G36

Statement of Corporate Intent Te ara whāinga ki mau 2020 – 2023 Driving prosperity by transforming agriculture Ānga taurikura whakamua mā te whakaumu ahuwhenua

The “golden spiral” is a unique mathematical relationship that derives from the famous “Fibonacci sequence.” The Fibonacci sequence is a never-ending sequence starting with 0 and 1, and continuing by adding the previous two numbers. The Fibonacci sequence shows balance and harmony frequently in the natural world — the number of petals on a flower, for instance, will often be a Fibonacci number. At AgResearch, our science strives to achieve a harmony between agriculture and the environment that New Zealand treasures. Contents Rārangi take

Chair and Chief Executive’s overview 02

Our strategy 04

Strategic refresh 05

Te Ao Māori Strategy 06

Science Plan 08

Realigning our Science Groups 12

Alignment with government priorities 12

Responding to COVID-19 14

Financial viability 14

Science delivery and revenue 15

Our people: One AgResearch and New Ways of Working 17

Our science 18

Strategic Science Investment Fund 19

Enabling technologies 22

Partnership and collaboration 24

Integrated research facilities 28

Our people 32

New Ways of Working Framework 32

One AgResearch initiatives 33

Financials 35

Financial results 36

Non-financial targets 38

Miscellaneous items 40

Directory 43 Chair and Chief Executive’s overview Ngā arotakenga o te Heamana me te Tumuaki Whakahaere

This Statement of Corporate Intent (SCI) sets out the framework for the key activities AgResearch will undertake in the 2020/21 year. It also provides financial forecasts for the coming three financial years.

There is no doubt the next few years are throughout the heightened alert levels critical for AgResearch and New Zealand. The and during their return to our sites. We impact of the COVID-19 pandemic is already are proud of the way our people displayed demonstrating that there will be significant AgResearch’s values with the move to remote long-term implications for all sectors in New working in late March, and the flexibility Zealand, including agriculture. This is on top and dedication they are showing as we of the considerable challenges faced from progress into a new way of operating. We also climate change, evolving consumer demands supported the national response through and preferences, fast-moving technological providing laboratory space for testing, and advancements and rapid population growth. are pleased to be involved in a collaborative In this time of extraordinary challenges for COVID-19 vaccine research project with both New Zealand and the world, AgResearch Avalia Immunotherapies. We were also is focused on its core purpose of enhancing pleased to be part of a collaboration that the value, productivity and profitability of our received funding through the COVID-19 pastoral, agri-food and agri-technology sector Innovation Acceleration Fund to develop value chains. However, along with these a unique technology using different forms challenges come many opportunities, and we of light to kill the virus causing COVID-19, must be nimble to leverage them. We remain and other harmful viruses that can linger in steadfast in our commitment to support and commercial and public places. During alert empower the primary sector as it navigates levels 4 and 3 AgResearch also maintained a the years ahead. base of capability around essential services, for example in support of national bovine As New Zealand now looks toward recovering Tb diagnostic services, as well as capability from the worst effects of the virus, the health to maintain animal welfare and vital forage and safety of our people remains our top collections of national significance. priority. Our pandemic response plan will continue to guide us in the months ahead Fiscal responsibility remains a critical area as we protect our people from the illness for AgResearch, particularly considering while maintaining the organisation’s integrity disruption caused by the virus. We have and service delivery to customers and robust reporting measures and a strategy collaborators. We implemented a range of to mitigate a drop in revenue, but inevitably digital technology and wellbeing initiatives to there is still an adverse impact on our

Chair and Chief Executive’s overview Chair and Chief Executive’s support our staff working remotely forecast earnings. In addition to

2 implementing cost saving initiatives in the University, and the Riddet Institute last quarter of the 2019/20 year, AgResearch collaborating and working together under will continue to assess opportunities for one roof and to be part of wider Food HQ savings over the medium term to ensure the initiative. For instance, we are currently financial sustainability of the organisation. discussing with Food HQ partners how As the 2020/21 year commences, we are we can collaboratively engage in the committed to continuing to deliver our development of the Government’s planned science. food and beverage industry transformation plan. Our other national centre of To ensure the organisation is set up for excellence, in Lincoln, is progressing well. success, the Board and management are Following recent Ministerial consent of working to refine AgResearch’s strategic the Implementation Business Case for the direction. A strategic plan to support our Lincoln facility, work will steam ahead this organisational strategy is close to completion year to prepare for construction commencing and will guide our organisational priorities in the second half of the 2021 calendar in the coming years. We know New Zealand year. We are also working hard with Lincoln will need to be at the edge of innovation and University to embed a culture of collaboration technology for primary industries to succeed between our two entities while both our new in the future, and we intend to make a facilities are constructed. We look forward to significant and enduring contribution through working with our partners and stakeholders relevant, agile and adaptable science, and to make a modern Lincoln education, science innovative thought leadership. and innovation precinct a reality.

Ensuring we have modern facilities to enable Although the foreseeable future will bring innovative and integrative research and challenges and uncertainties, there will also support new ways of working will continue be many opportunities for the sector. We to be a priority in the years ahead. Te Ohu know that primary industries are likely to Rangahau Kai, the joint food science facility drive the nation’s economic recovery, and with Massey University in Palmerston North, AgResearch is prepared to lead the way with opened to our people in early June. This our science. We are confident we will have world-class facility features laboratories and the right people in the right places to support shared spaces focused around education and and empower the primary sector through this research into meat and dairy in a three-storey, time, and to identify and exploit the inherent 5,000 square metre building that will be New opportunities to come. We look forward to Zealand’s largest agri-food innovation centre. making our contribution to New Zealand’s We are excited about the opportunities for recovery through the uptake of our world- innovation that will result from having world- leading research and innovative technologies. class talent from AgResearch, Massey

Tony Hickmott Dr Paul Reynolds Acting Chief Executive, Chair, AgResearch AgResearch Chair and Chief Executive’s overview Chair and Chief Executive’s

3 Our strategy Tā mātou rautaki

Our vision is to drive New Zealand’s prosperity by transforming agriculture.

