ngāi tahu 2011 annual report

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

Kä amorakio äpöpö

Tomorrow'sleaders

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Corporate Offi ce

50 Corsair DriveWigramPO Box 13-046ChristchurchTelephone: 03 366 4344Facsimile: 03 341 6792Website: www.ngaitahu.iwi.nzEmail: [email protected]

Registered Offi ce for Ngäi Tahu Holdings Corporation Limited

50 Corsair DriveWigramPO Box 13-575ChristchurchTelephone: 03 366 4344Facsimile: 03 341 6792

Enrolment on Te Rünangao Ngäi Tahu Whakapapa database

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

Auditor

DeloitteChartered Accountants60 Grove RdChristchurch

Solicitors

Bell Gully Buddle WeirHP Tower171 Featherston StreetWellington

Buddle Findlay245 St Asaph StChristchurch

Saunders & Co162 Kendal Avenue Burnside Christchurch

Wynn Williams & CoHomebase, Unit B195 Marshlands RdChristchurch

Bankers

ANZ National Bank Limited97 Riccarton Rd Christchurch

Bank of New Zealand81 Riccarton RoadChristchurch

Commonwealth Bank of AustraliaLevel 27, 201 Sussex StreetSydney, Australia

Westpac Institutional Bank Level 816 Takutai SquareAuckland

TE RÜNANGA O NGÄI TAHU

Directory

TE RÜN

AN

GA

O N

GÄ

I TAH

U A

NN

UA

L REPORT 2011

57


Ngä Papatipu Rünanga Map

Te Rünanga o Kaiköura

Te Ngäti Tüähuriri Rünanga

Te Hapü o Ngäti Wheke (Räpaki) Te Rünanga o Koukourarata

Önuku RünangaTe Taumutu RünangaWairewa Rünanga

Te Rünanga o Arowhenua

Te Rünanga o Waihao

Te Rünanga o Moeraki

Käti Huirapa Rünaka ki Puketeraki

Te Rünanga o Ötäkou

Hokonui Rünanga

Waihöpai Rünaka

Awarua Rünanga

Öraka-Aparima Rünaka

Te Rünanga o Makaawhio

Te Rünanga o Ngäti Waewae

1

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

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

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

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

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

Cover: Sam Briggs (Makaawhio, Wairewa, Waihao)

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

Mö tätou, ä, mö käuri ä muri ake nei

For us and ourchildren after us

Above: Eva Scott-Keen (Makaawhio)

3

TE RÜNANGA O NGÄI TAHU BOARD

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

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

Vision: Ngäi Tahu 2025ValuesWHANAUNGATANGA (FAMILY)WHANAUNGATANGA (FAMILY)

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

MANAAKITANGAMANAAKITANGA(LOOKING AFTER OUR PEOPLE)(LOOKING AFTER OUR PEOPLE)

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

TOHUNGATANGA (EXPERTISE)TOHUNGATANGA (EXPERTISE)

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

KAITIAKITANGA (STEWARDSHIP)KAITIAKITANGA (STEWARDSHIP)

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

TIKANGA (APPROPRIATE ACTION)TIKANGA (APPROPRIATE ACTION)

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

RANGATIRATANGA (LEADERSHIP)RANGATIRATANGA (LEADERSHIP)

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

TÖ TÄTOU NGÄI TAHUTANGA TÖ TÄTOU NGÄI TAHUTANGA

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

KO NGÄ WHAKAPÄPÄTANGAKO NGÄ WHAKAPÄPÄTANGA

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

TE WHAKATIPUTE WHAKATIPU

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

Infl uencing external decision-makersand processes is vital to achieving NgäiTahu 2025.

TE AO TÜROATE AO TÜROA

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

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

WHÄNAUWHÄNAU

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

TE PÜTEATE PÜTEA

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

TE KAITIAKITANGA ME TE TÄHUHUTE KAITIAKITANGA ME TE TÄHUHU

We continue to increase the effectiveness of our governance.

MÄTAURANGAMÄTAURANGA

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

4

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

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

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

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

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

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

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

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

Te Rünanga has set aside a fund of $1.1m to add to the over $500k which we received in donations. Te Awheawhe Rü Whenua, our Earthquake Recovery Working Group, chaired by Wally Stone, has been set up to assist with our immediate and long-term response to the earthquakes and Canterbury’s recovery and to administer these funds.

Amid the flurry of earthquake activity we reluctantly farewelled our CEO Anake Goodall. Over his four years in the role, Anake achieved a number of significant outcomes for the iwi not least of all consolidating the tribal platform and making it ready for the next stage of our intergenerational journey. On behalf of Te Rünanga o Ngäi Tahu, staff, and Ngäi Tahu whänau, we would like to acknowledge Anake for his commitment to the iwi and wish him all the best for his future career. Mike Sang has been appointed as CEO on an extended contract to avoid any further disruption to our operation through these difficult times.

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

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

From the Kaiwhakahaere and Chief Executive Officer

Mark Solomon, Kaiwhakahaere

Mike Sang, Chief Executive Officer

Ngai Tahu AR 2011 FA_v3.indd 4 9/19/11 10:17 AM

5

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

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

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

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

Mark SolomonKaiwhakahaere

Mike SangChief Executive Offi cer

Ngäi Tahuallocation

since Settlement

$227.9m

Melany Tainui (Önuku) at Te Atakura.

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

The immediate impact of the quakes created a new set of challenges for us all, but as this annual report sets out, both the distribution side of our organisation and the businesses have performed remarkably given the circumstances. These are exciting times in which we are united by our whakapapa, our passion, and the will to learn and grow. Never has the whakataukï ‘He aha te mea o te ao? He tangata! He tangata! He tangata!’ seemed to be more apt.

6

AS AT 30 JUNE 2011

Group Performance at a glance

FOUR YEAR CONSOLIDATED 2007/08 2008/09 2009/10 2010/11

PERFORMANCE TO 2010/11 ($ 000s) ($ 000s) ($ 000s) ($ 000s)

Financial Performance

Net Operating Surplus after interestattributable to Ngäi Tahu Holdings 31,769 18,630 35,512 37,282

Non Operating Adjustments 26,486 (5,289) 7,950 (21,388)

Profi t attributable to Ngäi Tahu Holdings 58,255 13,341 43,462 15,894

Operating Expenses–Te Rünanga o Ngäi Tahu (8,818) (10,408) (9,890) (9,234)Tribal, Rünanga and Whänau Distributions (12,859) (10,189) (11,635) (11,134)Non-Operating Adjustments 0 0 0 (962)

Net Profi t (Loss) Before Taxationand Fisheries Settlements 36,578 (7,256) 21,937 (5,436)

Add Net Fisheries & Aquaculture Settlement 27,931 28,933 5,914 1,263

Less Impairment AFL Income Shares 0 (1,595) 0 0

Less Taxation Te Rünanga o Ngäi Tahu (313) (410) (605) (552)

Profi t (Loss) after taxation for the Year 64,196 19,672 27,246 (4,725)

Attributable to:

Equity holders of the parent 63,956 19,727 27,116 (4,880)

Minority Interest 240 (55) 130 155

64,196 19,672 27,246 (4,725)

Financial Performance

Net Operating Surplus after interest (up $1.77m from 2010):

Tribal Rünanga andWhänau distributions($11.6m in 2010)

$37.28m

$11.1m

Group Financial Position

Equity ($570.20m in 2010).Increase in Equity of $20.84m to:

$591.04m

GROUP TOTAL ASSETS BY BUSINESS

58%NGÄI TAHU PROPERTY

15% NGÄI TAHUCAPITAL

9% NGÄI TAHUTOURISM

NGÄI TAHU HOLDINGS

8%NGÄI TAHUSEAFOOD

NGÄI TAHUFISHERIESSETTLEMENT

8%

2%

200

7/08

2008

/09

2009

/10

2010

/11

200

7/08

2008

/09

2009

/10

2010

/11

TERM DEBT

TOTAL ASSETS

EQUITY

$513

.58m

$526

.66m

$570

.20m

$591

.04m

200

7/08

2008

/09

2009

/10

2010

/11

TERM DEBT, TOTAL ASSETS AND EQUITY

$98.

15m

$95.

06m

$114

.00m

$106

.00m

$644

.82m

$657

.43m

$715

.25m

$730

.47m

7

AS AT 30 JUNE 2011

Te Rünanga Distribution at a glance

GROUP ORGANISATIO

N

26%

17%

15%

10%

200

820

0920

1020

11

RÜNANGA

31%

35%

33%

44%

200

820

0920

1020

11

WHÄNAU

31%

31%

37%

34%

200

820

0920

1020

11

SETTLEMENT PROTECTION

5% 8% 8% 5%

200

820

0920

1020

11

GOVERNANCE

7% 9% 7% 6%

200

820

0920

1020

11

INTERGENERATIONAL TRIBAL DEVELOPMENT

ANNUAL DISTRIBUTION

Financial trendsindicate declining costs

and increasing distributions to Papatipu Rünanga

and iwi members.

The annual payments to each Papatipu Rünanga increased from $169,000 pa in2009-2010 to $194,000 pa in 2010-2011.

$194,000

NGÄI TAHU 2025 DISTRIBUTION

10%

34%TE WHAKATIPU – PAPATIPURÜNANGA DEVELOPMENT

(Includes $4.5m capital distribution)

TÖ TÄTOU NGÄI TAHUTANGA(CULTURE & IDENTITY)

11%KO NGÄ WHAKAPÄPÄTANGA

(TRIBAL COMMUNICATIONS& PARTICIPATION)

15%WHÄNAU(SOCIAL

DEVELOPMENT)

MÄTAURANGA(EDUCATION)

7%TE AO TÜROA(NATURALENVIRONMENT)

0%TE PÜTEA (INVESTMENT PLANNING)

TE WHAKAARIKI(INFLUENCE)5%6%

TE KAITIAKITANGAME TE TÄHUHU

(TRONT BOARD)

7%

5%

TE KAITIAKITANGAME TE TÄHUHU

(GOVERNANCE &ORGANISATIONAL

DEVELOPMENT)

8

Tö Tätou Ngäi Tahutanga(Culture and Identity)This broad portfolio includes Whakapapa, the Ngäi Tahu Fund, Te Reo initiatives and Mö Tätou.

