partners for growth - Apata

apata
partners for growth
annual report 2007 08

Highlights
• Record net profi t (before rebates and tax) of $2,622,529, an increase of 6% on 2006/07
• Gross dividend of 24.9 cents per share resulting in a dividend yield of 12.2%
• Fully shared suppliers will receive a gross return of 46.66 cents per share including a rebate
of 5 cents per tray, providing an investment yield of 22.8%
• Kiwifruit orchard gate returns: GOLD $4.34, GREEN $3.24, ORGANIC $5.20
• Excellent onshore fruit loss performance in kiwifruit: GOLD 2.11%, GREEN 4.45%, ORGANIC 0.92%
• Avocado export volumes increase 40% (industry average 10%)
• Industry best OGR for avocados
Our Vision
Grow shareholder value by helping
our growers achieve the highest
possible returns.
Our Mission
To offer our growers and marketers a
range of innovative, cost competitive
and value adding services.
Our Goals
1 Help our growers grow lots of high
value fruit
2 Harvest our growers fruit at the
optimum condition with utmost
care and diligence
3 Pack for the best value, locking in
quality and minimising waste
4 Support our marketers to achieve
the highest possible returns
Apata employees at Turntable Road

Contents
The year in review: Chairman and CEO’s report 2
Financial performance 4
Investing in people 6
Kiwifruit 8
Avocados 14
Apata strategic review; a plan in motion 17
Apata Board of Directors 20
Apata Executive team 22
Corporate governance statement 24
2007/08 fi nancial statements 25
Security Act Exemption Notice 47
Company details 49
apata (annual report 2007/08)
1

apata (annual report 2007/08)
2
The year in review
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.
2007 strategic review
Formulated between April and August 2007, the Apata
strategic review assessed all aspects of the Company’s functions,
resulting in a clarity of vision and a clear path forward.
Key areas of strategic focus we identifi ed included:
• Improved service delivery
• Material lift in operational effi ciency
• Maintenance of our focus on quality
• ‘Top-end’ volume growth

Chairman and CEO’s report
On behalf of the Apata Limited Board of Directors, we
are proud to present our 24th Annual Report for the year
ended 31 March 2008.
Once again, Apata has built on its reputation for
operational excellence by focusing on delivering powerful
results in inventory management, quality delivery to market
and healthy grower returns. The strong fi nancial results
presented here are especially satisfying when we consider
the signifi cant structural changes the Company has
been undertaking.
Committed to the development and implementation of
our comprehensive strategic review, the Board and senior
management have forged ahead with organisational,
structural and performance-related initiatives.
People remain the difference in delivering quality
New Apata Board Member, Tony Marks
The appointment of former
ZESPRI CEO Tony Marks to
the Apata Board of Directors is
a key investment in the critical
governance and management
skills the Board knows are
vital to drive Apata’s planned
positive growth.
Tony brings invaluable industry knowledge and
business acumen to the Apata Board that is
determined to see through its strategy.
Apata CEO Todd Muller and Chairman Dave Goodwin
This forward-thinking is enabling us to focus on the hard
work we need to undertake now to reap future rewards.
We are committed to the success of the kiwifruit and
avocado industries in New Zealand, and fi rmly believe
that our medium and long-term goals will be achieved if
we do not focus on short-term industry negativity.
We are seeing parts of both industries struggling, but
we acknowledge the many innovative growers who are
succeeding regardless.
Constantly looking to drive up yields and quality, and
reduce on-orchard costs, these are the growers who
need to be partnered with a post-harvest company with
future vision.
We are gratifi ed to be real ‘partners for growth’ alongside
growers who are up to the challenge of working smarter to
achieve greater results, and to be given the opportunity
to improve our performance to support their ambitions.
This level of introspection and focus on our own processes
hasn’t been allowed to distract us from the fact that we live
and work in the food production industry, and the fi nal grower
return will always be in the hands of the end-consumer and
their enjoyment of our growers fruit. This focus overarches
everything else we are working to achieve.
Apata trays packed : % of national export crop
50%
40%
30%
20%
10%
0%
Avos GOLD GREEN GREEN
Organic
apata (annual report 2007/08)
3

