limited 2,134 0.85% 2,134 0.85% Ngāti Manawa Tokowaru Asset Holding Company Limited 462 0.18% 462 0.18% Ngāti Maru (Taranaki) Fishing Limited 266 0.11% 266 0.11% Ngāti Mutunga o Wharekauri Asset Holding Company Limited 334 0.13% 334 0.13% Ngāti Porou Seafoods Limited 18,732 7.49% 18,732 7.49% Ngāti Pukenga Iwi Fish Holdings Limited 366 0.15% 366 0.15% Ngāti Ranginui Fisheries Holding Company Limited 1,952 0.78% 1,952 0.78% Ngāti Rarua Asset Holding Company Limited 238 0.10% 238 0.10% Ngāti Ruanui Fishing Limited 1,672 0.67% 1,672 0.67% Ngāti Tuwharetoa Fisheries Holdings Limited 10,078 4.03% 10,078 4.03% Ngāti Whare Holdings Limited 206 0.08% 206 0.08% Ngāti Whatua Fisheries Limited 3,862 1.54% 3,862 1.54% Ngatiwai Holdings Limited 1,212 0.48% 1,212 0.48% Pare Hauraki Asset Holdings Limited 4,012 1.60% 4,012 1.60%

78 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

2015 2015 2014 2014 Number % of total Number % of total $000’s of Shares of Shares of Shares of Shares Rangitane Holdings Limited 370 0.15% 370 0.15% Rangitane o Te Ika A Maui Limited 978 0.39% 978 0.39% ROTAB Investments Limited 2,666 1.07% 2,666 1.07% Raukawa Ki Te Tonga AHC Limited 5,800 2.32% 5,800 2.32% Rongowhakaata Iwi Asset Holding Company Limited 1,098 0.44% 1,098 0.44% Tama Asset Holding Company Limited 184 0.07% 184 0.07% Taranaki Iwi Fisheries Limited 1,768 0.71% 1,768 0.71% Te Aitanga a Mahaki Trust Asset Holding Company Limited 1,326 0.53% 1,326 0.53% Te Arawa Fisheries Holding Company Limited 11,936 4.77% 11,936 4.77% Te Atiawa (Taranaki) Holdings Limited 4,166 1.67% 4,166 1.67% Te Atiawa Asset Holding Company Limited 578 0.23% 578 0.23% Te Aupouri Asset Holding Company Limited 2,406 0.96% 2,406 0.96% Te Hoiere Asset Holding Company Limited 372 0.15% 372 0.15% Te Kumukumu Limited 668 0.27% 668 0.27% Te Kupenga o Maniapoto Limited 9,086 3.63% 9,086 3.63% Te Pataka O Tangaroa Limited 968 0.39% 968 0.39% Te Patiki Holdings Limited 306 0.12% 306 0.12% Te Urungi O Ngati Kuri Limited 1,426 0.57% 1,426 0.57% Te Waka Pupuri Putea Limited 3,534 1.41% 3,534 1.41% Tuhoe Fish Quota Limited 8,754 3.50% 8,754 3.50% Waikato-Tainui Fisheries Limited 13,702 5.48% 13,702 5.48% Whaingaroa Fisheries Company Limited 600 0.24% 600 0.24% Whakatohea Fisheries Asset Holdings Company Limited 2,976 1.19% 2,976 1.19% Whanganui Iwi Fisheries Limited 2,880 1.15% 2,880 1.15% Total shares 250,000 100.00% 250,000 100.00%

(d) Cash Flow Hedging Reserve

$000’s 2015 2014 Balance at beginning of the year (809) 1,780 Net losses on cash flow hedges (post tax) (1,828) (2,589) Balance at end of the year (2,637) (809)

This reserve records the gains or losses on cashflow hedging instruments that are determined to be effective hedges.

The cumulative deferred gain or loss on hedges is recognised in profit or loss when the hedged transaction impacts the profit or loss, or is included as a basis adjustment to the non-financial hedged item, consistent with the applicable accounting policy.

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 79 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

26. Cash Flow Statement Reconciliation

Reconciliation of the profit for the year with Net Cash Flows from Operating Activities

$000’s 2015 2014 Reported profit for the year 15,963 21,957 Add / (deduct) non-cash items and non-operating items: Depreciation, amortisation and impairment 3,315 2,553 Fair value revaluation of intangibles & biological assets (1,315) (2,297) Share of profit / (loss) of associates and joint ventures (6,373) (12,958) Gain / (loss) on sale of property, plant & equipment 77 (694) Amortisation of intangibles 2,575 1,522 Unrealised foreign currency loss 36 155 Bad debts (81) 34 Other 66 - Change in fair value of foreign exchange contracts 231 1,153 and interest rate swaps Increase / (decrease) in provision for deferred taxation 476 1,988

Movement in working capital Decrease / (increase) in receivables and prepayments (1,379) (3,974) Decrease / (increase) in inventory & biological assets (2,436) (2,861) Increase / (decrease) in payables and accruals (538) 694 Increase / (decrease) in employee entitlements (79) 139 Increase / (decrease) in other assets / liabilities (641) (53)

Add / (deduct) items classified as investing activities - 1,776 Net cash flows from operating activities 9,897 9,134

80 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

27. Risk Management

Financial Risk Management Objective and Policies

The Group’s principal financial instruments comprise receivables, payables, bank loans and overdrafts, redeemable preference shares, cash and short-term deposits and derivatives.

