ANNUAL GENERAL MEETING · · 2017-12-15highlighting the establishment of a Subsidiary Limited Liability Partnership ... We bring in one specialist for sheep and beef, and one specialist

OPEPE FARM TRUST ANNUAL GENERAL MEETING

2017

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04 2016 Annual General Meeting Minutes

08 Trustees Report

10 Farming Report

13 Financial Report

CONTENTS

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Venue: Opepe Farm, TaupōDate: Saturday 28 November 2016Present: Trustees: Temuera Hall (Chair), Charlotte Severne (Deputy Chair), Heemi Biddle, Arapiu Seymour. In Attendance: Greg Stebbing (Trust Advisor), Vernon Rameka (GM - He Akina Ltd), Sarona Rameka (Minute Taker - He Akina Ltd)As per Attendance RegisterApologies: As per Apologies RegisterKarakia: Te Kanawa Pitiroi Opening: Temuera Hall Meeting Commences: 10am

HOUSE KEEPING• The Trustee’s, staff and support team are

introduced.

• Fire exits and farm protocols (Health and Safety) are explained.

• Live streaming of the meeting was discussed. After feedback from the floor, it was decided that the meeting should not be live streamed as the information to be discussed is for the owners only and Facebook is not a private platform.

2016 AGM MINUTES

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MINUTES OF AGM HELD 28 November 2015• A query was made regarding the financial

limit on which the Trustees can make decisions. It was explained that the Trust Order sets the Major Transaction threshold at 25% of owners’ equity (not assets), and any transaction above this will require approval from the owners.

• The Chairman clarified the Trust’s policy regarding tangihanga grants - there is a cut off day for distribution of the mutton as the intent is to provide kai for the tangihanga. Currently owners will receive three boxed (frozen) mutton, however if there is no meat available then a cash grant will be provided.

RESOLUTION: The minutes of the Annual General Meeting held on 28 November 2015 be confirmed as a true and accurate record. Moved: Toby Rameka Second: Sonny Tupara CARRIED

TRUSTEES REPORT The Chairman presents the Trustees’ Report.

• The year was tough financially due to a low dairy payout, however the Trust has done relatively well due to revenues received from forestry and property investments.

• The Trust Structure is explained, highlighting the establishment of a Subsidiary Limited Liability Partnership (OFLP) where the farming activity is now operating (anything that moves goes into the subsidiary and anything that doesn’t move, goes into the Trust).

• Tūwharetoa Property Limited Partnership was established jointly (50/50) with Te Pae o Waimihia (TPoW) to develop and manage the DoC Office building on Motutaiko St.

• The Chairman explained the rationale behind the provision of boxed mutton. Due to health and safety regulations, whānau

can no longer go from the marae to the farm to kill a mutton, if they nick their finger it comes back on the Trustees. It also upsets the farming routine. The Trust wants to provide not just for tangihanga but for all year round, and the boxed mutton can be purchased in bulk through Allied Meat.

OWNERSHIP STATISTICSCharlotte Severne presents Ownership Statistics.

• Charlotte paid credit to Lynette Leach of He Akina Ltd for her mahi in this area.

• The Trust has contact details for only 57% of members. It is important to get in touch with He Akina (Trust Office) if you can help link owners and their contact details.

URUPA• There are two acres set aside for a urupa

(according to Māori Land Court minutes). It was suggested that a sub-committee is established including Trustees (Heemi Biddle & Charlotte Servene) and interested whānau to address issues such as access, location and protection.

• The Trustees acknowledged that the allocation can be increased as the demand required. The current fence doesn’t represent the full gazetted area, and the Trustees will keep moving the fence out when more acreage is needed.

• Heemi Biddle explained that a lot of work has been undertaken on the road (it is a forestry road) so there are Health and Safety issues with trucks that need to be addressed. The sub-committee will assist with these issues as well as help determine the tikanga and kawa.

• Chula Wall clarified that the Waipahihi urupa is not filling, it is full. Six whānau were elected to investigate alternative urupa options. Land at the top of the airport was considered, but the area is too

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rocky. Another option is down Mountain Road on Middle 12 - it is clear, grassed and a viable option.

• Many of the whānau present expressed an interest in being on the sub-committee and their names were noted.

Grants & Koha update• The grants referred to in the Financial Report

were made to the local marae (Nukuhau, Te Rangiita, Tutetawha, Waipahihi, and Pakira).

• There is no policy at the moment for education grants. The financial results were tough, so the Trustees were prudent on what was distributed.

• The Trust has recently implemented the distribution of meat packs. If a cow needs to be culled, we call in the home kill. The cow is then processed, packed and distributed to our kaumatua (owners) living in Taupō/Turangi (as the packs need to be distributed as soon as they are processed, logistically we need to keep to this rohe).

FARM REPORTFarm Report presented by Hemi Biddle.

Scott O’Brien (Dairy Unit Manager) and Whetu Johnson (Drystock Unit Manager) present the Drystock and Dairy Unit Reports.

• There have been no cases of TB on farm.

• As in any industry, it takes 15-20 years’ experience for someone to become an expert. We bring in advisors to guide management outside our internal expertise. We bring in one specialist for sheep and beef, and one specialist for dairy. The advisors are regularly reviewed to ensure we are getting the best value for money.

• The stock is wintered on farm. We have sufficient grass, but we do bring in feed when required.

• Palm kernel is used as a supplement feed. It was noted that it is not GM modified.

FINANCIAL REPORTVernon Rameka and Gregory Stebbing present the Financial Report.

• The Trust did not receive tax relief on the land that was retired into forestry. The decision was driven by the restriction of nitrogen in the Taupō Catchment, which caps the amount of stock we are allowed on the farm. It was noted that the retired areas haven’t been officially put into reserved lands, as the Trustees are still investigating options to make the areas productive (e.g. manuka & kanuka).

• The Trustees have set a policy to not have the land independently valued. The rational being the Trust would never sell the land, as the land is priceless. There still needs to be land value in the accounts however, so this is recorded at the rateable value as per district council.

• The manuka / kanuka trial is in its third year and is almost in a position to put a hive in and check the quality of honey that will be collected from it. We have planted the local genetic stock, so we know it can handle the terrain and the weather. By year 7 we will know if the business model is proven. We hope for the higher UMF level honey.

• Unclaimed dividends – The Trust does not have any record of who the unclaimed dividends belong to. We have been to the Māori land court several times however we are not permitted to write it off. It is an anomaly we have to live with.