apata (annual report 2007/08)
4
Increased profi tability on increased
overall volume
The Group net profi t (before rebates) for the year in
review was $2,622,529, an increase of 6% over the
previous year.
The tax paid surplus was $1,551,212, an increase of 4%.
This record profi t was the result of strong volume growth
and gains in productivity. The Turntable Road site
throughput was up 19% on the season prior and Pyes
Pa ran to full capacity for the entire kiwifruit season; a
testament to their cohesive and well-managed team.
Group net profit before tax and rebates
$ millions
Financial performance
“Record profi ts, strong volume growth and productivity gains
all add up to an excellent result for Apata shareholders.”
Volume increase was also aided by the Turntable Road
‘coolstore 7’ development, which came into service in April
2007. Fully utilised, it supported an increased bin store
programme, effectively extending our packing season
and making more effi cient use of our existing plant.
Increased kiwifruit and avocado volumes refl ect the
strong grower support of the Apata business philosophy,
our operational performance over a sustained period
and our positive view of the future.
Capital expenditure in the year in review focused on
increasing effi ciencies and upgrading facilities within our
existing quality plant.
3.0
2.5
2.0
1.5
1.0
0.5
0
2003/04 2004/05 2005/06 2006/07 2007/08
Rebates Net profit before tax
Dave Goodwin, Chairman, Apata Board of Directors
Apata profit distribution (2003 - 2008)
$ millions
3.0
2.5
2.0
1.5
1.0
0.5
0
2003/04 2004/05 2005/06 2006/07 2007/08
Rebates Dividends Retentions Taxation
Each column represents total profit for each year. Final dividends
are included in the profit year from which they were allocated.

Throughput at Turntable Rd increased by 19%
Healthy shareholder dividends
During the year in review the Company paid Apata
shareholders a gross divdend of 24.9 cents per share (fully
imputed 16.7 cents per share), representing a healthy
percentage yield of 12.16%. The share price fi nished the
year at $2.05 and the total value of dividends distributed
was $750,859.
Retention for growth
Strong fi nancial performance allows us to pay excellent
shareholder dividends and still retain signifi cant tax paid
profi ts for Company use during the 2008/09 year.
The net profi t after tax and rebates of $1,551,212 will be
distributed as follows:
– Interim dividend $360,379
– Provision for fi nal dividend $444,241
– Retained in Company $746,592
Future capital expenditure is directly tied to our strategic
review process and our continuing investment in
operational capacity and effi ciency.
Share Price
Apata investor returns
$2.25
$0.45
$2.00
$0.40
$1.75
$0.35
$1.50
$0.30
$1.25
$0.25
$1.00
$0.20
$0.75
$0.15
$0.50
$0.10
$0.25
$0.05
$0.00
2003/04 2004/05 2005/06 2006/07 2007/08
$0.00
Share Price at 31 March Cash dividends per share
Earnings (profit after tax) per share
Dividends & Earnings
Coolstore 8 and reinvestment in our GOLD processing
capabilities is planned for our Turntable Road site, and
the Company is investigating opportunities to extend
their operational scope beyond the Pyes Pa site.
Share transactions
The Company successfully completed the sale of all
treasury stock shares held as at 31 March 2007 (45,167
shares) that were originally acquired as Tranche Two of the
December 2005 non pro-rata share buy back scheme.
The Company then acquired Tranche Three (see Note
15 to the fi nancial statements) and successfully placed
all of those shares prior to 31 March 2008. There was no
treasury stock remaining as at 31 March 2008.
During the past three years, over one million Apata
Limited shares have been acquired by new shareholders
or existing shareholders increasing their holdings. The
strong demand achieves greater alignment between
suppliers of fruit and shareholders and is a refl ection of
the tremendous confi dence shareholders have in the
future of the Company.
Per-tray rebates
The Board continues to reward all grower shareholders for
the trays they have supplied. Increased rebates totaling
$288,499 have been distributed in the year in review
(2007: $235,053). On the basis of the interim dividend,
rebate paid and the fi nal dividend recommended, fully
shared Apata suppliers will receive a gross return of 46.66
cents (2007: 44.93) per share, a yield of 22.8% (2007:
25.0%) on the current share price of $2.05 (2007:$1.80).
As always, the Board encourages all Apata grower
suppliers to maximise their rebates and returns by
maintaining a ‘one share to four trays supplied’ ratio.
Apata will continue to allocate shares in lieu of cash
rebates to shareholders needing to increase their
holdings to the recommended ratio.
apata (annual report 2007/08)
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apata (annual report 2007/08)
6
People have been the critical component of our year
in review.
Restructuring of the Executive team and solutions to
seasonal labour were initiatives vital to the success of the
ongoing strategic review process and the future strength
of the organisation.
The Company invested signifi cantly in key personnel,
fi lling important new appointments and addressing
company structure from the top down.
The Executive consolidated to an effi cient central
team, with the chief executive now leading three
experienced divisional heads. The company identifi ed
technical services, communications, grower payments
Investing in people
Apata employs world-leading technical expertise
Dr Nigel Banks (formerly of ZESPRI Innovation) is working with
Apata to jointly develop a fruit inventory model that investigates the
relationship between fruit attributes and their storage behaviour.
Our aim is to build a model that will predict storability and support
optimsed inventory management for Apata growers.
and operational supervision as important areas for
personnel development and have promoted, employed
and restructured to put the right people into these
critical roles.
Apata used data and performance results from the year
in review to construct a comprehensive bonus scheme for
employees, based on key performance indicators (KPIs)
specifi c to their roles and site function. The performance
based scheme was successfully introduced to all sites
at the beginning of the most recent kiwifruit period to
support and reward individual and team performance.
Mindful of the looming seasonal labour crises, the
Company quickly took hold of the opportunities offered
by the Department of Labour’s Recognised Seasonal
Employment (RSE) scheme.

