Apata strategic review; a plan in motion

Apata strategic review; a plan in motion
Commitment: to growers and the kiwifruit and avocado industries
Investment: in people and systems to help drive business to the
next level of performance
Growth: planning for sustainable, profi table business growth
While much of the industry turns inwards and slows,
waiting for signs of recovery, Apata holds the strong
view that its future success is reliant on forward planning,
investment and innovation.
Using the 2007 strategic review as a framework the Apata
Board and Executive feel confi dently on track, with much
of the structural redevelopment already implemented
and beginning to show strong results.
Apata’s long-haul commitment to kiwifruit and avocados
is supported by the service, operational and structural
initiatives already underway. The focus is on building a
profi table and sustainable long-term business model, not
looking for short-term returns or cost-cutting exercises
that impact on performance.
Effi cient planning, reporting and
payments are critical to good returns
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We recognised some time ago that the increasingly
intricate consumer market would lead to more complex
requirements for post-harvest operators, and an absolute
imperative for operational effi ciency.
The Company is actively exploring all opportunities to
increase the scale of its operations and to consolidate
and rationalise resources into quicker, smarter and more
economic models.
History shows us that the other key driver of rationalisation,
depressed grower returns, will bring signifi cant changes
within the industry. Structures will change and postharvest
operators with proven track records, established
relationships and forward-looking strategies will be best
placed to emerge as winners.
Apata fruit is shipped from Mt Maunganui and Whangarei to tables around the world
“The European Market is the backbone of ZESPRI
marketing performance and has been for many
years. Covering the continent and the UK, it
is a region with a number of both mature and
very exciting emerging markets. Whether it’s a
consumer in Germany, or a consumer in Spain,
one key attribute stands out - the need for
consistency in quality. Even in our emerging
markets of Russia, India, the Middle East and
Africa the recognition of the efforts in quality that
growers put in is well appreciated. I commend
Apata growers for their focus on delivering a
quality product - it really is important.”
Luc Clerx, ZESPRI GM Europe
Collective supply for systems
effi ciency
In mid-2007 the Company was instrumental in bringing
together 30 million trays under the collective supply
entity, Southlink Supply Limited.
Established primarily to increase supply and systems
effi ciency, Southlink gives Apata a greater industry
presence while maintaining independent pooling
arrangements for growers and our strong track record
in exceptional fruit quality and inventory management.
We will continue to review our supply performance
to ensure we continue to meet all ZESPRI expectations
and improve our overall supply processes and outcomes
for growers.
Caption to go in here about the image

Investment for the future
Investing in people, plant and technology will be critical
to achieving the goals we’ve put in front of us.
Delivering consistently excellent fruit to world-wide
consumers requires considerable technical expertise,
both on orchard and in the packhouse. Apata are
investing in their technical service delivery, employing
specialists like Wade Hunkin, Nigel Banks and Mike
Muller to help our growers achieve top quartile results.
Apata will continue to partner with local orchard
management service providers with proven experience
to make sure growers get tailored services specifi c to
their wants and needs, not the templated preferences of
the post-harvest operator.
Viewing the wide spread of grower returns in 2007,
Apata recognises the enormous gains growers can make
by positioning themselves in the top quartile and is
commited to helping them achieve it.
Growth cannot be sustained by simply asking more
of people, or doing more of the same; sustainable
businesses invest generously in people, and reward
them fairly.
Our industry will not survive if we are unable to
encourage personal growth, share knowledge and
expertise and provide satisfying working environments.
Information management is critical to operational
effi ciency. Our systems investments include a customised
database that integrates fruit and grower information to
better manage grower communication and payments.
The platform can be accessed by multiple areas of the
business, from operations to inventory to transport.
We are confi dent that our carefully managed growth, and
our understanding of the importance of operational scale
and effi ciency, will continue to deliver exciting results for
Apata shareholders and growers into the future.
Thank you for your continued support.