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

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

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

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

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

Ko Ngä Whakapäpätanga(Tribal Communications) Tribal publications fall within this portfolio, as does Tahu FM, events management and communications including the provision of strategic media advice across Te Rünanga Group, iwi liaison and sponsorship and communication support for the Offi ce of the Kaiwhakahaere and CEO.

There was an enormous level of activity throughout the year in this portfolio due largely to the earthquake recovery process and the need to communicate response initiatives. A highlight was the 50th anniversary issue of Te Karaka.

The normal tide of tribal events kicked off in November with a successful Hui-ä-Tau hosted by Käti Huirapa Rünaka ki Puketeraki. The touring of Mö Tätou also continued and Te Rünanga staff supported Papatipu Rünanga with a number of events, including the closing event. Successful Waitangi Day celebrations were held at Ötäkou and the opening of Te Wheke at Räpaki was another meaningful and beautiful occasion, as was the opening of the new Civic Building,Te Hononga. A fun event for the year was a Matariki Dinner at the Antarctic Centre, which gave many tribal members a chance to kick back and relax.

The earthquakes highlighted the value of the Ngäi Tahu website and social media sites. Tribal members, Te Rünanga and Papatipu Rünanga now regularly communicate via these tools.

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

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

147

117

123

92

200

820

0920

1020

11

101

82 84 71

200

820

0920

1020

11

TOTAL NUMBER O

F

APPLICATIONS RECEIV

ED

TOTAL NUMBER O

F

APPLICATIONS A

PPROVED

$1,6

76,5

35$1

,774

,271

$1,5

88,4

71$1

,244

,885

200

820

0920

1020

11

$1,2

25,5

73$1

,035

,778

$890

,329

$703

,324

200

820

0920

1020

11

TOTAL AMOUNT SOUGHT

FROM APPLICANTS

TOTAL AMOUNT

APPROVED

Ngäi Tahu Fund

9

The Ngäi Tahu Fund provides resources for whänau and hapü to

assist in the development of initiatives that

promote and growNgäi Tahutanga.

Above: Mananui Ramsden (Koukourarata) at a Ngäi Tahusailing wänanga in 2010.

10

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

During the year the Toitü te Whenua team offered assistance to affected Papatipu Rünanga dealing with the Hunter Downs Irrigation (HDI) Scheme in South Canterbury. Outstanding issues were resolved via a new trust arrangement, agreement to implement farm management plans and water augmentation to the Wainono Lagoon to assist in improving water quality. Also, the Central Plains Water (CPW) project required mediation between CPW and Ngäi Tahu, a process that was ongoing at the end of the fi nancial year.

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

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

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

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

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

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

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

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

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

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

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

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

Papatipu Rünanga efforts to protect signifi cant water

bodies led to some good results through

the year.Above left: Hïkoi Whakatipu WaitaiAbove right: Susan Wallace (Makaawhio, Wairewa, Waihao)

11

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

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

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

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

Whai Rawa

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

At 30 June 2011 the Whai Rawa balance was over:

Since Whai Rawa started members and whänau havedeposited over:

The annualised return for the three years ending 30 June 2011was 5.60%. The return for 12 months to 30 June 2011 was:

$9.69m

$18.03m

$8.40m

4.38%

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

TOTAL MEMBERSHIP

AS AT 30 JUNE 2011

NUMBER OF MEMBERS

WHO ARE SAVING

(FOR FULL CALENDAR YEAR)

200

820

0920

1020

11

200

820

0920

1020

11

4,54

54,

801

5,03

15,

098

CHILDMEMBERS

ADULTMEMBERS

200

720

0820

0920

10

200

720

0820

0920

10

2,61

42

,850

3,02

83,

273

3,97

14,

820

4,59

14,

9 97

CHILDMEMBERS

ADULTMEMBERS

8,88

09,

700

10,2

0010

,879

12

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

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

Te Pütea(Investment Planning)In March 2010, Te Rünanga adopted a Group Investment Policy Framework (IPF). The implementation of this framework is a long-term task made signifi cantly more interesting by the September and February earthquakes, which open up investment opportunities that should align with the policy framework. The level of annual distribution is also governed by the IPF, which provides a rule that will see approximately 4% of next year’s value of assets being returned to the iwi for distribution. We expect this to be in the vicinity of $26 million.

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

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

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

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

A very successful hïkoi of cadets, scholarship holders and trainees from across Te Rünanga Group was held ahead of Hui-ä-Tau last year. This hïkoi was supported by Trevor Howse and David Higgins who introduced tauira to sites of signifi cance in the Moeraki and Karitäne regions and shared their knowledge. The Te Rünanga Group cadetship programmes and scholarship programmes have become increasingly popular in recent years and are critical to our succession planning efforts.

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

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

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

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

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

Below: Satriani Reihana (Arowhenua)

13

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

Many others also came to our assistance including many marae, iwi and Mäori organisations from around the country. Food donated to the Ngäi Tahu base at Wigram was distributed by staff and the Mäori Wardens.

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

Signifi cant effort was focused on thesafe retrieval of whakapapa fi les. Once retrieved, the fi les were able to be safely

stored with thanks to the Airforce Museumof New Zealand.

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

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

Earthquake Assistance

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

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

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

14

NGÄI TAHU HOLDINGS CORPORATION

$22.00m

From the Chair and Chief Executive

A YEAR IN REVIEW

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

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

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

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

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

Surplus funds have been applied to the commencement of the Rainbow Springs redevelopment project, completion of the Christchurch Civic Building and the reduction of term debt. Term debt currently sits at $106.0m

The performance of both Ngäi Tahu Property (NTP) and Ngäi Tahu Seafood (NTS) once again exceeded budget and improved on last year’s results. NTS has delivered an outstanding result with an operating EBIT of $16.73m, up $3.37m on last year. This positive result was largely due to the ongoing strength of the köura market, in particular China, and enhanced by an overall stronger performance of all species.

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

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

Term Debt to Funds Employed of:

Operating Net Surplus up by $1.77m to:

Operating Return on Equity (incl NTFSL) of:

Total Profi t for the Year of:

Shareholder Equity increased from $495.71m to:

Distributions to Ngäi Tahu Charitable Trust:

16.99%

$37.28m

6.63%

$15.89m

$519.06m

$22.60m

$666.38m

Assets undermanagement increased

by $13.15m to:

Trevor Burt, Chair

Greg Campbell, Chief Executive

15

TOTAL COMPREHENSIVE IN

COME

$32.

73m

$6.7

5m$5

9.76

m$4

6.18

m

200

820

0920

1020

11

DISTRIBUTIONS TO N

TCT

$22.

90m

$21.

97m

$22.

00m

$22.

60m

200

820

0920

1020

11

TOTAL ASSETS

200

820

0920

1020

11

TERM DEBT

200

820

0920

1020

11

TOTAL REVENUE

$179

.47m

$166

.13m

$145

.77m

$162

.63m

200

820

0920

1020

11

NET OPERATIN

G SURPLUS

200

820

0920

1020

11

NET OPERATIN

G RETURN ON EQUITY

6.59

%3.

68%

6.68

%6.

63%

200

820

0920

1020

11

TOTAL PROFIT

$58.

25m

$13.

34m

$43.

46m

$15.

89m

200

820

0920

1020

11

GROUP ASSET PROFILE (BY FUNDS EMPLOYED)

INVESTMENTPROPERTIES

38.4%SEAFOOD QUOTA &

MARINE FARM LICENCES

8.1%DEVELOPMENT

PROPERTIES9.4%

0.9% SEAFOOD OPERATIONS 16.8%RURAL LAND

17.4%NGÄI TAHU

CAPITAL

9.0%NGÄI TAHU

TOURISM

$31.

77m

$18.

63m

$35.

51m

$37.

28m

$606

.87m

$594

.94m

$653

.23m

$666

.38m

$98.

15m

$95.

06m

$114

.00m

$106

.00m

16

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

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

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

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

ENDURING PARTNERSHIPS

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

GOVERNANCE

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

GROWING OUR FUTURE

Iti te matakahi, paoa atu anö, nä,potapota noa

Even the smallest wedge, with persistent effort, can topple the greatest tree

The commercial aspirations of NTHC coupled with our role as inter-generational stewards of the assets of the iwi and the acknowledgement of the importance of education has led to the development of a commercially focused cadetship programme. The programme known as Matakahi (wedge) is designed to create opportunities to grow Ngäi Tahu capacity for the future. Established in 2009 the cadetships are for Ngäi Tahu students entering their fi rst or second year of a commercially focused tertiary qualifi cation. The package provides: fees, pastoral care, holiday employment within Ngäi Tahu businesses, mentoring and cultural wänanga. The fi rst three recipients have successfully completed their commerce degrees with one going on to further studies, one working in the property industry and the third due to take up an internship with Treasury in 2012.

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

17

Trevor Burt ChairNgäi TahuHoldings Corporation

Greg CampbellChief ExecutiveNgäi TahuHoldings Corporation

was instrumental in developing the Ngäi Tahu investment framework.

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

OUR PEOPLE

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

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

THE FUTURE

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

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

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

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

...we have workedhard to build an

extensive network of partners whom we believe fi t with the

NTHC values...

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

18

OVERVIEW

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

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

PROPERTY DEVELOPMENT

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

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

RESIDENTIAL

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

A highlight has been commitment from Christchurch City Council to the rezoning for the Prestons development. All three developments have been investigated by geotechnical engineers, Tonkin & Taylor and Aurecon who have confi rmed there is no evidence of land damage or liquefaction. This coupled with the increased demand for housing will see NTP well placed to provide homes for up to 3,000 families in the coming years.

