2982 NEW ZEALAND GAZETTE, No. 100 24 AUGUST 2006

Act 1999. The purpose of the trust is to provide charitable, cultural, philanthropic, recreational and other benefits to Bay of
Plenty communities. In April 1998, the name was changed to the Bay of Plenty Community Trust. In March 2006, the trust
adopted the name BayTrust for operational purposes.

Trustees:
Mr R. B. Sharp (Chair), Ms T. J. Eggleton, Ms S. Kai Fong, Mr B. Kerr, Mrs J. Knudsen J.P., Ms E. Leighton Q.S.O.,
Mr L. Martin J.P., Mrs P. J. McLeod M.N.Z.M., Mrs M. Ngatai J.P., Ms A. von Tunzelmann, Ms P. Thompson and Ms M.
Waaka M.N.Z.M.

Trust Manager:
Mr B. W. Cronin.

Accountants:
Staples Rodway, Tauranga.

Auditors:
Ingham Mora, Tauranga.

Bankers:
BNZ, Tauranga.
Westpac, Tauranga.

Financial Advisers:
Russell Investment Group Limited, Auckland.

Solicitors:
Sharp Tudhope, Tauranga.

Tax Advisers:
KPMG, Christchurch.

Chairman’s Report for the Year Ended 31 March 2006

The trustees are pleased to report on another successful year for the trust.

The trust has earned a record 14% return on its invested funds for the year to 31 March 2006. This gave the trust a highest ever net income of $17 million (including unrealised gains) and has enabled us to restore our reserves to prudent levels. It has also enabled us to budget for increased donations of $4,035,000 into the Bay of Plenty community in the year ahead. The approved donations into the community over the last 12 months totalled $3,255,000 (not all were actually paid during the year).

The trust retains a policy of growing its funds invested to maintain the real value of this community trust fund relative to inflation and 50% of population growth in the Bay. In addition, reserves are maintained at a prudent level to ensure continued donations into our community in adverse times recognising that investment returns do fluctuate and will not always be at the level achieved in the past year.

The amount added to our reserves this year is much larger than normal. This has arisen because we had an exceptional income year with actual income ending up almost double the long-term expected average. We know that this is the exception and much lower returns can normally be expected. The actual returns are earned throughout the year and in this last year they received a strong boost from the exceptional growth in the value of the trust’s investments, especially over the last quarter of the year. Our budgets are based on much lower long-term expected average returns and this is the way it needs to be for prudent management.

The funds of the trust are maintained in a broadly diversified but relatively low risk portfolio consistent with trustees’ desire to have income flows for donations each year as well as building its investments to maintain this community fund in perpetuity so that its value is not lost over time. The total funds of the trust stood at $135,940,000 at 31 March 2006.

We have relocated the trust offices to improved premises on the corner of Spring and Durham Streets in Tauranga – now enabling us to have meetings in our own offices and improved profile and accessibility to our stakeholders.

We have re-branded the trust to BayTrust to enable us to have better branding opportunities with a new simplified logo.

The trust has continued to be the cornerstone funder of Sport BoP’s Coachforce programme which promotes, supports and plans sporting activity development and coaching development throughout the Bay. It is the foundation of sports development in the Bay and we are very proud to have funded this successful programme from its inception 10 years ago. We thank and congratulate Sport BoP for its success and enthusiasm in this programme which aims to build a significantly healthier, more active, able and proud community.

We have approved major contributions to two significant community development projects with a $1 million donation to the large indoor sports and convention centre development in Rotorua and a $200,000 donation to Opotiki District Council toward its detailed planning for the Opotiki Harbour all weather entrance development. Both of these projects have significant positive economic impact potential for their communities.

The trust is seeking community projects which will have significant potential to improve the regional economics in its area, especially where employment opportunities are poor. We are maintaining liaison with the BoP local authorities and their development agencies, the energy trusts and Environment BoP to try to ensure that we are aware of development opportunities and initiatives and that our efforts and funding are consistent with the desires and plans of our communities.

We continue to support the many small and larger community organisations throughout the BoP. These are the organisations which support our community in so many ways. Our trustees and staff get much of their reward from their contact with the people in these organisations, many of whom are volunteers. We thank all of these people for their contribution to our communities in the Bay of Plenty and feel gratified that we are able to help them through the trust.

We remind you, in our community, that we also provide funds annually to assist tertiary education costs for persons with disabilities. These are called Dillon Scholarships and application forms for these are available through our trust office.