This vision is supported by a focus on two 2. Revitalised Science Plan – Creating broad areas of aspiration; developing the value through integrated research that world’s smartest and most sustainable is focused on consumer needs and land use systems and developing the most responds to the five interconnected, sought-after, high value food and bio- global mega-trends that are driving the based products. The breadth of our science future economic and environmental capability across the agricultural value chain sustainability of our food production underpins AgResearch’s differentiated value systems. proposition, ensuring a focused approach to 3. One AgResearch – An aligned culture increasing the value of New Zealand’s exports that is innovative, energised, vibrant and while optimising land use outcomes and collaborative, which attracts, develops enhancing our environment. and retains people who are the best at what they do and who strengthen our Our FRONT framework is the strategy team’s collective expertise. that gears us toward achieving this vision. 4. New Ways of Working (He Ara Hou)– The framework has five strategic initiatives Creating a people-focused environment that direct and facilitate organisational with vibrant, collaborative campus performance. facilities and research hubs. This means investing in facilities, people and systems 1. Financial Strength – Ensuring stability to support the transformation process, and sustainability, which creates and ultimately results in delivering opportunities for strategic growth collaborative science across the value and direct reinvestment into science chain. capability and capacity. 5. Transforming through Technology – Embracing technology to change the way we deliver science, enable industry to transform agriculture and to improve our systems and processes. Our strategy

4 Strategic refresh

A strategic refresh was commenced early The pillars respond to three distinct in the second half of the 2019/20 year challenges facing AgResearch: to determine in more detail how the organisational strategy and Science Plan • Continuing to build on science objectives will best be achieved. A refreshed engagement with Māori. strategic plan is now under development. As • Refreshing our focus on the unique part of this process, three pillars have been science contribution AgResearch makes, identified to underpin our strategic direction. and the challenges relating to negative These pillars seek to maximise our strengths public sentiment towards the agricultural and prepare us for the future. The pillars are: sector. • Financial strength and improving • FUSE what is uniquely Aotearoa engagement with our people. Mātauranga Māori with our science • FOCUS on high value, high uptake of our The refresh is being undertaken in tandem science with a review of our operating model, to • OPTIMISE how we work. ensure AgResearch is efficient and well- positioned to achieve our strategy. We intend to complete the refreshed strategic plan and review of our operating model in the second half of the 2020 calendar year. Our strategy

5 Te Ao Māori strategy

AgResearch is acutely aware of the need to resources by working alongside iwi to provide support the growing Māori economy, and we solutions fused in Mātauranga Māori and appreciate that there is also much Western Western scientific themes. This also has the science can learn from traditional Māori benefit of empowering rural communities to knowledge and stewardship of the land. For be both prosperous and resilient. example, a current AgResearch collaboration with Ora Limited on unlocking the secrets of To achieve this, we are developing a Te Ao mamaku (black tree fern), which has been Māori strategy to embed Māori approaches used for centuries by Māori as a sunscreen. within the organisation and the work we do. Alongside Ora Limited, AgResearch plans The strategy will support Māori to express to delve deeper into the skincare properties tino rangatiratanga in the realisation of their of mamaku. This includes looking at its land assets, with science and Mātauranga biochemical properties, such as controlling Māori-based solutions. We will also prompt melanin production and its anti-oxidant the Government’s Vision Mātauranga policy value. Skin cell assay trials and human trials across four themes: are also planned, as is work to find new uses for the by-product of mamaku extraction, so • Indigenous innovation – contributing that the whole of the taonga can be utilised. to economic growth through distinctive science and innovation Supporting Mātauranga Māori is a key • Taiao (environment) – achieving feature of our Science Plan, and our aim is environmental sustainability through iwi to make significant and lasting impacts for and hapū relationships with land and sea Māori to enhance resource stewardship and • Hauora (health) – improving health and unlock the potential of whenua-based assets. social wellbeing AgResearch can enable Māori communities • Mātauranga – exploring indigenous to grow and develop their land-based knowledge and science and innovation. Our strategy

6 Our vision for the Te Ao Māori strategy Te Ao Māori, including Māori values, world- is to be a valued long-term partner with view concepts, protocols, language, and multiple Māori agribusiness entities to the special nature of iwi, hapū and whānau deliver transcultural science excellence relationships to their traditional resources. that enhances community wellbeing across social, environmental, cultural and By unlocking the unique characteristics, economic outcomes. This will be achieved Mātauranga and values of Te Ao Māori, by empowering Māori agribusiness entities our strategy will enable vibrant Māori with the knowledge, tools and skills they need agribusinesses to: to achieve their aspirations, expressed in the following kawa: • design holistic land use configurations centred on kaitiakitanga principles • Mana whenua me manaakitanga – • network Māori properties and value webs where the relationship between Māori built on aligned kaupapa communities and their whenua is strong; • develop product attributes and business • Arikitanga and tikanga including the use models that reflect Te Ao Māori. of Mātauranga Māori – where the use of traditional knowledge to guide practice is The strategy, in conjunction with the the norm Science Plan, will form the basis of ongoing • Tino rangatiratanga – empowering discussions with government on enhanced Māori cultural identity and connection funding options to support research in and • Kotahitanga and rawatanga – the for the Māori agribusiness sector. resourcing of Māori aspirations and needs At the time of writing, AgResearch has • Whakamārohirohi – building Māori commenced a series of virtual wananga community resilience to help inform the development of our • Hūrokuroku – future proofing of Mātauranga Māori research programmes. sustainable outcomes. This process will ensure we are focused on undertaking research that is relevant and This will include provision of opportunities to impactful for Māori and therefore the wider enhance company-wide understanding of primary sector. Our strategy

7 Science Plan

In September 2019 AgResearch published The Science Plan revolves around consumer- a revitalised Science Plan. The Science centred, system-based science that drives the Plan maps out AgResearch’s strategy for world’s smartest and most sustainable land- transforming New Zealand’s food production use systems, and the most sought-after food systems to strongly contribute to the and bioproducts. Government’s priorities for the wellbeing of New Zealand and its people. It links our It responds to the following five identified actions in the laboratory, our efforts out on mega-trends: the land, and our collaboration with partners through to the outcomes that Government has agreed we should deliver. The Science Plan is a key part of our FRONT strategic framework, and now guides all our science and research activities. Our strategy

8 To achieve the outcomes of the Science Plan, A. Sustainable agri-food production the other strands of the FRONT framework systems are crucial. We will improve the performance of our land For example, the twin purposes of the and our water quality in response to land One AgResearch strategic initiative are to use choices and our management decisions harness the diversity of talents across the to deliver equitable and balanced economic, organisation, and increase science vitality. social, cultural and environmental outcomes By enabling and encouraging our scientists by: to work in more multidisciplinary and transdisciplinary ways, AgResearch can • Designing diversified landscapes leverage expertise across the breadth of the and enterprises that support regional organisation, leading to greater innovation economies while operating within natural and better science outcomes. The strategic resource limits initiative New Ways of Working will also • Reducing environmental footprints at support the implementation of the Science both farm and catchment scale Plan through modern, vibrant fit-for-purpose • Maximising the biological and economic facilities and research hubs, empowering efficiency of farm systems our people to collaborate and innovate • Enhancing natural capital stocks and much more easily. The strategic initiative flows. Transforming through Technology will ensure modern and enabling digital platforms underpin our success. B. Climate change mitigation and The Science Plan objectives form the adaptation framework of measurements for our programme of work. A high-level summary We will adapt to and mitigate the effects of by theme is set out below. Specific climate change while enhancing biosecurity measurements to achieve these will be by: confirmed in the coming year. • Reducing methane and nitrous oxide emissions from pastoral systems • Designing low carbon-emitting and high- carbon sequestration systems • Developing adaptive animal breeds, forage cultivars and farm systems • Developing strategies and tools to prevent incursions and manage pests and diseases, including next-generation biocontrol agents • Building farm system resilience to extreme weather events. Our strategy

9 C. Vibrant Māori Agribusiness F. Minimised resource loss

We will enable vibrant Māori agribusinesses, We will maximise value and minimise waste unlocking the unique characteristics, from whole of resource across production to mātauranga and values of Te Ao Māori by: consumption by:

• Designing holistic land use • Using “circular bio-economy concepts” configurations centred on kaitiakitanga to reduce waste and optimise energy and principles water usage efficiency from agri-food • Networking Māori properties and value production webs built on aligned kaupapa • Developing new technologies to unlock • Developing product attributes and the inherent biological value in secondary business models that reflect Te Ao Māori. food and bio-based product processing streams.