• The issue of declining annual returns was acknowledged. The Trusts financial performance is intrinsically linked to the global dairy milk prices. We are not as bad off as other dairy farms as we have diversified into forestry, sheep and beef, and property. We need to challenge ourselves to see how we can improve our sheep and beef performances.

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RESOLUTION: 1. That the Audited Financial Reports

for the year ending 30 June 2016 be received.

2. To reappoint Crowe Horwath Chartered Accountants as auditor for Opepe Farm Trust.

Moved: Aroha French Second: Anne Clarke CARRIED

GENERAL BUSINESSPresented by Arapiu Seymour.

• The Trust is looking at investment opportunities outside the farm gates (e.g. micro processing, tourism, property). When considering these opportunities, it’s our preference to do so alongside other iwi entities so the risk is managed.

• With all opportunities considered the Trust will run a process, including business casing and feasibility studies. Opportunities need to align with our values; we consider the risk and also our industry expertise (and will bring in experts if required).

• The following initiatives were received from the owners and discussed:- kaumatua rest homes and housing- papakainga- trade training - deer farming - hemp farming- sheep milking

Acknowledgements• M21 Meats – BBQ

• Kaimahi - Farm staff

• He Akina Limited

• Katchafire Netball

Trustee election results:• The election results are presented, Temuera

acknowledged the retiring Trustee Arapiu Seymour’s contribution to the Trust, and welcomed the two new Trustees Ngahere Wall and William Wall.

• Toby Rameka paid tribute to Arapiu, and Chulla Wall recommended that Arapiu remain as a kaumatua to the board.

• Arapiu Seymour congratulated the successful Trustees. “I was happy to serve, I am also happy to pass the mantle. The table is ably filled with the next trustees and thank you to everyone who voted for me”.

• William Wall – “thank you to all those that supported me, I wish Abe all the best”.

• Ngahere Wall – “My father played a big part in this farm and I spent a lot of time here. For me it is a succession of his dreams into the next generation. We shouldn’t only be making the best decisions but also the right decisions. We need to teach our tamariki about their whakapapa – their farm”.

Meeting closed: 1:14pmKarakia Whakamutunga: Arapiu Seymour

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Tena koutou e te hunga whāipanga o Opepe whenua, koutou nga whanaunga e piri ana i raro i te maru o Tauhara Maunga.

Ko Taupo-nui-a-Tia to tatou waiukaipo, ko te awa o Waikato te ara wairua, tena whakapiri mai, whakamaua ki a tina.

Opepe has had a relatively good year financially and is starting to make progress in enhancing and further protecting the taonga-tukuiho (land). In order to improve the protection of the taonga and build capacity, last year we restructured the Trust by adding a subsidiary business entity to manage the dairy and

TRUSTEES REPORT

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farming operations and drive the investment part of the strategy. We are now starting to see the benefits of this structure through improved efficiency, risk management, and capacity leading to better growth and development.

We are now better positioned to realise our potential and have started discussions with other Hikuwai entities to explore how we can partner together. The areas of potential partnerships are around farming, tourism, affordable housing, development of our people, and improving one of our ultimate objectives, providing tangible benefits for you our owners and whānau.

The fixed revenues from our existing property partnership with Te Pae o Waimihia and our forestry lease partnership with the Lake Taupō Forest Trust have contributed to the good financial health through the year. These two investments are examples of the benefits of diversification and strategic partnership.

The dairy unit had a good year with the increase in milk prices supported by good operations and management. Our Milk Futures Policy has been implemented providing price risk insurance for this season. Although current forecasts predict a softening of milk prices in 2018 we are confident we believe we have the tools and expertise to produce another solid financial result in the coming season.

The drystock farming has performed reasonably well with favourable weather and further investment. We continue to challenge the sheep and beef team to lift the game in what we know are limiting environmental conditions. The farm currently operates under a Nitrogen allowance which limits our stocking capacity, and restricts land use. This year we are pleased to report that Opepe has been successfully granted 2,754kg additional Nitrogen of the 11,000kg available as ‘’Tuwharetoa development Nitrogen’’ through

the Waikato Regional Council. This boost will support the new sheep and beef strategies we are wanting to implement over the coming years.

The whakatauki that sets the foundation for our cultural beliefs is; “Kia whangaihia nga uri - a tinana, a hinengaro, a wairua.” “To provide sustenance to beneficial owners and their descendants – mind, body, and soul.”

A direct tangible benefit from this cultural motivation is the provision of sustenance in the form of meat and other items at our AGMs. Our intention is to expand on this and further develop innovative ways of providing benefits to you the owners and your decedents that are consistent with our whakatauki. Two items we are looking forward to progress with your support are; 1. A maara kai on Opepe and 2. affordable housing.

Mauriora

Temuera Hall Chairman

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We started the season with a bleak outlook for export prices expecting the low global economic growth projected to impact New Zealand’s export markets. Two of our top three trading partners were impacted over the course of the year, the US experienced some uncertainty due to presidential elections and China experienced set-backs due to slowing economic growth.

The New Zealand dollar was increasing in value against the US dollar which usually results in lower returns to export food producers like Opepe. However, despite expectations, a decrease in supply from New Zealand’s key competitors created a more favourable trading environment and Opepe was able to perform much better than expected.

FARMING REPORT

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On FarmOperating Conditions

A wet and cold spring presented challenges, as these conditions can limit a cow’s potential to reach peak milk production and impact sheep and beef reproduction with higher lamb mortality rates. The farm team were able to mitigate weather conditions to some degree through the use of supplements and fodder crops.

A hot and dry November further impacted production, however, rain in the New Year enabled the farms to regain good grass production and finish the season 36,471 kg of milk solids up on budget and, the sale of 10,697 lambs also up on budget (an average of $100 per head). This was a great result all-round by the farm team.

Our People

Scott O’Brian, one of our dairy farm managers, moved on to pursue new challenges in a sharemilking role. Scott made an enormous contribution to the farms, his team, and the business during his 8 years of service to Opepe and we were very fortunate to have him.

Following Scott’s resignation, OFLP restructured the farm management to better suit the needs of the farming business, and created opportunities for two new management roles.

The outcome of a robust recruitment process saw the appointment of a new Manger to the team, Leighton Swan, and the promotion of Brady Sloss, previously the 2IC on Dairy 901. Brady’s promotion aligns with Opepe’s aspiration to cultivate leadership pathways.

In total, Opepe employs 13 people on a full-time basis across the dairy and sheep and beef operations. Our teams are led by Whetu, Brady and Leighton and collectively they work very hard on behalf of the owners. We are fortunate to have such quality leadership and capability amongst our staff.

Infrastructure

We continue to development of Opepe’s sheep & beef property via subdivision, water reticulation and cropping.