Financial assets comprise cash and bank balances, receivables, related party receivables, and derivatives. Financial liabilities comprise payables, bank loans and overdrafts, redeemable preference shares, and derivatives.

The Group manages its exposure to key financial risks in accordance with the Group’s treasury risk management policy, which is approved by the Board. The objective of the policy is to support the delivery of the Group’s financial targets whilst protecting future financial security. The Group uses derivative financial instruments such as foreign exchange contracts, currency options and interest rate swaps to hedge certain risk exposures.

The Group enters into derivative transactions in accordance with the Group’s treasury risk management policy, principally forward currency contracts, currency options and interest rate swaps. The purpose is to manage the currency risks and interest rate risk arising from the Group’s operations and the cost of finance. The main risks arising from the Group’s financial instruments are interest rate risk, foreign currency risk, credit risk and liquidity risk. The Group uses different methods to measure and manage different types of risks to which it is exposed. These include monitoring levels of exposure to interest rate and foreign exchange risk and assessments of market forecasts for interest rate and foreign exchange. Ageing analyses and monitoring of specific credit allowances are undertaken to manage credit risk. Liquidity risk is monitored through rolling cash flow forecasts.

The Group does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

The Board reviews and agrees policies for managing each of these risks as summarised below:

» primary responsibility for identification and control of financial risks rests with the Treasury Management Committee by applying the Group’s treasury risk management policy approved by the Board; and

» the Treasury Management Committee reviews and agrees strategies for managing each of the risks identified below, including, hedging cover of foreign currency and interest rate risk, credit allowances, and future cash flow forecast projections within policies imposed by the Board.

Fair Value

The fair value of financial assets and financial liabilities are determined as follows:

» the fair value of financial assets and financial liabilities (excluding derivative instruments) is determined in accordance with generally accepted pricing models based on discounted cash flow analysis using prices from observable current market transactions; and

» the fair value of derivative instruments is calculated using quoted market prices where available. Forward foreign exchange contracts are measured using observable market forward exchange rates and yield curves derived from observable market interest rates matching maturities of the contracts. Interest rate swaps are measured at the present value of future cash flows estimated and discounted based on the applicable yield curves derived from observable market interest rates.

Quantitative Disclosures

(a) Instruments used by the Group

Derivative financial instruments are used by the Group in the normal course of business in order to hedge exposure to fluctuations in foreign exchange and interest rates.

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 81 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

At balance date the carrying value of foreign currency forward exchange contracts, currency options and interest rate swaps were: $000’s 2015 2014 Current assets Forward currency contracts – cash flow hedges 348 42 Interest rate swap contracts – cash flow hedges - 103 348 145 Non-current assets Interest rate swap contracts – cash flow hedges - 189 Assets 348 334 Current liabilities Forward currency contracts – cash flow hedges (1,295) (1,486) Forward currency contracts – fair value hedges - (32) Interest rate swap contracts – cash flow hedges (243) (18) (1,538) (1,536) Non-current liabilities Interest rate swap contracts – cash flow hedges (2,354) (283) (2,354) (283) Liabilities (3,892) (1,819) Net total (3,544) (1,485)

(b) Foreign Currency Exchange Risk Management

The Group has exposure to foreign exchange risk as a result of transactions denominated in foreign currencies, arising in the normal course of business. The Group uses foreign currency forward exchange contracts and options to manage these exposures. The foreign currencies in which the Group primarily transacts are Australian dollars, United States dollars, British pounds, Euro and Japanese yen.

Where exposures are reasonably certain it is the Group’s policy to hedge these risks as they arise. For those exposures that are less certain in their timing and extent, such as future sales and purchases, it is the Group’s policy to cover a proportion of the anticipated exposures for a maximum period of twelve months forward.

Foreign exchange risk arises when future commercial transactions or recognised assets or liabilities are denominated in a currency that is not in New Zealand dollars. Approximately 69% (2014: 69%) of the Group’s sales are denominated in currencies other than the New Zealand dollar, whilst almost 100% of costs are denominated in New Zealand dollars.

82 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

Foreign exchange sensitivity analysis

The following table details the Group’s sensitivity to a 10% increase and decrease in the New Zealand dollar against the relevant foreign currencies. 10% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in foreign currency exchange rates. The sensitivity analysis includes only outstanding foreign currency exchange balances. A positive number indicates an increase in profit and other equity where the New Zealand dollars weakens 10% against the respective foreign currency. For a 10% strengthening of the dollar against the relevant currency, there would be a decrease in profit and other equity, and the balances below are negative. Foreign Exchange Risk 30 September 2015 Carrying $000’s Amount -10% Profit Equity +10% Profit Equity Cash and cash equivalents 485 54 - (44) - Derivatives – cash flow hedges (947) - (3,514) - 2,870 Trade debtors 6,765 751 - (615) - Trade creditors (61) (7) - 5 - Total increase / (decrease) - 798 (3,514) (654) 2,870

Foreign Exchange Risk 30 September 2014 Carrying $000’s Amount -10% Profit Equity +10% Profit Equity Cash and cash equivalents 620 67 - (58) - Derivatives – cash flow hedges (1,475) - (3,638) - 3,138 Trade debtors 6,611 839 - (516) - Trade creditors (313) (36) - 27 - Total increase / (decrease) - 870 (3,638) (547) 3,138

Management believes the balance date risk exposures are representative of the risk exposure inherent in the financial instruments.