D. Fit-for-purpose plants and animals G. Transformed sectors

We will develop forages and animals with We will provide the underpinning science the attributes that meet the requirements of evidence to support the transformational future diverse production systems and value agenda of the agri-food sector and aid webs by: transition to new agri-food systems that enhance to societal and environmental • Matching animals and forages for conditions by: minimised environmental impact and maximised product value • Developing knowledge and technical • Developing world-leading animal health capabilities that either disrupt existing and welfare systems. competencies and technologies or complement them, to produce in new combinations • Developing new tools, processes and E. Added value foods and bio-based systems to enable implementation of products effective practice and behaviour change • Designing interventions with policy and We will create safe food and bio-based practice to support society-accepted products with optimised nutritional, sensory transition pathways and transformation and performance attributes, capturing value • Developing improved practice for through provenance and credible consumer monitoring and evaluation of impact health and wellbeing effects by: within complex systems.

• Ensuring full food safety, traceability and validated provenance • Taking a consumer-centric approach to differentiating New Zealand raw materials and whole foods • Scientific evaluation of the effect of functional foods and ingredients on consumer health and wellbeing • Developing non-invasive food and bio- product evaluation tools • Using systems biology approaches for predictive control of food and bio-based product properties from pasture to plate • Understanding global consumer trends Our strategy and markets.

10 Our consumer-centred, systems Our Tohu represents how AgResearch reaches for the stars based science drives the worlds... while staying firmly grounded. Our integrated research Smartest, most sustainable land-use systems capability is embedded with our Most sought after food and bio-products commitment to Te Ao Māori.

Overarching Principles

A. Protected, enhanced and B. Prosperous land based C. Added-value foods and sustained natural resources enterprises bio-based products that meet consumer needs

Our Science Objectives

Sustainable Climate change Vibrant Māori Added value Fit-for-purpose Minimised Transformed agri-food adaptation and agribusiness foods and plants and resource loss sectors production mitigation bio-based animals systems products Our strategy

11 Realigning our Science Groups

Following the implementation of the Science • The establishment of Associate Research Plan, AgResearch began to reassess the Director (ARD) roles focused on specific structure of our Research business unit to elements of our science – strategy, position it for the successful delivery of the investments, delivery, capability and Plan’s outcomes, and ensure it is aligned to enablers achieving our organisational strategy. • Better defined accountabilities in mid-tier science leadership through a series of A proposed structure was announced senior operational roles across the five early in the 2020 calendar year. Following elements consultation, the new structure was • Dedicated resources to strategic and confirmed. Key aspects of the structure operational integration of Te Ao Māori. include: Recruitment for the ARD roles got under way in June 2020. AgResearch intends to have the full new structure in place later this calendar year.

Alignment with government priorities

AgResearch’s strategy is well aligned to capabilities, and achieve better outcomes government priorities. It will support for New Zealand. AgResearch welcomed the accelerating the shift from volume to Government’s review of CRIs’ positioning to value agricultural production, enabling the meet New Zealand’s current and future needs transition to a productive, sustainable and (Te Pae Kahurangi), and will look to adopt low-emissions economy. It will also directly recommendations from the review panel’s support regional economic development by report. This will help further cement our close enabling prosperous and sustainable regions. relationship with other CRIs, and provide a roadmap to collectively and respectively We pursue activities that can sustainably work towards, as well as clarity on whether transform New Zealand’s agricultural there are any related system implications systems, including addressing production, arising from the assessment of cross-institute land management, and biosecurity. Our capabilities. research is aligned to the Government’s fundamental objectives for climate change AgResearch also welcomes the Government’s policy and New Zealand’s transition to a net direction to use Strategic Science Investment zero emissions economy. Funding (SSIF) platforms flexibly. The ability to be more agile and flexible with SSIF will We recognise that greater innovation comes allow AgResearch to more easily shift funding from collaboration, and that this is critical between platforms as priorities change to support the Government’s research and opportunities emerge, and ensure and science aspirations. Crown Research our science remains well-aligned. This will Institutes (CRIs) have therefore been focused be particularly important as New Zealand on ensuring we work closely together so that recovers from the effects of COVID-19. we play to our strengths, exploit our Our strategy

12 Our strategy

13 Responding to COVID-19 Ngā urupare ki te KOWHEORI-19

Financial viability

At the time of writing, the full effects of customers had to be put on hold or was COVID-19 on New Zealand’s economy are significantly delayed. only beginning to become clear. Maintaining financial viability for AgResearch as we On a positive note, there is a perception navigate the impact of the virus is a key that New Zealand has quality control and priority. response systems in place and may be able to rebound economically faster than other AgResearch’s commercial revenue comes countries to the pandemic due to the way primarily from dairy, meat and fibre on- it has been managed by the government. farm, and food and fibre off-farm, from both This, coupled with a growing correlation by domestic and international customers. The consumers to food safety, may improve New inability to perform both laboratory and farm- Zealand’s marketability and provide flow on based science during heightened alert levels benefits and opportunities to AgResearch. had an immediate and significant impact on Nonetheless, this is difficult to quantify within AgResearch’s ability to deliver projects, and the current environment. consequently our revenue. In addition, in the short term, the COVID-19 response has To support our financial position, AgResearch necessitated that many of our stakeholders is considering a range of options, including and partners narrow their focus to basic diversifying revenue sources, adapting our business continuity considerations, meaning work programmes to focus on high value/ some of our collaborations have become high uptake science, agility and a lower cost less of a priority to other parties or have lost structure. The financial impact has been momentum. captured in our budget and projected results, which are provided in the financial results The effects of the pandemic have caused section of this document. We also expect significant implications for our international to identify organisational cost savings as business, given COVID-19 affected some of part of our strategic refresh and operating our key partners much earlier than it did New model review processes, both of which will be

-19 to COVID Responding Zealand. Work with some of our international complete in the first part of the 2020-21 year.

14 Science delivery and revenue

Our key focus now and in the months once this becomes clearer, opportunities ahead is delivering contracted science and for AgResearch and the primary sector will continuing to seek out business opportunities abound. We are focused on being ready when with stakeholders and partners. they do.