Ongoing maintenance of infrastructure is key for such a large property to ensure we are achieving efficiencies, it also alleviates large one-off maintenance costs.

Financial PerformanceTo be successful as an intergenerational operation, Opepe aim to achieve the best possible return from our farming assets while building a business that provides sustainable long-term outcomes.

To achieve this we are always looking for efficiencies in our farming model emphasising effort where an advantage can be obtained, such as innovations to improve grass growth since grass drives production and production drives revenue.

Combined with an efficient and effective operating system we were able to produce a very good result.

Total gross farm income for the year was $6.4 million (up 39% on last year), with farm costs being well contained at $4.45 million (69.5% of gross farm income).

This resulted in an operating cash surplus of $1.6 million before Tax, capital expenditure and depreciation, a vast improvement on last year (-$0.9 million).

Our farm teams work as a tight unit who are solution focused and remain committed to quality and continuous improvement.

Te Ara Miraka

Te Ara Miraka, a quality assurance programme launched by Miraka, is aimed at farming excellence through improved on-farm practices including: animal welfare, people development and environmental awareness.

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The farm teams were recognised at Miraka’s annual awards for scoring 18 points out of the potential 20 points, resulting in Opepe receiving an award for being in the top 10%. In addition, we received an additional 18 cents per kilo milk solid, a total of approximately $138,000.

Looking AheadOpepe continue to look for opportunities to diversify assets and revenue streams. The business has a concentration in agricultural commodity markets (dairy and red meat) and while there is diversity in the product mix, our export markets will remain volatile long into the future.

The Mānuka Project reached the end of the initial trial planting of 74 hectares, and we will start assessing nectar quality next spring. The objective is to select a mānuka variety that can survive in our hash environment but capable of producing the best quality honey. Mānuka

provides Opepe with an alternative to pine trees and the potential to return revenue in the short to medium term.

We are investigating an opportunities to take Opepe beyond the farm gate, by partnering with other like-minded people along the supply chain. This will enable us to achieve more value from our hard work.

To ensure we are looking ahead and focused on continuous improvement in alignment with owner’s expectations, the Trust and the Limited Partnership will undertake a group strategic planning session early in 2018 to refresh the strategic direction and confirm our priority focus areas for the next 5 years.

Priorities will include: direction on our kaitiakitanga policy, our distribution policy, opportunities to partner with our Tauhara hapū Trusts, and performance improvement so we are benchmarking ourselves against the best.

Opepe Team Members and Miraka Executives at the Miraka Annual Awards

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FINANCIAL REPORT

OPEPE FARM TRUSTConsolidated Special Purpose Financial Statements

For the Year Ended 30 June 2017

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Nature of Business: Farming and Forestry

Locations: - Farm Opepe Farm Trust - State Highway 5, Taupō - Business 63 - 65 Waikato Street, Taupō

Managing Trustees: Temuera Hall Heemi Biddle Dr Charlotte Severne Ngahere Wall William Wall Arapiu Seymour (Ceased March 2017)

Bankers: Bank of New Zealand, Taupō

Solicitor: Kahui Legal

Auditors: Crowe Horwath New Zealand Audit Partnership

Accountant: He Akina Limited

OPEPE FARM TRUSTTrust Directory


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Opepe Farm TrustAnnual Report


For and on behalf of the Trust:

Trustee Trustee

Date

The Trustees present their annual report, including the financial statements of the Trust for the yearended 30 June 2017.

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OPEPE FARM TRUSTAnnual Report


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Opepe Farm TrustStatement of Financial Performance


Group ParentNote 2017 2016 2017 2016

Surpluses (Deficits) From Operations (excl. Depreciation & Finance)Taupo Operations

Dairy Unit Surplus (Deficit) 1,710,167 (113,167) (35,120) (207,404)Drystock Unit Surplus 531,050 515,784 22,365 526,179Other Income 75,286 58,539 73,706 58,539

2,316,503 461,156 60,951 377,314Property Surplus 61,220 246,230 61,220 246,230Farm Lease - - 300,552 -Forestry Activities 277,466 176,631 277,466 176,631

2 2,655,189 884,017 700,189 800,175

Surplus/Deficit From Investment VenturesTauhara North Block: Surplus Excluding Revaluations 61,732 58,989 41,098 47,984Tauhara Properties Limited Partnership Surplus/(Deficit) 12 (177,858) (2,552) (177,858) (2,552)

(116,126) 56,437 (136,760) 45,432

Less Administration & Governance CostsAdministration Expenses 230,676 235,947 90,442 235,947Audit Fees 21,629 20,024 21,629 20,024Governance and Secretarial Expenses 163,688 152,924 163,686 152,924

415,993 408,895 275,757 408,895

Surplus Before Change in Value of Livestock 2,123,070 531,559 287,672 436,712Held, Depreciation, Interest & Finance Costs

Plus (Less) Change in Value of Livestock Held (63,594) (133,280) - 5,601Holding Gain

Less Depreciation and loss on disposal adjustments 727,218 776,665 508,454 776,665Less Interest & Finance Costs 176,771 146,276 176,771 146,276

Surplus (Deficit) Before Taxation, Provisions,Impairment, Appropriations & Capital Gains 1,155,487 (524,662) (397,553) (480,628)

AppropriationsKoha, Donations & Marae Grants 56,374 15,045 56,374 15,046

Operating (Loss)/Surplus Before Taxation 1,099,113 (539,707) (453,927) (495,674)

Income Tax Expense 8 194,450 97,012 194,450 97,012

Operating (Loss)/Surplus After Taxation 904,663 (636,719) (648,377) (592,686)

Surplus Attributable to Minority Interests 5 10,317 7,055 - -

Net (Loss)/Surplus Attributable to the Parent Trust 894,346 (643,774) (648,377) (592,686)

These financial statements should be read in conjunction with the accompanying Notes and Audit Report

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OPEPE FARM TRUSTStatement of Financial Performance


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Opepe Farm TrustStatement of Movements in EquityFor the Year Ended 30 June 2017

Group ParentNotes 2017 2016 2017 2016

Restated Restated

Equity At Beginning of Year 44,992,959 44,891,622 44,496,426 44,287,744

Movements in Asset Revaluation ReserveEarnings 5 6,471,005 (312) 6,311,589 -

Movements in Investment Revaluation Reserve 5 44,145 801,368 44,145 801,368

Distribution to Minority Interest Partners 5 (7) (63,000) - -

Net Surplus/(Deficit) Attributable to:- Parent Trust Shareholders 5 894,346 (643,774) (648,377) (592,686)- Non-controlling Interests 5 10,317 7,055 - -

