TŪWHARETOA SETTLEMENT TRUST

ANNUAL REPORT 2018 CONTENTS

About Us...... 04

Governance...... 05

Chairman’s Report ...... 06

Management...... 09

Operational Report...... 10

Grants...... 10

Member Register Database...... 11

Investments...... 12

Our Relationships...... 14

CNI Land Management...... 16

Mana Whenua Update...... 16

Kaumātua Dinner 2018...... 18

Te Hui Nui Ki Pukawa ...... 19

Organisational Structure...... 20

Financial Performance...... 21

Financial Position...... 22

Looking Ahead: Strategic Plan 2018-2020. . . . . 24

2017 AGM Minutes ...... 26

Audited Accounts...... 34

All imagery of trees published in this Annual Report is original photography of our very own Kaingaroa Forest . TŪWHARETOA SETTLEMENT TRUST ANNUAL REPORT 2018

ABOUT US GOVERNANCE

TŪWHARETOA SETTLEMENT TRUST: THE CNI SETTLEMENT AND NGĀTI TŪWHARETOA SETTLEMENT TRUST’S VALUES ARE WISDOM, INTEGRITY, FAIRNESS, TOLERANCE, We are the Post-Settlement Governance Entity TŪWHARETOA: ACCOUNTABILITY AND COURAGE. ALL THESE VALUES ARE HELD CLOSELY BY THE TRUST, AND WE (PSGE) that manages the financial resources Ngāti Tūwharetoa is one of eight iwi included in ARE MEASURED AGAINST THEM BY YOU, THE TŪWHARETOA PEOPLE. returned to Ngāti Tūwharetoa in the Central North the CNI settlement . Our Iwi received: Island Forests Iwi Collective settlement . OUR BOARD ••A payment of $66m of accumulated rentals, Tūwharetoa Settlement Trust is governed by seven Trustees from within Ngāti Tūwharetoa. Approved by Ngāti Tūwharetoa, the Trust was with approximately $29m for the associated Our current Trustees are: established on 1 July 2009, and has been forest hapū; operating for the benefit of Ngāti Tūwharetoa ••25 .9% of annual Crown Licence fees until the ever since . RAKEIPOHO TAIAROA DYLAN TAHAU year 2043; CHAIRMAN TRUSTEE – HIKUWAI OUR ROLE IS TO: TRUSTEE – MAATAAPUNA ••An equal shareholding in CNIIHL (the company Protect and enhance the arikitanga, mana and •• holds 176,000ha of the CNI forest land, with the rangatiratanga of Ngāti Tūwharetoa. actual land holding by iwi to be determined by ••Promote and advance the social, economic and Mana Whenua); cultural wellbeing of our members and their ••A share of three million NZUs (carbon credits); hapū. and OUR OBJECTIVES ARE TO: ••Preferential rights to buy certain Crown assets 04 05 HON DAME GEORGINA TE JOANNE TE HUIA ••Complete the Mana Whenua determination over (DSP). HEUHEU, QSO TRUSTEE – TAI HAUĀURU land held by Central North Island Iwi Holdings DEPUTY CHAIRMAN Limited (CNIIHL); OUR TRUSTEES’ RESPONSIBILITIES ARE: TRUSTEE – IWI WHĀNUI ••Strategic direction ••Complete the cultural redress on the CNIIHL lands; ••Setting values and principles ••Establish Forest Hapū Cluster Trusts (FHCs), ••Monitoring performance hold and distribute funds belonging to those ••Reporting to members Hapū Trusts; and ••Risk management ••Realise the opportunities in the Deferred PARANAPA OTIMI JUDY HARRIS ••Legislative compliance Selection Process (DSP) of the CNI settlement TRUSTEE – IWI WHĀNUI TRUSTEE – TAI TONGA (property purchases). ••Policy formulation ••General Manager selection The Trustees have delegated implementation and operations to the General Manager, through policy and a Delegated Authorities Manual .

JEFFREY BENNETT TRUSTEE – TE ARIKI REPRESENTATIVE TŪWHARETOA SETTLEMENT TRUST ANNUAL REPORT 2018

CHAIRMAN’S REPORT

We welcome these new Trustees, and also COLLABORATION FOREST HAPŪ CLUSTER PŪTEA express our thanks and best wishes to the three In the previous year, Tūwharetoa Settlement At the last AGM, special resolutions were passed retiring Trustees: Eruini George; Te Kanawa Pitiroi; Trust signed a Memorandum of Understanding amending the Trust Deed to grant Trustees and Dr Charlotte Severne. Ngā mihi for your (MOU) with the Tūwharetoa Māori Trust Board and discretion to make further distributions to the commitment to Ngāti Tūwharetoa. Ngāti Tūwharetoa Fisheries Charitable Trust. This FHCs . I am pleased to advise that Te Pou Whenua STRATEGIC DIRECTION formalised our committment to work together in O Waituhi Trust has now received 100 percent of a positive, efficient and respectful manner for the funds held on behalf and a further distribution One of the first tasks undertaken by our new Board benefit of Ngatī Tūwharetoa. will be made shortly to Te Pae o Waimihia Trust . of Trustees was to review and refresh the Strategic The establishment of the Taurewa FHC is not yet Plan . We have placed emphasis on the Trust’s We have continued to conduct our mahi in a finalised, with discussions underway between the long-term position and growth, including resolving collaborative way, and our current focus is on a relevant hapū. the outstanding Mana Whenua agreement for common Member Shared Database, which we Waimihia, Waimaroke and Pukuriri. We are pleased will implement in January 2019 . This database Nā reira, it is encouraging to reflect on another

