The Wiri Licensing Trust proudly opened its latest bar – Woodside in early September. Woodside is South Auckland’s first gastro-pub and not only offers local people great food and hospitality but also includes a function centre, garden bar and gaming lounge. This summer Woodside will be hosting top-line live music acts. Check out our latest menu at woodside.org.nz or just come to discover the what is on offer. Woodside is located at 2 Ronwood Avenue just behind Krispy Kreme and is open for brunch from 8am on Saturdays and Sundays and for lunch and dinner seven days a week.

Wiri Licensing Trust Annual Report 2017/18

Woodside – South Auckland’s newest gastro-pub opens in Manukau

What Is The Wiri Licensing

Trust?

The Wiri Licensing Trust is a community owned business which runs bars and owns commercial property in the Manurewa and Manukau communities. The Trust is governed by six trustees who are elected by the voters at the time of the Council elections every three years. The Trust was founded in 1969 and is constituted under the Sale and Supply of Alcohol Act 2012. By law it is required to run bars and visitor accommodation but is not responsible for liquor licensing which is the responsibility of District Licensing Agency – a branch of Auckland Council.

Woodside’s Executive Chef Paul Rumary and Venue Manger Ben McKinlay draw from their extensive hospitality experience to offer great menus and service at South Auckland’s first gasto-pub.

Wiri Trust continues its sponsorship of the

Northern Stars netball team

The Northern Stars are South Auckland’s professional netball franchise which plays in the ANZ Premiership New Zealand netball competition. The Stars were based at Pulman Arena during the 2018 and were sponsored by the Wiri Licensing Trust for the second year.

‘Supporting women’s sport and teams which profile South Auckland in national competitions are important priorities for the Wiri Licensing Trust’ says trustee Kim Dennis. ‘While the Stars had a mixed season during 2018 they have gathered huge support from South Aucklanders and have lifted the reputation of netball across our communities’ she says.

The Wiri Licensing Trust will continue to sponsor the Northern Stars in 2019 and is looking to host functions for the team and its supporters at its newly opened bar Woodside. ‘We are proud to be involved with the Stars and are looking forward to being able to support them more during 2019’ says Kim Dennis.

Notes to the Summary Financial StatementsFor the year ended 31 March 2018These are the summary financial statements of Wiri Licencing Trust for the year ended 31 March 2018.The specific disclosures included in these summary financial statements have been extracted from the full annual financial statements dated 22 August 2018.This summary financial report cannot be expected to provide as complete an understanding as provided by the full financial statements.An unqualified audit opinion has been received on the full financial statements for the year ended 31 March 2018. A copy of the full financial statements for Wiri Licencing Trust for the year ended 31 March 2018 can be obtained by contacting Alan Johnson, Chairperson, Wiri Licencing Trust, PO Box 98833, South Auckland Mail Centre, Manukau City 2241, New Zealand or by visiting http://www.wiritrust.org.nz/reports.html.This summary financial report has not been audited. These summary financial statements were approved for issue by the Board of Trustees for Wiri Licencing Trust on 22 August 2018.These are the financial statements of Wiri Licensing Trust. Wiri Licensing Trust is a Licensing Trust constituted under and governed by the Sale and Supply of Alcohol Act 2012 and domiciled in New Zealand.Reporting EntityThe financial statements are of a single trust which has been designated a profit orientated entity. The objective of the Trust is to maximise profits from its tavern & property portfolio to enable it to distribute as much funds as sustainably possible to its community. The trust owns commercial property at 639 Great South Road Manukau City & 185-187 Great South Road Manurewa. They also own a tavern trading as ‘Our Local’ situated at 254 Roscommon Road Wiri.

WIRI LICENCING TRUSTSummary Financial Statements For the year ended 31 March 2018