Equity at End of Year 52,412,765 44,992,959 50,203,783 44,496,426


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OPEPE FARM TRUSTStatement of Movements in Equity


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Opepe Farm TrustStatement of Financial Position

As at 30 June 2017


Restated RestatedCurrent Assets

Cash and Bank 1,844,664 138,808 122,114 51,349Iwi Investor Managed Funds 3 - 1,057 - 1,057Accounts Receivable & Prepayments 1,130,847 1,880,263 133,943 1,195,269Livestock 4 4,453,332 4,878,870 - 510,276Manuka Kanuka Project 224,647 129,155 224,647 129,155Stores & Produce on Hand 283,060 70,055 - -Taxation Receivable 8 - 10,217 - 10,217

Total Current Assets 7,936,550 7,108,425 480,704 1,897,323

Non Current AssetsProperty, Plant and Equipment 10 46,091,854 39,952,140 41,644,912 37,369,226Investments 12 2,984,864 3,440,224 2,806,059 3,268,873Loans to Subsidiaries 13 - - 4,272,555 3,104,447Investments in Subsidiaries 14 - - 4,981,981 4,295,174

Total Non Current Assets 49,076,718 43,392,364 53,705,507 48,037,720

Total Assets 57,013,268 50,500,789 54,186,212 49,935,043

Current LiabilitiesAccounts Payable & Accruals 715,584 1,095,240 97,509 1,026,027Taxation Payable 8 24,976 - 24,976 -Unclaimed Dividends 429,590 429,590 429,590 429,590

Total Current Liabilities 1,170,150 1,524,830 552,075 1,455,617

Non Current LiabilitiesTerm Loans 6 3,430,353 3,983,000 3,430,353 3,983,000

Total Non Current Liabilities 3,430,353 3,983,000 3,430,353 3,983,000

Total Liabilities 4,600,503 5,507,830 3,982,428 5,438,617

Net Assets 52,412,765 44,992,959 50,203,783 44,496,426

EquityAttributable to Parent Trust Shareholder 5 51,695,105 44,445,026 50,203,783 44,496,426Attributable to Minority Interest 5 717,660 547,933 - -Total Equity 52,412,765 44,992,959 50,203,783 44,496,426

For and on behalf of the Trust:

Trustee Trustee

Date


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Opepe Farm TrustStatement of Cash Flows

For the Year ended 30 June 2017


Cash Flow From Operating ActivitiesReceipts from Customers 6,469,770 4,941,365 1,324,475 5,547,871Interest and Dividends Received 43,060 6,434 42,570 5,493Payments to Suppliers and Employees (4,456,119) (5,667,129) (1,413,800) (6,318,018)Income Tax Paid (Refunded) (159,264) (54,328) (159,143) (54,328)Interest Expense (176,772) (146,276) (176,771) (146,276)Donations/Koha/Marae Grants (58,520) (15,045) (58,520) (15,046)Cash Inflow/(Outflow) from Operating Activities 1,662,155 (934,979) (441,189) (980,304)Cash Flow from Investing ActivitiesSale of Property, Plant & Equipment 823,952 33,956 804,822 33,956Sale of Shares 362,647 - 362,647 -Acquisition of Property, Plant & Equipment (489,336) (2,276,910) (5,122) (2,275,861)Acquisition of Shares (5,220) (967,750) (2,052) (967,750)Funds for Projects in Progress (95,492) (129,155) (95,492) (129,155)Funds from Iwi Investor/Term Deposits 1,057 1,615,821 1,057 1,615,821Funds from Tauhara Middle 15 Partnership - - - 252,000Funds to Opepe Aquaculture Limited (1,259) - (1,259) -Net Cash Inflow/(Outflow) from Investing Activities 596,349 (1,724,038) 1,064,601 (1,470,989)

Cash Flow from Financing ActivitiesTerm Borrowings Drawndown/(Repaid) (552,647) 2,543,000 (552,647) 2,543,000Funds from (to) Minority Interests - (63,000) - -Net Cash Inflow/(Outflow) from Financing Activities (552,647) 2,480,000 (552,647) 2,543,000

Net Increase/(Decrease) in Cash Held 1,705,857 (179,017) 70,765 91,707

Add Cash/(Overdraft) at Start of Year 138,808 317,825 51,349 (40,358)

Cash at (Owing to) Bank at End of Year 1,844,665 138,808 122,114 51,349

Closing cash and cash equivalents balancemade up as follows:Cash and Bank 1,844,664 138,808 122,114 51,349Cash at (Owing to) Bank at End of Year 1,844,664 138,808 122,114 51,349

Reconciliation of Profit with Net Cash Flow from Operating Activities


Add Back (Deduct)Depreciation Adjustments 760,231 706,804 541,466 701,873Loss/Gain of Sale of Property, Plant & Equipment (33,013) 74,792 (33,013) 74,792Sale of Livestock to OFLP - - - (4,368,595)Sale of Produce of Hand to OFLP - - - (70,056)Movements in Livestock on Hand 425,538 (342,450) 510,276 4,026,144Movements in Stores & Produce on Hand (213,004) (24,509) - 45,547Movement in Non-Invested Related Receivables 936,300 (683,734) 55,065 1,261Movement in Non-Investing Related Payables (1,270,036) (88,349) (977,105) (808,896)Movement in Income Tax Payable (26,382) 42,684 (26,261) 42,684Investment Revaluation in Profit and Loss - 16,502 - 15,612Property Revaluation in Profit and Loss 217,510 - 217,510 -Operating Surplus From Tauhara Properties Ltd (39,652) - (39,652) -Operating Surplus From Tauhara North Block - - (41,098) (47,984)Cash Surplus (Deficit) From Operating Activities 1,662,155 (934,979) (441,189) (980,304)


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OPEPE FARM TRUSTStatement of Financial Position

As at 30 June 2017

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Opepe Farm TrustStatement of Cash Flows