Dave Goodwin
Chairman
Todd Muller
Chief Executive Offi cer
International consumers enjoying our quality fruit is the critical driver behind the Apata strategy
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From left to right
Peter Mayston
An Apata shareholder and director
since incorporation, Peter Mayston
has grown kiwifruit, avocados and
citrus for more than 30 years and
operated a kiwifruit packhouse for
most of that time. He is a former
director of Taura Natural Ingredients
Limited. Peter remains a very handson
industry participant and packs
fruit at his family run operation at
the Bruntwood satellite site.
Dave Goodwin, Chairman
Dave Goodwin has been involved
with the kiwifruit industry since 1979,
both as a grower and packhouse
operator. Dave has had extensive
experience in the post-harvest
sector and industry governance
having been a past managing
director of Centrepac Packhouse
& Coolstore Limited, former CEO
of Apata Limited, past president of
Tauranga Fruitgrowers’ Association
Incorporated and foundation
board member of Horticulture New
Zealand. Dave has served on many
kiwifruit industry bodies including
NZKGI and IAC.
Mike Muller
A founding Apata director, Mike
Muller is a past executive of the
Tauranga Fruitgrowers’ Association,
an inaugural NZKGI Forum member
and has been a kiwifruit grower
and integral industry participant
for more than 30 years. Mike heads
the successful Muller & Associates
kiwifruit consultancy business and
is a director for Nelson companies
Birdhurst Limited and GoldenBay
Fruit Limited, and has been a director
for Avalon Industries since 2004.
Mike provides contracted technical
kiwifruit support to Apata growers.

Apata Board of Directors
Tony Marks
A former CEO of ZESPRI International
Limited, Tony led ZESPRI through
record years of profi tability, overseeing
the corporatisation of ZESPRI Group
Limited, and the successful global
commercialisation of the new GOLD
variety. Prior to working at ZESPRI,
Tony was General Manager of Sales
and Marketing at Air New Zealand
for ten years. His fi nal corporate role
was to launch Pacifi c Blue Airlines
as inaugural Chief Executive Offi cer
in 2003. Tony is currently a director
of seven organisations spanning
transport policy, airlines, travel
agencies, wood products, fruit wine
and cider vinegars and food.
Paul O’Brien
Paul O’Brien has been growing
kiwifruit since 1978 when his
family developed an orchard at
Aongatete. He established his
own orchard contracting business
in 1987, and grows avocados and
GREEN and GOLD kiwifruit on his
own orchard. An executive member
of Katikati Fruitgrowers’ Association
Incorporated, Paul was elected to
the steering committee to form
Apata Suppliers Entity Limited in
1996, became a director of the
entity in 1998 and chairman in 2001.
An Apata Limited director since
2003, Paul and his wife Paula have
been shareholders since 1991.
Max McGreevy (absent)
Growing kiwifruit in Athenree
since 1981, Max McGreevy started
Claremont Packhouse as a contract
packing shed in 1984. An Apata
Limited shareholder since 1993, Max
was appointed as a director in 1994.
Also a director of Apata Suppliers
Entity Limited, Max is integrally
involved in orchard ownership and
kiwifruit packing, with shareholding
in Tetley Coolstores Limited.
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From left to right
Steve Low
Chief Operating Offi cer
Steve Low joined Apata in October 2007 after three years
as ZESPRI Grower Services Manager. Steve spearheaded
the development of the ZESPRI Grower Contact Centre
and payment and inventory applications on The Canopy.
Steve has held various management roles at companies
including SEEKA Kiwifruit Industries, ENZA Cool and
Turners & Growers. Steve’s vast horticultural knowledge
and acute business acumen are delivering measurable
results as he aligns the operational side of the business
with Apata’s plans for future growth.
Apata Executive team
Our key strategic goals to deliver volume growth, drive
shareholder value (through increased operational effi ciency)
and to introduce more effective service models required
specialised expertise at executive management level.
Bevan Bayne
General Manager Grower Services
Bevan joined Apata in late 2007 after 12 years in
Senior Management, Sales, and Training roles in large
corporates. His most recent role was National Sales
Manager at Guardian Healthcare. Prior to that Bevan
was a teacher and trainer and it is these skills that have
brought him to Apata with a focus on service delivery to
growers to support our procurement ambitions.