COMMERCIAL

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

PROPERTY INVESTMENT

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

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

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

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

RURAL LAND

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

PEOPLE

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

NGÄI TAHU HOLDINGS GROUP

Ngäi Tahu Property

OPERATING RETURN O

N INVESTMENT

200

820

0920

1020

11


COME BEFORE INTEREST

200

820

0920

1020

11

TOTAL RETURN ON IN

VESTMENT

200

820

0920

1020

11

FUNDS EMPLOYED

200

820

0920

1020

11

OPERATING EBIT

200

820

0920

1020

11

$19.

14m

$15.

74m

$20.

35m

$24.

44m

5.40

%4.

10%

5.02

%5.

80%

$45.

55m

$10.

51m

$35.

04m

$2.8

5m

12.9

0%2.

80%

8.65

%0.

68%

$380

.97m

$378

.51m

$431

.98m

$411

.29m

19

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

LOOKING AHEAD

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

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

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

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

This move intodairying is in line with

our long-term rural strategy...

SUSTAINABLE DAIRYING

NTP have been working closely with Papatipu Rünanga, Lincoln University research scientists and industry experts in the developmentof three environmentally sustainable pilotdairy farms at Eyrewell in North Canterbury.This move into dairying is in line with ourlong-term rural strategy that has a focus on taking up opportunities for inter-generational wealth creation.

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

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

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

Above: Eyrewell in North Canterbury.

20

OVERVIEW

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

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

NTS continues to support 49 Ngäi Tahu fi shers as well as enjoying excellent relationships with our non-Ngäi Tahu fi shers. NTS and Ngäi Tahu Fisheries Settlement Ltd (NTFSL) work closely together, with NTS managing the majority of the settlement ACE on behalf of NTFSL. This has allowed NTS to provide better security to its fi shers and ACE partners via longer term contracts. NTS also works alongside Toitü Te Käinga on the regional development of fi sh stocks.

Considerable energy is invested in support-ing the sustainable management of our fi sheries. This is vital for our future and supports the values of the iwi. Iwi fi shing forums and industry stakeholder groups work closely with the Ministry of Fisheries to ensure our fi sh stocks are well managed and the assessment of individual fi sh stocks using scientifi c data matches up with what is being observed by fi shers on the water.

SPECIES PERFORMANCE

KÖURA

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

KÜTAI

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

IKA

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

OPERATING RETURN O

N INVESTMENT

200

820

0920

1020

11



200

820

0920

1020

11

TOTAL RETURN ON IN

VESTMENT

200

820

0920

1020

11

FUNDS EMPLOYED

200

820

0920

1020

11

OPERATING EBIT

200

820

0920

1020

11


Ngäi Tahu Seafood

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

We also sell and export a signifi cant amount of fi sh supplied by our partners or other New Zealand companies.

PÄUA

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

TIO

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

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

$12.

71m

$4.8

3m$1

3.36

m$1

6.73

m

16.8

8%4.

80%

11.9

8%15

.09%

$12.

83m

$4.7

2m$1

3.63

m$1

6.78

m

17.0

4%4.

68%

12.2

1%15

.14%

$88.

91m

$112

.68m

$110

.44m

$111

.23m

21

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

LOOKING AHEAD

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

the key species of today may not necessarily provide the required returns in the future. We are therefore looking to establish a wider portfolio of seafood products to hedge against the traditional commodity swings.

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

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

The initiative, drivenby the local Bluff fi shers,

is now successfully up and running with 10

fi shers on board.

MURIHIKU DEVELOPMENT POOL

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

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

For Ngäi Tahu Seafood it has created a signifi cant opportunity to get closer to Bluff fi sher whänau and develop mutually benefi cial relationships.

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

22

OVERVIEW

Over the past two years, the New Zealand tourism industry, and Ngäi Tahu Tourism (NTT) with it, has faced signifi cant challenges.The global fi nancial crisis has had a profound effect on travel and spending patternsacross many of New Zealand’s key inbound visitor markets. In particular, the long haul source markets of the UK and USA have struggled with the enduring effects on their respective economies.

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

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

The tourism operations across the group performed below budget and FY10 results. Shotover Jet was down noticeably on last year’s record result, refl ecting the more challenging conditions in the current year. The new Glacier Hot Pools in Tai Poutini (West Coast) continue to attract more visitors, with 130,000 customers having now enjoyed the glacier-fed pools.

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

LOOKING AHEAD

Although the indicators are pointing to some further period of potential adversity, the medium-term outlook for New Zealand tourism remains very strong. The Asian markets are demonstrating sustained and rapid growth in visitor arrivals, led by China. The critical Australian market has maintained its strength throughout however, many of the higher spending Australian travellers are currently favouring other long-haul

destinations, made accessible by a strong Australian currency.

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

NTT is focused on positioning itself for growth. During the year the Ngäi Tahu Tourism and Ngäi Tahu Holdings Corporation Boards approved a major redevelopment project at Rainbow Springs. The investment aims to “bring the park to life”, with additions including a state-of-the-art water-based ride, a free-fl ight bird show, and an interactive children’s playground. The new development, due to open for the 2011/12 summer, will provide its visitors with a truly unique New Zealand experience of a world-class standard.

With a long-term strategy and view, the tourism company has managed to weather the worst of the recent economic storm. However, focus will now be on ensuring that the business is well positioned to

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

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


Ngäi Tahu Tourism

OPERATING RETURN O

N INVESTMENT

200

820

0920

1020

11



200

820

0920

1020

11

TOTAL RETURN ON IN

VESTMENT

200

820

0920

1020

11

FUNDS EMPLOYED

200

820

0920

1020

11

OPERATING EBIT

200

820

0920

1020

11

$6.3

5m$5

.33m

$5.9

4m$4

.12m

10.5

0%8.

53%

10.0

6%7.

26%

$6.3

0m$5

.38m

$2.4

4m$4

.17m

10.4

1%8.

60%

4.14

%7.

34%

$63.

33m

$61.

65m

$56.

53m

$56.

96m

23

The new ride will take visitors on

an unforgettable journey through New Zealand’s ecological

evolution.

PROJECT SPLASH

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

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

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

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

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

Illustration depicting scene from proposed Project Splash fun ride

24

$1.8

2m$2

.09m

$2.4

3m$4

.59m

OVERVIEW

Our ongoing interest in Ryman Healthcare Limited continues to be an outstanding investment for Ngäi Tahu Capital (NTC). During the year this investment generated $2.9m in dividend income and importantly our holding increased in value by $31.2m (from $79.6m on 1 July 2010 to $110.8m on 30 June 2011). The total return on investment was 37.8% (FY10 21.2%).

Ngäi Tahu initially invested in Ryman 13 years ago, purchasing a 20 per cent stake for $7.4m. Currently NTC has an 8% stake in Ryman Healthcare Limited and a co-investment agreement with Tainui Group Holdings in respect of their 4.5% holding. Subsequent to balance date Tainui Group have sold their shareholding in Ryman to fund other capital commitments. This shareholding makes up a considerable portion of the Ngäi Tahu Holdings Corporation assets.

Diversifi cation of the investment base and building global relationships are key strategic goals for NTC. To this end, immediately prior to the end of the fi nancial year the company confi rmedits 7.24% investment in Agria Asia Invest-ments Limited (Agria), the 50.01 percent controlling shareholder in PGGW. The joint-venture entity Agria is signifi cant in bringing together an iwi-based commercial entity and a Chinese investment company with both parties being focused on values and commercial returns with an inter-generational view to investment.


Ngäi Tahu Capital

OPERATING RETURN O

N INVESTMENT

200

820

0920

1020

11



200

820

0920

1020

11

TOTAL RETURN ON IN

VESTMENT

-28.

59%

4.3

9% 2

1.17

% 3

7.78

%

200

820

0920

1020

11

FUNDS EMPLOYED

$65.

35m

$66.

34m

$79.

50m

$110

.82m

200

820

0920

1020

11

OPERATING EBIT

200

820

0920

1020

11

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

Diversifi cation of the investment base and building global

relationships are key strategic goals forNgäi Tahu Capital

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

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

2.06

%3.

17%

3.34

%4.

82%

- $19

.98m

$2.

89m

$15

.44m

$35

.95m

25

TE RÜNANGA O NGÄI TAHU AND NGÄI TAHU CHARITABLE TRUST

Summary Group Financial StatementsFOR THE YEAR ENDED 30 JUNE 2011

The following Summary Group Financial Statements have been extracted from the audited Full Group Financial Statements dated 17 September 2011. The Full Group Financial Statements were prepared in accordance with New Zealand Generally Accepted Accounting Practice (‘NZ GAAP’). The Group is a public benefi t entity and has made an explicit statement of compliance with NZ IFRS as applicable for public benefi t entities in the Full Group Financial Statements. The Summary Group Financial Statements cannot be expected to provide as complete an understanding as provided by the Full Group Financial Statements. An unqualifi ed audit opinion was issued on the Full Group Financial Statements.