For the Year ended 30 June 2017


Cash Flow From Operating ActivitiesReceipts from Customers 6,469,770 4,941,365 1,324,475 5,547,871Interest and Dividends Received 43,060 6,434 42,570 5,493Payments to Suppliers and Employees (4,456,119) (5,667,129) (1,413,800) (6,318,018)Income Tax Paid (Refunded) (159,264) (54,328) (159,143) (54,328)Interest Expense (176,772) (146,276) (176,771) (146,276)Donations/Koha/Marae Grants (58,520) (15,045) (58,520) (15,046)Cash Inflow/(Outflow) from Operating Activities 1,662,155 (934,979) (441,189) (980,304)Cash Flow from Investing ActivitiesSale of Property, Plant & Equipment 823,952 33,956 804,822 33,956Sale of Shares 362,647 - 362,647 -Acquisition of Property, Plant & Equipment (489,336) (2,276,910) (5,122) (2,275,861)Acquisition of Shares (5,220) (967,750) (2,052) (967,750)Funds for Projects in Progress (95,492) (129,155) (95,492) (129,155)Funds from Iwi Investor/Term Deposits 1,057 1,615,821 1,057 1,615,821Funds from Tauhara Middle 15 Partnership - - - 252,000Funds to Opepe Aquaculture Limited (1,259) - (1,259) -Net Cash Inflow/(Outflow) from Investing Activities 596,349 (1,724,038) 1,064,601 (1,470,989)

Cash Flow from Financing ActivitiesTerm Borrowings Drawndown/(Repaid) (552,647) 2,543,000 (552,647) 2,543,000Funds from (to) Minority Interests - (63,000) - -Net Cash Inflow/(Outflow) from Financing Activities (552,647) 2,480,000 (552,647) 2,543,000

Net Increase/(Decrease) in Cash Held 1,705,857 (179,017) 70,765 91,707

Add Cash/(Overdraft) at Start of Year 138,808 317,825 51,349 (40,358)

Cash at (Owing to) Bank at End of Year 1,844,665 138,808 122,114 51,349

Closing cash and cash equivalents balancemade up as follows:Cash and Bank 1,844,664 138,808 122,114 51,349Cash at (Owing to) Bank at End of Year 1,844,664 138,808 122,114 51,349

Reconciliation of Profit with Net Cash Flow from Operating Activities


Add Back (Deduct)Depreciation Adjustments 760,231 706,804 541,466 701,873Loss/Gain of Sale of Property, Plant & Equipment (33,013) 74,792 (33,013) 74,792Sale of Livestock to OFLP - - - (4,368,595)Sale of Produce of Hand to OFLP - - - (70,056)Movements in Livestock on Hand 425,538 (342,450) 510,276 4,026,144Movements in Stores & Produce on Hand (213,004) (24,509) - 45,547Movement in Non-Invested Related Receivables 936,300 (683,734) 55,065 1,261Movement in Non-Investing Related Payables (1,270,036) (88,349) (977,105) (808,896)Movement in Income Tax Payable (26,382) 42,684 (26,261) 42,684Investment Revaluation in Profit and Loss - 16,502 - 15,612Property Revaluation in Profit and Loss 217,510 - 217,510 -Operating Surplus From Tauhara Properties Ltd (39,652) - (39,652) -Operating Surplus From Tauhara North Block - - (41,098) (47,984)Cash Surplus (Deficit) From Operating Activities 1,662,155 (934,979) (441,189) (980,304)


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OPEPE FARM TRUSTStatement of Cash Flows


20

Opepe Farm TrustNotes to the Financial Statements

As at 30 June 2017

1. Statement of Accounting Policies

Reporting EntityOpepe Farm Trust (the "Trust") is registered under the Te Ture Whenua Maori Land Act 1993.

Measurement Base

The financial statements have been prepared on a going concern basis.

Specific Accounting Policies

a) Trade ReceivablesTrade receivables are recognised at estimated realisable value.

b) Inventories

c) Property, Plant and Equipment

Expected useful lives of major asset categories are as follows:

Vehicles 3 - 8 yearsComputer Equipment 2 - 7 yearsPlant and Equipment 1 - 10 yearsBuildings 1 - 100 years

d) Goods and Services Tax

e) Income Tax

f) Investments

The financial statements of Opepe Farm Trust are special purpose financial statements and have been preparedas required by the Trust Deed.

The accounting principles recognised as appropriate for the measurement and reporting of financial performanceand financial position on a historical cost basis are followed by the Trust, except certain items for which specificaccounting policies have been adopted.

The following specific accounting policies which materially affect the measurement of financial performance andfinancial position have been applied:

Inventories, other than livestock, are recognised at the lower of cost, determined on a first-in first-out basis,and net realisable value.

Property, Plant and Equipment is recognised at cost less aggregate depreciation, except for land andbuildings. Land and buildings are valued at the latest Quotable Value less depreciation. Depreciation hasbeen calculated using the maximum rates permitted by the Income Tax Act 2007, except for buildings whichare depreciated based on their expected useful lives.

The financial statements have been prepared on a GST exclusive basis, except for Accounts Receivable andAccounts Payable which are shown inclusive of GST.

Investments are shown at market value as at balance date, with the exception of Opepe Aquaculture Limitedwhich are shown at their estimated realisable value. Opepe TM15 Partnership is shown at market value.Tauhara Properties Limited Partnership is an investment in an associate which is accounted for using theequity accounting method. Opepe Farming Limited Partnership is an investment in a subsidiary and hasbeen accounted for using the purchase method.

The income tax expense charged to the Statement of Financial Performance is the current year's taxprovision. Deferred tax accounting has not been adopted by the Trust.

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OPEPE FARM TRUSTNotes to the Financial Statements

As at 30 June 2017

21


As at 30 June 2017

g) Livestock

h) Basis of Consolidation - Purchase Method

i) Revenue

Significant revenue policies

Change in Accounting Policies

2017Group Parent

Operating (Loss)/Surplus After Taxation (6,408) -Net (Loss)/Surplus Attributable to the Parent Trust (5,126) -Total Equity 790,678 -Equity Attributable to Parent Trust Shareholder 632,543 -

Restatement of AccountsThe financial statements for the 2016 financial year have been restated to record at fair value fheemissions trading units held by Opepe Trust. The effect on the 2016 financial results has been:

2016Group Parent

Operating (Loss)/Surplus After Taxation - -Value of Investments 1,110,900 1,110,900Movement in the Asset Revaluation Reserve 688,758 688,758Balance of the Asset Revaluation Reserve 1,110,900 1,110,900Opening Equity 1 July 2015 422,142 422,142Total Equity at Balance Date 1,110,900 1,110,900

The consolidated financial statements, which include the parent Trust and its subsidiaries, these areaccounted for using the purchase method. In the parent financial statements investments in subsidiaries arerecognised in accordance with f) Investments.

All livestock on hand has been valued at current market value determined by calculating the average of thevaluations obtained from PGG Wrighton Limited and Central Livestock (2016: Current market value asdetermined by Progressive Livestock and Central Livestock) . Changes in value are recorded in thestatement of financial performance. For taxation purposes livestock are valued using the herd scheme andthe national standard cost scheme.