AgResearch implemented initiatives Our comprehensive stakeholder engagement early in the 2020 calendar year to closely programme is continuing to make significant monitor progress on each of our projects, progress nonetheless. We’re strengthening particularly those identified as most clearly our relationship with existing stakeholders at risk from COVID-19 effects. While project by engaging more consistently and in more delays in some areas were inevitable, depth. We remain focused on building a safe and managed return to work for diversity in our stakeholder base, allowing some of our science staff at Alert Levels 3 access to new revenue streams and building and 2 mitigated some of these delays. A more effective revenue resilience. For proactive focus on determining what science example, we are working with the horticulture programmes and projects could be delivered, industry to use AgResearch’s unique and therefore should be prioritised, was capability in metabolomics for understanding carefully worked through in the last quarter the mechanisms of health benefits of of the 2019/20 year. We also worked hard to food products, and develop the tools for maintain constructive discussions with our authenticity and differentiation of New stakeholders around the reprioritisation of Zealand products with unique attributes. We contract milestones to match our ability to are also working with the seafood industry deliver under the operating constraints. to improve the genetic traits and online assessment of seafood quality. Some projects will inevitably be permanent losses rather than a revenue shift to In addition, we have also built a new future years, while others will require a full partnership with Farmlands. This partnership additional season or year to re-engage at the will enable our science impacts to reach and correct time in the production cycle. benefit farmers and their industries. Work commenced recently on a scoping project Our efforts are now concentrated on building with Farmlands and Manaaki Whenua for an understanding of the longer-term potential funding from Our Land and Water National impacts of COVID-19 on the research and Science Challenge, with a larger multi-year development plans of our stakeholders, both project planned. This work will investigate domestic and international. Our focus over industry schemes that reward good practice the last 12 months has been based around in New Zealand and relate these to Farm two key areas; engaging well with existing Environment Plans. stakeholders, and business development. Despite the COVID-19 crisis, New Zealand AgResearch appreciates it will take some and AgResearch are well placed to attract time to develop insight into the longer- international investment. All our international term impact of the virus, as many of our projects are conducted in New Zealand; the commercial stakeholders are grappling to key for AgResearch is to connect, develop understand the impact of COVID-19 on the and maintain those relationships. In 2020/21 operating environments within key export we will deliver our international investment markets. This is somewhat dependent on strategy to grow research and development how consumers and supply chains respond investment by adapting our new ways of in a post-pandemic world. We know that connecting with our existing and potential new clients. -19 to COVID Responding

15 This strategy focuses on four often inter- evaluate the international investment connected goals: opportunities and protect the needs and proprieties of New Zealand industries and • building global science collaboration commercial interests. and reputation, including people development In addition, we will continue to shift our • support for New Zealand stakeholders SSIF to generate new ideas critical for abroad (direct and indirect) New Zealand; unique to AgResearch and • science diplomacy: support for New contributing to Government’s Kei Mua Te Ao. Zealand government trade and policy More information on this is set out in the goals Our Science section. • working with international companies to support world-class capability We are also contributing our expertise and development. facilities to the COVID-19 response for New Zealand. For example, AgResearch scientists Given the impact of COVID-19 on borders, are part of a collaborative partnership AgResearch will implement our international developing a SARS-CoV-2 vaccine for New strategy through continuing to leverage Zealand. This collaboration involves Avalia our professional networks and virtual Immunotherapies, Ferrier Research Institute, connections. We will also leverage our key Malaghan Institute of Medical Research, and government connections; for example, the University of Otago. AgResearch and New Zealand Trade and Enterprise its partners have also secured funding to (NZTE), who is working with international develop a unique technology using different companies in Singapore, and the joint forms of light to kill the virus causing Ministry of Foreign Affairs/NZTE venture COVID-19, and other harmful viruses that Government2Government, to support us can linger in commercial and public places. with market access and other international Scientists from AgResearch will work with business opportunities. colleagues from Massey University and Christchurch firm Energylight Group Ltd to To support the strategy, we have set up a research a combination of different types of working group to ensure we are connected light that can be used to sanitise surfaces and internally on our international activities. circulating air, particularly where industrial Assessment criteria to evaluate commercial scale use of chemical disinfectants or other opportunities has also recently been sterilisation methods are unsuitable. confirmed to allow us to systematically -19 to COVID Responding

16 Our people: One AgResearch and New Ways of Working

Our change management programmes preferred. Our flexible working arrangements to implement One AgResearch and New guidance is currently being updated to reflect Ways of Working initiatives in recent years the greater flexibility we intend to offer our prepared AgResearch for the remote working people going forward. environment that was required in the last quarter of the 2019/20 year. Our technologies The reduced alert levels in May saw increased and digital platforms allowed those of our science-based activity in on-site laboratories, staff that could work from home to do so animal and greenhouse facilities, and travel to efficiently and productively, and our staff regionally constrained AgResearch farms and wellbeing programme meant that our field-sites. Our pandemic response plan will people were well-looked after throughout the continue to guide us in the months to come heightened alert level period. AgResearch as we establish a new way of operating. Our showed flexibility, resilience and innovation focus has been on ensuring our laboratories during what was a testing and often anxious were up-and-running safely and as quickly as time for many of our people. possible for our scientists. We will continue to work with our people to establish a safe The managed return to work at our campuses and new way of operating. is under way, with our people having the flexibility to continue working from home if -19 to COVID Responding

17 Our science Ā mātou pūtaiao

The Government has priorities for improving New Zealand’s environmental performance, international leadership in the reduction of livestock greenhouse gas emissions, adapting to climate change, and building regional economic prosperity.

There is a clear role for science in these Science-led innovation is essential to endeavours, and our integrated research ensuring the food export sector strikes approach working directly with landowners the correct balance between profit and and partnering with private sector sustainable growth. Our science has and entrepreneurs means we are well-placed to will make meaningful steps to help New lead the transformation of agriculture and Zealand achieve its goal of becoming a New Zealand food products and production carbon neutral economy by 2050. We will also systems. provide evidence-based research and advice to policy makers who are striving to improve Our Science Plan aligns with these priorities the quality of New Zealand’s freshwater. and positions AgResearch well to respond. AgResearch hosts, and is a partner of, the While we wait to see the impacts of the virus New Zealand Agricultural Greenhouse on a post-COVID-19 world, we know that the Gas Research Centre and the Pastoral mega-trends identified in the Plan will still Greenhouse Gas Research Consortium. be very much present and require swift and Along with hosting the Our Land and Water innovative solutions. Further, AgResearch National Science Challenge, and supporting will also be proactive, both as a standalone other National Science Challenges, we remain entity and in collaboration with other CRIs, committed to deepening our relationships in pushing forward areas of critical capability and collaboration with research entities and aligned ideas to support and accelerate both here in New Zealand and overseas so New Zealand’s economic recovery. We are we maintain our position at the forefront of acutely aware that we can have a significant climate change research. role in supporting and facilitating the contribution the primary sector will make on this front. Our science

18 Strategic Science Investment Fund

AgResearch’s SSIF investment is an In 2020/21 and beyond, our SSIF funding is important lever for the delivery of the Science focused on: Plan, for strategic, long-term underpinning research for our sectors, and for helping • delivering outcomes relevant to maintain and build critical research AgResearch’s Statement of Core Purpose capabilities and capacity for New Zealand. • increasing investment in As well as SSIF infrastructure support for a transformational research, including Nationally Significant Collection, the Margot generating new and riskier, high-potential Forde Germplasm Centre, it includes SSIF ideas Programme funding for two platforms: • balancing investment across the Science Plan Objectives according to • Agrifood production ($28.1m) – our strategic priorities and those of our Integrated platform of farm biome stakeholders genomics, biosecurity and decision- • reinforcing the delivery of AgResearch’s centric farm systems for sustainable Science Plan. livestock production • Premium agri-foods services ($10.3m) We are continuing to shift some of our – Combining food science, material SSIF investment into new areas of research science and food products and safety including those listed overleaf. science to create high-value meat, milk and bio-based products. Our science

19 Future direction/investment More research generating ideas, new capabilities and more partnering.

Enabling platforms Networks of people and infrastructure, cross-cutting capabilities for internal and external collaboration and integration.

eResearch Interface cyber-technologies with biological systems across supply chains to enable hyper-transparency. Includes big data, distributed sensory networks, sensing, automation, robotics, electronics, Blockchain and emerging technologies.