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

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

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

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

Summary Group Statement of Comprehensive Income

Summary Group Statement of Changes in Equity

Summary Group Statement of Financial Position

Summary Group Statement of Cash Flows

Summary Statement of Accounting Policies

Notes to the Summary Group Financial Statements

Audit Report

page 26

page 27

page 28

page 30

page 32

page 36

page 53

26

Revenue & Other Income from Trading Operations 5 (a) 162,631 145,769

Profi t from Ongoing Trading Operations before Interest,

Government Grants, Earthquake Damage Insurance Proceeds,

Building Remediation costs, Revaluations including Earthquake

Effect, Taxation and Tribal Activities 45,120 38,821

Finance Costs 5 (c) (8,469) (4,816)

Share of Associate's Net Surplus Accounted for using the Equity Method 631 1,507

Government Grant Income (Carbon Credits) 63 16,162

Net Gain on Sale of Non-Current Assets 5 (b) 5,359 1,137

Impairment Losses on Non-Current Assets 5 (c) 0 (7,457)

Net Gain/ (Loss) from Fair Value Adjustments on Biological Assets 360 (77)

Earthquake Insurance Proceeds 5 (c) 2,954 0

Earthquake Building Remediation costs 5 (c) (2,953) 0

Net (Loss) from Fair Value Adjustments on Investment Properties 9– Market Movement (18,818) (1,815)

Net (Loss) from Fair Value Adjustments on Investment Properties – Specifi c Earthquake Damage 9 (9,315) 0

Trading Surplus prior to Tribal Activities 14,932 43,462

Aquaculture Settlement Received 6 1,263 5,914

Operating expenses – Te Rünanga o Ngäi Tahu (9,224) (9,880)

Impairment Losses on Non-Current Assets 5 (c) (10) (10)

Revenue relating to Tribal, Rünanga and Whänau Distributions 7 3,126 2,093

Tribal, Rünanga and Whänau Distribution Expenses 7 (14,260) (13,728)

(Loss) / Profi t for the Year (4,173) 27,851

Less Taxation 13 (552) (605)

(Loss) / Profi t after taxation (4,725) 27,246

Other Comprehensive Income / (Loss)

Net Gain from Fair Value Adjustments of Investments 31,200 16,400

Share of Other Comprehensive Income of Associate 110 0

Net (Loss) on Cash Flow Hedges (1,023) (106)

Other Comprehensive Income for the Year 30,287 16,294

Total Comprehensive Income for the Year 25,562 43,540

Profi t / (Loss) Attributable to:

Non-Controlling Interest 155 130

Members of the Parent Entity (4,880) 27,116

(4,725) 27,246

Total Comprehensive Income Attributable to:

Non-Controlling Interest 155 130

Members of the Parent Entity 25,407 43,410

25,562 43,540


Summary Group Statement of Comprehensive IncomeFOR THE YEAR ENDED 30 JUNE 2011 NOTES JUNE 2011 JUNE 2010 $ 000s $ 000s

Includes sales (mainly relatingto seafood, tourism andproperties), interest income, rents received, dividends and income from investments.

Fair value of carbon credits.

Our share of Whale WatchKaiköura Surplus for the year.

Ryman Shares increase in value

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

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

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

27

FOR THE YEAR ENDED 30 JUNE 2011 JUNE 2011 JUNE 2010 $ 000s $ 000s


Summary Group Statement of Changes In Equity

Balance at beginning of year 570,201 526,661

Net Movement in Reserves:

– Investment valuation gain 31,200 16,400

– Associate's Share of Foreign Translation Reserve 110 0

(Loss) Recognised on cash fl ow hedges (1,023) (106)

Net Gain recognised directly in equity 30,287 16,294

Net Surplus (Loss) for the Year:

–Te Rünanga o Ngäi Tahu and Ngäi Tahu Charitable Trust (4,880) 27,116

– Minority Shareholders 155 130

(4,725) 27,246

Total comprehensive income for the year 25,562 43,540

Distributions (4,724) 0

Balance at end of year 591,039 570,201

Ryman Shares increase in value


28

Current Assets Cash and Cash Equivalents 8,191 4,493

Accounts Receivable 11,324 6,443

Inventories 5,089 5,933

Inventories – Property 35,544 36,296

Loans Advanced 853 1,636

Other Financial Assets 0 9

Other Current Assets 1,169 722

62,170 55,532

Non-Current Assets Classifi ed As Held for Sale 27,825 0

Total Current Assets 89,995 55,532

Non-Current Assets

Accounts Receivable 3,346 3,658

Non Current Inventory – Property 25,485 23,579

Loans Advanced 268 398

Property, Plant and Equipment 8 36,596 34,155

Biological Assets 4,681 3,708

Investment Properties 9 304,302 343,594

Investments in Equity Instruments 10 117,053 85,105

Interest in Associate Company 8,363 8,492

Fish Quota and Marine Farm Licences 106,271 105,714

Carbon Credits 0 16,162

Goodwill 15,538 15,583

Brands, River Rights, Concessions and Software 18,571 19,571

Total Non-Current Assets 640,474 659,719

Total Assets 730,469 715,251

Investment properties primarily held for rental income and capital appreciation.

Includes shares in Ryman Healthcare and Aotearoa Fisheries.

The carrying value of our share of Whale Watch Kaiköura.

Relates to Ngäi Tahu Tourism Businesses.

Money owed to Ngäi Tahu byour customers.

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

Residential and Commercial Development Property

Properties and sections planned to be sold within 12 months.


Summary Group Statement of Financial PositionAS AT 30 JUNE 2011 NOTES JUNE 2011 JUNE 2010 $ 000s $ 000s


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

29

17 September 2011

AS AT 30 JUNE 2011 NOTES JUNE 2011 JUNE 2010 $ 000s $ 000s


Summary Group Statement of Financial Position (continued)

Current Liabilities

Bank Overdraft 411 252

Creditors and Accruals 25,487 24,284

Other Current Financial Liabilities 373 92

Taxation 97 102

Total Current Liabilities 26,368 24,730

Non-Current Liabilities

Term Loans 12 106,000 114,000

Other Financial Liabilities 7,062 6,320

Total Non-Current Liabilities 113,062 120,320

Total Liabilities 139,430 145,050

Net Assets 591,039 570,201

Equity

Trust Funds in Perpetuity 230,274 233,511

Capital Reserve 897 897

Asset Revaluation Reserve 95,582 64,382

Hedge Reserve (7,435) (6,412)

Associate’s Share of Foreign Translation Reserve 110 0

Retained Earnings 270,694 276,837

Tribal Equity 590,122 569,215

Minority Interest 917 986

Total Equity 591,039 570,201

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

Includes borrowings under syndicated debt facility.

Money owed to our suppliersand rünanga distributions stillto be paid.

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

Represents unrealised losseson foreign currency and interest rate hedges.

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


Mike SangChief Executive Offi cer


30

Cash Flows from Operating Activities

Cash was provided from:

Cash receipts from Customers 143,185 133,367

Sale of Inventories – Property 21,408 18,626

Dividends received 3,750 2,875

Aquaculture Settlement received 0 5,914

Earthquake Insurance Proceeds received 1,763 0

Interest received 576 415

170,682 161,197Cash was applied to: Cash paid to Suppliers and Employees 111,117 108,098

Purchase of and Expenditure on Development Properties 16,493 9,349

Earthquake Remediation Repairs 2,173 0

Tribal Distributions 14,260 14,854

Interest paid 8,820 7,966

Taxation paid 557 461

(153,420) (140,728)

Net Cash Infl ow from Operating Activities 14 17,262 20,469

Cash Flows From Investing Activities


Sale of Property, Plant and Equipment 984 1,534

Loans repaid 205 562

Sale of Forests 165 1,088

Sale of Investment 165 0

Sale of Carbon Credits 17,765 0

19,284 3,184

Cash was applied to:

Purchase of Property, Plant and Equipment 6,069 2,375

Loans advanced 49 483

Acquisition of Businesses 0 60

Purchase of Investments 827 185

Purchase of Fish Quota and Marine Farm Licences 557 32

Purchase of Biological assets 668 543

Purchase of Intangibles 2 50

Investment Properties Expenditure 12,792 36,168

(20,964) (39,896)

Net Cash (Outfl ow) Investing Activities (1,680) (36,712)

Includes sales of residential development sections.

Includes purchases of residential development sections.

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


Summary Group Statement of Cash FlowsFOR THE YEAR ENDED 30 JUNE 2011 NOTES JUNE 2011 JUNE 2010 $ 000s $ 000s


31

Cash Flows From Financing Activities


Syndicated Debt Facility loans 0 19,000

0 19,000

Cash was applied to:

Repayment of Syndicated Debt Facility loans 8,000 0

Payment of Distribution to Minority shareholder 43 0

Distribution of Aquaculture Settlement to Rünanga 4,000 0

Repayment of other loans 0 773

(12,043) (773)

Net Cash (Outfl ow) / Infl ow From Financing Activities (12,043) 18,227

Net Increase In Cash Held 3,539 1,984

Add balance at beginning of year 4,241 2,257

Balance at end of year 7,780 4,241

Represented by:

Cash and cash equivalents 8,191 4,493

Bank Overdraft (411) (252)

7,780 4,241



Summary Group Statement of Cash Flows (continued)


32

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

1.4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of fi nancial statements in conformity with NZ IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies.

The full fi nancial statements provide detail behind critical estimates and judgements. These summary group fi nancial statements should be read in conjunction with the full fi nancial statements.

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

The following are the critical estimates and judgements management have made in the process of applying the Group’s accounting policies and that have the most signifi cant impact on the amounts recognised in the fi nancial statements:

Impairment of Goodwill and Other Intangibles

The Group determines whether intangibles with an indefi nite useful life are impaired at least on an annual basis. This requires the estimation of the recoverable amount of the cash generating units to which these intangibles are allocated.

Fair value of Investment Properties

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

Impairment of Quota

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

Fair value of Carbon Credits

Carbon credits of the Group are initially valued at fair value. This requires the estimation of current market values.

Insurance Recognition

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

1. BASIS OF PREPARATION

1.1. REPORTING ENTITY

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

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

1.2. STATEMENT OF COMPLIANCE

Te Rünanga o Ngäi Tahu is responsible for the overall governance of Ngäi Tahu’s affairs, the representation of the tribe’s interests, the protection and advancement of the rights of the members of Ngäi Tahu Whänui, and delivering social, cultural and development programmes to Ngäi Tahu members and their communities. Ngäi Tahu Holdings Corporation manages the commercial activities and assets that have been placed in the Ngäi Tahu Charitable Trust, being primarily property investment, property development, tourism, fi shing and investment activity in New Zealand. Te Rünanga o Ngäi Tahu is a body corporate incorporated in New Zealand by section 6 of the Te Rünanga o Ngäi Tahu Act 1996. It is a public benefi t entity and is domiciled in New Zealand.