Revenue from the sale of goods is measured at the fair value of the consideration received or receivable, netof returns and allowances, trade discounts and volume rebates. Revenue is recognised when the significantrisks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable,the associated costs and possible return of goods can be estimated reliably, and there is no continuingmanagement involvement with the goods, and the amount of revenue can be measured reliably.

The property owned by Tauhara Middle 15 Trust is now recorded at rateable value less depreciation whereas inprior periods it was recorded at market value less depreciation. The effect of the change in accounting policy onthe 2017 financial results has been:

The timing of the transfers of risks and rewards varies depending on the individual terms of the contract ofsale.

Milk income is recorded from the supplier statements. These statements are prepared monthly from milkcollection records and recorded at the current market milk price as published by the entity supplied.Rental and lease income is recognised in accordance with contractual arrangements.Finance income comprises interest income on funds invested, changes in fair value of financial assets at fairvalue through profit or loss. Interest income is recognised as it accrues, using the effective interest method.

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As at 30 June 2017

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As at 30 June 2017

2. Operating Revenue Group Parent2017 2016 2017 2016

The total operating revenue for the yearis composed of the following:

Property Rental & Board Room Hire (Putea) 97,186 249,915 97,186 249,915Farming Revenue 6,367,373 4,611,044 340,264 8,917,637Forestry Revenue 285,683 184,349 285,683 184,349Interest Received 2,048 6,434 1,546 5,493Share of Profit (Opepe Tauhara Middle 15 P/Ship) - - 46,224 47,984Share of Profit (Tauhara Properties LP) 33,127 - 33,127 -Other Income 114,776 144,155 91,234 128,555

6,900,193 5,195,897 895,264 9,533,933

Less Revenue from Tauhara North Block 77,811 78,541 46,224 47,984Less Operating Expenses 4,167,192 4,233,339 148,851 8,685,774

Surpluses (Deficits) From Operations perStatement of Financial Performance 2,655,189 884,017 700,189 800,175

3. Iwi Investor Managed Funds Group Parent2017 2016 2017 2016

Iwi Investor manages the following funds on behalf of Opepe Farm Trust:Cash Funds - 1,057 - 1,057

- 1,057 - 1,057

4. Livestock on Hand Group2017 2017 2016 2016Qty Value Qty Value

$ $

Sheep 8,262 1,154,092 10,718 1,310,470Non-Dairy Cattle - - 492 335,825Dairy Cattle 2,707 3,299,240 2,390 3,232,575

10,969 4,453,332 13,600 4,878,870

Livestock on Hand Parent2017 2017 2016 2016Qty Value Qty Value

$ $

Sheep - - 1,860 181,362Non-Dairy Cattle - - 393 328,914Dairy Cattle - - - -

- - 2,253 510,276

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As at 30 June 2017

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As at 30 June 2017

5. Equity Group Parent2017 2016 2017 2016

CapitalBalance at Beginning of year 260,451 260,451 260,451 260,451Movement in the year - - - -Balance at Year End 260,451 260,451 260,451 260,451

Revaluation ReservesAsset Revaluation Reserve

Balance at Beginning of Year 29,814,094 29,814,094 29,814,094 29,814,094Movement in Revaluation Reserves 6,471,005 - 6,311,589 -Less Minority Share of Movement (159,417) - - -Balance at Year End 36,125,682 29,814,094 36,125,683 29,814,094

Capital ReserveBalance at Beginning of Year 3,309,287 2,507,919 3,309,287 2,507,919Movement in Revaluation Reserves 44,145 801,368 44,145 801,368Balance at Year End 3,353,432 3,309,287 3,353,432 3,309,287

Total Revaluation Reserves 39,479,114 33,123,381 39,479,115 33,123,381

Retained EarningsBalance at Beginning of Year 11,061,194 11,705,280 11,112,594 11,705,280Transfer from Reserves - (312) - -Net Surplus Attributable to Parent Trust

Beneficiaries 894,346 (643,774) (648,377) (592,686)Balance at Year End 11,955,540 11,061,194 10,464,217 11,112,594

Total Equity to Parent Trust Beneficiaries 51,695,105 44,445,026 50,203,783 44,496,426

Group2017 2016

Non-controlling InterestBalance at Beginning of Year 547,933 603,878Surplus Attributable to non-controlling

interests 10,317 7,055Share of Revaluation of Property 159,417Distributions to non-controlling interests (7) (63,000)Balance at Year End 717,660 547,933

6. Bank of New Zealand

The Trust has an overdraft facility of $400,000 (2016: $400,000) and a loan facility available of $3,430,353 (2016:$3,983,000) with the Bank of New Zealand. The overdraft facility provides seasonal finance for the Trust and theloan facility was obtained to provide funding for the dairy conversion project. The overdraft and loan facility aresecured over property owned by the Trust, and investment securities issued by Fonterra Co-Operative Group.The total amount drawn down at balance date was $3,983,000 (2016:$3,430,353). The Trust has guarantees toTuwharetoa Carbon Limited, refer to note 9.

Opepe Farming Limited Partnership has provided the BNZ with a perfected security interest over all present andafter acquired property. Opepe Farming Limited Partnership has also provided a $800,000 guarantee to the BNZin relation to borrowings by the Opepe Farm Trust.

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As at 30 June 2017

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As at 30 June 2017

7. Related Parties

Opepe TM15 Partnership

Opepe Farming Limited PartnershipThe Trust has a 100% ownership interest in Opepe Farming Limited Partnership. The general partnerof Opepe Farming Limited Partnership is Opepe General Partner Limited.

Tauhara Properties Limited PartnershipThe Trust has a 50% ownership interest in Tauhara Properties Limited Partnership. Te Pae O Waimihaowns the other 50% of Tauhara Properties Limited Partnership. Ngahere Hall and William Hall are alsotrustees of Te Pae O Waimiha. Opepe Properties Limited is the general partner of Tauhara PropertiesLimited Partnership.

Opepe Aquaculture Limited

Sea Products LimitedOpepe Aquaculture Limited has a 50% ownership interest in Sea Products Limited.

Iwi Investor

Lake Taupo Forest Trust Management Limited

Lake Taupo Forest Trust, Lake Rotoaira Forest Trust and the Trust have beneficial owners in common.

The Trust has a 100% ownership interest in Opepe Aquaculture Ltd.

The Trust and Tauhara Middle 15 Trust are co-owners in the Tauhara North Farm. The Trust has a 80% interestin the Partnership.