Statement of ComplianceThese financial statements comply with FRS43: Summary Financial Statements. The presentation currency is New Zealand dollars, rounded to the nearest whole dollar. The full financial statements upon which these Summary Financial Statements are based have been prepared in accordance with the requirement of the Sale and Supply of Alcohol Act 2012 and Generally Accepted Accounting Practice in New Zealand.The Trust is eligible and has elected to report in accordance with Tier 2 for-profit Accounting Standards (NZ IFRS RDR) and has applied disclosure concessions.These financial statements are the first financial statements presented in accordance with the Tier 2 for profit accounting standards.Specific Accounting PoliciesAll other specific accounting policies have been applied on the same basis as those used in the full financial statements.RevenueRevenue comprises the fair value for the sale of goods and services, excluding Goods and Services Tax and discounts. Revenue is recognised as follows:Sales of GoodsSale of Goods are recognised when the Trust has delivered a product to the customer. Retail sales are usually in cash or by EFTPOS. The recorded revenue is the gross amount of the sale.Rental IncomeRental income is recognised on a straight line basis over the lease term.Gaming Machine IncomeGaming machine income is recognised on a commission payment of 1.28% of total gaming turnover up too and not exceeding 16% of Gaming Machine Proceeds (GMP).Property, Plant & EquipmentAdditionsThe cost of an item of property, plant and equipment is recognised as an asset if, and only if, it is probable that future economic benefits or service potential associated with the item will flow to the Trust and the cost of them can be measured reliably.In most instances, an item of property, plant and equipment is recognised at its cost. Where an asset is acquired at no cost, or for a nominal cost, it is recognised at fair value as at the date of acquisition.Subsequent CostsCosts incurred subsequent to initial acquisition are capitalised only when it is probable that future economic benefits or service potential associated with the item will flow to the Trust and the cost of the item can be measured reliably.DisposalsGains and losses on disposals are determined by comparing the proceeds with the carrying amount of the asset.Gains and losses on disposals are included in the statement of comprehensive income. When revalued assets are sold, the amounts included in asset revaluation reserves in respect of those assets are transferred to retained earnings.DepreciationDepreciation of property, plant and equipment is calculated using diminishing income tax value. The rates are as follows:

Buildings – Roscommon Rd & Great Sth Rd 4% DV Depreciated using remaining useful lifePlant & Equipment 7.5 - 67% DV Depreciated using DV income tax valueFixtures, Fittings & Office Equipment 7.5 – 87.50% DVMotor Vehicles 36% DV

RevaluationOperational land & buildings are revalued on a yearly valuation cycle on the basis described below. All other asset classes are carried at depreciated historical cost less impairment. The carrying values of revalued items are assessed annually by independent valuers to ensure that they do not differ materially from fair value. If there is evidence supporting a material difference, then the asset is revalued. Operational land & buildings are valued at fair value as determined from market-based evidence by an independent valuer. Assumptions include willing buyer/seller and a reasonable period within which to negotiate a sale. The method of valuation is market value due to site location, its good condition and the performance of the bar operation. The most recent valuation was performed by Michael Clark for Seagar & Partners at 31 March 2018.Investment PropertiesInvestment Properties Land and Buildings are valued annually at fair value. The valuation was carried out by Michael Clark for Seagar & Partners at 31 March 2018. Gains or losses arising from the fair value of Investment Properties are recorded in the Statement of Comprehensive Income.ContingenciesOn April 2004 the Trust entered into a Deed of Settlement with Manukau City Council (now Auckland Council). It was agreed that the Trust is indebted to the Council for 50% of the market value of its investment property situated at 639 Great South Road Manukau, being areas A to H and W. However the Council agreed to forebear from making demand for repayment unless the Trust defaults by:• Selling all or part of the land without the Council’s written consent.• Borrowing, secured by first mortgage secured on the land, an amount of more than

50% of the current market value of the land.• Winding up the Trust or appointing a provisional liquidator or statutory manager for

the Trust.• Failing to meet a payment or obligation under the Deed of Settlement and failing to

remedy the breach within 21 days notice from the council.This contingency is calculated to be $14,932,500 ($12,090,000 as at 31 March 2017) being 50 % of the market value as recorded in the Statement of Financial Position.

A full copy of these accounts can be found on the Wiri Licensing Trust’s website at http://www.wiritrust.org.nz and are available in hard copy at the Trust’s office at 254 Roscommon Road Wiri.

Statement of Financial PositionAs at 31 March 2018 2018 2017Current Assets 324,024 235,179Non-Current Assets 35,050,940 26,825,466Total Assets 35,374,964 27,060,644Current Liabilities 12,380,901 2,265,239Non-Current Liabilities 1,281,591 5,355,649Total Liabilities 13,662,492 7,620,888