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

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

The full fi nancial statements were authorised for issue byTe Rünanga o Ngäi Tahu on 17 September 2011.

1.3. BASIS OF MEASUREMENT

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

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

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


Summary Statement of Accounting PoliciesFOR THE YEAR ENDED 30 JUNE 2011

33

(b) Associate Companies

Associates are all entities in which the Group has signifi cant infl uence, but not control, over the fi nancial and operating policies. Investments in associates are accounted for using the equity method of accounting and are initially recorded at cost.

The Group’s share of its associates’ post-acquisition profi ts or losses is recognised in profi t and loss and its share of post-acquisition reserves is recognised in other comprehensive income and accumulated as a separate component of equity in the appropriate reserve. The cumulative post-acquisition movements are adjusted against the carrying value of the investment.

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

Where an entity within the Group transacts with an associate of the Group, profi ts and losses are eliminated to the extent of the Group’s interest in the associate.

(c) Joint Ventures

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

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

2.2. FOREIGN CURRENCY

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

2.3. INVENTORIES

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

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

Inventories classifi ed as annual catch entitlement (ACE) are the rights to catch fi sh that are attached to the fi sh quota shares.

1.5. PRESENTATION CURRENCY

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

2. SIGNIFICANT ACCOUNTING POLICIES

The following signifi cant accounting policies have been adopted in the preparation and presentation of the fi nancial report:

2.1. BASIS OF COMBINATION

(a) Basis of Combination

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

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

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

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

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

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

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

FOR THE YEAR ENDED 30 JUNE 2011


Summary Statement of Accounting Policies (continued)

34

at the original fair value less any accumulated impairment losses.

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

(b) Goodwill

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

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

(c) Quota and Marine Farm Licences

Quota and marine farm licences are both indefi nite life intangible assets. They are both recorded at cost less impairment.

(d) Other Intangible Assets

Brands, River Rights, Concessions and Consents

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

Computer Software

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

2.7. BORROWING COSTS

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

2.8. REVENUE RECOGNITION

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

(a) Rental Income

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

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

2.4. PROPERTY, PLANT AND EQUIPMENT

(a) Recognition and Measurement

Property, Plant and Equipment is stated at historical cost less accumulated depreciation and provision for impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

(b) Subsequent costs

Subsequent costs are included in the asset’s carrying value or recognised as a separate asset, as appropriate, only when it is probable that future economic benefi ts associated with the item will fl ow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to profi t or loss during the fi nancial period in which they are incurred.

(c) Depreciation

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

(d) Disposal

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

Surpluses and defi cits on disposal are determined by comparing proceeds with carrying amount. These are included in profi tor loss.

2.5. INVESTMENT PROPERTY

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

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

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

2.6. INTANGIBLE ASSETS

(a) Carbon Credits

Carbon credits acquired by way of a government grant are initially recognised at the date of entitlement at fair value. Subsequent to initial recognition, carbon credits are measured


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

35

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

2.11. STATEMENT OF CASH FLOWS

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

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

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

Operating activities include all transactions that are not investing or fi nancing activities.

3. CHANGES IN ACCOUNTING POLICIES

There have been no changes in accounting policies.

4. DETERMINATION OF FAIR VALUES

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

Investment Properties

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

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

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

Derivatives

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

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

(b) Sale of goods

Sale of goods are recognised when the Group has transferred the signifi cant risks and rewards of ownership of the goods sold.

(c) Sale of services

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

(d) Interest Income

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

The effective interest method allocates the interest income over the life of the contract or, when appropriate, a shorter period using the effective interest rate. The effective interest rate is the discount rate at which the present value of the future cash fl ows equals the net carrying amount of the fi nancial asset. When calculating the effective interest rate the Group estimates the future cash fl ows considering all the contractual terms of the contract but does not include future credit losses. The calculation of the effective interest rate includes all fees, transaction costs and all other premiums or discounts that are an integral part of the effective interest rate.

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

(e) Dividend Income

Dividend income is recognised when the right to receive payment is established.

(f) Government Grant

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

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

2.9. PAPATIPU RÜNANGA DISTRIBUTIONS

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

2.10. TAXATION

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



Summary Statement of Accounting Policies (continued)

36

4. DETERMINATION OF FAIR VALUES (continued)

The fair value of interest rate swaps is based on broker quotes. Those quotes are tested for reasonableness by discounting estimated future cash fl ows based on the terms and maturity of each contract and using market interest rates for a similar instrument at the measurement date.

Carbon Credits

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

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

Investments in Equity Instruments

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


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

5. INCOME AND EXPENSES

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

(a) Revenue and other Income

Revenue for the sale of goods 94,542 84,174

Revenue from the rendering of services 39,095 37,523

Rental received from properties 22,948 18,870

Recoverable Property Operating Expenses 1,692 1,126

Foreign exchange gains on sale of goods 54 470

Dividends – on available for sale fi nancial assets 2,880 2,440

Interest revenue 587 415

Hedge effectiveness on foreign exchange contracts 0 10

Time value on foreign exchange options 0 135

Other revenue 833 606

162,631 145,769

(b) Net Gain / (Loss) on Sale of Non Current Assets

Property, Plant and Equipment (78) 613

Investments 165 0

Carbon Credits 5,181 0

Investment Properties 91 524

5,359 1,137

JUNE 2011 JUNE 2010 $ 000s $ 000s

Notes to the Summary Group Financial Statements

37


Notes to the Summary Group Financial Statements (continued)

5. INCOME AND EXPENSES (continued)

(c) The following expenses are included in the determination of Group profi t:

Finance costs:

Interest paid on bank loans 4,812 3,863

Interest paid on interest rate swaps 2,617 2,717

Bank facility fees 1,383 1,308

Amount of interest capitalised (1) (343) (3,072)

8,469 4,816

Direct operating expenses of investment properties:

Properties generating rental income 2,460 1,705

Depreciation and Amortisation:

Depreciation of property, plant and equipment 3,695 3,745

Amortisation of intangible assets 57 238

3,752 3,983

Impairment Losses on Non-Current Assets:

Impairment of investments 10 3,909

Impairment of goodwill 0 997

Impairment of other intangibles 0 2,561

10 7,467

Represented by:

Trading Operations 0 7,457

Tribal Activities 10 10

10 7,467

Other expenses

Bad and doubtful debts 29 178

Defi ned contribution plans 517 493

Fees paid to directors of trustees (note 16) 697 607

Fees paid to Te Rünanga o Ngäi Tahu Representatives (note 16) 744 791

Time value on foreign exchange options 9 0

Leasing and rental charges 1,915 2,655

Tourism concessions 2,060 2,100

Other employee benefi ts 166 170

Earthquake Building Remediation costs and Insurance Proceeds Received

Earthquake Building remediation costs – paid and accrued (note 9) 2,953 0

Earthquake Insurance proceeds-received and receivable (note 9) (2,954) 0


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

38

6. FISHERIES AND AQUACULTURE SETTLEMENTS

During the year the Crown settled further the Mäori Commercial Aquaculture Claims. This included the following assets:

SETTLEMENT FAIR VALUE FAIR VALUE 2010 VALUE ADJUSTMENT

$000S $000S $000S $000S

Aquaculture asset money 1,263 0 1,263 5,914

Aquaculture Settlement Income 1,263 0 1,263 5,914


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

Section 161 of the Mäori Fisheries Act 2004 states that settlement quota sales can only be made to another mandated iwi organisation or an entity within Te Ohu Kai Moana Group. Such sales are possible two years after the fi rst transfer of settlement quota by Te Ohu Kai Moana Limited to the mandated iwi organisation. Settlement quota cannot be gifted.

Donal Boyle from Quota Management Systems Limited determined the fair value of fi sh quota at the time of settlement with reference to market evidence of current market prices. Donal Boyle is an independent valuer not related to the Group. He has 28 years experience in the fi shing industry and 15 years valuing fi sh quota.

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

39


Notes to the Summary Group Financial Statements (continued)FOR THE YEAR ENDED 30 JUNE 2011 JUNE 2011 JUNE 2010 $ 000s $ 000s

7. TRIBAL, RÜNANGA AND WHÄNAU DISTRIBUTIONS

Income relating to Tribal, Rünanga and Whänau Distributions 3,126 2,093

Expenses

Rünanga Distributions & Development 4,498 4,445

Culture and Identity 1,508 1,775

Social Independence 2,501 1,987

Natural Resources, Tribal Properties and Mahinga Kai Cultural parks 861 696

Strategy and Infl uence 523 753

Whai Rawa Distributions and Development 2,754 2,383

Tribal Representation 1,615 1,689

14,260 13,728

Net Expenses 11,134 11,635

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

8. PROPERTY, PLANT AND EQUIPMENT – NET BOOK VALUE

Land and Buildings 28,376 28,131

Plant, Offi ce and Computer Equipment 6,999 5,183

Motor Vehicle 1,221 841

36,596 34,155

9. INVESTMENT PROPERTIES – AT FAIR VALUE

Investment Property – Commercial 110,894 119,310

Investment Property – Crown / Local Authority 112,605 70,065

Investment Property – Forestry Land 65,693 83,511

Investment Property under Construction 15,110 70,708

304,302 343,594

40


Notes to the Summary Group Financial Statements (continued)

9. INVESTMENT PROPERTIES – AT FAIR VALUE (continued)

CHRISTCHURCH EARTHQUAKE

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

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

On 13 June 2011 two signifi cant earthquake aftershocks of 6.3 and 5.6 magnitude were suffered by the Christchurch city and the wider Canterbury region causing further damage to property. The Group’s investment property suffered further damage as a result of these events. These earthquake aftershocks have been classed as a new event and a new insurance claim for repairs to reinstate the building will be submitted to the insurer once the damage has been assessed.