Systems biology The simultaneous measurement, analysis and modelling of multiple-biological system components, bringing together genomic, transcriptomic, proteomic, metabolomic, metagenomic data, predictive modelling and structural biology.

Responsible Consideration of cultural and socio-ethical implications in the design innovation of future food systems. Capabilities such as entrepreneurship, consumer science, sensory science, predictive social modelling, Mātauranga Māori, ethics, anthropology.

Integrative Significant integrative programmes of research bringing together transformational multiple disciplines and approaches. initiatives

NZ Bioeconomy in Harnessing digital technologies to enable the transformation of NZ’s the Digital Age food systems by integration of traditional biological sciences with emerging digital and computational technologies.

Biome-to-Biome A whole-systems understanding of how microbiomes across soil, plants, animals, and humans affect each other and how changes in composition can influence and control food production and product attributes.

Towards a Circular Halving food-system waste, transition to carbon sink farming, Bioeconomy extracting maximum value from resources. Our science

20 SSIF funding allocation A breakdown of how SSIF funding will be allocated across our work programme in 2020/21.

FY20 SSIF current FY21 SSIF investment Future goal investment FY21 SSIF Investment Categories (% Total) (% total) (% total)

Supporting/transitioning industries 68 50 62

Foresight 1 2 2

Discovery 4 10 7

Enabling platforms 2 14 4

Integrative/transformative initiatives 18 15 19

Mātauranga Māori 2 5 3

International/National connections 1 1 1

Others (fast track, prizes, science 4 3 2 conference)

Total 100 100 100

Our science programme is also focused on development of enabling platforms, responding to the recommendations of last integrative initiatives, and fast-track year’s MBIE science review. Part of our SSIF initiatives, providing rapid responses to new funding is set aside for the Science Plan opportunities. Some current projects that Accelerator Fund, which was established in have received funding are: November 2019. The Fund seeks to make strategic investments in critical projects that • White Paper on international can rapidly embed the approaches outlined in opportunities for diversifying New our Science Plan into our innovation culture. Zealand’s sheep breeds to ensure the future sustainability and profitability of One of the recommendations in the MBIE the New Zealand sheep industry review was that increased foresighting • detecting systemic risk earlier through would benefit AgResearch. Funding from artificial intelligence the Science Plan Accelerator Fund sets aside • AgResearch collaborations with the money for the development of white papers, Chinese Academy of Agricultural Science horizon scanning work, and international (CAAS) in areas of mutual benefit fact-finding missions. The Fund also sets • “Greenprint” for a New Zealand Pastoral aside investment for proof of concept, Biorefinery to reduce the number of ruminants in pastoral systems. Our science

21 Enabling technologies

The successful delivery of the revitalised informed use and integration of emerging Science Plan will be underpinned by enabling digital technologies. Additionally, it will equip technologies. As part of our transforming our people with the knowledge and skills through technology strategic initiative, in to recognise their eResearch needs and 2020/21 AgResearch will implement a digital when/how to engage services offered by the strategy focused on the following outcomes: platform.

• developing computational/data science An overview of the platform is illustrated capability via the eResearch enabling overleaf. Developing the platform and platform infrastructure behind it is a key focus for • creating impact for New Zealand 2020/21. landowners via inter-operable decision support tools Decision support tools • enabling innovation and improved organisational performance through A project that has received significant knowledge and information management attention through the New Zealand • delivering operational efficiency through Bioeconomy in the Digital Age programme investment in modern transactional is the visualisation tool concept HyperFarm, systems which was co-designed with Animation • analysing future operating models to Research Limited. Hyperfarm is a computer- transform efficiency and profitability based tool that lets landowners visualise • developing cyber security capability to using their land in different ways, and to protect assets and intellectual property. understand how those changes would affect things like water quality, finances, carbon Summaries of two key initiatives central to sequestration and bio-diversity. the digital strategy are set out below. Both of these have received some funding through Farmers and consultants will be able to the Science Plan Accelerator Fund. identify the range of activities that are suited to their unique circumstances. An animation eResearch platform interface will allow the user to interact with underpinning models and spatial layers via The eResearch platform primarily focuses visual image interface of their farm, and will on developing AgResearch’s capability to allow the user to rapidly understand multiple utilise modern data science technologies. It economic and environmental impacts and will enable scientists to overcome research trade-offs at different spatial and temporal challenges by applying modern data science scales. Design approaches will address how tools and techniques, including artificial to future proof the tool’s architecture and intelligence and machine learning. allow integration of new data from related projects. We propose to develop a minimum The eResearch platform will accelerate the viable product within the next two years for pace of our research through the use of release to targeted users in the form of either digital technologies and analytics, supporting a fully commercial product or public good existing and new forms of research. The provision. platform enables innovation through the Our science

22 e

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Securit Identit Infrastruc Digital Methods Digital Overview of eResearch platform Overview of eResearch Our science

23 Partnership and collaboration Ngā anga rangapū

A consistent theme across our strategy and the Science Plan is how critical collaboration and partnerships are in achieving research outcomes.

AgResearch is leveraging its world-leading AgResearch has extensive international capacity and reputation to grow and maintain connections, with 332 collaborations across a strong national and international network 61 countries. of research partners and collaborations. This ensures we can tap into best available science This network of international and national and technology and avoid unnecessary collaborations provides significant duplication of resources. Strong engagement opportunities to achieve the Science Plan with universities also provides a critical objectives. pathway for next-generation researchers for

Partnership and collaboration Partnership the organisation and the sector.

24 332 61 55 30 40 Collaborations Countries Collaborations Collaborations Collaborations with USA with China with Australia

10+ collaborations

6 – 10 collaborations

2 – 5 collaborations

1 collaboration

International collaborations map

Examples of domestic collaborative vehicles AgResearch is involved in or hosting Partnership and collaboration Partnership

25 We are refreshing how we approach We appreciate the significant volatility collaboration as part of implementing our and uncertainty that many of our critical strategy and Science Plan. In choosing stakeholders, partners and collaborators our partners – both collaborators and now face as a result of COVID-19, whether stakeholders – we will actively consider the it be disruption within supply chains or need to: the longer-term implications of changing consumer habits. We are also conscious • identify shared values and a common that the primary sector we serve will be vision that builds engagement, trust, critical in leading New Zealand’s economic clarity of expectations and understanding recovery, and that in the context of a global of each partner’s key strengths changing marketplace, our stakeholders are • create shared value through actively reviewing their business strategies adopting principles of co-design in response. AgResearch will engage closely and co-innovation, shared risks with our stakeholders and partners in and responsibilities, and building 2020/21 to understand what changes to their interdependence short- and medium-term strategies might • move from transactional relationships, result, and how we can support their recovery to more strategic relationships defining efforts. success beyond financial to embrace sustained economic, environmental, social and cultural outcomes.