Net Assets 21,712,473 19,439,757Trust Equity 20,086,030 18,358,010Asset Revaluation Reserve 1,626,443 1,081,747Total Equity 21,712,473 19,439,757Statement of Changes in EquityFor the year ended 31 March 2018 2018 2017Equity at Start of Year 19,439,757 18,261,479Total Profit After Tax 1,728,020 1,052,026Other Comprehensive Income 544,696 126,251Total Equity at End of Year 21,712,473 19,439,757Statement of Comprehensive IncomeFor the year ended 31 March 2018 2018 2017Bar Revenue 398,077 403,258Other Revenue 1,567,815 1,507,284Sponsorship (52,904) (58,086)Other Expenditure excluding finance costs (2,043,798) (1,291,784)Finance Costs (546,621) (324,628)Operating Surplus (677,431) 236,044Investment Revaluation Gain / (Loss) 2,391,104 745,596Net Surplus / (Deficit) before tax 1,713,674 981,640Tax Expense (14,347) (70,386)Net Surplus / (Deficit) after tax 1,728,020 1,052,026Gain on Property, Plant & Equipment Revaluation 536,800 98,600Tax on Revaluation 7,896 27,651Total Comprehensive Income 2,272,716 1,178,278Statement of Cash FlowsFor the year ended 31 March 2018 2018 2017Net Cash Flows from Operating Activities (41,537) 244,754Net Cash Flows from Investing Activities (5,851,664) (427,114)Net Cash Flows from Financing Activities 5,960,117 (73,901)Net Increase / (Decrease) in Cash 66,916 (256,261)Cash and Cash Equivalents at Beginning of Period 85,988 342,249Cash and Cash Equivalents at End of Period 152,903 85,988Net Change in Cash for the Period 66,915 (256,261)

Next year the Wiri Licensing Trust will celebrate its 50th birthday having been set up in 1969. Some of the last 49 years have been difficult but most have been marked by slow steady progress. The last year 2017/18 is however unique over the past 40 years as it was a year where the undertook significant new investments and developments and in doing so set its future more securely. While this future is more secure a period of consolidation is now required as we establish Woodside, our new bar business and begin to pay down debt.

The Trust’s recent development phase began in February 2017 with the commencement of the construction of the Krispy Kreme building on Ronwood Ave in Manukau Central. This building opened for business in February 2018 and has drawn a great customer response. This business is owned and run by Krispy Kreme NZ Ltd which has the Krispy Kreme ̀ franchise in New Zealand and is Australian owned. The Trust is enthusiastic about having Krispy Kreme as a tenant and looks forward to a productive relationship over the next 10 years at least.

Since February 2018 the Trust has been working on the development of a new bar building and business also in Ronwood Ave known as Woodside. This name is taken from the original name of the European settlement in the Manukau Central area. Woodside comprises a well-appointed bar and dining areas, gaming machine lounge, an extensive kitchen, function room and garden bar area. The premises opened for business in early September and will we believe soon become South Auckland’s favourite gastro-pub and function centre.

These developments and investments have meant significant but positive changes to the Trust’s financial position. On 31 March 2018 total Trust assets were $35.4 million which is an increase of $8.3 million over the preceding year. This increase was partly offset by an increase in debt of $6 million to $13.6 million in order to fund the Trust’s property developments and investments. Overall however the Trust’s wealth or net equity rose $2.3 million during the 2017-18 year to $21.7 million.

Wiri Licensing Trust Annual Report 2017/18

TRUST CHAIRMAN’S REPORT For year to 31st March 2018

This $2.3 million increase in the Trust’s wealth is due almost entirely to asset revaluations and development gains. For the 2017-18 year gains from asset revaluations added $537,000 to the Trust’s wealth while net profit after tax contributed a further $1.73 million. This net profit too is the result of a $2.39 million increase in the value of investment properties which was offset by $606,000 in write downs of the value of buildings being demolished to make way for the development of the Krispy Kreme building. During 2017-18 the Trust actually made a small operating loss of $57,000 compared with an operating profit of $306,000 the previous year. This modest loss was expected given that the Trust faced increased interest costs as it completed the Krispy Kreme building yet had no rent income to offset these costs. During 2017/18 the Trust contributed $53,000 in grants and sponsorships to local community groups. In addition the Trustees recommended a further $1.8 million in grants from Class 4 gaming machines operated in the Trust’s bars. These grants were made by our gaming trust partners The Trusts’ Community Foundation (TTCF) and Trillian Trust.Looking forward the Trust’s financial future is sound. By the 2019/20 financial year we can expect rents from the Trust’s commercial properties to exceed $1.5 million and surpluses from its bar operations to reach at least $400,000. At this stage we expect too to be repaying at least $500,000 per year of debt.I would like to thank my fellow trustees for their contributions and ongoing support for me and the Trust’s work. To our staff and especially to the Trust’s General Manager Brett Wilson I wish to offer our thanks and gratitude for their efforts in bringing the Trust through a time of expansion and considerable change.The Trustees and staff look forward to next year celebrating the Trust’s 50th year of operation. We remain committed to the organisation’s purpose of serving the people of South Auckland as a well- run socially responsible community owned business.Alan Johnson, Trust Chairman

Krispy Kreme proves popular with customers

of customers although weekends remain busy’ he adds.