Investment properties are required to be carried at fair value under NZ IAS 40. At balance date, and at the date of issuing these fi nancial statements, the full economic and market impacts of the earthquakes on these assets, and the wider market, is still being determined and it is expected to be some time before the full impacts are known. Investor confi dence towards signifi cant property assets in the Christchurch and Canterbury region, in the short term is likely to remain weak, while building remediation repair programmes are completed and properties are restored to a fully remediated condition in a post-earthquake environment. Following completion of property remediation repair programmes and settlement of insurance proceeds from insurers, it is anticipated that there will be a recovery of investment property fair values. Therefore, the valuations for these assets necessarily require signifi cant estimation based on a series of detailed assumptions and refl ect the risk around the numerous resulting unknowns. If any of these assumptions were to change or prove to be inaccurate the impact on the valuation may be signifi cant.

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


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

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

Critical general assumptions

The critical general assumptions included in the Group’s investment property valuations are as follows:

– The improvements and land forming the properties are structurally sound and not detrimentally affected by the earthquakes;

– It is expected that insurances will meet any capital remediation expenditure repair requirements and/or loss of rental income;

– There is likely to be no tenant failure. In addition, any risk of a shifting tenant is incorporated in the capitalisation rate to determining fair value;

– There is further assumption that the properties will continue to generate rentals in the foreseeable future and any change to the city plan will not adversely affect rental streams.

Specifi c assumptions and impact

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

Insurance and Remediation Costs

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

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

41



JUNE 2011 JUNE 2010

10. INVESTMENTS IN EQUITY INSTRUMENTS $ 000s $ 000s

Available for sale investments carried at fair value

Aotearoa Fisheries Limited income shares 4,500 4,500

Ryman Healthcare Limited shares 110,800 79,600

115,300 84,100

Available for sale investments carried at cost less accumulated impairment 1,753 1,005

117,053 85,105

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

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

9. INVESTMENT PROPERTIES – AT FAIR VALUE (continued)

Earthquake building remediation costs of $2,953,000 have been incurred at balance date, comprising building remediation costs paid $2,173,000 and building remediation costs accrued $780,000 for work completed but not yet invoiced. The earthquake building remediation costs amount includes an

insurance excess payable amount of $63,612 and this excess is payable by the Group pursuant to the Group insurance policies.

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

Tenant Insured Buildings

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

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

Sensitivity analysis for Christchurch properties

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

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

42

11. INTERESTS IN JOINT VENTURES

The joint ventures are: PERCENTAGE OWNED BY PRINCIPAL BALANCE OTHER OWNED ACTIVITY DATE JV PARTNER

Kayaking Abel Tasman 50.00% Abel Tasman Tourism 30 June Wakatu Joint Venture Tourism Kayaking Operators Incorporation Limited

The Station 50.00% Ngäi Tahu Booking Offi ce 30 June Totally Tourism Limited Tourism Limited

Southern Lakes 50.00% Ngäi Tahu Booking Offi ce 30 June Real JourneysInformation Centre Tourism Limited Limited

Experience Taupo 33.33% Hukafalls Jet Limited Booking Offi ce 31 March Tandem Skydiving2009 Limited Limited & Taupo Tourism Holdings Limited

Christchurch Civic 50.00% Ngäi Tahu Property Property Developer 30 June Civic Building Building Joint Venture (CCC JV) Limited Limited (previously Tuam 2 Limited (Christchurch City Council)

Lincoln Land Development 50.00% Ngäi Tahu Property Property Developer 31 December Lincoln UniversityJoint Venture Joint Ventures Limited Property Joint Venture Limited

Lincoln Development 50.00% Ngäi Tahu Property Property Developer 31 December Lincoln UniversityJoint Venture No. 2 Joint Ventures Property Joint (No. 2) Limited Venture Limited No 2

Allandale Joint Venture 50.00% Ngäi Tahu Property Developer 30 June Allandale Property Property Limited Limited

Prestons Road (1) 33.33% Ngäi Tahu Property Developer 31 March Foodstuffs Property Limited (South Island) Properties Limited CDL Land New Zealand Limited

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

JUNE 2011 JUNE 2010

$ 000s $ 000s

The Group’s share of the assets, liabilities, revenues and expenses are incorporated into theGroup fi nancial statements on a line-by-line basis using the proportionate method as below:

Total Assets 56,472 61,910

Less Current Liabilities (3,670) (3,189)

Net Investment in Joint Ventures 52,802 58,721

Contingent Liabilities 0 0

Capital Commitments 2,400 6,600

Included in the Financial Statements are the following revenue and expenses:

Share of Revenue 7,179 6,871

Share of Expenses 8,807 7,689



43

12. TERM LOANS

Syndicated Debt Facility 106,000 114,000

Ngäi Tahu Holdings Corporation Limited, for itself and acting in its capacity as Trustee of Ngäi Tahu Holdings Corporation, the Bankof New Zealand (lead arranger), Commonwealth Bank of Australia and ANZ National Bank Limited entered into an agreement on29 October 2008 for a maximum facility of $200,000,000. The facility is split between Tranche A of $50,000,000 expiring 27 October 2009 and Tranche B of $150,000,000 expiring 29 October 2011. In the previous fi nancial year, Tranche A was rolled over with the same syndicate banks for a further one year to expire 27 October 2010. On the expiration of Tranche A in the current fi nancial year, a new bilateral debt facility was entered into with Westpac banking Corporation for the same amount $50,000,000 (not currently utilised) to expire on 29 October 2011.

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

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

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

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

13. TAXATION

Income tax recognised in profi t or loss

Tax expense/(income) comprises:

Current tax expense 541 589

Adjustments recognised in the current year in relation to the current tax of prior years 11 16

Total tax expense 552 605

The prima facie income tax expense on pre-tax accounting profi t from operationsreconciles to the income tax expense in the fi nancial statements as follows:

(Loss) / Profi t before taxation (4,173) 27,851

Less: Non-taxable income (13,987) (46,011)

Less: Taxation Losses Brought Forward (67) (24)

Plus: Non-deductible expenses 21,003 21,205

2,776 3,021

Income tax expense calculated at 19.5% 541 589



44

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

(Loss) / Profi t after taxation (4,725) 27,246

Non-Cash items:

Depreciation 3,695 3,745

Amortisation of intangible assets 57 238

Net loss/(gain) on sale of property, plant and equipment 78 (613)

Government grant income (63) (16,162)

Net gain on sale of investment properties (91) (524)

Net gain on sale of investments (165) 0

Net gain on sale of Carbon Credits (5,181) 0

Net loss from fair value adjustments on investment properties - market 18,818 1,815

Net loss from fair value adjustments on investment properties – specifi c earthquake impact 9,315 0

Net (gain) / loss from fair value adjustments on biological assets (360) 77

Biological assets natural decrease 55 58

Losses/(gains) on derivative instruments 9 (145)

Distribution to Minority Shareholder relating to prior fi nancial year (181) 0

Impairment of investments 10 3,909

Impairment of goodwill 0 997

Impairment of other intangibles 0 2,561

Borrowing costs capitalised (343) (3,072)

Equity accounted earnings of associate (631) (1,072)

25,022 (8,188)

Movement in working capital arising from operating activities

Accounts Receivable (4,881) 1,885

Non-Current Account Receivable 312 (30)

Inventories 844 320

Inventories – Property 752 4,840

Non-Current Inventories –Property (1,906) (3,235)

Other Current Assets (447) 251

Taxation (5) 144

Creditors and Accruals 1,203 (4,259)

(4,128) (84)

Working capital classifi ed movements arising from fi nancing and investing activities 1,093 1,495

Net cash infl ow from operating activities 17,262 20,469



45

15. RELATED PARTY TRANSACTIONS

(a) Transactions with related parties

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

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

Terms under which related party transactions were entered into

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

(b) Key management personnel

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



46


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

JUNE 2011 JUNE 2010

$ 000s $ 000s

TREVOR BURT 70 64

Ngäi Tahu Holdings Corporation Limited

Chair. Appointed 1 August 2009

NTHC Audit, Finance & Risk Committee. Member. Appointed 25 September 2009

NTHC Remuneration Committee. Member

Ngäi Tahu Capital Limited

Director. Appointed 25 September 2009

LINDA CONSTABLE 83 84


Director. Appointment ended 30 June 2011

Interim Chair from 22 February 2009 to 31 July 2009



Ngäi Tahu Property Limited

Chair. Appointed 27 June 2006

NTP Remuneration Committee. Member

Ngäi Tahu Property (CCC – JV) Limited. Director. Appointed 29 November 2007

Ngäi Tahu Seafood Limited

Director. Appointed 27 June 2006. Resigned 27 August 2009

Ngäi Tahu Tourism Limited

Director. Appointed 27 June 2006. Resigned 9 November 2009

GERRY COATES 30 39


Director. Appointed 19 November 2008

NTHC Audit, Finance & Risk Committee. Member from 26 February 2009 to 24 September 2009

NTHC Remuneration Committee. Member

CATHERINE DRAYTON 40 37


Director. Appointed 1 August 2009

NTHC Audit, Finance & Risk Committee. Chair. Appointed 25 September 2009



16. KEY MANAGEMENT PERSONNEL COMPENSATION

The short-term employee benefi t compensation of the Directors and executives, being the key management personnel of the Group,is set out below:

Independent Directors of Ngäi Tahu Holdings Corporation Limited, Ngäi Tahu Capital Limited, Ngäi Tahu Property Limited, Ngäi Tahu Property (CCC – JV) Limited, Ngäi Tahu Seafood Limited, Ngäi Tahu Tourism Limited and Ngäi Tahu Tribal Services Limited.