This framing works alongside the associated principles that will guide development of our research-to-research collaborations:

• access to capability to deliver the Science Plan • increased science vitality through post- doctorates and post-graduates • increased generation and recognition of science excellence • access to data and infrastructure • global science citizenship • access to networks and stakeholders • opportunity for extended learning • exploit the benefits of open innovation methodologies • opportunity to source non-traditional investment. Partnership and collaboration Partnership

26 Partnership and collaboration Partnership

27 Integrated research facilities Ngā whare pāhekoheko rangahau

AgResearch is committed to seeking innovative approaches to delivering the best possible facilities and environments to underpin our enduring future value for New Zealand.

Our strategic framework and the Science centres of excellence will provide modern and Plan acknowledge the four-campus fit-for-purpose facilities in which to undertake model is critical to enabling collaboration innovative and impactful research, and and partnership and transitioning to bring together science capability internally systems-based research. The four campus and across the sector, allowing for a more model endorses the Lincoln campus as effective and collaborative approach to AgResearch’s corporate headquarters and tackling national science issues. The model one of our two national centres of excellence, also highlights the importance of two vibrant the other being Te Ohu Rangahau Kai in regional centres of excellence, at Ruakura and Palmerston North. Both locations were Invermay. This ensures we will have one or chosen as national centres of excellence more centres of excellence with proximity to because of their close location to Lincoln and our range of stakeholders and partners for Massey universities respectively, CRIs, and improved collaboration and innovation.

Integrated research facilities other partners and stakeholders. Our national

28 A summary of the focus of our national and regional centres of excellence is outlined below:

National Centres Regional Centres

Facility Food Science Hub Land-Based Food Ruakura Invermay Production Hub

Location Palmerston North Lincoln Hamilton Mosgiel

Specialities National centre for National centre Land-use and Land-use and food science for land-based environmental environmental food production issues in Upper issues in Otago New Zealand Food systems North Island and Southland Safety Science and Reseach Centre Our Land and Water quality on Water quality Water National Waikato River, from dairy Land-use and Science Challenge Rotorua Lakes and intensification environmental Lake Taupo issues in Central Data science, Hill country sheep, North Island and systems biology Biosecurity beef and deer Manawatu River and precision industries Dairy food agriculture National centre systems National centre for for agricultural Forage seed deer research greenhouse gas production research and Land-use and collaboration environmental National centre issues in for animal welfare Canterbury and research (with Upper South Massey University) Island Integrated research facilities

29 Te Ohu Rangahau Kai, the world-class joint AgResearch’s Lincoln Campus is the food science hub in Palmerston North, has second National Centre of Excellence and been developed alongside Massey University our corporate headquarters. The current and other research and commercial partners. AgResearch Lincoln Campus is situated The objective of this modern facility is to within the Lincoln education, science and enhance the impact of our science through innovation precinct (Lincoln Precinct) and increased collaboration in high-quality provides office and laboratory facilities for science facilities. It was due to open on time 300 employees. The Precinct comprises and within budget in April 2020, but this numerous organisations including was necessarily delayed by the pandemic. AgResearch, Lincoln University, Plant & Food It instead opened in early June. It is Research, Manaaki Whenua, PGG Wrightson already attracting global talent to work on Seeds, Irrigation New Zealand and others. grand food-based challenges – an ongoing challenge identified by all CRIs. The new facility planned to replace AgResearch’s ageing, earthquake-damaged The building provides a collaborative, infrastructure received Ministerial consent in modern and open working, teaching and June to proceed to the construction contract research environment. These new, state-of- stage with our preferred supplier. With the-art workspaces and ways of working are a construction due to commence in the second significant change for the staff and students half of the 2021 calendar year on a site within who will work in them. In preparation for the Lincoln University campus, this building staff relocations to the new facility, we will be the primary focus of our infrastructure developed a robust change programme to portfolio in the coming two years. This facilitate a successful transition to the new building will contribute to the advancement working environment. Change initiatives and transformation of agriculture in New include familiarisation site visits, change Zealand by ensuring AgResearch will be management and resilience workshops and able to conduct ground-breaking, impactful seminars, a capability strategy, and continued and world-leading science. The benefits relocation and transition support for those of a new facility are clear – an increase employees impacted by the move to the new in research revenue, and the quality and facility. quantity of collaborative research projects,

Te Ohu Rangahau Kai in Palmerston North Integrated research facilities

30 Concept drawing of the proposed Lincoln Facility

improved ability to attract and retain high- Invermay will continue its momentum in the calibre talent, improved organisational coming 12 months. The reaffirmation of the productivity, efficient delivery of science, and four campus model last year means that we an improved environmental footprint. are committed to maintaining physical and human capital at each of these locations. The facility will also allow closer collaboration Both our Ruakura and Invermay campuses with Lincoln University particularly, as well as continue to attract interest from tenants, and a range of other entities within the Precinct. opportunities for collaboration with other In an exciting development, AgResearch science organisations are actively pursued. has recently signed a Memorandum of At Ruakura, we are key collaborators with Understanding (MoU) with the University Innovation Waikato, Waikato-Tainui, Plant & to formalise how we will work with each Food Research, PGG Wrightson Seeds, and other to improve research opportunities BCC Limited. At Invermay, we will continue and collaborative science. The MoU will be to explore opportunities for collaboration the basis for collaboration now, as we both with the University of Otago and Otago build co-located facilities, and into the future. Energy Research Centre. We will also advance One of the key outcomes of this MoU is to collaborations with current partners Analytica, establish a joint graduate school in Food Manuka Med, Massey University, the Transitions 2050, in conjunction with other Ministry for Primary Industries, the Ministry CRIs and universities. of Education (Tai Wananga), Nufarm, NZ Natural Beef and Lamb, PGG Wrightson Building vibrant innovation hubs at our Seeds, Plant & Food Research, and Synthase regional centres of excellence at Ruakura and Biotech. Integrated research facilities

31 Our people To tātou iwi

To realise the outcomes of the Science Plan, AgResearch must have the right people doing the right work, in the right place, at the right time.

Our work in this area is key to achieving the New Ways of Working (He Ara Hou) and One AgResearch strategic objectives.