‘The Krispy Kreme development and the partnership with Krispy Kreme Australia have been incredibly important for the Trust’ Brett Wilson says. ‘This development offers the Trust a very attractive commercial return and has been

the backbone of the recent re-development of the Trust’s Ronwood Avenue site’ he says. ‘As well the additional customer traffic through the site has enhanced the businesses of our other tenants and been a real boost to the Trust’s other property investments’ he says.

Wiri Licensing Trust Annual Report 2017/18

RECIPIENT GROUP AMOUNT (exc GST)

Age Concern Counties Manukau Inc. 609Alfrlston College 500Auckland Cambodian Youth and Recreational Trust 500Auckland Paraplegic & Physically Disabled Association Inc. 1,500Blaze Marching Team 500Clendon Juniors Touch 2,000Clendon Residents Group 1,770Clendon United AFC 720CMP Sports Incorporated 1,322Conifer Grove Netball Club - refund (251)Connect the Dots Charitable Trust 477Counties Manukau Sport Foundation 500Counties Manukau Zone of NZRl Inc. 2,000Cranked Retro Festival 870Family Start Manukau 1,000Gifting library 1,000Girls Brigade New Zealand 500

Grants & sponsorships from Wiri Licensing Trust for the year to 31 March 2018

The Wiri Licensing Trust operates Class 4 gaming machines at its bars – Our Local at 254 Roscommon Road and the recently opened Woodside on Ronwood Avenue Manukau. The Trust also owns F Bar premises in Station Road Manurewa but this property is leased to a private operator. Proceeds from Class 4 gambling are required to be donated back to the community under the Gambling At 2003. In operating gaming machines the Trust works in partnership with The Trusts’ Community Foundation (TTCF) and Trillian Trust which actually own the machines. As part of this partnership the Wiri Trust’s board of trustees advises the gaming trusts on the distribution of gaming proceeds back into the local community. The schedules of these community grants are reported on the back page of this annual report.For details on allocations of gaming grants during the 2017/18 year go to the Wiri Licensing Trust’s website at http://www.wiritrust.org.nz

WIRI TRUST & CLASS 4 GAMING MACHINES

Trustees of the Wiri Licensing Trust

Alan JohnsonChairman

Stella Cattle Grant Dalton Kim Dennis Rangi McLean Duncan White Deputy Chair

The popular American donut chain Krispy Kreme arrived in New Zealand with the opening of its flagship store and manufacturing facility in February 2018. The Krispy Kreme building was developed and is owned by Wiri Licensing Trust which had been working with the Krispy Kreme Australia on the project since early 2015.

Right from opening day the brand and its delicious donuts and coffee have proved popular with customers with traffic jams around the store for weeks after opening day. ‘Things have settled down now’ says Trust General Manager Brett. ‘We still have a steady flow

Graeme Dingle Foundation 1,990Golden Roast New Zealand Limited (Breast Cancer Fundraiser) 261Humans of South Auckland Trust 3,900lets Get Legal New Zealand Trust 2,000lNZ Vision Trust 500Manukau Indian Association Inc. 500Manukau New life Youth Group 1,218Manukau seniors Association 500Manurewa Bridge Club 250Manurewa Blue Light Ventures Inc 2,600Manurewa Marlins Rugby League - refund (1,000)Manurewa Photography Project 2,500Manurewa Playcentre 500Manurewa Rugby league Football & Sports Club 348Manurewa Samoan Methodist Church 1,195National Council of Woman of NZ 980New Foundations Trust 1,500

New Zealand Sikh Womens Association 500Nga Marae Toopu o Manurewa 2,134New Zealand Methodist Church 500Northern Stars Netball 1,118Quilting & Beyond 500Rawiri Residents Association 500Ritchies Murphy Transport Solutions 420Sir John Walker Legacy Trust 2,000St Anne’s Catholic School 1,000Te Awa Ora Trust 500Te Waka Uea Playgroup 500Te Whakaora Tangata 774Urban Neighbours or Hope NZ Trust 1,500Vibe Church - Cityway Trust 500Weymouth Rugby Football Club 1,500Whaitiake Charitable Trust 1,500WhatHope Community Trust 1,700Wiri Central School 500Total Sponsorship Paid 52,904

Trust General Manager Brett Wilson, Trust Chairman Alan Johnson and Trust Deputy Chairman Duncan White outside the new Krispy Kreme store in Ronwood Ave Manukau

RECIPIENT GROUP AMOUNT (exc GST) RECIPIENT GROUP AMOUNT (exc GST)