Forward foreign currency exchange contracts

The notional principal amounts of the outstanding forward foreign exchange contracts at 30 September 2015 were $38.1 million (2014: $40.2 million). The hedged highly probable forecast transactions denominated in foreign currency are expected to occur at various dates during the next 12 months.

Forward currency contracts – cash flow hedges and fair value hedges NZD Notional Amounts Average Contract Rates $000’s 2015 2014 2015 2014 Maturity 0-12 months Sell Australian dollars / Buy New Zealand dollars 19,282 23,940 0.9127 0.9068 Sell Euros / Buy New Zealand dollars 543 366 0.5598 0.6161 Sell JPY / Buy New Zealand dollars 1,053 710 75.7021 85.2452 Sell US dollars / Buy New Zealand dollars 17,284 15,218 0.6620 0.8179 Buy JPY / Sell New Zealand dollars 154 - 86.0900 - Buy US dollars / Sell New Zealand dollars 99 - 0.6316 - Buy Norwegian Krona / Sell New Zealand dollar 324 - 5.4552 - 38,162 40,234 - -

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 83 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

Cash flow hedges movement $000’s 2015 2014 Opening balance (767) 1,977 Charged to equity 908 (137) Transfer to profit or loss (536) (3,189) Income tax expense (65) 582 Closing balance (460) (767)

The Group’s exposure as at 30 September 2015 can be summarised as follows:

30 September 2015 $000’s USD AUD JPY EUR GBP Foreign currency risk Cash and cash equivalents 479 5 - - 1 Trade debtors 4,516 2,223 - 27 - Trade creditors 61 - - - - Net Financial Position exposure before hedging activity 4,933 2,228 - 27 1 Forward exchange contracts – Financial Position related 4,994 2,228 - 27 1 Net exposure (61) - - - -

30 September 2014 $000’s USD AUD JPY EUR GBP Foreign currency risk Cash and cash equivalents 550 66 3 - 1 Trade debtors 4,012 2,299 89 211 - Trade creditors 271 39 - - 3 Net Financial Position exposure before hedging activity 4,291 2,326 92 211 (2) Forward exchange contracts – Financial Position related 4,562 2,365 92 211 1 Net exposure (271) (39) - - (3)

84 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

(c) Interest Rate Risk

The Group's exposure to market interest rates relates primarily to the Croup's long-term debt obligations.

The Group's policy is to manage its finance costs using a mix of fixed and variable rate debt or derivatives. The Group's treasury policy is to have a level of fixed rate exposure as a percentage of total debt.

To manage its cash flow volatility arising from interest rate changes, the Group enters into interest rate swaps, in which the Group agrees to exchange, at specified intervals, the difference between fixed and variable rate interest amounts calculated by reference to an agreed-upon notional principal amount. These swaps are designated to hedge underlying debt obligations.

As at 30 September 2015, after taking into account the effect of interest rate swaps, 70% of the Group's interest rate exposures are fixed rate (2014: 67%).

Interest rate swap contracts with a nominal principal amount of $40 million (2014: $30 million), are exposed to fair value movements if interest rates change.

The Group constantly analyses its interest rate exposure. Within this analysis, consideration is given to potential renewals of existing positions, alternative financing, alternative hedging positions and the mix of fixed and variable interest rates.

Interest rate sensitivity analysis

At 30 September 2015, if interest rates had moved, as illustrated in the table below, with all other variables held constant, post tax profit and equity would have been affected as follows:

Profit for the year Equity Higher / (lower) Higher / (lower) $000’s 2015 2014 2015 2014 + 100 basis points (215) (241) (1,210) (1,302) – 100 basis points 215 241 1,263 1,368

The movement in equity is due to the change in the fair value of derivative instruments designated as cash flow hedges.

The interest rate swaps require quarterly settlement of net interest receivable or payable. The settlement dates coincide with the dates on which interest is payable on the underlying debt. All swaps are matched directly against the appropriate loans and interest expense and as such are considered fully effective. They are settled on a net basis. The swaps are measured at fair value and all gains and losses attributable to the hedged risk are taken directly to equity and re-classified into profit and loss when the expense is recognised.

Interest rate swap contracts

Interest rate swap maturities $000’s 2015 2014 0-1 years 30,000 30,000 1-2 years 55,000 30,000 2-3 years 10,000 55,000 3-5 years 25,000 25,000 120,000 140,000

Interest rate hedges movement $000’s 2015 2014 Opening balance (42) (197) Charged to equity (2,594) (329) Transfer to profit or loss 6 517 Income tax expense 453 (33) Closing balance (2,177) (42)

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 85 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

Interest rate used are as follows: 2015 2014 Interest rate swaps (excludes margin) 3.26% - 3.70% 2.68% - 3.64% Loans 3.64% - 4.48% 3.58% - 4.54% Bank overdraft 3.55% - 3.80% 3.80% Cash 2.75% 2.50%

(d) Liquidity Risk

The liquidity risk management objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, bank loans and committed available credit lines.

Management monitors rolling forecasts of the Group's liquidity against its undrawn borrowing facility. The table below reflects all contractually fixed payables for settlement, repayments and interest resulting from financial liabilities, including the net payments due pursuant to derivative financial instruments at 30 September 2015. For derivative financial instruments the net market value is presented, whereas for the other obligations the respective undiscounted cash flows for the respective upcoming fiscal years are presented. Cash flows for financial liabilities without fixed amount or timing are based on the conditions existing at 30 September 2015.