New Ways of Working Framework

Our working environment will: Our people will:

1. Be safe and secure – Provide a safe 1. Be inspired and engaged – We support and secure environment as it applies to a positive high performance culture, that Health and Safety and to protection of we are proud of and want to be part of. people, property and information. 2. Be kind – We work as One AgResearch. 2. Provide choice – Dynamic, supported We have each others’ backs. We do not open plan working environments are tolerate arrogance and challenge actions flexible and allow work to be done in a which are inconsistent with Our Values. range of settings, including collaborative 3. Have a sense of belonging – We are space with partner organisations. inclusive, considerate, welcoming and 3. Be open and connected – A workplace have a strong sense of community. that fosters working together and 4. Share – We share amenities across encourages us to leverage internal and ‘Groups’ (teams within one organisation external relationships to meet challenges or multiple organisations in a co-location and maximise impact. scenario) with partners. 4. Have the right tools – Provide the right 5. Be enabled and empowered – We utilise tools so employees can do their job the right tools and environment in order in a range of settings with consistent to do our best work and get on with the technology solutions throughout the job. We are trusted to act in AgResearch’s organisation. best interest. 5. Be adapatable and efficient – Designing for the current and future needs of our people, our science and our customers.

AgResearch Our people staff: 455 Female 386 Male

32 One AgResearch initiatives

Te Pae Māhutonga Whole Person Leadership New model for health, safety and Framework environmental stewardship Science Leadership Review

Co-designing a He Ara Hou Framework New Ways of Working Capability Gap Analysis with research to implement One AgResearch Kahui Whatu Tikanga Ropu strategies to attract/retain Mātauranga Māori L&D Programmes and Support

Implementation of a Our Voice Employee New People Information Experience Programme Platform (HRIS/Payroll)

We have strategies, initiatives and AgResearch has also developed a Mātauranga workstreams in place to ensure we have the Māori programme to build capability and capability to succeed in 2020/21 and beyond. support the delivery of the Te Ao Māori This includes: strategy. This includes offering Te Tiriti of Waitangi workshops, cultural competency • attraction, recruitment, retention workshops, Vision Mātauranga workshops, strategies Te Reo lessons, and immersive two-day Noho • leadership development and succession Marae visits. This programme and our wider management cultural competency framework are refreshed • diversity and equity programme annually to ensure the needs of our people development are met. • change management framework • workforce planning AgResearch also continues to have a strong • Human Resources Information System emphasis on our culture and the engagement (HRIS) tool implementation of our people, including bringing to life Our • employee experience enhancements Values across the organisation. In 2020/21, • future-focused research capability we will remain focused on embedding a One mapping; AgResearch culture. A key part of this will be • mentoring programme our change management programme and • Mātauranga Māori. continuing our people relocation process for roles moving to other campuses.

Our values represent the attributes that are innate to those who will drive the success of our organisation. Our people

33 34 Financials Pūrongo pūtea

35 Financial results

The following table shows the financial results from FY2020 through to FY2023 including the impact from COVID-19 for the forecast periods.

Overview of projected financial performance for the 4 years ended 30 June 2023

Financial year 2020 2021 2022 2023 Type Forecast Budget Projected Projected $000’s $000’s $000’s $000’s

Operating revenue 158,164 175,185 159,682 169,477

EBITDA 16,775 23,257 15,745 16,757

Surplus (deficit) before tax 2,175 6,087 580 1,462

NPAT 2,342 4,383 418 1,053

Total equity 238,639 243,021 243,439 244,492

Financial performance indicators

Financial year 2020 2021 2022 2023 Type Forecast Budget Projected Projected

Cashflow Net cash flow from 24,763 24,760 12,553 20,806 operating activities Net cash flow from (23,267) 11,814 (8,519) (58,382) investing activities Net cash flow from (2,526) (1,977) (1,849) (1,423) financing activities Total net cash flow (1,030) 34,597 2,185 (38,999) Cash at the beginning of 48,186 47,156 81,753 83,938 the year Cash at the end of the year 47,156 81,753 83,938 44,939

Ratios

Operating margin 3.0% 5.7% (0.1%) 0.5%

Operating margin per FTE 7.2 15.6 (0.2) 1.3

Revenue growth 1.33% 10.8% (8.8%) 6.13%

Current ratio 1.6 2.2 2.3 1.5

Quick ratio 1.3 1.9 1.9 1.1

Interest coverage (33.7) 24.9 0.2 (1.5) Operating margin volatility (FC/ 17.6% 20.7% 23.0% 23.6% TC)

Financials Return on total assets 0.7% 1.2% 0.1% 0.3%

Adjusted return on equity 1.6% 2.9% 0.3% 0.7%

Equity ratio 72.7% 67.5% 65.3% 64.0% 36 Net cash position

$100m

$90m

$80m

$70m

$60m

$50m

$40m 2020 2021 2022 2023 Financials

37 Non-financial targets

Core operating indicators

FY21 FY19 ID Indicator Definition Target Actual

G.1 End user collaboration Revenue per FTE from commercial sources $97.6k $85.4k

G.2 Research collaboration Publications with collaborators (Percentage of a) 14% a) 11% collaborations with a) only AgResearch authors, b) 39% b) 34% b) with other New Zealand authors, c) with c) 26% c) 33% international authors, d) with a combination of d) 21% d)22% New Zealand and international authors G.3 Technology and Commercial reports per scientist FTE 1 1.29 knowledge transfer G.4 Science quality Impact of scientific publications (the average 2.7 2.9 value of 2-year citations per document for scientific journals assessed by SCImago in which AgResearch staff published during the year, weighted by the number of AgResearch publications in each journal. The reference figure is for the 2014 calendar year) G.5 Financial indicator Revenue per FTE, based on average FTEs over $273.48k $239.54k the year

AgResearch-specific indicators of end-user engagement and science relevance

ID Indicator Definition FY21 Target FY19 Result

1.1 External stakeholder Consistent implementation of agreed Achieved Achieved engagement Stakeholder Services Plans 1.2 Publications with collaborators – >65% 58% Percentage of Stakeholder Relationship measure – “Very Good” or “Better” satisfaction rating 1.3 Satisfaction with our service – “Very Good” >75% 64% or “Better” satisfaction rating 1.4 Dealing with us – “Preference to Work” >60% 68% rating 1.5 Familiarity with our capability – “Very >45% 32% Familiar” rating 1.6 Contribution to Stakeholder Strategy – >90% 83% “Good or “Better” rating 1.7 Internal stakeholder Consistent implementation of agreed Achieved Achieved engagement Science Service/Interaction Plan 1.8 Revenue from a) total revenue, b) total net science a)$175.19m a) $156.09m stakeholders revenue, c) commercial revenue, d) IP b) $112.03m b) $116.23m revenue, e) international revenue, f) Māori c) $57.68m c) $53.81m revenue, g) CRRF d) $11.02m d) $12.0m

Financials e) $5.49m e) $5.44m f) $0.55m f) $0.27m g) $13.57m g) n/a

38 AgResearch-specific operating indicator of delivery to Vision Mātauranga

FY21 FY19 ID Indicator Definition Target Actual

2.1 Collaboration with Cultivate collaboration to support Māori 6 5 Māori agribusiness by co-developing funding proposals with stakeholders