The Trust leases land to Lake Taupo Forest Management under a Memorandum of transfer granting a forestryright. Charlotte Severne is a director of Lake Taupo Forest Management Limited and a Trustee of the Trust. LakeTaupo Forest Management Limited is owned 70% by Lake Taupo Forest Trust and 30% by Lake Rotoaira ForestTrust. Heemi Biddle and Charlotte Severne are Trustees of Lake Rotoaira Forest Trust and The Trust. HeemiBiddle is also a Trustee of Lake Taupo Forest Trust.

Temuera Hall (Trustee) is a director of Iwi Investor. In the 2016 financial year Iwi Investor managed $1,507 of theTrust's funds. In 2016 the Trust has paid Iwi Investor $693 in management fees. In the 2017 financial year theTrust withdraw all the funds it held in Iwi Investor.

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As at 30 June 2017

7. Related Parties

Opepe TM15 Partnership

Opepe Farming Limited PartnershipThe Trust has a 100% ownership interest in Opepe Farming Limited Partnership. The general partnerof Opepe Farming Limited Partnership is Opepe General Partner Limited.

Tauhara Properties Limited PartnershipThe Trust has a 50% ownership interest in Tauhara Properties Limited Partnership. Te Pae O Waimihaowns the other 50% of Tauhara Properties Limited Partnership. Ngahere Hall and William Hall are alsotrustees of Te Pae O Waimiha. Opepe Properties Limited is the general partner of Tauhara PropertiesLimited Partnership.

Opepe Aquaculture Limited

Sea Products LimitedOpepe Aquaculture Limited has a 50% ownership interest in Sea Products Limited.

Iwi Investor

Lake Taupo Forest Trust Management Limited

Lake Taupo Forest Trust, Lake Rotoaira Forest Trust and the Trust have beneficial owners in common.

The Trust has a 100% ownership interest in Opepe Aquaculture Ltd.

The Trust and Tauhara Middle 15 Trust are co-owners in the Tauhara North Farm. The Trust has a 80% interestin the Partnership.

The Trust leases land to Lake Taupo Forest Management under a Memorandum of transfer granting a forestryright. Charlotte Severne is a director of Lake Taupo Forest Management Limited and a Trustee of the Trust. LakeTaupo Forest Management Limited is owned 70% by Lake Taupo Forest Trust and 30% by Lake Rotoaira ForestTrust. Heemi Biddle and Charlotte Severne are Trustees of Lake Rotoaira Forest Trust and The Trust. HeemiBiddle is also a Trustee of Lake Taupo Forest Trust.

Temuera Hall (Trustee) is a director of Iwi Investor. In the 2016 financial year Iwi Investor managed $1,507 of theTrust's funds. In 2016 the Trust has paid Iwi Investor $693 in management fees. In the 2017 financial year theTrust withdraw all the funds it held in Iwi Investor.

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As at 30 June 2017

8. Income Tax

Group Parent2017 2016 2017 2016

Calculation of Taxable Profit:Accounting Profit Before Taxation 1,099,113 (539,707) (453,927) (495,674)

Adjust for:Permanent Differences (563,433) 69,462 (563,433) 69,462Timing Differences 577,980 1,024,603 787,624 976,619Share of Profit from Associates & Subsidiaries - - 1,343,396 3,951Profit for Taxation Purposes 1,113,660 554,358 1,113,660 554,358

Tax ReconciliationTax Payable @ 17.5% 194,891 97,012 194,891 97,012RWT Paid (13,641) (11,970) (13,641) (11,970)Imputation Credits (71) (1,784) (71) (1,784)Provisional Tax Paid/Tax Credit (156,203) (93,475) (156,203) (93,475)Taxation Payable/(Refund) 24,976 (10,217) 24,976 (10,217)

Income Tax in the Statement of Financial Performance is represented by:Tax payable on current years profit 194,891 97,012 194,891 97,012Prior year tax adjustment (441) - (441) -

194,450 97,012 194,450 97,012

9. Contingent Liabilities

Opepe Farm Trust has guarantees to Tuwharetoa Carbon Trust Limited under Deeds of Assignment fromWestpac Bank and Dorchester Finance in relation to advances made to Te Whenua Venture Holdings Limited.The Trustees are contesting the validity of these guarantees. In December 2011 the land (known asMangamawhitiwhiti) owned by Te Whenua Venture Holdings Ltd was sold under mortgagee sale to an associatedcompany of Tuwharetoa Carbon Trust Limited. The sale proceeds were less than the loan advances and anamount remains outstanding to Tuwharetoa Carbon Trust Limited. The land was then sold to Hautu-RangipoLimited Partnership on 30 June 2015. The guarantee is joint and several with other shareholders in Te WhenuaVenture Holdings Limited (In Liquidation). Tuwharetoa Carbon Trust Limited has the right to recover the amountunder its guarantee from all or any of the guarantors. The Trustees of Opepe Farm Trust are endeavouring toobtain assurance from Tuwharetoa Carbon Trust Limited that the guarantee will not be called upon. The timingand the amount of any liability under the guarantee is unknown at balance date.

The entity has gained emmission credits ("New Zealand Units"or "NZU's") and will incur liabilities through theEmissions Trading Scheme (ETS). The entity has applied and received credits on its post 1989 plantations.Should the plantation be deforested, a liability would be incurred unto a maximum of the credits received. Atbaalnce date the Trust holds 63,480 NZU's (2016: 63,480).

Livestock have been valued using a mixture of Herd Scheme and National Standard Cost.

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As at 30 June 2017

10. Property, Plant and Equipment Group Parent2017 2016 2017 2016

Land and BuildingsCost or Valuation 48,726,119 42,033,247 45,315,893 39,420,110Depreciation Expense 547,454 538,205 537,369 534,375Accumulated Depreciation 3,737,067 3,191,827 3,695,665 3,160,510Closing Book Value 44,989,052 38,841,420 41,620,228 36,259,600

Plant and EquipmentCost or Valuation 1,572,647 1,434,998 3,761 1,434,998Depreciation Expense 133,043 100,982 752 100,982Accumulated Depreciation 828,809 695,152 752 695,152Closing Book Value 743,838 739,846 3,009 739,846

Motor VehiclesCost or Valuation 412,409 718,802 - 718,802Depreciation Expense 75,119 54,932 - 54,932Accumulated Depreciation 75,119 382,503 - 382,503Closing Book Value 337,290 336,299 - 336,299

Office EquipmentCost or Valuation 102,380 136,308 102,380 134,600Depreciation Expense 3,346 11,948 3,346 11,584Accumulated Depreciation 80,706 101,733 80,706 101,119Closing Book Value 21,674 34,575 21,674 33,481

Total Property, Plant & EquipmentCost or Valuation 50,813,555 44,323,355 45,422,032 41,708,510Depreciation Expense 758,961 706,067 541,465 701,873Accumulated Depreciation 4,721,700 4,371,215 3,777,122 4,339,284Closing Book Value 46,091,854 39,952,140 41,644,912 37,369,226

11. Land and Buildings

Land and buildings owned by the Group, have been revalued to the latest Quotable Values as at July 2016.