At balance date, the Group has available approximately $25.7 million (2014: $23.5 million) of unused credit facilities available for its immediate use. These credit facilities expire on 30 November 2017.

2015 Financial Contractual 6 months $000’s Position Cash Flows or less 6-12 months 1-2 years 2-5 years Trade and other payables 11,734 11,734 11,734 - - - Provisions 8,809 8,809 7,597 1,212 - - Borrowings 71,500 72,545 261 261 72,023 - Redeemable preference shares 20,000 20,000 20,000 - - - Guarantees - 21,400 21,400 - - - Total non-derivative liabilities 112,043 134,388 60,992 1,473 72,023 - Foreign exchange contracts (460) 53,292 40,407 12,885 - - Interest rate swaps (2,177) (9) (8) 93 138 (232)

2014 Financial Contractual 6 months $000’s Position Cash Flows or less 6-12 months 1-2 years 2-5 years Trade and other payables 12,272 12,272 12,272 - - - Provisions 11,293 11,293 5,647 5,646 - - Borrowings 74,125 75,693 261 261 523 74,648 Redeemable preference shares 20,000 20,000 20,000 - - - Guarantees - 21,300 21,300 - - - Total non-derivative liabilities 117,690 140,558 59,480 5,907 523 74,648 Foreign exchange contracts (767) 40,234 26,193 14,041 - - Interest rate swaps (42) (9) (8) 93 138 (232)

86 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

(e) Credit Risk

Credit risk arises from financial assets of the Group, which comprise bank balances, trade receivables, foreign currency forward exchange contracts and options. The Group's exposure to credit risk arises from potential default of the counter party, with a maximum exposure equal to the carrying amount of these instruments. Exposure to credit risk is monitored on an ongoing basis.

Only major New Zealand registered banks are counter parties to the Group's financial instruments, and the Group does not anticipate non-performance by such counter parties.

The maximum exposure to credit risk is represented by the carrying value of each financial asset in the Statement of Financial Position or addressed in each applicable note.

At balance date there were no significant concentrations of credit risk other than with related parties with the result that the Group's exposure to bad debts is not significant.

The status of trade receivables at the reporting date is as follows:

Gross Receivables Impairment $000’s 2015 2014 2015 2014 Not past due 7,889 7,639 - - Past due 0 - 30 days 1,536 1,289 - 33 Past due 31 -120 days 504 1,229 29 4 Past due more than 120 days 226 169 81 81 Total 10,155 10,326 110 118

Trade receivables consist of a large number of customers. Ongoing credit evaluation is performed on the financial condition of accounts receivable and a comprehensive credit management policy is in place.

Apart from the impairment values reported in the table above, the Group does not have any significant credit risk exposure to any single trade debtor.

In summary, trade receivables are determined to be impaired as follows:

$000’s Note 2015 2014 Gross trade receivables 10,155 10,326 Individual impairment 10 (110) (118) Total receivables net 10,045 10,208

(f) Capital Risk Management

The Group manages its capital to ensure that entities within the Group will be able to continue as a going concern while maximising the return to shareholders through optimisation of the use of debt and equity. The Group's overall capital management strategy remained unchanged from the prior year.

The capital structure of the Group consists of debt, which includes borrowings disclosed in Note 23, cash and bank balances and equity attributable to equity holders of Aotearoa Fisheries Limited, comprising issued capital, reserves and retained earnings as disclosed in Notes 9 and 25 respectively.

The Group's tangible assets are subject to a general security agreement held by the Group's bank.

The gearing ratio at 30 September was as follows:

$000’s Note 2015 2014 Borrowings 23 71,500 74,125 Less cash & bank balances 9 856 3,278 Net debt 70,644 70,847 Total shareholders’ equity 408,564 412,714 Net debt to equity ratio 17% 17%

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 87 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

(g) Classification and Fair Values

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable:

» Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities; » Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and » Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Interest rate swaps and foreign exchange contracts are measured at fair value subsequent to initial recognition, and are measured using Level 2 valuations. Biological assets are measured at fair value and are measured using Level 3 valuations. (refer Note 12).

Interest rate swaps and foreign exchange contracts are measured at present value of future cash flows estimated and discounted based on applicable yield curves derived from observable market interest rates. Accepted market best practice valuation methodology using mid-market interest rates and exchange rates at balance date is used, provided from sources perceived to be reliable and accurate. Interest rate swaps and foreign exchange contracts have been classified into Level 2 of the fair value hierarchy on the basis that the valuation techniques used to determine the values at balance date use observable inputs.

Derivative designated Cash Liabilities at 2015 as hedging and cash Loans and amortised Carrying Fair $000’s instrument equivalents receivables cost amount value Current assets Foreign exchange contracts 348 - - - 348 348 Interest rate swaps ------Bank balances - 856 - - 856 856 Trade debtors - - 10,045 - 10,045 10,045 Other receivables - - 2,472 - 2,472 2,472 348 856 12,517 - 13,721 13,721 Non current assets Interest rate swaps ------Other assets - - 70 - 70 70 - - 70 - 70 70 Total assets 348 856 12,587 - 13,791 13,791 Current liabilities Foreign exchange contracts 1,295 - - - 1,295 1,295 Interest rate swaps 243 - - - 243 243 Trade creditors and other payables - - - 11,734 11,734 11,734 Provisions - - - 8,809 8,809 8,809 Redeemable preference shares - - - 20,000 20,000 20,000 1,538 - - 40,543 42,081 42,081 Non current liabilities Interest rate swaps 2,354 - - - 2,354 2,354 Borrowings - - - 71,500 71,500 71,500 2,354 - - 71,500 73,854 73,854 Total liabilities 3,892 - - 112,043 115,935 115,935