During 2007/08 Apata undertook all the groundwork
necessary to ensure the company complied and was
ready to implement the scheme at the beginning of the
2008 kiwifruit packing season.
Seventy internationally sourced RSE workers began work
at the Turntable Road site in April 2008. The Company is
very pleased with the systems success, and the tangible
results in increased productivity and effi ciencies out of
the packhouses. Apata packhouses now host workers
representing more than thirty countries. The cultural
diversity builds the strength of our labour pool, adds
vibrancy to our work environment and offers a clear
refl ection of our increasingly global industry.
apata (annual report 2007/08)
7

apata (annual report 2007/08)
8
2007/08 season:
Apata packed 6,335,134 and cooled 7,206,355 trays of
Class 1 kiwifruit across four payment pools during the
year in review, 27% more than the season before. 835,929
tray equivalents of non standard supply (NSS) fruit was
processed across 12 categories, an increase of 22%.
Apata’s organic fl agship, the Pyes Pa site, fl ew through
their biggest ever season, showcasing the ever-increasing
strength of this niche market. The Turntable Road site
performed well, despite dealing with a tough inventory,
and Whangarei site returned solid kiwifruit results and a
smooth operational report.
Kiwifruit
“High reject rates in the 2007 season resulted in many Apata
growers recognising the value of cleaner fruit. A focus on quality,
coupled with hard work by growers and support from the Apata Grower
Services team, has resulted in a considerably cleaner crop in 2008.”
Higher than expected reject rates proved a challenge to
overall operating effi ciency, but Apata delivered another
solid onshore inventory management performance,
building on our consistent record for excellence against
all industry measurements.
Marilyn Haywood, Global Inventory Manager
Apata supply group : Class 1 kiwifruit trays packed
Millions
9
8
7
6
5
4
3
2
1
0
2003/04 2004/05 2005/06 2006/07 2007/08
GREEN Organic GOLD
The Apata supply group comprises Apata (the Group) and four
affiliate post-harvest service providers.

GOLD kiwifuit fruit loss
18%
13%
8%
3%
0%
GREEN kiwifruit fruit loss
12%
10%
8%
6%
4%
2%
0%
The Grower Services team’s hard work throughout
the year is rewarded by strong results at harvest time
Fruit loss statistics were excellent in GOLD and
exceptional in ORGANIC.
Although well clear of the industry average, GREEN
losses were higher than we have historically expected
and Apata has used this as the impetus to invest and
build tangible improvements into our long-term fruit
storage systems and technical expertise.
2004/05 2005/06 2006/07 2007/08
Average of all other suppliers Apata Limited
2004/05 2005/06 2006/07 2007/08
Average of all other suppliers Apata Limited
The lower the fruit loss, the higher the return to growers through
exported fruit value and coolstore incentives.
GREEN Organic kiwifruit fruit loss
12%
10%
8%
6%
4%
2%
0%
2004/05 2005/06 2006/07 2007/08
Average of all other suppliers Apata Limited
Our fruit loss was again less than that incurred elsewhere in
the industry.
apata (annual report 2007/08)
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apata (annual report 2007/08)
10
DIFOTIS results refl ected our consistently solid performance,
but our desire to achieve supply excellence resulted in
the formation of Southlink Supply Limited, a joint venture
between Apata, EastPack and Aerocool, which was formed
to corrall 30% of the industry supply and ensure the market
was always delivered what they requested.
The 2008/09 season is the inaugural season for the new
Southlink Supply Limited.
GREEN % DIFOTIS
(Deliveries in full, on time and in specification)
Rank = 5 out of 10 based on in spec
% DIFOTIS
160%
120%
80%
40%
0%
95% 101%
101%
90% 94% 95%
Apata Lowest Average Highest
% In spec % Quantity
GREEN Organic % DIFOTIS
(Deliveries in full, on time and in specification)
97% 105%
Rank = 2 out of 8 based on in spec
260%
240%
200%
160%
120%
80%
40%
94%
0%
Current Period Lowest Average Highest
104%
67% 69%
101%
87%
100%
% DIFOTIS
% In spec % Quantity
GOLD % DIFOTIS
(Deliveries in full, on time and in specification)
250%
Rank = 5 out of 9 based on in spec
200%
160%
120%
80%
40%
74%
0%
% In spec % Quantity
88%
69%
52%
82% 99% 100%
200%
Apata Lowest Average Highest
% DIFOTIS
Strong grower relationships are built on-orchard and in the fi eld