47



16. KEY MANAGEMENT PERSONNEL COMPENSATION (continued) JUNE 2011 JUNE 2010

$ 000s $ 000s

ROSS KEENAN 107 105


Director. Re-appointed 19 June 2009

NTHC Audit, Finance & Risk Committee. Member

NTHC Remuneration Committee. Member until 24 September 2009


Director. Resigned 27 August 2009


Director. Resigned 27 August 2009


Director. Appointed 26 February 2009. Chair from 26 February 2009 to 30 August 2009

NTS Audit & Risk Committee. Chair

NTS Remuneration Committee. Member


Chair. Appointed 29 May 2006

NTT Remuneration Committee. Chair

NTT Audit & Finance Committee. Member

NTT Safety & Risk Committee. Member

Ngäi Tahu Tribal Services Limited. Director. Appointment ended 8 July 2010

SAMFORD MAIER 28 0



NTHC Audit, Finance & Risk Committee. Member


Director. Appointed 19 November 2010

MARK TUME 0 1



NTHC Audit & Finance Committee Chair. Appointment ended 25 August 2009

DONALD COUCH 0 22


Director. Appointed 19 April 2006. Resigned 31 October 2009

RICHARD BRADDOCK 30 26



NTP Audit and Risk Committee. Member

48


$ 000s $ 000s

BARRY BRAGG 32 28



NTP Audit and Risk Committee. Chair

LEX HENRY 30 26



NTP Audit and Risk Committee. Member

DAVID KENNEDY 37 32



NTP Remuneration Committee. Chair

ROBERT POOLEY 27 20


Director. Appointed 1 October 2009

NTS Audit & Risk Committee. Member


BRIAN RHOADES 45 37


Chair. Appointed 1 September 2009


NTS Remuneration Committee. Chair

COLIN TOPI 27 20


Director. Appointed 1 October 2009



PHILLIP BROUGHTON 27 16


Director. Appointed 1 December 2009

NTT Audit & Finance Committee. Chair

NTT Remuneration Committee. Member




49




$ 000s $ 000s

DAVID CLARKE 27 14






ELIZABETH HIRST 27 14





NTT Safety & Risk Committee. Chair

ANTHONY MARKS 27 18






KYPROS KOTZIKAS 3 4

Ngäi Tahu Fisheries Settlement Limited

Director. Resigned 31 March 2011

Total Group Directors Fees Note 5 (c) 697 607

50

16. KEY MANAGEMENT PERSONNEL COMPENSATION (continued)

TE RÜNANGA O NGÄI TAHU REPRESENTATIVES

MARK SOLOMON – Kaiwhakahaere, Member Te Apärangi 155 155 – Representative Fees 30 30

STEWART BULL Member of Te Apärangi and Te Here Committees 33 35

GERRY COATES Member of Te Apärangi Committee 34 36

DONALD COUCH Term Finished October 2009 0 45

TUTEHOUNUKU KORAKO Appointed 6 October 2009, Member of Te Apärangi Committee 30 20

CHARLES CROFTS Term fi nished 14 October 2009 0 24

ELIZABETH CUNNINGHAM Appointed 14 October 2009 31 22

JAMES DANIELS Member of Audit & Risk, Contract Review and Te Apärangi Committees 36 31

MATAPURA ELLISON Member Te Apärangi, Te Here and Contract Review Committees 35 36

QUENTIN HIX Appointed 13 December 2009, Member of Audit & Risk and Te Here Committees 31 17

HINE FORSYTH Term fi nished October 2009 0 9

DAVID HIGGINS Term fi nished April 2010 0 27

SANDY LOCKHART Member Contract Review Committee 35 30

TERRY NICHOLAS Member of Audit & Risk, Contract Review and Te Here Committees 38 32

MARIA PERA Chairperson Treaty Tribes Coalition Limited, Member Te Apärangi Committee 33 31

TAHU POTIKI Appointed 20 October 2009, Chairperson Te Apärangi, Member Ngäi Tahu Fund and Audit & Risk Committees 31 22

TIM ROCHFORD Member of Te Apärangi Committee 32 36

MICHAEL SKERRETT Member of Audit & Risk and Te Here Committees 33 31

WALLY STONE Appointed 30 October 2009 30 20

NGÄIRE TAINUI-WYBROW Appointed June 2011, Member Te Here and Audit & Risk Committees 32 0

GEORGE TIKAO Term fi nished June 2010 0 37

GAIL TIPA Appointed 17 April 2010, Member Te Apärangi Committee 31 8

LISA TUMAHAI Chairperson Te Here Committee 32 30

GARY WAAKA Resigned October 2009 0 8

CLARE WILLIAMS Member Te Apärangi, Rünanga Representative term fi nished October 2009 2 19

Total Representative Fees 744 791

Short term employee benefi ts (senior management positions) 2,387 2,177

Total Key Management Personnel and Directors Fees Compensation 3,828 3,575


Notes to the Summary Group Financial StatementsFOR THE YEAR ENDED 30 JUNE 2011 JUNE 2011 JUNE 2010 $ 000s $ 000s

51



16. KEY MANAGEMENT PERSONNEL COMPENSATION (continued)

EMPLOYEES REMUNERATION

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

Remuneration JUNE 2011 JUNE 2010 NUMBER OF NUMBER OF EMPLOYEES EMPLOYEES*

$490,000 - $499,999 1 0

$470,000 - $479,999 1 0

$380,000 - $389,999 0 1

$350,000 - $359,999 1 0

$340,000 - $349,999 1 1

$320,000 - $329,999 1 0

$310,000 – $319,999 0 1

$300,000 - $309,999 1 1

$290,000 - $299,999 1 0

$280,000 - $289,999 0 2

$270,000 - $279,999 0 2

$260,000 - $269,999 1 0

$250,000 - $259,999 2 0

$240,000 – $249,999 2 1

$230,000 - $239,999 1 0

$220,000 - $229,999 1 1

$210,000 - $219,999 1 1

$200,000 - $209,999 2 3

$190,000 - $199,999 2 0

$180,000 - $189,999 2 3

$170,000 - $179,999 5 3

$160,000 - $169,999 3 4

$150,000 - $159,999 2 1

$140,000 - $149,999 5 2

$130,000 - $139,999 7 1

$120,000 - $129,999 8 10

$110,000 - $119,999 9 8

$100,000 - $109,999 1 8

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

52



17. COMMITMENTS FOR EXPENDITURE

(a) Capital expenditure commitments

Acquisition of Property, plant and equipment 10,799 421

(b) Other expenditure commitments

Investments 15,175 0

Investment Properties 2,892 6,600

Inventories – Properties 2,400 8,533

20,467 15,133

31,266 15,554

18. CONTINGENT ASSETS

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

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

19. CONTINGENT LIABILITIES

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

20. EVENTS SUBSEQUENT TO BALANCE DATE

On 28 June 2011, the shareholders of PGG Wrightson approved Ngäi Tahu Capital Limited’s proposed purchase of 7.24% of the total shares in Agria Asia Investments Limited held by Agria Group Limited. Following shareholders’ approval the shareholders agreement became unconditional and the consideration amount of NZ$15,000,000 was payable fi ve days after the agreement becoming unconditional. Payment of NZ$15,000,000 was made on 5 July 2011 and title to the shares was transferred to Ngäi Tahu Capital Limited on that date.

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

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

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

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

There are no other material events subsequent to balance date.

21. SIGNIFICANT EVENTS

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

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

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

53

INDEPENDENT AUDITOR’S REPORT ON THE SUMMARY FINANCIAL STATEMENTS TO THE MEMBERS OF TE RŪNANGA O NGĀI TAHU AND NGĀI TAHU CHARITABLE TRUST Report on the Summary Financial Statements The accompanying summary group financial statements of Te Rūnanga o Ngāi Tahu and Ngāi Tahu Charitable Trust (“the Group”) on pages 25 to 52, which comprise the summary group statement of financial position as at 30 June 2011, and the summary group statement of comprehensive income, summary group statement of changes in equity and summary group statement of cash flows for the year then ended, and related notes, are derived from the audited group financial statements of Te Rūnanga o Ngāi Tahu and Ngāi Tahu Charitable Trust for the year ended 30 June 2011. We expressed an unmodified audit opinion on those financial statements in our report dated 17 September 2011. The summary group financial statements do not contain all the disclosures required for full financial statements under generally accepted accounting practice in New Zealand. Reading the summary group financial statements, therefore, is not a substitute for reading the audited group financial statements of Te Rūnanga o Ngāi Tahu and Ngāi Tahu Charitable Trust. This report is made solely to the members, as a body, for the purpose of expressing an opinion on the summary group financial statements for the year ended 30 June 2011. Our audit has been undertaken so that we might state to the members those matters we are required to state to them in an auditor’s report on summary group financial statements and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the members as a body, for our audit work, for this report, or for the opinions we have formed.

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

Auditor’s Responsibility Our responsibility is to express an opinion on the summary group financial statements based on our procedures, which were conducted in accordance with International Standards on Auditing (New Zealand) (ISA (NZ)) 810: Engagements to Report on Summary Financial Statements. Our firm carries out other assignments for Te Rūnanga o Ngāi Tahu and Ngāi Tahu Charitable Trust in the area of risk management advice, review of controls and other assurance services. In addition to this, partners and employees of our firm deal with Te Rūnanga o Ngāi Tahu and Ngāi Tahu Charitable Trust on normal terms within the ordinary course of trading activities of the business of Te Rūnanga o Ngāi Tahu and Ngāi Tahu Charitable Trust. The firm has no other relationship with, or interests in, Te Rūnanga o Ngāi Tahu and Ngāi Tahu Charitable Trust.