88 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

Derivative designated Cash Liabilities at 2014 as hedging and cash Loans and amortised Carrying Fair $000’s instrument equivalents receivables cost amount value Current assets Foreign exchange contracts 42 - - - 42 42 Interst rate swaps 103 - - - 103 103 Bank balances - 3,278 - - 3,278 3,278 Trade debtors - - 10,208 - 10,208 10,208 Other receivables - - 2,120 - 2,120 2,120 145 3,278 12,328 - 15,751 15,751 Non current assets Interest rate swaps 189 - - - 189 189 Other assets - - 153 - 153 153 189 - 153 - 342 342 Total assets 334 3,278 12,481 - 16,093 16,093 Current liabilities Foreign exchange contracts 1,518 - - - 1,518 1,518 Interest rate swaps 18 - - - 18 18 Trade creditors and other payables - - - 12,272 12,272 12,272 Provisions - - - 11,293 11,293 11,293 Redeemable preference shares - - - 20,000 20,000 20,000 1,536 - - 43,565 45,101 45,101 Non current liabilities Interest rate swaps 283 - - - 283 283 Borrowings - - - 74,125 74,125 75,779 283 - - 74,125 74,408 76,062 Total liabilities 1,819 - - 117,690 119,509 121,163

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 89 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

28. Related Party Transactions The immediate parent and ultimate controlling party respectively of the Group is defined under the Māori Fisheries Act 2004. Details of the interest in Sealord Group Limited is disclosed in Note 14. Details of interests in subsidiaries, associates, and joint ventures are disclosed in Note 15.

Details of the year-end related party receivables and payables are disclosed in Notes 10 and 20 respectively.

(a) Transactions between the Company and Sealord Group Limited

During the year there have been transactions between the Company and Sealord Group Limited as follows:

$000’s 2015 2014 Sales to Sealord Group Limited 1,962 1,661 Other revenue from Sealord Group Limited 5,486 6,618 Purchases from Sealord Group Limited (2,042) (1,096)

(b) Transactions between the Company and its Associates and Joint Ventures

During the year there have been transactions between the Company and its associates and joint ventures as follows:

$000’s 2015 2014 Sales to associates and joint ventures 38,576 38,672 Other revenue from associates and joint ventures 711 706 Purchases from associates and joint ventures (2,905) (2,971)

(c) Transactions with Other Related Parties

(i) During the year, the Company purchased Annual Catch Entitlement (ACE) of $6.81 million (2013: $9.61 million) from Te Ohu Kai Moana Trustee Limited and other shareholders.

(ii) During the year Pupuri Taonga Trust Limited recovered quota ownership costs of $5.5 million (2013: $6.6 million) from Sealord Group Limited.

(iii) During the year, the Company purchased services of $0.29 million (2013: $0.033 million) from Design Works Limited.

(d) Compensation of Key Management Personnel

The remuneration of the Chief Executive Officer and his direct reports during the year was as follows: $000’s 2015 2014 Short term benefits 2,787 2,581 Total compensation 2,787 2,581

90 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 pitopito korero mo nga tauki Putea notes to financial statements FOR THE YEAR ENDED 30 SEPTEMBER 2015

29. Commitments The company has committed to building a new fishing vessel for the Inshore Division. At 30 September 2015 contracts had been signed to the value of $4.15 million.

The company has committed to building a new factory for the Inshore Division. At 30 September contracts had been signed to the value of $2.35 million.

30. Contingent Liabilities and Contingent Assets The company has issued a guarantee to Te Ohu Kai Moana Trustee Limited regarding the performance of its 100% owned subsidiary, AFL Investments Limited, with respect to the redeemable preference shares outlined in Note 22.

Kura Limited, a joint venture of Aotearoa Fisheries Limited, has given bank guarantees with the Group’s share being $11.4 million (2014: $10.9 million).

All partners of the Precision Seafood Harvesting joint venture have issued a joint guarantee of $10 million (2014: $10 million).

31. Events after the Balance Date On 25 November 2015, the Directors approved a gross dividend of $7.7 million, resulting in a net cash dividend after Maori authority credits to shareholders of $6.4 million ($25.54 per share) to be paid in December 2015, which has been accrued under the requirements of the Maori Fisheries Act 2004, to pay at least 40% of profit back to shareholders.

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 91 purongo a te kaitatari kaute independent auditor’s report

THE SHAREHOLDERS OF AOTEAROA FISHERIES LIMITED

Report on the Consolidated Financial Statements We have audited the accompanying consolidated financial statements of Aotearoa Fisheries Limited and its subsidiaries (‘the Group’) on pages 50 to 91, which comprise the consolidated statement of financial position as at 30 September 2015, and the consolidated income statement, statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

This report is made solely to the company’s shareholders, as a body, in accordance with Section 207B of the Companies Act 1993. Our audit has been undertaken so that we might state to the company’s shareholders those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company’s shareholders as a body, for our audit work, for this report, or for the opinions we have formed.