AgResearch-specific workforce indicators

FY21 FY19 ID Indicator Definition Target Actual

3.1 Staff engagement Increase Engagement Index (EI) by 5 points 78% 68%

3.2 Health and safety No notifiable injuries and <2 notifiable events <2 0

AgResearch-specific financial performance

FY21 FY19 ID Indicator Definition Target Actual

4.1 Financial target Operating profit budget achieved Achieved Not achieved Financials

39 Miscellaneous items

AgResearch’s accounting policies Half‑Year Report

AgResearch’s financial statements are This includes: prepared in accordance with the requirements • unaudited financial statements and of the Companies Act 1993, the Financial notes (including accounting policies) for Reporting Act 2013, the Crown Research the half year, within two months of the Institutes Act 1992, the Public Finance Act half year 1989, and Generally Accepted Accounting • comparative figures for the Practice in New Zealand (NZ GAAP). The corresponding period of the previous financial statements, including the financial financial year information presented in this Statement • commentary on operations and overall of Corporate Intent, comply with the New performance for the period Zealand Equivalents to International Financial • a statement of responsibility Reporting Standards (NZ IFRS) and other • a statement that the CRI has operated applicable financial reporting standards as during the period in accordance with appropriate. A full Statement of Accounting the principles set out in Section 5 of the Policies is provided on AgResearch’s website at Crown Research Institutes Act 1992 and www.agresearch.co.nz. The only major change the Companies Act 1993 to the accounting policies since the 2019 • commentary on progress towards Annual Report is the adoption of NZ IFRS 16 achieving annual performance targets Leases from 1 July 2019. (financial and non-financial).

Principles in determining the annual Annual Report dividend, if any An Annual Report of the operations of AgResearch is delivered to the Shareholding The Company’s policy is that it will return Ministers within three months of the end of surplus cash to shareholders in the form each financial year. In it, the Board sets out: of a dividend when no sound investment opportunities (including reinvestment, commercialisation, capital expenditure and the • audited consolidated financial retention of important capabilities) exist. statements for the financial year, consisting of: • a report of the operations of It is forecast that no dividends will be paid in AgResearch and its subsidiaries the year ending 30 June 2019. • statements of financial position, comprehensive income and Information to be provided to the cashflows, including budget (as Shareholding Ministers during the established at the beginning of the financial year year in the SCI); and • statements of commitments, contingent liabilities, accounting AgResearch provides Shareholding Ministers policies and such other statements with the following documents and information as may be necessary to show the throughout the year: financial results of the operations of AgResearch and its subsidiaries Quarterly Reports during the financial year and their financial position at the end of the These include: period. • financial statements • comparative information for the previous • comparisons with budgets and comments financial period on financial activities for the quarter • the auditors’ report on these financial

Financials • comment on research achievements and statements comparisons of such achievements with • a statement of responsibility business plans. • a report on AgResearch’s performance as a good employer 40 • a corporate social responsibility report • transactions that affect a company’s • a report against financial and non- ownership of a subsidiary or a financial performance indicator targets subsidiary’s ownership of another set in the SCI entity (provided that transactions which • a response to any direction given by the include “drag-along” clauses that compel Shareholding Ministers. AgResearch to sell interests at a future date at the direction of the investors shall The Annual Report will comply with the be valued at the time of the investment annual reporting provisions in Part V of the transaction) Public Finance Act 1989, Section 17 of the • other transactions that fall outside the Crown Research Institutes Act 1992 and the scope of the definition of the company’s Companies Act 1993. core business or that may have a material effect on the company’s science capabilities. Procedures to be followed before any member of the group subscribes The Board will advise Shareholding Ministers for, purchases, or otherwise acquires in writing before entering into any transaction shares in any company or other related to property and commercialisation organisation activities below this threshold in accordance with notice requirements agreed between the As required by section 13(1)(d) of the Crown Ministers and AgResearch from time to time. Research Institutes Act 1992, AgResearch will not acquire: Activities for which the Board seeks compensation from the Crown • shares that give it substantial influence in or over a company At the date of this SCI, no compensation has • an interest in any partnership, joint been sought from the Government. venture, or other association of persons • an interest in a company other than in its shares, except after written notice to the Current commercial value of shareholding Ministers. AgResearch

The Board will obtain prior written consent The Board’s estimate of the current from Shareholding Ministers for any commercial value of the Group is transaction or series of transactions involving approximately $239m. This value is based a full or partial acquisition, disposal or solely on the forecasted Group equity positon modification of property (buildings, land, and determined under NZ GAAP which the Board capital equipment) and other assets with a considers is a reasonable approximation value equivalent to or greater than $10m. The of the commercial value. The Board notes Board will obtain prior written consent for that the Group revalues its land, land any transaction or series of transactions with improvements, and buildings every three a value equivalent to or greater than $5m years, or more frequently where market involving: and other factors indicate their stated book value may not reflect their current fair value. • the acquisition or disposal, in full AgResearch does not revalue its intangible or in part, of shares or interests in a property rights. subsidiary, external company or business unit Financials

41 42 Directory Tohutohu

Executive Leadership Team Board of Directors

Tony Hickmott Dr Paul Reynolds QSO Acting Chief Executive Chair (Effective from October 2019) (Appointed September 2019)

Sharon Cresswell Kim Wallace Interim Finance and Business Performance Deputy Chair Director (Appointed June 2020) (Effective from November 2019) Chair – Audit and Risk Committee Dr Trevor Stuthridge Jacqueline Lloyd Research Director Chair – People and Culture Committee Stuart Hall Colin Armer Partnerships and Programmes Director Director Jo Brady Rukumoana Schaafhausen Communications and Marketing Director Director Greg Rossiter Dr Louise Cullen Technology and Digital Services Director Director (Appointed March 2020) John O’Dea Infrastructure Director Lain Jager Director Fleur Evans (Appointed June 2020) Acting People and Culture Director (Effective from November 2019) Dr Peter Stone Director Natasha Barnett (Until September 2019) Health, Safety and Environment Director

Chris Koroheke Kaiurungi Ahuwhenua Māori Information

Auditors Deloitte on behalf of the Auditor-General

Bankers ANZ Bank New Zealand Limited Westpac Banking Corporation Directory

43 Science working for New Zealand The Crown Research Institutes (CRIs) proudly work, individually and collectively, to create a more prosperous, sustainable and innovative New Zealand

3,600 50 6,000 40 SMART AND SITES ACROSS SCIENCE PROJECTS NATIONALLY SIGNIFICANT 44 PASSIONATE PEOPLE NEW ZEALAND EACH YEAR DATABASES & COLLECTIONS J008885

J008885_ADVERT_SNZ_Advert2020_FINAL_BW.indd 1 2/07/20 1:25 PM AgResearch Limited NZBN: 9429 038 966 224

Lincoln Corporate Office Lincoln Research Centre 1365 Springs Road Lincoln 7674 Private Bag 4749 Christchurch 8731 T +64 3 321 8731

Hamilton Ruakura Research Centre 10 Bisley Road Hamilton 3214 Private Bag 3123 Hamilton 3240 T +64 7 856 2836

Palmerston North Grasslands Research Centre Hopkirk Research Institute Te Ohu Rangahau Kai Tennent Drive Palmerston North 4410 Private Bag 11008 Palmerston North 4442 T +64 6 356 8019

Mosgiel Invermay Agricultural Centre 176 Puddle Alley Mosgiel 9092 Private Bag 50034 Mosgiel 9053 T +64 3 489 3809 www.agresearch.co.nz