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10. Property, Plant and Equipment Group Parent2017 2016 2017 2016

Land and BuildingsCost or Valuation 48,726,119 42,033,247 45,315,893 39,420,110Depreciation Expense 547,454 538,205 537,369 534,375Accumulated Depreciation 3,737,067 3,191,827 3,695,665 3,160,510Closing Book Value 44,989,052 38,841,420 41,620,228 36,259,600

Plant and EquipmentCost or Valuation 1,572,647 1,434,998 3,761 1,434,998Depreciation Expense 133,043 100,982 752 100,982Accumulated Depreciation 828,809 695,152 752 695,152Closing Book Value 743,838 739,846 3,009 739,846

Motor VehiclesCost or Valuation 412,409 718,802 - 718,802Depreciation Expense 75,119 54,932 - 54,932Accumulated Depreciation 75,119 382,503 - 382,503Closing Book Value 337,290 336,299 - 336,299

Office EquipmentCost or Valuation 102,380 136,308 102,380 134,600Depreciation Expense 3,346 11,948 3,346 11,584Accumulated Depreciation 80,706 101,733 80,706 101,119Closing Book Value 21,674 34,575 21,674 33,481

Total Property, Plant & EquipmentCost or Valuation 50,813,555 44,323,355 45,422,032 41,708,510Depreciation Expense 758,961 706,067 541,465 701,873Accumulated Depreciation 4,721,700 4,371,215 3,777,122 4,339,284Closing Book Value 46,091,854 39,952,140 41,644,912 37,369,226

11. Land and Buildings

Land and buildings owned by the Group, have been revalued to the latest Quotable Values as at July 2016.

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As at 30 June 2017

12. Investments Group Parent2017 2016 2017 2016

Alliance Shares 4,055 - 887 -Fonterra Co-Operative Group 699,996 955,500 699,996 955,500Livestock Improvement Corporation 3,027 1,862 - 1,862Emission Trading Units 1,082,334 1,110,900 1,082,334 1,110,900Forestry 80,000 80,000 - -Wool Equities 109 109 109 109Taupo Saleyards Limited 875 875 875 875Balance Agri-Nutrients Limited 365,715 365,715 365,715 365,715Ravensdown Corporation Limited 43,257 43,257 43,257 43,257King Country Energy Limited 3,939 3,850 3,939 3,850Farmlands 4,295 4,295 4,295 4,295Taonga (Refer to Note 15) 20,000 20,000 20,000 20,000Sea Products Limited 92,610 91,351 - -Tauhara Properties Limited Partnership 584,652 762,510 584,652 762,510

2,984,864 3,440,224 2,806,059 3,268,873

Tauhara Properties Limited Partnership - Equity Accounted InvestmentOpening balance 762,510 - 762,510 -Acquisition of Investment - 765,062 - 765,062Equity Accounted Share of NPAT (177,858) (2,552) (177,858) (2,552)Closing Balance 584,652 762,510 584,652 762,510

13. Loans to SubsidiariesParent

2017 2016

Opepe Farming Limited Partnership 4,272,555 3,104,4474,272,555 3,104,447

The loan to Opepe Farming Limited Partnership is interest free. The loan is not expected to berepaid in the next 12 months.

14. Investments in Subsidiaries

Subsidiaries Percentage Held Parent2017 2016 2017 2016

Opepe TM15 Partnership (Land Owner) 80% 80% 2,889,371 2,203,823Opepe Aquaculture Ltd (Investment/Holding 100% 100% 92,610 91,351

Company)Opepe Farming Limited Partnership 100% 100% 2,000,000 2,000,000

4,981,981 4,295,174

The Opepe TM 15 Partnership owns the land known as Tauhara North. Opepe Farm Trust has an 80% interest inthe partnership. The property was revalued to the latest valuation for rating purposes on 1 July 2016, and theforestry crop is held at estimated market value of $80,000 (2016: A market value of the land, buildings andforestry crop as at 30 June 2013 was undertaken by Telfar Young registered valuers).

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15. Nitrate Position

The Nitrate Discharge Allowances are as follows:Opepe Dairy Farm 20 Units per HectareOpepe No 1 Farm 11 Units per HectareTauhara North Farm 14 Units per Hectare

The Trust has kept within the allocated allowances.

In October 2017 the Opepe Trust was granted a further 2 units per hectare nitrate discharge allowanceunder the Tuwharetoa Development N scheme.

16. Taonga

17. Property Being Vested into the Trust by the Department of Conservation

18. Events Subsequent to Balance Date

Sale of Fonterra Shares:

Purchase of Milk Futures:

19. Lease Commitments

20. Commitments for Capital Expenditure

There are no capital commitments at balance date (2016 Nil).

The Trustees have previously approved the purchase of historical paintings of Opepe beneficiaries by CaptainRyan. These Taonga are on loan to the Taupo Art Gallery.

There are no material lease commitments at balance date (2016: nil)

(2016: Subsequent to the 2016 balance date the Opepe Farm Trust sold Plant and Equipment to Opepe FarmingLimited Partnership at a value of $1,241,616. The transaction took place on 1 July 2016, and the value of thetransaction was added to the balance advanced to Opepe Farming Limited Partnership.)

On 3 June 2014 the Department of Conservation advised that they would vest into the Trust's ownership threesections on bordering Scannell street and Kaimanawa Street, Taupo for community building purposes.

The land area totals 0.2738 hectares and is composed of Sections 11 and 13 Block II Town of Taupo and Section2 SO456587. As at balance date title to the land had not yet passed to the Trust.

Subsequent to balance date Opepe Farm Trust sold all Fonterra shares owned (116,666) for $6.22 each. Totalamount received was $725,802 resulting in a profit on sale of $25,805. The money received was used to repay$350,000 of term loans.

Subsequent to balance date Opepe Farm limited Partnership entered into milk price future contracts for 288,000kilograms of milk solids at a weighted average price of $6.68 for the 2018 season.

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As at 30 June 2017

Opepe Farm Trust Annual General Meeting16 December 2017Opepe Farm, TaupŌ

Documents

ANNUAL GENERAL MEETING · · 2017-12-15highlighting the establishment of a Subsidiary Limited Liability Partnership ... We bring in one specialist for sheep and beef, and one specialist