Board of Directors’ Responsibility for the Consolidated Financial Statements The Board of Directors are responsible for the preparation and fair presentation of these consolidated financial statements, in accordance with New Zealand Equivalents to International Financial Reporting Standards, International Financial Reporting Standards and generally accepted accounting practice in New Zealand, and for such internal control as the Board of Directors determine is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibilities Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing and International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates, as well as the overall presentation of the consolidated financial statements.

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

Other than in our capacity as auditor, we have no relationship with or interests in Aotearoa Fisheries Limited or any of its subsidiaries, except that partners and employees of our firm deal with Aotearoa Fisheries Limited and its subsidiaries on normal terms within the ordinary course of trading activities of the business of Aotearoa Fisheries Limited and its subsidiaries.

Opinion In our opinion, the consolidated financial statements on pages 50 to 91 present fairly, in all material respects, the financial position of Aotearoa Fisheries Limited and its subsidiaries as at 30 September 2015, and their financial performance and cash flows for the year then ended in accordance with New Zealand Equivalents to International Financial Reporting Standards, International Financial Reporting Standards and generally accepted accounting practice in New Zealand.

Chartered Accountants 25 November 2015 Auckland, New Zealand

92 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 Etahi atU wHakApuakItanGa o te PuRonGo A taU other annual report disclosures

1. Principal Activities The Group’s principal activities during the year were the harvesting, procurement, farming, processing, and marketing of sustainably produced seafoods.

2. Directors Holding Office During the Year Whaimutu Dewes – Chairman Ngāti Porou, Ngāti Rangitihi Fred Cookson Ngāti Uenukukopako, Ngāti Kahungunu Alan Gourdie Tony Hannon Wayne Peters Ngāti Wai Hinerangi Raumati Ngāti Mutunga, Waikato Jamie Tuuta Ngāti Mutunga, Taranaki Iwi, Ngāti Maru Liz Ward Ngāti Porou

3. Directors’ Fees

2015 2014 Whaimutu Dewes 95,500 97,500 Fred Cookson 51,425 51,425 Russell Daff 5,404 5,546 Alan Gourdie 45,425 41,640 Tony Hannon 48,425 44,640 Wayne Peters 48,425 48,425 Hinerangi Raumati 48,425 48,425 Jamie Tuuta 47,925 48,425 Liz Ward 47,925 44,140 Total 438,879 430,166

Russell Daff is a director of Prepared Foods Processing Pty Limited.

4. Directors’ Interests The following are particulars of general disclosures of interest by Directors of Aotearoa Fisheries Limited, holding office during the year up to 30 September 2015 pursuant to section 140(2) of the Companies Act, 1993.

Name Entity Nature of interest Iwi affiliations Whaimutu Dewes Contact Energy Limited Director Ngāti Porou Housing NZ Limited Director Ngāti Rangitihi Iwi Rākau Limited Director Ngāti Porou Fisheries Limited Director Ngāti Porou Forests Limited Director Ngāti Porou Holding Company Limited Director Ngāti Porou Seafoods Limited Director Ngāti Porou Whanui Forests Limited Director Rakaikura Limited Director Real Fresh Limited Director The Treasury Director Whainiho Developments Limited Director

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 93 Etahi atU wHakApuakItanGa o te PuRonGo A taU other annual report disclosures

Name Entity Nature of interest Iwi affiliations Fred Cookson Cookson Forbes & Associates Chartered Accountants Limited Director Ngāti Uenukukopako Alan Gourdie Designworks (NZ) Limited Director Eden Park Trust Board Member Parrot Analytics Limited Director Story NZ Limited Shareholder Tony Hannon Bancorp Corporate Finance Limited Partner CBL Corporation Limited and group companies Director CXS Holdings Limited Director General Capital Technologies Limited Director Healthpoint Partners Limited and related company Director Omni Health Limited and related companies Director Property Collectives Limited Director Relational Capital Limited and related companies Director Sealord Group Limited Director Snow Sports New Zealand Limited Chairman Snowline Investments Limited and subsidiary Director Vomo Group companies Director Wayne Peters McCann 2008 Limited Director Ngāti Wai New Zealand Rugby Promotions Limited Director Ngatiwai Fishing Limited Deemed Director Peters Consulting Limited Director Ruakaka Lands Limited Director Whau Valley Developments Limited Director Whau Valley Properties Limited Director Hinerangi Raumati Forest Emissions Rental Trust Trustee Grown Forestry Rental Trust Director Ngāti Mutunga Nga Miro Trust Chair Waikato P.K.W Farms Ltd Director Parininihi ki Waitotara Incorporation Chair Parininihi ki Waitotara Farms General Partner Chair Parininihi ki Waitotara Trust Trustee Te Ohu Kai Moana Trustee Limited Director Te Ohu Kaimoana Portfolio Management Services Limited Director Port Nicholson Fisheries General Partner Limited Director Jamie Tuuta Hospitality Services Limited Director LINZ Business with Maori Advisory Group Advisory Board Member Māori Trustee Statutory Trustee Ngāti Mutunga Putake Limited Director Taranaki Iwi Quantum Limited Director Ngāti Maru RDF1 Limited Director Tamaki Makaurau Community Housing Limited Director Taranaki Investment Management Limited Director Taranaki Iwi Claims Management Limited Director Te Matai Kiwi Number 8 Limited Director Te Māori Lodges Limited Director Te Ohu Kai Moana Trustee Limited Director Te Ohu Kaimoana Portfolio Management Services Limited Director Te Tumu Miere Limited Director Tourism New Zealand Board Member Tuhono Whenua: Red Meat Coalition Limited Director Uruora Limited Shareholder Venture Taranaki Trust Trustee Wools of New Zealand Limited Director Liz Ward Kennards Hire CEO Ngāti Porou NSW Telco Authority Director