Fruit coring, just one phase of the successful packing and storing of quality kiwifruit
While orchard gate returns were very pleasing per tray,
they were only average per hectare, indicating yields
are not where they should be for some of our growers.
Increasing ‘yield per hectare’ is a priority for Apata
grower services and technical teams.
Orchard gate return: per tray submitted
$ OGR per tray
8
7
6
5
4
3
2
1
0
2005/06
2006/07
Apata
Industry
2007/08
2005/06
2006/07
2007/08
2005/06
2006/07
2007/08
GREEN GREEN Organic GOLD
Orchard gate return: per hectare
$,000 OGR per hectare
50
40
30
20
10
0
2005/06
Apata
Industry
2006/07
2007/08
2005/06
2006/07
2007/08
2005/06
2006/07
2007/08
GREEN GREEN Organic GOLD
Apata believes that supporting growers to continually
lower their reject rates and increase their yields pays
dividends in the packhouse, through increased OGR and
shareholder returns.
Y Fruit as % of total submit
Apata compared to average of all other suppliers
80%
60%
40%
20%
0%
2006/07 2007/08 2008/09 2006/07 2007/08 2008/09
Apata Limited Industry GREEN Industry GOLD
apata (annual report 2007/08)
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apata (annual report 2007/08)
12
High taste profiles again demonstrated Apata growers’
commitment to delivering quality fruit to end markets.
Apata believes that commercial quality-based incentives
are imperative if New Zealand kiwifruit is to remain the
premium consumer choice.
Onshore politics and pragmatism can not be used as a
front for rewarding the average at the expense of the
excellent grower, and Apata urges ZESPRI to continue
their focus on quality, regardless of influence from industry
power brokers with differing performance priorities and
commercial agendas.
2008/09 Season – Crop cleanliness and productivity jumps
Apata finished harvesting 2008/09 kiwifruit in ISO Week
24, one week earlier than last year.
The Company has submitted over seven million tray
equivalents from 81,000 harvested bins, a 10% lift in
volume partly driven by Apata’s new grower contract,
introduced in February 2008. Simple, transparent and
cost effective, it has been well received by growers.
The season’s low reject rates are a tribute to the hard
work done on orchard by Apata growers. At only 12% for
GREEN and 16% for GOLD, the overall crop quality has
shown a considerable improvement.
Apata has again effectively managed the constrained
industry packing window resulting from product and
market supply caps. The successful initiation of a new
Turntable Road-based harvest operations centre and a
dedicated harvest co-ordinator has provided an excellent
model for seasons to come.
New Zealand fruit was early into all key markets and
reports on the eating quality of ZESPRI TM
GREEN and
GOLD Kiwifruit from customers and consumers has been
very good. The ZESPRI forecast of increased grower
returns of between $0.45 and $0.95 per tray, including
an improving foreign exchange situation, point to a
turnaround season for those industry stakeholders who
are focused on quality delivery.