RAKEIPOHO TAIAROA, CHAIRMAN to share this new Strategic Plan with you on page will provide our Tūwharetoa whānui with a single year of positive mahi and I acknowledge the work 24 of this Annual Report . point of registration for all three Trusts, making and dedication of our staff, led by our General the process much more efficient. The Trust also Manager, Greg Stebbing. GROWTH TĒNĀ KOUTOU KATOA, intends to advance our discussions with Te As per the kōrero in my last report, in 2013 we Ngā manaakitanga o te runga rawa ki runga i a Kotahitanga o Ngāti Tūwharetoa and hope they On behalf of the Board, I am pleased to present undertook an audit of the financials that showed, 06 07 koutou katoa mo tēnei wā o te hari koa. this Annual Report for Tūwharetoa Settlement will join our MOU in the future . after taking account of the Trust’s liabilities to the Meri Kirihimete, tēnā koutou katoa. Trust in the 2017/18 financial year. The Trust has FHCs, the residual Trust Equity was only $16.2 INVESTMENTS continued to achieve positive results for our iwi, million. Now in 2018, it is my pleasure to report Joint investment within Ngāti Tūwharetoa with our focus firmly on our mission – to actively that through the Trust’s careful management and has been a strong theme again this year with improve the social, economic and cultural strategic investments, Tūwharetoa Settlement Tūwharetoa Settlement Trust joining other Rakeipoho Taiaroa wellbeing of Ngāti Tūwharetoa. Trust’s Equity has increased to $47.5 million and we Tūwharetoa commercial entities to form two new Chairman The Trust’s mahi over the year has seen us make are completely debt-free. This is an outstanding partnerships: the Tūwharetoa Hau Rau (100 Winds) further progress in building a solid foundation for a result to benefit the people of Ngāti Tūwharetoa. Limited Partnership, and the Tūwharetoa Gondola prosperous future . Robust systems and processes The Trust’s success in the 2017/18 financial year Limited Partnership. The combining of our financial are in place, which means we are in a good has seen us achieve a net profit after tax of $8.5 resources allows Ngāti Tūwharetoa to be involved position to achieve our strategic goals . A highlight million, which represents an increase of $3.9 in investment opportunities that would generally has been the Trust’s allocation of funds to our four million compared to last year . be too large for a single entity to realise on their own . These investments are explained further in Forest Hapū Cluster Trusts (FHCs) during the year, There has also been great progress with regard the Operational Report from page 10 . which has enabled them to return these funds to to the Trust’s grants . I am delighted to report that whānau through grants. in 2018 we increased the total funds available Under the CNI Right of First Refusal (RFR) process, ELECTIONS for grants to just under $1 million, through the a property at 11 Tūwharetoa Street in Taupō was In December 2017 the Trustee election process addition of Marae Capital Works grants and purchased on a 50-50 share basis with Te Pae 2 was completed, with three new Trustees elected STEM (Science, Technology, Engineering and O Waimihia Trust. This is a 2,000m commercial to the Board: Paranapa Otimi (Iwi Representative); Mathematics). property in the Taupō CBD. We continue to assess Joanne Te Huia (Tai Hauāuru Taiwhenua options for development, including a potential joint Representative); and Judy Harris (Tai Tonga venture incorporating the eastern neighbouring Taiwhenua Representative). property . TŪWHARETOA SETTLEMENT TRUST ANNUAL REPORT 2018

HEADING MANAGEMENT

OUR TEAM The Tūwharetoa Settlement Trust operational team includes our General Manager, Executive Administrator and Administration Assistant. We also contract a part-time Finance Administrator.

Oversight of financial services is provided by Beker Findlay Allen, and legal advice is provided by Lisle McErlane.

GREG STEBBING TE AROHA WOODS GENERAL MANAGER FINANCE ADMINISTRATOR

08 09 MERE TAHUPARAE-LUINSTRA MERIANA MOREHU EXECUTIVE ADMINISTRATOR ADMINISTRATION ASSISTANT

Our role is to protect and enhance the arikitanga, OUR TRUST’S VALUES mana and rangatiratanga ARE WISDOM, INTEGRITY, of Ngāti Tūwharetoa. FAIRNESS, TOLERANCE, ACCOUNTABILITY AND COURAGE. TŪWHARETOA SETTLEMENT TRUST ANNUAL REPORT 2018

OPERATIONAL REPORT

Marae Operational Support grants were provided MEMBER REGISTER DATABASE to 30 marae, receiving $15,000 each. The Hapū Validation process that began in 2016 Board and Ngāti Tūwharetoa Fisheries Charitable has been slower than expected to complete, with Trust is implementing a new shared Members Education grants were provided in partnership many hapū finding the validation task a daunting Database software system that will improve the with the Tūwharetoa Māori Trust Board and Ngāti one. This is an important requirement however, service to all our members through a one-stop Tūwharetoa Fisheries Charitable Trust, with a total of as the Tūwharetoa Settlement Trust Member registration process . It will also provide better $509,000 distributed to 1,211 Tūwharetoa whānui. Register database is also used by other entities, reporting and access to related parties, such as such as the Forest Hapū Cluster Trusts (FHCs) the FHCs . The new software system is called NUMBER PURPOSE for matters including elections and distributions . Sales Force and is deemed to be the most widely- 455 Early Childhood and Kōhanga Reo Its accuracy is crucial, and we will continue to used Customer Relationship Management (CRM) encourage and support our hapū to complete system in the world . The three current individual 290 Secondary School NCEA this exercise. Tūwharetoa Settlement Trust, in entity databases will be merged into the new GREG STEBBING, GENERAL MANAGER 3 Apprenticeships collaboration with the Tūwharetoa Māori Trust system in early 2019 .

397 Tertiary Study INTERNATIONAL OUR MEMBERS TĒNĀ KOUTOU KATOA 53s Special Needs 80+ AUSTRALIA OTHER 4% 7% 4% Tūwharetoa Settlement Trust achieved excellent 13 Scholarships SOUTH ISLAND financial results for the 2017/18 year, through 10 11 4% strong investment performance and controlled WELLINGTON AUCKLAND Marae Capital Works grants were provided in WAIRARAPA NORTHLAND operating expenses . This meant we were able to 7% increase the Trust’s Nett Equity to $45.4 million partnership with the Tūwharetoa Māori Trust Board, 10% and increase the level of grants distributed to with a total of $399,000 granted to eight marae. 60 - 79 WAIKATO Ngāti Tūwharetoa whānau to just under $1 million. 18 - 39 22% 8% 34% WHANGANUI GRANTS MARAE PROJECT VALUE MANAWATU 26% In the 2017/18 financial year Tūwharetoa Kakahi New wharemoe $10,000 BAY OF PLENTY Settlement Trust’s grant funding was $960,000, 16% Otukou Upgrade chiller room and $55,000 which represents an increase of $277,000 walkway extension 40 - 59 TAUPŌ/TURANGI compared to the previous year . 41% 26% Oruanui Upgrade hot water system $42,000 Grants were provided towards: and new archive/storeroom

1 The Paramountcy Office $100,000 Te Mahau Feasibility support for $10,000 HAWKE’S BAY proposed upgrades EAST COAST 2 Marae Operational Support $450,000 7% Tokaanu Replace ablutions block $143,000 3 Education $160,000 80+ 282 4% 60 - 79 1663 22% Auckland/Northland 781 10% Te Develop project plan for $10,000 4 Marae Capital Works Projects $250,000 40 - 59 3119 41% Waikato 611 8% Tikanga wharepuni renovations 18 - 39 2599 34% Bay of Plenty 1258 16% Hawke’s Bay/East Coast 535 7% Waihi Wharekai renovations $79,000 Total 7663 100% Taupō/Turangi 1976 26% Whanganui/Manawatu 1093 14% Waitetoko Upgrade wharekai electrical $50,000 New Zealand 6670 Wellington/Wairarapa 538 7% systems International 552 South Island 306 4% Total with an Address 7222 Australia 540 7% No Address 2124 International other 25 0%