94 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 Etahi atU wHakApuakItanGa o te PuRonGo A taU other annual report disclosures

5. Remuneration of Employees During the year from 1 October 2014 to 30 September 2015, the following number of employees, including employees who left the Company during the year, received remuneration, benefits, and redundancy payments that exceed $100,000 in total. Group $000’s 2015 2014 $100,001 - 110,000 4 1 $110,001 - 120,000 3 1 $120,001 - 130,000 1 - $140,001 - 150,000 5 1 $150,001 - 160,000 3 2 $160,001 - 170,000 - 2 $170,001 - 180,000 3 3 $180,001 - 190,000 1 3 $190,001 - 200,000 2 1 $201,001 - 210,000 1 1 $210,001 - 220,000 2 1 $220,001 - 230,000 1 - $230,001 - 240,000 - 2 $240,001 - 250,000 1 1 $270,001 - 280,000 - 1 $290,001 - 300,000 1 1 $350,001 - 360,000 - 1 $380,001 - 390,000 1 1 $390,001 - 380,000 - 1 $470,001 - 480,000 1 - $510,001 - 520,000 - 1 $530,001 - 540,000 - 1 $570,001 - 580,000 - 1 30 27

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 95 glossary A c e h head wind – haupāuma abalone – pāua chartered accountant – kaitatau ecosystem – pūnaha rauropi whai kawenata (NCEA External Examinations hedge/hedging – rauhipūtea according to – mei/ ki/ e ai Glossary) (rauhi – care, protect + pūtea – chemical – matū (Glossary for finance) accountability – kawenga Translated NCEA External effective, feasible – whaihua haepapa Examination) highlight – whakaharaharatanga efficient – māia active – ngangahau citizen – kirirarau hoki (fish) – ūturi established – pūmau agreement – kirimana commerce – tauhokohoko evolve – kukuwha (Glossary for aquaculture – ahu moana commercial – tauhokohoko Translated NCEA External Examination 2007) area – rohe, wā commitment – oati executive – āpiha whakahaere arrangement - tikanga committed – titikaha (stative: asset – hua be steadfast, unwavering, expectation – matapae resolute, committed, dedicated, I experienced – tautōhito, atmosphere – kōhauhau unswerving) imputation credits (Māori arerowhero authority) – whiwhinga tāke audit – tātari kaute competitors – kaiwhakataetae explore – hōpara Mana Māori Australian Defence Force – comprehensive – income – moni whiwhi Ope Taua O Ahitereiria whakawhānuitanga atu export – tuku rawa income shares – hea whai pūtea Automatic – aunoa (Matatiki) compliance – tūtohu indicate – tautuhi available – e wātea ana conditions – ritenga industry – hāpori mahi / average – taurite consistent – rite ūmanga consumer – kiritaki f infrastructure – hanganga contribution – tukuna farm (v) – ahu initiative – kaupapa hihiko cook / chef – tūmou farm (n) – pāmu injury – wharanga corporate – rangatōpū b fillet – tītipi inshore – o uta corporate directory – pukataki balance sheet – ripanga kaute inspection – mātaitanga rangatōpū filter – tātari barramundi (humpback groper) intern – tauira currency, functional – moni finance (n) – pūtea – hāpukurāwaho (hāpuku = matua (currency of primary invest – whakangao groper + rāwaho = outsider) finance (v) – whakapūtea economic environment the investment – moni whakangao bioactive – pānga-rauropi company operates in) financial business strategy – (pānga = effect + rauropi = rautaki umanga pūtea customer – kiritaki Iwi Collective Partnership – organism) financial performance – Whakaurunga ā Iwi whanonga pūtea Blue cod – rāwaru iwi shareholders – iwi whai hea Blue shark – mangō-pounamu financial results – hua tahua pūtea Bream Bay – Whanga a Tāmure financial statements – tauki business plan – mahere pākihi d tahua pūtea bycatch – haonga tē hiahiatia ai data – raraunga fleet – tāruru (Williams Dictionary of Māori) j by-product – hua kē demand – hiahoko food chain – tāhuahua joint venture – ūmanga mahinga detect – oko (Glossary for (Glossary for Translated NCEA tahi Translated NCEA External External Examination 2007) Examination 2007) juvenile – pūhouhou foreign exchange – whitinga develop – whakawhanake pūtea rāwaho c director – tumu fresh – mata (uncooked); mohou (recently caught) domestic – tara-ā-whare cage – korapa frozen – pātiotio dory – kuparu campaign – anga (2. Ka neke, ka K haere rānei me te ū anō ki tētehi aronga kua whakaritea) kelp – pakakā (Williams Dictionary of Māori) can – pōwhā (tītī), pūau (birds), mātā (preserve fish/birds) capacity – raukaha e G (Te Aka Dictionary) earnings – moni utunga governance – whakahaere cash flow – aurere pūtea economic – ohanga grade – māhiti (Williams certification – l Dictionary of Māori) whakataketakenga economy – ohanga Levin – Taitoko certify – whakataketaketia liability – nama

