Solid Year of Performance For Waikato-Tainui

MEDIA STATEMENT                                            
Wednesday 3 July 2013                                                  
Embargoed to 11.00pm on 3 July 2013

Solid Year of Performance For Waikato-Tainui

Waikato-Tainui has reported a positive result for FY13 with progress made on a range of social, economic and cultural initiatives and a solid performance from its commercial arm Tainui Group Holdings Limited (TGH).

Waikato-Tainui announced its annual result today (Wednesday 3 July 2013) at a joint event with TGH held at its retail centre The Base in Hamilton.

The tribe reported a consolidated net profit of $111M, which chairman Tom Roa said was driven by a satisfactory TGH result and supplemented by the $70M treaty relativity payment it received from the Crown in December 2012.

The result increased the tribe’s total asset value to $925M, up $123M on the previous year and edging Waikato-Tainui closer to the $1B mark, a milestone that would “celebrate our intentions for tribal economic development nationwide”, said Mr Roa.

While the 2013 financial year had not been one of significant new developments it had been one of steady progress with consolidated revenues up $7M to $64M and operating profit up $3M to $17M.

“The success to date of our growth strategy is a significant achievement if you consider where we have come from,” said Mr Roa. “The turnaround is the result of a very focused and deliberate strategy to administer resources and to invest wisely.”

That strategy has resulted in $49.5M being distributed back to tribal members since 2003, including $18M to marae and $11.3M for education. This year the tribe was providing $1M in financial assistance to more than 600 descendants, 46 of whom were doing masters degrees and 12 completing doctoral studies.

He said the tribe was implementing a wide range of programmes aimed at supporting its people to achieve prosperity. Highlights included:

-       Te Ope Koiora – the tribe’s Whaanau Ora programme was now fully operational and already achieving positive outcomes for families;
-       Commencement of the marae cluster concept aimed at pooling resources to leverage economic benefits;
-       Launch of apprenticeships in partnership with a range of Crown and corporate entities;
-       Launch of a farming cadetship utilising Maaori- owned land;
-       Job training and employment opportunities;
-       Launch of a financial literacy education programme; and
-       Commencement of the second cohort of the Waikato-Tainui MBA and launch of the Masters in Maatauranga Maaori.

The 2013 financial year had also seen the development of a strategic plan that would focus tribal activities and was aimed at empowering tribal members, strengthening relationships and promoting tribal connection and pride.

New initiatives included a partnership with the NZ Police, development of a Paimarire resource, launch of the tribal Environment Plan, and feasibility studies to invest in social housing, develop a business incubation unit, launch an iwi savings scheme, and expand its education strategy to improve completion rates at secondary school level.

Mr Roa said the tribe was particularly focused on resolution of issues regarding the relativity agreement with the Crown, outstanding treaty claims, and the current review of its governance and representation structures.

“This review is a key development that will ensure we are well placed to continue to develop tribal capacity, capability and prosperity,” said Mr Roa. “It will chart the course for our long-term development and it is critically important that the outcome enables our ongoing success.”

TGH Result FY13

Mr Roa acknowledged the performance of the TGH board and management team who had developed TGH into a leading property and investment company responsible for some of this region’s most significant developments, and whose results were critical to enabling continued tribal development.

TGH, which included Waikato Tainui Fisheries (WTF), recorded a net profit of $45.1M for the year ended 31 March 2013. The corresponding figure in 2012 was $39.9M. Their net operating profit was steady at $20.8M, from $20.7M last year. TGH’s total assets now stood at $738M, with overall debt levels of 25.3%.

TGH chief executive Mike Pohio said the rate of increase in profits had slowed in 2013 due to the completion of several major investment projects.

“Capital expenditure was $20.9M, including infrastructure improvements at The Base retail centre. For the year ahead, capital spending there will continue but at a lower level than in the past,” he said.

“An auto precinct will not now proceed, and first floor retailing in Te AWA and a multi-level car park will both be deferred until there is an increase in market demand and a better return on capital.

“TGH has however committed to a decade-long, 700-section residential development at Rotokauri, near The Base, pending resource consent,” he said.

TGH will pay a dividend of $11.5M. The dividend currently rises by $0.5M each year however the aim is for this to increase over time.

“Returns from further investment property developments are limited by very long lead times as well as the cost of debt, so this is not a short term solution,” said Mr Pohio.

“The company therefore intends to invest in a limited number of property development projects and private companies over the next 3-5 years.”

Mr Pohio said TGH’s joint venture development at Ruakura with partner Chedworth Properties was a big focus for 2014.

“The next step is a decision from the Minister for the Environment on our call-in application for part of the project to the Environmental Protection Agency. We are very pleased to know that this application now has the support of Hamilton City Council,” he said.

About Waikato-Tainui:

The Waikato Raupatu Lands Trust was created by the Raupatu Claims Settlement Act to manage tribal affairs and distributions for the collective benefit of registered tribal members. Established for charitable purposes, the Lands Trust implements the tribe’s development strategy and makes distributions for education, health and wellbeing, marae, social and cultural development.

The Lands Trust is governed by Waikato-Tainui Te Kauhanganui Incorporated (WTTKI), which is the tribal authority of Waikato-Tainui. WTTKI is a 196-member governance entity which is comprised of three representatives from each Waikato-Tainui marae and one representative who is appointed by the head of the Kahui Ariki, Kiingi Tuheitia.

Te Arataura o Waikato-Tainui is the executive committee of WTTKI. Ten members of WTTKI are elected onto Te Arataura, with a further trustee appointed by Kiingi Tuheitia. Te Arataura oversees Trust operations based at Hopuhopu, including the Waikato Raupatu River Trust and Tainui Group Holdings in Hamilton.

Waikato Raupatu River Trust was established to oversee and implement the river treaty settlement with the Crown and related statutory and regulatory reform. It also leads and monitors our outstanding treaty settlement claims. 

Tainui Group Holdings (TGH) is the commercial entity of Waikato-Tainui. A property investment and development company, TGH operates a diversified investment portfolio including retail, residential, commercial, industrial and rural properties. TGH also manages Waikato-Tainui Fisheries Ltd, which owns and leases fishing quota and holds shares in Aotearoa Fisheries Ltd.

The Waikato-Tainui College for Research and Development has been established as a place for higher learning. It is an international centre of excellence that aims to provide quality postgraduate study and research to strengthen iwi development, produce future leaders and support indigenous development.

ENDS

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