Total 9346 Total 7663 100% TŪWHARETOA SETTLEMENT TRUST ANNUAL REPORT 2018

HEADING INVESTMENTS

MANAGED FUNDS Significantly, Te Pūia Tāpapa Fund has signed a TŪWHARETOA GONDOLA LIMITED SALE OF FORESTRY RIGHTS FOR Surplus funds held by Tūwharetoa Settlement Memorandum of Understanding (MOU) with the PARTNERSHIP TAUREWA, WAITUHI AND PUREORA Trust have traditionally been invested in bank term NZ Super Fund. Under the MOU, Te Pūia Tāpapa Ruapehu Alpine Lifts (RAL) has launched a project SOUTH FORESTS Fund and the NZ Super Fund will be preferred deposits. While these are a safe option, they return to build a $25 million gondola to replace the Following approval from the southern Forest partners, committing to full and open dialogue very low yields, dropping to below three percent in chairlift between the Top of the Bruce and Knoll Hapū Cluster Trusts, the sale of forestry rights for over investment opportunities . The Fund will help recent times . Ridge café. As part of its funding, RAL issued a Taurewa, Waituhi and Pureora South Forests to the Māori groups further diversify their portfolios In the 2017/18 financial year, the Trust sought bond offer with a guaranteed minimum return and Lake Taupō Forest Management Limited (LTFM) and access larger scale direct investment professional guidance to complete a Statement of a share in the upside of any increase in passenger was completed in June 2018. This means that opportunities than they could achieve on an Advice, which recommended that surplus funds numbers. To participate in the bond offer, six Ngāti LTFM, the largest forest owner and operator in the individual basis. Iwi and Māori groups will have an be held in Managed Funds with a moderate risk Tūwharetoa commercial entities have formed Ngāti Tūwharetoa rohe, now owns the trees on increasing economic base, with potential to grow profile. This means that funds will be invested Tūwharetoa Gondola Limited Partnership, with a these blocks and is responsible for all operations land, capability and capital. 65 percent in NZ Cash and Fixed Interest, and 35 total commitment of $7 .5 million . including new planting and harvesting . This percent in Shares (Equities) and Property. transaction has enabled Tūwharetoa Settlement Trust to reduce our already heavy exposure to the A tender process was run to select a Funds forestry sector, and to provide funding for other Manager, with the successful parties being a investment opportunities . partnership between My Fiduciary and Iwi Investor (owned by Lake Taupō Forest Trust). 12 13 TŪWHARETOA HAU RAU LIMITED PARTNERSHIP Ten Ngāti Tūwharetoa commercial entities have formed Tūwharetoa Hau Rau (100 Winds), a

Limited Partnership . This has been established Signing of the MOU with NZ Super Fund and Te Pūia Tāpapa Directors. specifically to join a group of 25 other Iwi and Tūwharetoa Hau Rau representative Debbie Birch is seated centre. Māori organisations to establish Te Pūia Tāpapa Fund, which has a total fund commitment of $115 million. The purpose of the Fund is to pool financial Te Pūia Tāpapa symbolises a resources to increase Māori investment into a cluster of seed beds used to broader scale of assets, alongside large investors such as the NZ Super Fund and ACC . grow kūmara. The concept

The 10 partners in Tūwharetoa Hau Rau have is used to symbolise the committed a combined total of $20 millon to Te creation of a fund for growth Pūia Tāpapa Fund and will be represented on the and aligns with the first board of Te Pūia Tāpapa Fund by Debbie Birch (Ngāti Tūwharetoa, Ngāti Apa, Ngāti Hauiti, Ngāti principles that set out that Rangi). iwi collaborate to provide leadership, governance and best practice to achieve high growth and stronger returns. TŪWHARETOA SETTLEMENT TRUST ANNUAL REPORT 2018

OUR RELATIONSHIPS

HAUTŪ-RANGIPŌ WHENUA LIMITED of the Taupō Courthouse and the land and buildings 2 3 PARTNERSHIP of the Taupō Probation Office in Taniwha Street. This Ngāti Tūwharetoa partnership was formed in Tūwharetoa Settlement Trust is represented on the 2015 for the purpose of acquiring for our iwi the TPILP by Hon Dame Georgina te Heuheu (Chair), Hautū-Rangipō land occupied by the Deptartment Rakeipoho Taiaroa and Greg Stebbing . of Corrections. Tūwharetoa Settlement Trust is a shareholder along with the two forest trusts and three large Tūwharetoa farming trusts. With good long-term leases in place and the completion 1 of the development of the farming footprint, the returns on this investment are now performing to 4 5 6 an acceptable level . TE KAKANO WHAKATIPU LIMITED PARTNERSHIP This is a partnership comprised of six CNI Iwi investing in Kaingaroa Timberlands, the company that owns and manages the Kaingaroa Forest 14 15 estate. As reported each year, this has been the stand out investment for Tūwharetoa Settlement Trust, with the original $13 million invested now 7 8 valued at $24 million, a gain of 92 percent. In addition to the increased valuation, the Trust has received annual cash dividends averaging 8 percent. Although the performance to date has been outstanding, the forestry industry is very sensitive to log pricing and demand . With the current trade issues between the USA and China, the Trust is aware that we may see some downwards movement in financial returns.

TŪWHARETOA PROPERTY INVESTMENT 9 10 11 LIMITED PARTNERSHIP This investment partnership includes Tūwharetoa Settlement Trust, Te Pae o Waimihia (via Tūwharetoa Settlement Trust), the Tūwharetoa Māori Trust Board and Lake Rotoaira Forest Trust.

The Partnership owns 11 properties purchased 1: Mountview School; 2: Hilltop School; 3: Te Kura Kaupapa Māori ki Tūwharetoa; 4: Tauhara College; 5: Tauhara School; 6: Waipahihi School; under the CNI Deferred Selection Process (DSP) 7: Taupō Nui a Tia College; 8: Taupō Intermediate; 9: Taupō Primary; 10: including the land of nine Taupō schools, the land Taupō Court House; 11: Department of Corrections - Probation TŪWHARETOA SETTLEMENT TRUST ANNUAL REPORT 2018

CNI LAND MANAGEMENT Mana Whenua discussion over the southern The CNI Iwi Land Management Company CFLs of Waimaroke, Pukuriri, Waimihia North and continued to add value to CNI Iwi Holdings, by Waimihia South was held up awaiting the outcome signing on more non-forestry rental income of the Tūwharetoa Māori Trust Board’s Environment streams from the fringe CFLs and increasing Court appeal case regarding Rotokawa . returns on current income streams . The Tūwharetoa Māori Trust Board (TMTB) was The Company focused a lot of time and resources seeking a kaitiaki role for Ngāti Tūwharetoa in this year to oppose Plan Change 10, introduced respect of the Rotokawa geothermal resource, by the Bay of Plenty Regional Council to limit land particularly in relation to the resource consents use flexibility in the Rotorua catchment lands. granted by Waikato Regional Council to Rotokawa This has an impact on some of the northern Joint Venture Limited. Specifically, TMTB wanted satellite lands that currently sit within the Rotorua the general conditions of those consents catchment area . This work stream is ongoing and amended to include its own representatives on will continue into the 2019 financial year. the Review Committee. This was effectively a mana whenua argument with Ngāti Tahu, as Ngāti Another focus for Land Management this year Tūwharetoa had previously been excluded. has been around the sale of non-settlement NZ Carbon Units (NZUs), which returned a good profit The Appeal Court found in favour of TMTB, and 16 17 from the original purchase price in 2012 . The NZUs ordered amendments to the consent conditions sold before balance date have been distributed to to allow Ngāti Tūwharetoa to participate as kaitiaki PSGEs during the financial year. in information sharing and meetings regarding the monitoring and review of the exercise of the MANA WHENUA UPDATE consents . The 2017/18 financial year saw the third adjudication panel member returned to the panel The TMTB represents the interests of and must to input his considerations to the Adjudication consult with the following hapū: Ngāti Hineure; Report . Personal reasons meant he was not able Ngāti Hinerau; Ngāti Te Urunga; Ngāti Tutemohuta; to do this at the time that his two colleagues Ngāti Rauhoto; and Ngāti Tutetawha. reported their findings in the previous year. CNI Iwi Holdings is working with the PSGEs to finalise the Mana Whenua process on the nine adjudicated The CNI Iwi Land Management Crown Forest Licence Areas (CFLs) in accordance Company continued to add with the CNI Trust Deed requirements and the High Court ruling of 2015 . value to CNI Iwi Holdings, by