Focus on the future
Apata is confi dent we have the right strategies and
structure to capitalise on the opportunities the kiwifruit
industry will offer in the coming years.
At a time when many post-harvest operators are
rationalising or downsizing, Apata has its sights fi rmly
trained on delivery for the burgeoning end markets and
meeting consumer demands in the future.
Our view of the onshore industry includes the continued
growth of GOLD and the plateauing of GREEN, pending
the release of new cultivars from the world-leading ZESPRI
/ HortResearch natural kiwifruit breeding programme.
Performance-based incentives and dedicated management teams are lifting performance in every packhouse
Organics will continue to fl ourish, becoming a viable,
sustainable niche and a sensible dual solution to meet the
needs of both commercial growers and consumer choice.
Long-term success for post-harvest operators and for
growers will be doing what we already do, but doing it
increasingly smarter, more effi ciently and with our eyes
fi rmly on the end result; exceptional fruit being enjoyed
by world-wide customers willing to pay a premium.
“Asian consumers value quality and service and are
prepared to pay for it. I commend Apata growers
for consistently growing a high taste product –
keep it up! I can assure you that taste is a key driver
for the tremendous results the Asian markets have
been returning to New Zealand growers over the
last few years.”
Yu-Jan Chen, ZESPRI GM Asia
apata (annual report 2007/08)
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apata (annual report 2007/08)
14
Apata harvested and packed 1,290,970 trays of
avocados during the six-month avocado export season,
representing 25% of the overall market, an increase
in market share of 4% over the previous fi nancial year.
650,000 trays of avocados were exported to Australia,
the United States and Asia, with the balance marketed
locally through a disciplined supply chain.
Apata’s exclusive relationship with its marketing partner
Primor stands as the industry’s most unifi ed model,
enabling smooth supply chain integration and swift,
knowledgeable decision-making. Avocado export growth
has been exceptional and Apata fruit has performed
well in all markets. Apata was able to deliver the fruit
where and when Primor required it, exceeding offshore
customer expectations.
Avocados
“There are an abundance of avocado customers world-wide, but we’re
choosing to build strong relationships with the best of them; those who
reward excellent quality, clear communication and commitment.”
John Carroll, General Manager, Primor
Change
Apata avocado grower returns
IMAGES
$
20
18
16
14
12
10
8
6
4
2
0
2005/06 2006/07 2007/08
Average OGR/tray - export Average OGR/tray - domestic
Returns are generally higher in a low volume year and lower in a
high volume year.
Avocado production in New Zealand grew from two
million tray equivalents in 2006/07 to very close to fi ve
million in 2007/08.
The huge crop presented considerable logistics and
operational challenges across the industry.
Harvesting for the domestic market will not end until the
new season starts in July 2008. This, and a huge export
season, put considerable pressure on Apata people and
systems to remain consistent and focused throughout.
Apata has responded with a completely new business
plan and a clear focus on the additional resources and
better processes required to manage 2008 and beyond.

Apata has grown to be New Zealand’s largest avocado packer
Supported by the strong Apata Growers’ Committee,
the Company introduced a new and simpler service
offering and achieved its goal of having all 256 exporting
growers committed to supplying Apata by 1 July; a
critical strategy for early season planning.
Apata’s pre-season focus on crop estimation yielded
exceptionally accurate results and formed the basis on a
robust fl ow plan. The fi nal export estimate, forwarded to
Primor in September, was within 1% of the actual.
The decision to harvest and pack through the Christmas
and New Year period, when other packhouses were
closed, reaped tangible rewards on the local market in
an otherwise diffi cult year for Class 2 fruit and maintained
export fruit volumes at a critical time.
Total NZ avocado crop & Apata market share
2004/05 to 2007/08
Millions of trays
6
30%
5
25%
4
20%
3
15%
2
10%
1
5%
0
0%
2004/05 2005/06 2006/07 2007/08
Total avocado crop Apata market share
The industry-wide negative impacts of poor mid-season
domestic prices and lower than expected export packouts
were balanced for Apata growers by industry-best
orchard gate returns and the most competitive pack
price in the industry.
The pleasing OGR is the result of a united commitment
to the Primor export fl ow plan, coupled with multitudes
of small, good decisions made throughout the nine
month long export season.
apata (annual report 2007/08)
15

apata (annual report 2007/08)
16
For the future
Committed to the future of this rapidly maturing industry,
Apata is aware that the biennial nature of avocados,
and the subsequent wildly fl uctuating crops, presents a
signifi cant challenge to all industry stakeholders.
Combining what we learned from the monumental
2007/08 season with the overall company strategic
review, Apata has built a clear avocado business plan for
the coming season and beyond.
Robust cost and service modeling, dedicated teams and
facilities and a focus on clear lines of communications are
keys to the coming season.
We will continue to partner with the best specialists the
industry offers, to ensure professional and responsive
services are delivered and to build our ultimate goal of
better returns for all.
The powerful “Grower – Apata – Primor” relationship
has stood the test of time, but we are never complacent
and our focus is now fully trained on the season to come.
Apata and Primor will continue to search for new market
opportunities over and above our current supply levels.
As a partnership we are completely focused on providing
a stable platform of services that growers can depend
on, regardless of the volume of crop in any given year.
Apata is looking forward to working with committed
avocado growers and our proven in-market partners to
drive consumption and value to deliver maximum return.
“The importance of the interests of growers in the
Apata / Primor partnership is demonstrated at our
Apata Avocado Growers’ Committee meetings; a
powerful forum for frank discussion between all
parties. This openness is critical during the more
challenging times in our industry.”
Rodger Bagshaw,
Chairman of the Apata Avocado Growers’ Committee
Avocado harvesting needs skilled operators and specialist equipment