Opinion In our opinion, the summary group financial statements derived from the audited group financial statements of Te Rūnanga o Ngāi Tahu and Ngāi Tahu Charitable Trust for the year ended 30 June 2011 are consistent, in all material respects, with those financial statements, in accordance with FRS-43: Summary Financial Statements. Chartered Accountants 17 September 2011 Christchurch, New Zealand This audit report relates to the summary group financial statements of Te Rūnanga o Ngāi Tahu and Ngāi Tahu Charitable Trust for the year ended 30 June 2011 included on Te Rūnanga o Ngāi Tahu and Ngāi Tahu Charitable Trust’s website. Te Rūnanga o Ngāi Tahu and Ngāi Tahu Charitable Trust’s governing body is responsible for the maintenance and integrity of Te Rūnanga o Ngāi Tahu and Ngāi Tahu Charitable Trust’s website. We have not been engaged to report on the integrity of Te Rūnanga o Ngāi Tahu and Ngāi Tahu Charitable Trust’s website. We accept no responsibility for any changes that may have occurred to the summary group financial statements since they were initially presented on the website. The audit report refers only to the summary group financial statements named above. It does not provide an opinion on any other information which may have been hyperlinked to/from these summary financial statements. If readers of this report are concerned with the inherent risks arising from electronic data communication they should refer to the published hard copy of the audited summary group financial statements and related audit report dated 17 September 2011 to confirm the information included in the audited summary group financial statements presented on this website. Legislation in New Zealand governing the preparation and dissemination of financial statements and summary group financial statements may differ from legislation in other jurisdictions.

54

NGÄI TAHU DIRECTORS

Ngäi Tahu HoldingsCorporation Board

Trevor Burt, ChairAppointed 1 August 2009

Ross KeenanRe-appointed 19 June 2009

Linda ConstableAppointment ended30 June 2011

Gerry Te Kapa CoatesAppointed 19 November 2008

Catherine DraytonAppointed 1 August 2009

Samford MaierAppointed 1 September 2010

Ngäi Tahu CommunicationsLimited Board

Anake Goodall, ChairAppointment ended31 March 2011

Mike SangAppointed 16 April 2011

NGÄI TAHU SUBSIDIARY BOARDS

Ngäi Tahu Property

Linda Constable, ChairAppointed 27 June 2006

Richard BraddockAppointed 1 September 2009

Barry BraggAppointed 1 September 2009

Lex HenryAppointed 1 September 2009

David KennedyAppointed 1 September 2009

Ngäi Tahu Seafood

Dr Brian Rhoades, ChairAppointed 1 September 2009

Robert PooleyAppointed 1 October 2009

Colin TopiAppointed 1 October 2009

Ross KeenanAppointed 29 May 2006

Ngäi Tahu Tourism

Ross Keenan, ChairAppointed 29 May 2006

Anthony MarksAppointed 1 December 2009

Phillip BroughtonAppointed 1 December 2009

David ClarkeAppointed 1 December 2009

Elizabeth HirstAppointed 1 December 2009

Ngäi Tahu Capital

Trevor BurtAppointed 25 September 2009

Catherine DraytonAppointed 25 September 2009

Linda ConstableAppointment ended30 June 2011

Ross KeenanAppointed 29 May 2006

Samford MaierAppointed 19 November 2010

Ngäi Tahu Fisheries Settlement Limited Board

Mark Solomon, ChairAppointed 8 August 2007

Kypros KotzikasAppointment ended31 March 2011

Anake GoodallAppointment ended31 March 2011

Mike SangAppointed 16 April 2011

Greg CampbellAppointed 16 April 2011

Whai Rawa FundLimited Board

Diana Crossan, ChairAppointed March 2006

Tim McGuinness Appointed March 2006

Sir Tipene O’ReganAppointed March 2006

Hon. David CaygillAppointed March 2006



Deputy KaiwhakahaerePosition currently not fi lled

Anake GoodallResigned March 2011

Interim Chief ExecutiveMike SangAppointed March 2011

Te Rünanga Company SecretaryMike Sang


Greg CampbellChief Executive

Ngäi Tahu Holdings Group Subsidiary Chief Executives

Tony SewellNgäi Tahu Property

Brian MoriartyNgäi Tahu Seafood

John ThorburnNgäi Tahu Tourism


Directors and Key PositionsAS AT 1 OCTOBER 2011

55

TE RÜNANGA O NGÄI TAHU CHARITABLE TRUST

Organisational Structure

SERVICEDELIVERY

Finance

Communications

LEGAL

Legal Services

WHAKAPAPA& MEMBERSERVICES

Whakapapa

Contact Centre

PEOPLE ANDPERFORMANCE

HumanResources

LeadershipProgramme

NGÄI TAHUTOURISM

TourismOperations 4

Regional Clusters

NGÄI TAHUPROPERTY

PropertyDevelopment

InvestmentProperties

Rural Lands

NGÄI TAHUSEAFOOD

SeafoodOperations

QuotaManagement

NGÄI TAHUCAPITAL

Ryman

Agria/PGGW


NGÄI TAHU CHARITABLE TRUST

He Oranga Pounamu

Whai Rawa Fund Limited

Ngäi Tahu Communications

Te Tapuae o Rehua

Ngäi Tahu Fisheries Settlement Ltd

TRIBALINTEREST

Toitü TeWhenua

Toitü TeKäinga

Toitü TeKura

Whai Rawaand Direct

Distributions

OFFICE OFTHE CEO

Strategy and Infl uence

External Issues Te RünangaSecretariat

Te RünangaGroup

Monitoring

Payroll BusinessInformation

Servcies

Administration& Procurement

OFFICE OF TE RÜNANGA O NGÄI TAHU

Governance

Strategy and Monitoring

Distribution

Representation and Advocacy


Investment and Financial Strategy

Capital Allocation

Investment Performance

STRATEGY & INFLUENCE

Te RünangaAdvice &Support

Equities

GeneralInvestments

BrandManagement

56

KAIKÖURA

Representative Mark Solomon

AlternativeRepresentative Raewyn Solomon

NGÄTI WAEWAE

Representative Lisa Tumahai

AlternativeRepresentative Ben Hutana

MAKAAWHIO

Representative Tim Rochford

AlternativeRepresentative None

TE NGÄI TÜÄHURIRI

Representative Tutehounuku Korako (Nuk)

AlternativeRepresentative Clare Williams

TE HAPÜ O NGÄTI WHEKE

Representative Wally Stone

AlternativeRepresentative Gail Gordon

KOUKOURARATA

Representative Elizabeth Cunningham

AlternativeRepresentativeKyle Osbourn

WAIREWA

Representative James Daniels

AlternativeRepresentative Iaean Cranwell

TAUMUTU

Representative Sandy Lockhart

AlternativeRepresentativeTe Mairiki Williams

ÖNUKU

Representative Ngaire Tainui

AlternativeRepresentative Ariana Tikao

AROWHENUA

Representative Quentin Hix

AlternativeRepresentative Dana Jackson

WAIHAO

RepresentativeGerry Te Kapa Coates

AlternativeRepresentativeJo McLean

MOERAKI

RepresentativeGail Tipa

AlternativeRepresentative Moana-o-Hinerangi

KÄTI HUIRAPA KI PUKETERAKI

Representative Matapura Ellison

AlternativeRepresentative Dr Katharina Ruckstuhl

ÖTÄKOU

Representative Tahu Pötiki

AlternativeRepresentative Hoani Langsbury

HOKONUI

Representative Terry Nicholas

AlternativeRepresentative Rewi Anglem

WAIHÖPAI

Representative Michael Skerrett

AlternativeRepresentative Cyril Gilroy

ÖRAKA-APARIMA

Representative Stewart Bull

AlternativeRepresentative Ann Wakefi eld

AWARUA

Representative Maria Pera

AlternativeRepresentative None

TE RÜNANGA O NGÄI TAHU & NGÄI TAHU CHARITABLE TRUST

Rünanga Representatives2010 – 2011

57

Te rÜNANGA O NGÄi TAhu

Ngä Papatipu Rünanga Map

Te Rünanga o Kaiköura

Te Ngäi Tüähuriri Rünanga

Te Hapü o Ngäti Wheke (Räpaki) Te Rünanga o Koukourarata

Önuku RünangaTe Taumutu RünangaWairewa Rünanga

Te Rünanga o Arowhenua

Te Rünanga o Waihao

Te Rünanga o Moeraki

Käti Huirapa Rünaka ki Puketeraki

Te Rünanga o Ötäkou

Hokonui Rünanga

Waihöpai Rünaka

Awarua Rünanga

Öraka-Aparima Rünaka

Te Rünanga o Makaawhio

Te Rünanga o Ngäti Waewae

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

Kä amorakio äpöpö

Tomorrow'sleaders

This report is printed on Impress Offset which contains pulp from tree farms and FSC™ Certifi ed forests. Manufactured in an Elemental Chlorine Free (ECF) process the mill is ISO 14001 certifi ed. Printed by Blue Star Group, FSC Certifi ed Print Supplier.

Corporate Offi ce

50 Corsair DriveWigramPO Box 13-046ChristchurchTelephone: 03 366 4344Facsimile: 03 341 6792Website: www.ngaitahu.iwi.nzEmail: [email protected]

Registered Offi ce for Ngäi Tahu Holdings Corporation Limited

50 Corsair DriveWigramPO Box 13-575ChristchurchTelephone: 03 366 4344Facsimile: 03 341 6792

Enrolment on Te Rünangao Ngäi Tahu Whakapapa database

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

Auditor

DeloitteChartered Accountants60 Grove RdChristchurch

Solicitors

Bell Gully Buddle WeirHP Tower171 Featherston StreetWellington

Buddle Findlay245 St Asaph StChristchurch

Saunders & Co162 Kendal Avenue Burnside Christchurch

Wynn Williams & CoHomebase, Unit B195 Marshlands RdChristchurch

Bankers

ANZ National Bank Limited97 Riccarton Rd Christchurch

Bank of New Zealand81 Riccarton RoadChristchurch

Commonwealth Bank of AustraliaLevel 27, 201 Sussex StreetSydney, Australia

Westpac Institutional Bank Level 816 Takutai SquareAuckland


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L REPORT 2011

ngāi tahu 2011 annual report

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