This year also saw PSGEs re-engage in kanohi ki te signing on more non-forestry kanohi negotiations on some of the Satellite CFL rental income streams from blocks in the Northern region that were not taken the fringe CFLs... to adjudication . They have shown positive steps towards completing their Mana Whenua process . TŪWHARETOA SETTLEMENT TRUST ANNUAL REPORT 2018

KAUMĀTUA DINNER 2018 TE HUI NUI KI PUKAWA

Our Kaumātua Dinner was TE KOTAHITANGA O TE MOTU held on the 27th of October NOVEMBER 2018 2018 at the Wairakei Resort. Over the past year Tainui has been celebrating the steadfast alliance and brotherhood, and this has Here are a few photos of continued to remain strong to this day . our Kaumātua and Kuia 160th year of the Kingitanga . Celebrations ended enjoying themselves. at Pukawa Marae with karakia at the site of the Over 650 people from Tainui and the Motu were in Thanks to all involved in 1856 Hui of Chiefs, where Potatau Te Wherowhero attendance, and Tūwharetoa Settlement Trust was this special event. 18 19 was chosen to be the first Māori King. In 1856, proud to support this auspicious occasion . Tūwharetoa and Tainui rangatira commenced a Images: Rawhitiroa Photography on behalf of Waikato-Tainui TŪWHARETOA SETTLEMENT TRUST ANNUAL REPORT 2018

ORGANISATIONAL STRUCTURE FINANCIAL PERFORMANCE

Our streamlined organisational structure has enabled us to manage risk and make the most of PROFIT AND LOSS commercial opportunities. Our subsidiary company, Tūwharetoa Limited, continues to fulfil its role The total Comprehensive Income after Tax for the year was $8.5 million, an increase of $3.9 million of facilitating the adoption of skilled and experienced personnel, mitigating and managing risk, and compared to last year. facilitating co-investments and capital raising. The strong performance incorporated the following notable points: TŪWHARETOA ••CNI Forestry Rental distributions were up $0 .3m . ••The Hautū-Rangipō Whenua Limited Partnership SETTLEMENT TRUST investment performance improved to 6% ROI PARENT PSGE ••A capital distribution of $0 .5m was received from due mainly to harvesting income from woodlots . CNI IWI HOLDINGS CNI Iwi Holdings Limited . 11.25% INTEREST 25 .91% OF ••A one-off gain of $0.7m was received through ••The Kakano Investment Limited Partnership DISTRIBUTIONS reversal of the provision for funds held on behalf investment was once again the standout TŪWHARETOA of the Marotori-Pureora FHC to reflect the CNI CARBON FARMS performer with cash distributions of $1.6m (13%) LIMITED Mana Whenua agreement reached with Ngāti 100% SUBSIDIARY and a further increase in the valuation of the Raukawa . HAUTŪ-RANGIPŌ investment of $3.6m (18%). Since the original LIMITED PARTMERSHIP investment of $12 .5m was made in December ••The sale of the satellite forestry rights to Lake 19.74% ASSOCIATE 2013, TST has received cash distributions Taupō Forest Management Ltd generated an

TŪWHARETOA totalling $4.9m (39%) along with an increase of accounting gain of $0 .5m through recovered LIMITED 100% SUBSIDY 20 21 $11.6m (93%) in the book value of the investment. depreciation .

TŪWHARETOA TŪWHARETOA TŪWHARETOA TŪWHARETOA KAKANO LIMITED FORESTRY TST NO 1 LIMITED TST NO 2 LIMITED HAU RAU LIMITED GONDOLA LIMITED PROPERTY LIMITED PARTNERSHIP RENTALS LIMITED 100% SUBSIDIARY 100% SUBSIDIARY PARTNERSHIP PARTNERSHIP 100% SUBSIDIARY 20.63% ASSOCIATE 100% SUBSIDIARY 9% INVESTMENT 9% INVESTMENT 2014 2015 2016 2017 2018 TE PUIA TAPAPA TŪWHARETOA KAINGAROA LIMITED FINANCIAL POSITION PROPERTY TIMBERLANDS $m $m $m $m $m INVESTMENT PARTNERSHIP 3.13% INVESTMENT LIMITED 18% INVESTMENT PARTNERSHIP Revenue 3 .0 11 .2 4 .5 5 0. 6 .9 85.39% SUBSIDIARY Expenditure (1.7) (1.4) (0.9) (1.1) (1.1)

CNI Iwi Holdings Limited. Tūwharetoa Settlement in Kaingaroa Timberlands. Tūwharetoa Limited Interest and Depreciation (0.4) (1.1) (0.7) (0.2) (0.0) Trust holds 11 .25% of the shares in CNIIHL and holds 20 .6% of the shares . The other Iwi investors appoints two directors to its Board. are Ngāti Raukawa (31.5%), Te Arawa 20.6%), Ngāti Operating Profit 0.9 8.7 3.0 3.6 5.8 Whare (15.9%), Ngāti Whakaue (9.5%) and Ngāti Tūwharetoa Property Investment Limited Distribution and Grants (1.6) (0.0) (0.6) (0.7) (1.0) Rangitihi (1.9%). Partnership (TPILP). This is an investment Kakano Revaluation 1 .1 3.8 1 .5 2.8 4 5. partnership established to purchase and hold Tūwharetoa Carbon Farms Limited. Tūwharetoa Income Tax (0.9) (1.4) (0.9) (1.1) (0.8) the Taupō DSP properties. Tūwharetoa Properties Carbon Farms Limited is the Tūwharetoa Limited is the General Partner . Settlement Trust entity that holds 19.74% of Hautū- Comprehensive Income (0.4) 11.1 3.0 4.7 8.5 Rangipō Whenua Limited. This shareholding may Tūwharetoa Forestry Rentals Limited. change if Te Hapainga Hapū Collective (the eight Tūwharetoa Forestry Rentals Limited was hapū with Mana Whenua of the Hautū lands) established to receive rentals and facilitate our decides to accept the Trust’s offer to purchase part lending for, and the investment in, Te Kakano Operating Expenditure was consistent with 2016 after of their share . Whakatipu Limited, while limiting risk. The Trust adjusting for a $0.2m credit adjustment received in 2016. Costs has cleared all its debt . TST 1 and TST 2. These are the partners in TPILP, representing Tūwharetoa Settlement Trust and have now stabilised at a level 60% lower than in 2013. Te Kakano Whakatipu Limited. This is the Te Pae o Waimihia respectively . company that holds the Iwi Collective investment TŪWHARETOA SETTLEMENT TRUST ANNUAL REPORT 2018