Colin Reilly
Chief Financial Offi cer
Colin joined Apata in 2004 on his return from Europe. As
Chief Financial Offi cer, he is responsible for all aspects
of the fi nance function. Before joining Apata, Colin held
senior management positions in Tauranga and abroad,
including roles at KPMG, Design Mobel, Reuters and
BAA McArthurglen. Colin is a Chartered Accountant
and has a Bachelor of Management Studies from the
University of Waikato.
Two key new appointments
The Apata Executive team includes two key new
appointments into positions that are instrumental in
developing and pushing the strategic review through to
the front-line of our organisation.
Joining Todd Muller and Colin Reilly are Steve Low, Chief
Operating Offi cer since October 2007, and Bevan Bayne,
who started as Grower Services General Manager in early
December 2007.
Building on Apata’s reputation for operational
excellence, Steve has a clear mandate to increase
organisation productivity and effi ciency and lower costs
while supporting Marilyn Haywood and her team to
continually strengthen recognised quality and inventory
management capabilities.
Bevan’s skills bring structure and impetus to the grower
services division, managing and driving the vital
relationships between Apata growers and the Company.
Bevan is in the process of introducing a genuinely
different services model, built on helping growers
achieve their best possible results.
Todd Muller
Chief Executive Offi cer
Todd joined Apata in January 2007 after eight years in
senior management roles at ZESPRI. With a Masters
Degree from Waikato University, Todd has worked with
the National Party (and then Prime Minister Jim Bolger)
and Fonterra, New Zealand’s largest company. Todd’s
vast industry experience, strong existing relationships
and deep understanding of growers’ needs are proving
invaluable as he seeks to position Apata for the future.
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Corporate governance statement
Responsibilities and functions of the board
The Board of Directors is responsible to shareholders
for the performance of the Group. Responsibility for
day-to-day operations and administration is delegated
by the Board to the Chief Executive Officer.
Board composition
The Company’s constitution permits a minimum number
of two directors, and a maximum of seven.
At each general meeting, one third of the ordinary
directors shall retire from office. A retiring ordinary
director shall be eligible for re-election.
The Board may by resolution from time to time
appoint and remove two additional people as directors
(each an “additional director”). An additional director
will hold office for such term as is determined by the
Board at the time of appointment, up to a maximum
term of three years.
The Chairman is elected annually by the Board at the first
directors’ meeting following the annual meeting.
A director is not required to hold shares.
Audit and risk committee
The audit and risk committee comprised two directors
during the year in review; David Goodwin and Max
McGreevy. A third committee member will be appointed
during the 2008/09 year. Members of the executive and
the external auditors are invited to committee meetings
as deemed necessary.
The primary role of the committee is to assist the Board
to meet its responsibilities in respect of the Group’s
accounting practices, reporting requirements and
internal controls.
These responsibilities include:
1. Monitoring of corporate risk assessment and the
internal controls instituted;
2. Review of the annual financial statements, audit
findings and processes;
3. Review of accounting processes and interim financial
information, including budgets;
4. Review of the frequency and significance of all
transactions between the company and related
parties and assessment of their propriety;
5. Oversight of compliance with statutory
responsibilities relating to financial, shareholder and
other requirements.
The Board may establish other committees on an ad hoc
basis as required from time to time.
Delegation of authority
The constitution restricts certain authorities to the
Board, but provides for authority on other matters to be
delegated. The Board has delegated certain authority to
the audit and risk committee and to senior management,
particularly to facilitate the day-to-day management of
the business, including the signing of contracts and
other documents.
Conflicts of interest
Where any director has a conflict of interest or is
otherwise interested in any transaction, that director is
required to disclose his conflict of interest, and thereafter
neither participate in the discussion nor vote in relation
to the relevant matter. The Group maintains a register of
disclosed interests.
The role of shareholders
The Board aims to ensure that shareholders are
informed of all major developments affecting the
Group’s state of affairs. Information is communicated
to shareholders in the annual report, newsletters and
other correspondence. The Board encourages full
participation of shareholders at the annual meeting to
ensure understanding of and support for the Group’s
strategies and goals.