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Business Plan PerformanceOur Business Plan for 2012 continuedto focus on the key strategic challengeswe identified in our 2011 to 2013Investment Plan.CHALLENGE 2:Growing international students and revenueWe achieved 347.6 international student EFTS, representing 14percent growth on 2011. This is an excellent result as nationally theinternational student market remained tight in 2012.2012 Priorities• Recruiting students for successProgress was made on opportunities that are likely to increase ourstudent numbers in the future. An agreement was signed with GuangxiPolytechnic of Construction in China for graduates of selected civil• Supporting students to achieveengineering and creative technologies (interior design) 1 programmes• Making efficient use of facilities, equipment and resourcesto progress into programmes at WelTec, including the New Zealandto support learners’ achievementDiploma in Engineering. We also started work with Whitireia on• Delivering high quality research innovation and technologypromotion into the Middle East and South East Asia that will havetransfer that informs teachingfuture benefits.• Maintaining a positive institutional profileInternational student educational performance exceeded expectations,• Delivering ongoing financial sustainabilitywith a completion rate of 89 percent - more than six percent over theWe had a successful year on many fronts.target of 83 percent.100 percent of SAC funding was achieved, a prerequisite for additionalCHALLENGE 3:Priority Trades and Pasifika scholarship funding. Financially, ourparent operating profit of $1.6m exceeded budget by $0.1m,Developing Campuses to Support Future Deliveryrepresenting a healthy 2.9 percent return. This is a satisfying result The completion of three levels of the new $13m campus for ourgiven the changing government funding and policy settings and School of Hospitality alongside Le Cordon Bleu NZ in Wellington’scontinued uncertainty as business began to emerge from the impact Cuba Street was a highlight representing more than 2 years ofof the global recession.planning and construction spanning twenty months. The newcampus is a state of the art facility which can accommodate up toCHALLENGE 1:540 students at any one time with a maximum of 700 students whenthe final level is developed. The Prime Minister launched Le CordonGrowing commercial andBleu NZ at a function hosted by the President of Le Cordon Bleu at anon-government revenuefunction in September. This was followed by the Minister for TertiaryGrowth from commercial revenue streams via our 100 percent owned Education, Skills and Employment, the Hon Steven Joyce launchingsubsidiary WelTec Connect Limited, progressed during the year with a the Wellington Institute of Technology School of Hospitality on 24number of contracts in different stages of negotiation. In the financial October 2012 at an evening event attended by Wellington’s hospitalityclimate gaining commitment from clients to projects was difficult. industry and secondary schools.It has been our experience that the lead time from first discussions WelTec worked with the Hutt City Council (HCC) in developingwith clients to delivering a finalised contract is significantly longer a proposed change to the HCC District Plan (Plan Change 25). Ifthan planned. As a consequence the total revenue from commercial approved, this plan change will create a Tertiary Education Precinctrevenue and research contracts of almost $800k was not as high for WelTec’s Petone campus. At present education is not a permittedas we planned for the year. To address this WelTec Connect has activity for the various zonings that relate to the Petone campus.broadened its business development activity to bring in more clients A hearing has been convened by HCC in front of independentand structure projects in a way that ensures they can be achieved in Commissioners in early April 2013 to receive submissions in relationa shorter timeframe.to the proposed plan change.Our investment in the Le Cordon Bleu NZ partnership also contributed The Auckland campus was refurbished after a review of options forto this goal.Auckland delivery confirmed that the existing site is the best option inthe medium term.As part of the Students First strategic partnership, a WelTec andWhitireia joint campus development strategy was completed in 2012.The Strategy sets the framework and approach to campusdevelopment for WelTec and Whitireia for the next 5 years. Changeto N Block at Petone campus and satellite delivery areas was put onhold whilst the strategy was developed resulting in Property, Plant andEquipment expenditure being below budget.1 This figure represents the total investment. WelTec’s share was $7M.52 | WELLINGTON INSTITUTE OF TECHNOLOGY