FINANCIAL POSITION

Operating Expenditure was consistent with 2016 after adjusting for a $0.2m credit adjustment The graph below breaks down the equity of the Trust into their specific asset classes. received in 2016. Costs have now stabilised at a level 60% lower than in 2013. 2014 2015 2016 2017 2018 EXPENDITURE L Tō P T $m $m $m $m $m N F P Administration 0 .5 0 .7 0 .4 0 .5 0 .6 M L Professional Services 0 .4 0 .3 0 .2 0 .3 0 .3 Governance 0 .3 0 .2 0 .2 0 .2 0 .2 Hautū-Rangipō LLP Projects – Mana Whenua, 0 .5 0 .1 0 .1 P LLP 0 .2 0 .1 FHCs K LLP Total Expenditure 1.7 1,4 0.9 1.1 1.1 C T W C BALANCE SHEET These assets classes can be further grouped into Forestry, Property and Cash/Managed Funds. The financial position of the Trust increased The minority interests of $2 .2m are the shares held The sale of the satellite forestry rights has driven a reduction in the forestry weighting towards cash/ by $8.5m with total Equity (excluding minority in the Tūwharetoa Property Investment Limited 22 23 managed funds providing the Trust with improved liquidity . interests) now at $45.4m compared to $37.0m in Partnership by Tūwharetoa Māori Trust Board and 2017, and 16.2m in 2013. Lake Rotoaira Forest Trust .

The main factor in the equity increase was the Liabilities includes a provision for $27 .5m ($26 7m. 2013 2014 2015 2016 2017 strong operating profit after tax performance of last year), being funds held on behalf of the Forestry 44% 42% 65% 63% 53% $5 .0m and the increase in the value of the Kakano Forest Hapū Cluster Trusts which are still subject Property 28% 16% 14% 14% 14% investment . to the final outcome of the CNI Mana Whenua determination process . Cash and Managed Funds 29% 43% 22% 23% 32% Funds received from the sale of the satellite forestry rights have been invested in a moderate 100% 100% 100% 100% 100% risk portfolio managed by Iwi Investor .

DESCRIPTION OF INDIVIDUAL ASSETS CLASSES: 2013 2014 2015 2016 2017 2018 FINANCIAL POSITION ••New Forest Planting is the expenditure incurred ••Property LLP is Tūwharetoa Property Investment $m $m $m $m $m $m in replanting Taurewa, Waituhi and Marotiri/ Limited Partnership which is the entity that Total Assets 64.1 80.0 92.2 64.9 66.7 76.3 Pureora Forests under a Forestry Right has purchased the Taupō DSP land properties Agreement with CNI Iwi Holdings . – 9 Schools, Courthouse and Police Station, Total Liabilities (48.0) (63.0) (62.4) (31.1) (27.6) (28.7) and Probation Office. The Partners are: TST, ••Hautū-Rangipō Limited Partnership is the entity Total Equity 16.2 17.0 29.8 33.8 39.1 47.5 Tūwharetoa Māori Trust Board and the Lake that purchased the Hautū-Rangipō Prison land Rotoaira Forest Trust . Less Minorities 0 (1.3) (1.3) (1.3) (2.1) (2.2) (8,500 hectares) and the Mangamawhitiwhiti Nett TST Equity 16.2 15.7 28.5 32.4 37.0 45.4 block (600 hectares). The Partners are: ••Kakano LLP is the Kakano Investment Limited Lake Taupō Forest Management Limited, Partnership which comprises six CNI Iwi owning Tūwharetoa Carbon Farms Ltd (TST), Oraukura 3 a 2 .5% share in Kaingaroa Timberlands . Incorporation, Waihi Pukawa Trust and Puketapu ••Cash and Managed Funds are held with the BNZ 3A Incorporation . and Iwi Investor . TŪWHARETOA SETTLEMENT TRUST ANNUAL REPORT 2018

LOOKING AHEAD: STRATEGIC PLAN 2018-2020

MISSION ••To continue to grow the Trust for Ngāti Tūwharetoa ••To promote and advance the wellbeing of Ngāti Tūwharetoa Uri ••To demonstrate and champion trust, respect and good leadership ••Hāpai Tūwharetoa me tona Arikitanga

STRATEGIC OBJECTIVES STRATEGIC GOALS ê ê

••Build Governance to Enhance •• To complete final resolution of the CNI Mana Whenua process Iwi Reputation, Trust and •• Complete the establishment of the Taurewa Forest Hapū Cluster Trust Respect •• Increase level of distributions/grants to Tūwharetoa Marae and Uri

••Collaborate with other •• Implement improvement initiatives identified in the MOU with the TMTB Tūwharetoa Iwi Entities and NTFCT ••Seek out further co-investment opportunities •• Maintain relationship to Paramountcy through TST representative •• Collaborate with other external parties where objectives are aligned 24 25 ••Develop and Enhance Iwi and •• Enhance the relationships with the Forest Hapū Cluster Trusts Hapū Relationships through •• Regular, open and transparent communication with Iwi and Hapū – Good Communication newsletters, social media •• Continue increasing the number of registered members and accuracy of the Iwi Database

••Continue to enhance Financial •• Resolve outstanding financial guarantees and liabilities matters Strength and Sustainability •• Implement and closely monitor performance of the Managed Funds through to and Beyond 2043 portfolio •• Develop strong business case for development of 11 Tūwharetoa Street •• Enhance financial reporting to Governance and Membership •• Continue to build on the strong financial and administration systems OUR VISION: within TST •• Complete a robust analysis of TST financial position through to and Tipua te ao o Tūwharetoa mo beyond the 2043 milestone te iwi, ki te hapai ngā hapū taketake. ••Complete and Maintain the •• Continue to develop and sustain Tūwharetoa Settlement Trust’s Trusts Fiduciary Responsibilities fiduciary responsibilities to our people Grow the world of Tūwharetoa •• Work closely with other Tūwharetoa entities on initiatives aimed at for its people, to further satisfying our fiduciary responsibilities strengthen our hapū foundations. VALUES Kia Pononga - Honesty, Kia Mana - Integrity, Kia Rongonui - Reputation, Kotahi te kī - Good Communication, Kotahi te kōrero - Professionalism, Kotahi te wānanga - Transparency. TŪWHARETOA SETTLEMENT TRUST ANNUAL REPORT 2018

2017 AGM MINUTES

MINUTES OF THE 2017 ANNUAL GENERAL MEETING OF THE TŪWHARETOA SETTLEMENT TRUST HELD AT THE WAIRAKEI RESORT, TAUPŌ ON SATURDAY 02 DECEMBER 2017. COMMENCING AT 1.30PM.