96 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 RĀRANGI KUPU MĀORI GLOSSARY OF MĀORI TERMS l o R t ling – hokarari operation – mahi/ nekeneke recycle, recirculate – tukurua Technical – hangarau (Te Aka) lobster – koura opportunity – wāhi whai rawa resolution – whakataunga terms of reference – tikanga whakahaere kaupapa logistics – whakahaerenga orange roughy – patohe karaka results – huanga kawenga rawa thermoform – pūhera oreo dory – oreo kuparu revenue – moni puta hangawera (wera=hot, heat; long line – aho tū roa hanga=form) organisational culture – ahurea risk management – lost time injuries – taotū mahue ā rōpu whakawhāititanga mōrearea thermal – pāwera wā mahi tonne – tōne, tāna

total – tapekenga

trade – hohoko

Trust – Tarati, Rūnanga m P S tuna – tuna moana maintain – pupuri package – pūhe a (n.) salmon – hāmana Marine husbandry – ahu package – whakatakupe (v.i) sample – tautauira (Glossary for mātaitai pallet – amohanga Translated NCEA External market – mākete Examination 2007) partner – whakauru = ‘ally’ marketer – kaiwhakatairanga satellite – amiorangi U partnerships – whakaurunga marketing – whakatairanga satisfactory – pai unfortunately – ka aroha kē passion – remurere Marlborough Sounds – Ngā sector – rāngai mahi Whanga O Te Tau Ihu O Te Waka Pāua, blackfoot – pāua shareholder – kaipupurihea A Māui Payroll – rārangi utu shelf stable – tūmau Massey University – Te Kunenga performance – whanonga ki Pūrehuroa sole (of foot) – raparapa philosophy – kaupapa whakaaro Memorandum of Understanding V spat (of oyster) – tio pirianga – Kawenata ā Whakaaro plankton – ika moroiti (piri=attach, + anga=shell; “once value – uara the oysters have attached Metric, unit of measurement – position – aronga themselves, metamorphosed volatile – ngāueue waeine and set, they are then referred potential – torohū, pitomata voluntary – tūao military – tū taua to as spat”) prepared food – takanga kai Ministry for Primary Industry sponsorship – whakatairanga – Manatū Ahu Matua preservatives – matū whakauka stable – uka (adjective: Kua Ministry of Defence – Manatū primary industry – ahu taiao tūturu te piri, kua mārō rānei te tū, he mahi nui e neke ai, Kaupapa Waonga priority – kaupapa matua e turakina ai, e whakakorea ai. Ministry of Fisheries – Manatū (i) E uka ana a raro o te pou i te W processing – ahunga mahi ika Tautiaki I Ngā Tini A Tangaroa one (W 466). (ii) Kia uka i mua wealth – tōnuitanga product – whakaputanga-hua o te mārena, kia uka i muri. Ka Ministry for Business kino te mārena pūremu! mau) wetfish – ikamākūkū Innovation and Employment profit – huanga – Hīkina Whakatutuki standards – paerewa wholesale – utu ki te kaihoko property rights – tika rawa Module – kōwae statement – tauākī wild – tūwā (noun: growing out of place, wild) Monitor – aroturuki static – whakaroau

Motion sensor – pūtairongo steel toe cap – kapumati maitai nuku (tairongo=sense) stock – rokiroki = ‘store Q collection of articles’ stock (fish) – rāngai quality (high) – tuawhiti, kounga strategy – rautaki quality management system n – pūnaha tiaki tuawhiti success – angitū quota – roherohenga supplier – kaiwhakarato nutraceutical – hua kai whakahauora quota – wāhi roherohenga pāua supply – whakarato nutrient – matūkai (NCEA quota management system – sustainable – toitū-ōranga External Examinations Glossary) pūnaha whakahaere roherohenga sustainable growth – tupunga toitū

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 97 kuPo akoako notes

98 AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 kuPo akoako notes

AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 99 pukataki corporate rangat�p� directory

Tari Rēhita/Registered Office Kaitātari Kaute/Auditor Deloitte 1-3 Bell Avenue Mt Wellington Hunga Whare Moni/Bankers Auckland 1060 Westpac New Zealand Limited Tau Pōti/Postal Address Kaiwhakamāori / Translator PO Box 445, Shortland Street Te Awanuiārangi Black – Auckand 1140 Ngāti Pukenga, Tauranga Moana

Tel: +64 9 270 7791 Maika Te Amo – Tapuika

AFL INSHORE AFL AQUACULTURE

Moana Pacific Fisheries Kia Ora Seafoods 1-3 Bell Avenue 266 Roscommon Road Mt Wellington Wiri Auckland 1060 Auckand 2104 Tel: +64 9 302 1520 Tel: +64 9 268 2770

OPC Fish & Lobster Pacific Marine Farms 269 South Highway 1600 Long Bay Road Whitianga 3510 Coromandel 3506 Tel: +64 7 866 0547 Tel: +64 7 866 8564

www.aflinshore.co.nz OceaNZ Blue Ltd Station Road East Ruakaka 0116 Tel: +64 9 433 0220 Fax: +64 9 432 5501 www.oceanzblue.co.nz

AFL PREPARED FOODS AFL INVESTMENTS

Prepared Foods Sealord Group Limited 15 Makomako Road 149 Vickerman Street Palmerston North 4414 Nelson 7010 Tel: +64 6 357 1009 Tel: +64 3 548 3069 www.preparedfoods.co.nz www.sealord.co.nz AOTEAROA FISHERIES LIMITED ANNUAL REPORT 2015 101 www.aotearoafisheries.co.nz