2017 AGM PRESENT The Trustees and General Manager, staff, T Hall Trustees: R Taiaroa (Chair), Hon GM te Heuheu and L McErlane were also introduced to the hui. (Dep Chair), TK Pitiroi, J Bennett, Dr. C Severne, It was noted that TST are currently in the midst of MINUTES E George and D Tahau the election process . R Taiaroa and D Tahau will be Apologies: Beneficial owners as per the apologies returning, uncontested, for their respective wards. register Jo Te Huia was acknowledged as a new trustee In Attendance: Beneficial owners as per the for the Tai Hauāuru Ward. Dr Charlotte Severne attendance register . G Stebbing (General was acknowledged and noted that she will not Manager), T Hall (Contractor), L McErlane (Legal) ANNUAL REPORT 2018 be standing this year for the Tai Tonga Ward . In and K Martin (Office Manager) that regard, this is the only Ward that is currently 1. TE TIMATANGA engaged in the election process . TK Pitiroi at 1 .30pm . Karakia E George at 1.33pm. R Taiaroa presented his Chairman’s report to the hui, as outlined in the Annual Report. 26 27 1.1 WHAKATUWHERATANGA: The Agenda for the day was then run through Highlights noted were: along with the housekeeping rules . ••The end of the Trustees’ five-year term. RESOLUTION 1: ••Trust equity has increased 128% to $37m. Apologies ••Distributions are being increased to $1m pa . That the Apologies, as per the Apologies Register Collaboration with TMTB and NTFCT, whereby be accepted . •• an MOU has been signed . Synergies between Marlene Clements/Carol Mitchell . Carried the three entities were highlighted as part of RESOLUTION 2: this MOU .

Unconfirmed Minutes dated 17 December 2016 RESOLUTION 3: That the Minutes dated 17 December 2016 be That the Chairman’s report be noted and received . accepted . K te Heuheu/Aunty Ututau . Carried Danny Loughlin/Hinemoa Henderson . Carried 3. OPERATIONS REPORT MATTERS ARISING G Stebbing presented the Operations report, as Timutetai Paerata – Te Tai Hauāuru Taiwhenua outlined in the Annual Report . election process issue was raised, in particular the need for the Hapū to be notified, not just the The following points were highlighted: Marae. Also noted that Eru George is now standing ••Distributions increased by $125k to $683k in one of the two Whānui seats. ••Members database validation project underway 2. CHAIRMAN’S REPORT ••Commenced process for sale of Satellite The Chairman acknowledged all of those present, Forestry Rights (Southern) especially those who had travelled, from near and afar alike . TŪWHARETOA SETTLEMENT TRUST ANNUAL REPORT 2018

2017 AGM MINUTES

••Hautū-Rangipō Whenua Limited – continue about the recovery of bad debts on pages 36-37, The process to date was highlighted, with the approving second report optimising the land uses requesting an explanation on these. To him, it following points: ••Today – no short-term end in sight, part of appears that we are losing money, however he ••Te Kakano Whakatipu Limited – another ••June 2008 – CNI Settlement signed rentals transferred to the FHCs was aware historically, where this came from, he outstanding financial performance queried whether these can be written off, by the ••June 2009 – Tūwharetoa Settlement Trust Florence Karaitiana – What are Tūhoe basing ••Purchase of 11 Tūwharetoa Street with Te Pae o the board, as it is being dealt with by these current established their Mana Whenua on regarding Waimihia, it was Waimihia – development advised that they’re not, it was Ngāti Tahu. This Trustees. G Stebbing advised that it is a financial ••July 2011- Final allocation agreement response was accepted . It was then queried 4. FINANCIAL REPORT obligation to show these amounts . It was however completion dated (agreed to extend) noted that it is a priority for the Board to have whether the Mana Whenua hui were an open- The following points were highlighted: ••2012 – Four Tūwharetoa FHCs established these recovered/removed . door hui, as whānau would like to support and ••Financial Performance - $4.7m strong earnings ••Dec 2013 – Waimaroke, Pukuriri and all satellite contribute to these . It was noted that this is up to Cynthia Russell – Whakapapa query - advised CFLs withheld from adjudication the Trustees to make a call on . It was then put to ••Expenditure – Identified that the Trust has made she had filled out the registration form, however the Trustees whether they supported an open- significant savings in this area over 2013-2017. a page was missing, advised that had to omit ••Feb 2014 – Tūwharetoa and Raukawa reached door policy for these hui . R Taiaroa advised that some iwi etc . D Tahau advised that the database kanohi ki te kanohi agreement ••Balance Sheet – Between the years 2013-2017, the Trustees have not had time to discuss this as administrators are happy to go through their the Trust has notably increased the Nett Equity ••Early 2014 – Nine CFLs to adjudications, yet, however the big game is that we may need details currently held on the database to ensure from $16 .2m in 2013 to $37 .0m in 2017 . allocation report received June 2104 to go through the whole Mana Whenua process these are correct . This can be done either via Kelly te Heuheu – Sought clarity on the again, via a restart. It was highlighted that going phone, email or kanohi ki te kanohi. 28 29 ••23 Crown Forest Licence areas whakapapa process for members in the database . down a litigious pathway is not the preferred way One CFL completed via kanohi ki te kanohi D Tahau responded that support from the TST for RESOLUTION 4: •• forward . (Marotiri/Pureora resolved 50/50 with Raukawa) the Ahi Kaa is ongoing, via hui, kahohi ki te kanohi, That the Operations and Financial reports be Kelly te Heuheu – Stated that it appears TST wānanga etc. It was noted that there are two noted and received . ••Nine CFLs completed via adjudication needs to remain as the entity (PSGE) for some categories, verified and non-verified. No one was Danny Loughlin/Blandena Diamond . Carried (Tūwharetoa % allocation) time, moving forward, until Mana Whenua is denied, more information would be requested to resolved . R Taiaroa advised that if Mana Whenua 4A. AUDITORS ••Two recently completed by default agreement: assist the Hapū Whakapapa Komiti. becomes a complete restart, it was highlighted It was put to the floor that Crowe Horwath be ••Taurewa (100% - no competing interest) Marlene Clements – The reactivation of Kaumātua that there will be a lot of mahi to be undertaken . endorsed as the Auditors for TST . Grants was questioned . R Taiaroa responded that ••Waituhi (100% - no competing interest) TST, as the vehicle to drive this mahi moving RESOLUTION 5: in the past, we were not in a position to offer these, ••Four southern CFLs yet to reach agreement forward, is very important. K te Heuheu noted however we are now looking at reconsidering That Crowe Horwath be reappointed as the that the one whare concept may be the best way ••Waimaroke these in the future. It was highlighted however, Auditors for TST . forward, at least until the Mana Whena process that Capital Marae Grants will be introduced in Greg Stebbing/Marlene Clements . Carried ••Pukiriri has been completed . 2018. – Queried the possibility of 5. MANA WHENUA ••Waimihia North Ngaterangi Smallman Timutetai Paerata – Referred to the Whakapapa Mana Whenua going back to adjudication – raised T Hall spoke to the current position of the Mana ••Waimihia South Booklets, where she noted that we currently only the issue of Whiti and Tama – Mokai Patea having Whenua process . go back two generations, it was suggested to ••September 2015 – Ngāti Manawa challenge separate interests, Waituhi/Taurewa. R Taiaroa investigate Tipuna also . A background and history of Mana Whenua was adjudicators and the CNI Board advised that TST have commenced engagement briefly highlighted, initially with a kōrero pertaining with Richard Steedman, via kanohi ki te kanohi and Danny Paranihi – Acknowledged Dr C Severne ••June 2016 – High Court instructed adjudicators to Wairakei (in light of the AGM being held at the formal correspondence being sent, we are now for her representation for Ngāti Waewae. He to ‘complete allocations’ Wairakei Resort). awaiting a reply to this . also acknowledged the other Trustees and the ••November 2016 – Adjudicators presented a recent distribution of the Marae Grants . He asked second allocation report ••Legal technical issues prevent CNI Board from TŪWHARETOA SETTLEMENT TRUST ANNUAL REPORT 2018

2017 AGM MINUTES

5. MANA WHENUA CONTINUED... ••Apportion method would be redundant and ••Since 2012, TST continues to receive, hold and 7. LOOKING AHEAD – 2017 AND BEYOND A query regarding Mana Whenua going forward, would be paid upon Mana Whenua completion, accumulate funds for FHCs ($27m at June 2017) Our immediate priorities for 2017-2018 are: and in particular Hautū-Rangipō – will the whenua not in 2043, and as stated in the Deed. ••TST wants to have the discretion to disburse ••Mana Whenua kōrero over unresolved forest be considered for further adjudication? R Taiaora R Taiaroa acknowledged T Hall for his mahi in this additional funds to FHCs so they can benefit lands advised that the Hautū-Rangipō lands are not space and his presentation today . their Hapū being considered for distribution to Hapū. TST ••Beneficiary data Hapū verification process 6. RESTATEMENT OF THE TRUST DEED ••TST can still impose any conditions necessary invested Iwi money into this venture to ensure the ••Establishment of the Taurewa FHC for potential outcomes of the MW process deal progressed successfully . OF THE TŪWHARETOA SETTLEMENT ••Action plans re the MOU with TMTB and NTFCT Dr C Severne acknowledged the whānau for their Timutetai Paerata – Took the floor and advised TRUST time . ••Welcome and induct new Board of Trustees. that Ngāti Te Kohera was an Iwi, not just a hapū. Dr C Severne spoke to the resolution to restate the TST Trust Deed, and as highlighted in the Noted that December is the final hui for the Laying a complaint that they weren’t included in Tania Te Akau – Acknowledged Dr C Severne. supplementary document . It was noted that these current Board, the new Trustees will assemble in the process that was undertaken with Raukawa . She had a query regards Waituhi, and when it is were part of the election voting pack that were January 2018. They are geographically sitting in the middle – likely that these monies will be returned to the sent to all adult registered members . however, they want their own autonomy. It was FHC? R Taiaroa noted that, pending the outcome ••Marae Capital Development and Educational noted that Ngāti Te Kohera would like to meet with 1. That clause 3.3(h) of the TST Trust Deed dated 17 of the Special Resolution voting, the Trustees have Scholarship grants the Trustees kanohi ki te kanohi and discuss this December 2016 be revoked and replaced with made a commitment to do this as expediently as ••Commercial development plan for 11 Tūwharetoa further . the following clause: “3.3(h) That the Trustees 30 31 possible . Street, joint venture with Te Pae o Waimihia shall be entitled from time to time, subject to the Mere Maniapoto – Query pertaining to Marotiri/ To complete a restatement of the Deed, sensible and proper exercise of their discretion, ••Complete sale of the Satellite Forestry Rights Pureora – How are we going to ensure that a incorporating all the changes previously agreed which may involve the imposition of various historical account on the Mana Whenua kōrero is to by the members, the members must pass a ••Kōrero on future structure of Ngāti Tūwharetoa conditions, to transfer all or part thereof of the available for future generations – is this by way special resolution, being a resolution approved ••THF loan, MMWW guarantees, Tokaanu loan Accumulated Rentals, as are held from time to of books or recordings? A suggestion was put by 75% of those voting, authorising the Trustees time in respect of the Forest Hapu Cluster Trusts 8. GENERAL BUSINESS forward that each hapū look to recording their to execute the restated deed, at which point to each of the relevant Forest Hapu Cluster Te Atamira Winitana – Queried the Kaumātua own stories . T Hall advised that there are currently that deed shall become the Trust Deed for the Trusts” Grants and purpose – specifically for those aged books around, but put the recommendation to the Tūwharetoa Settlement Trust. 80+. She noted that although Kaumātua dinners Trustees to discuss further . 2. That clause 3 .9 of the TST Trust Deed dated 17 Ngatoru Wall – Acknowledged the Trustees for are lovely, would like to see other avenues being December 2016 be revoked and replaced with Marlene Clements – What were some of the legal the clarification on the special resolutions. Ngāti investigated for kaumātua. the following clause: “3.9 The Trustees shall, technical issues preventing the short term result Tutemohuta would like time with the Trustees and as part of any transfer pursuant to clause 3.3(h) Danny Paranihi – Highlighted that he was recently for Mana Whenua allocation? The following three would appreciate re-engagement. points were highlighted as the main factors: transfer all or part thereof of any Tuwharetoa in Brisbane with some of our Tūwharetoa whānau, Forests, if they have been received, to the K te Heuheu – Asked the question whether the who queried why do TST ask for their vote, but do ••There were only two adjudicators signing off the entitled Forest Hapu Cluster Trust” 75% vote, is that the population that is on the not provide grants etc for them in Australia? It was allocation adjudication, not three, as deemed by database or is 75% of people who vote? Noted that suggested that Trustees look at addressing this ••Why is it Needed the High Court (this was due to health issues for it is 75% of received votes . The question was then query . R Taiaroa highlighted that minority seem to FHCs (apart from Taurewa) have been paid 60% one of the adjudicators) asked, would the Trustees then have the discretion live home, with the majority situated throughout of funds (as at 31 December 2012) that TST holds to override this vote? It was advised that no, they the motu . It was suggested that TST look at ••Ngāti Manawa/Ngāti Whare agreements that on their behalf wouldn’t . were in place were also an impact, in being that visiting the whānau over there every 2-3 years, and whatever Ngāti Manawa were awarded, Ngāti ••The TST Trust Deed restricts any further actively engaging with communications . Whare would receive the same payments being made until the CNI Mana Whenua process is completed . Although expected to be completed by 2013, negotiations are still ongoing TŪWHARETOA SETTLEMENT TRUST ANNUAL REPORT 2018

2017 AGM MINUTES

8. GENERAL BUSINESS CONTINUED... TST RESOLUTION SCHEDULE Blandena Diamond – Acknowledged TST for the Marae Grant . Acknowledged G Stebbing for his time spent with the hapū. A copy of the slides AGENDA RESOLUTION MOVED SECONDED were requested . These will be sent . ACTION

Oram Hepi – Acknowledged T Hall for his kōrero. That the Apologies, as per the Apologies Register M Clements C Mitchell Wished the Trustees well, both outgoing and be accepted . incoming . That the Minutes dated 17 December 2016 be D Loughlin H Henderson Te Ngaehe Wanikau (Snr) – Acknowledged the accepted . Trustees for the hui, and the kōrero from the floor. That the Chairman’s report be noted and On behalf of Te Kotahitanga o Ngāti Tūwharetoa K te Heuheu Aunty Ututau received . (TKoNT) he noted that collaboration is the way forward and acknowledged the kōrero from TST That the Operations and Financial reports be D Loughlin B Diamond on collaboration with TKoNT, moving forward. He noted and received . advised that TKONT will report back to the 2018 That Crowe Horwath be accepted as the Auditors G Stebbing M Clements TST AGM on their progress . for TST . An area for investigation for the 2018 AGM, 32 33 is the provision of transport to cover a wider geographical area . TST ACTION SCHEDULE 9. MEETING CLOSURE NO ACTION PERSON R Taiaroa acknowledged all those in attendance TIMEFRAME and who have travelled, wishing all a safe and RESPONSIBLE happy whānau Christmas/New Year. Ngāti Te Kohera requested time with the Trustees Karakia Whakamutunga: E George at 3.55pm. to discuss the Raukawa/TST agreement, All June 2018 regarding Mana Whenua Verified as a true and correct record of this Trustees to investigate options to keep our meeting All June 2018 whānau overseas updated and engaged

Copy of the Powerpoint Presentation to be sent to G Stebbing January 2018 Blandena Diamond R Taiaroa, Chairman Meaningful engagement with Kaumātua aged 80+ All June 2018 to be investigated

Investigate wider transport options for 2018 AGM November All 2018

Re-engagement with Ngāti Tutemohuta to occur All June 2018 TŪWHARETOA SETTLEMENT TRUST ANNUAL REPORT 2018

INDEX AUDITED FOR THE YEAR ENDED JUNE 2018 ACCOUNTS Statement of Comprehensive Income...... 36 Statement of Changes in Equity...... 37

Statement of Financial Position...... 38

Statement of Cash Flows...... 39

ANNUAL REPORT 2018 Corporate Information and Notes to the Financial Statements...... 40

Audit Report ...... 50

Schedule of Expenses, Distributions and 34 Fair Value Adjustments...... 52 TŪWHARETOATŪWARETOA SETTLEMENT TRUST ANNUAL REPORT 2018

36 37 TŪWHARETOATŪWARETOA SETTLEMENT TRUST ANNUAL REPORT 2018

38 39 TŪWHARETOATŪWARETOA SETTLEMENT TRUST ANNUAL REPORT 2018

40 41 TŪWHARETOATŪWARETOA SETTLEMENT TRUST ANNUAL REPORT 2018

42 43 TŪWHARETOA SETTLEMENT TRUST

44 45 TŪWHARETOATŪWARETOA SETTLEMENT TRUST

46 47 TŪWHARETOATŪWARETOA SETTLEMENT TRUST ANNUAL REPORT 2018

48 49 TŪWHARETOA SETTLEMENT TRUST Crowe Horwath New Zealand Audit Partnership Member Crowe Horwath International

Building A, Level 1, Farming House 211 Market Street South, Hastings 4122 PO Box 941 Hastings 4156 New Zealand

Tel +64 6 872 9200 an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is Fax +64 6 878 3953 not a guarantee that an audit conducted in accordance with ISAs (NZ) will always detect a material INDEPENDENT AUDITOR’S REPORT www.crowehorwath.co.nz misstatement when it exists. Misstatements can arise from fraud or error and are considered material To the Beneficiaries of Tuwharetoa Settlement Trust if, individually or in the aggregate, they could reasonably be expected to influence the decisions of users taken on the basis of these consolidated financial statements.

Opinion As part of an audit in accordance with ISAs (NZ), we exercise professional judgement and maintain We have audited the consolidated financial statements of Tuwharetoa Settlement Trust and its professional scepticism throughout the audit. We also: controlled entities (the Group) on pages 2 to 15, which comprise the consolidated statement of financial position as at 30 June 2018, and the consolidated statement of comprehensive income, ▪ Identify and assess the risks of material misstatement of the consolidated financial statements, consolidated statement of changes in equity and consolidated statement of cash flows for the year whether due to fraud or error, design and perform audit procedures responsive to those risks, and then ended, and notes to the consolidated financial statements, including a summary of significant obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of accounting policies. not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override In our opinion, the accompanying consolidated financial statements present fairly, in all material of internal control. respects, the consolidated financial position of the Group as at 30 June 2018, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with New ▪ Obtain an understanding of internal control relevant to the audit in order to design audit procedures Zealand equivalents to International Financial Reporting Standards with Reduced Disclosure Regime that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the (NZ IFRS RDR). effectiveness of the Group’s internal control.

▪ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting Basis for Opinion estimates and related disclosures made by management. We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)). Our responsibilities under those standards are further described in the Auditor’s Responsibilities 50 51 ▪ Conclude on the appropriateness of the use of the going concern basis of accounting by the for the Audit of the Consolidated financial statements section of our report. We are independent of the Trustees and, based on the audit evidence obtained, whether a material uncertainty exists related Group in accordance with Professional and Ethical Standard 1 (Revised) Code of Ethics for Assurance to events or conditions that may cast significant doubt on the Group’s ability to continue as a going Practitioners issued by the New Zealand Auditing and Assurance Standards Board, and we have concern. If we conclude that a material uncertainty exists, we are required to draw attention in our fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the auditor’s report to the related disclosures in the consolidated financial statements or, if such audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Our firm carries out other assurance assignments for the Group. The firm has no other interests in Group to cease to continue as a going concern. Tuwharetoa Settlement Trust or any of its controlled entities. ▪ Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the Responsibilities of the Trustees for the Consolidated Financial Statements underlying transactions and events in a manner that achieves fair presentation. The Trustees are responsible on behalf of the entity for the preparation and fair presentation of the consolidated financial statements in accordance with NZ IFRS RDR, and for such internal control as ▪ Obtain sufficient appropriate audit evidence regarding the financial information of the entities or the directors determine is necessary to enable the preparation of consolidated financial statements business activities within the Group to express an opinion on the consolidated financial statements. that are free from material misstatement, whether due to fraud or error. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for the audit opinion. In preparing the consolidated financial statements, the Trustees are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going We communicate with the Trustees regarding, among other matters, the planned scope and timing of concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the audit and significant audit findings, including any significant deficiencies in internal control that we the Group or to cease operations, or have no realistic alternative but to do so. identify during our audit.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue Crowe Horwath New Zealand Audit Partnership CHARTERED ACCOUNTANTS 29 October 2018 Crowe Horwath New Zealand Audit Partnership is a member of Crowe Horwath International, a Swiss verein. Each member of Crowe Horwath is a separate and independent legal entity. TŪWHARETOATŪWARETOA SETTLEMENT TRUST ANNUAL REPORT 2018

52 53 NGĀ MIHI

ANNUAL REPORT 2018 0800 889 427 81 HOROMATANGI STREET TAUPŌ NEW ZEALAND PO BOX 1845 TAUPŌ 3351 NEW ZEALAND [email protected] TST.MAORI.NZ