new zealand trade and enterprise

F O R TH E YEA R E N D E D 3 0 J U N E 2 0 0 7

A N N UA L R E P O RT

NEW

ZEALA

ND

TRAD

E AN

D EN

TERPRISE AN

NU

AL REPO

RT FOR TH

E YEAR EN

DED

30 JUN

E 2007

ISSN 1177-665X

20473 NZTE AR Cover FA.indd 120473 NZTE AR Cover FA.indd 1 10/10/07 11:28:41 AM10/10/07 11:28:41 AM

CONTENTS2 From the Chair

and Chief Executive6 Going global6 Global sector projects8 NZTE hubs and spokes10 Market overviews and highlights10 Americas11 Australia and the Pacifi c11 Europe, Middle East and Africa12 North Asia13 South and South East Asia14 Sector overviews and highlights14 Biotechnology15 Creative industries and services16 Education17 Food and beverage18 Information and communications

technology19 Specialised manufacturing19 Tourism20 Wood, building and interiors20 Investment21 Export Year 200722 Increasing international connections26 Building business capability30 Improving the environment for

enterprise and growth34 Governance34 The role of the Board and committees34 Delegation framework34 Risk management34 Performance measurement

framework34 Organisational capability36 Board of directors37 Senior management38 Organisational structure 40 Statement of responsibility41 Financial commentary42 Statement of service performance56 Statement of accounting policies58 Statement of fi nancial performance58 Statement of movements in equity59 Statement of fi nancial position60 Statement of cashfl ows61 Statement of commitments61 Statement of contingent liabilities62 Notes to the fi nancial statements72 Audit report73 Statement of transition to

New Zealand equivalents to the international fi nancial reporting standards

73 Other statutory reporting requirements74 NZTE directory76 Index

B EYO N D EXPO RTI N GOur exporters today face very different opportunities from a decade or two ago. Taking advantage of these opportunities requires a different mindset and new ways of operating.

We need to be international operators, not just exporters. Instead of exporting to markets, we need to be operating in them.

New Zealand Trade and Enterprise (NZTE) is focusing its activities to support businesses in thinking and operating internationally.

A B O UT N ZTENZTE is the government’s national economic development agency. We work to stimulate economic growth by helping to boost export earnings, strengthening regional economies, and delivering economic development assistance to industries and individual businesses. As a global organisation, we use our knowledge and contacts in overseas markets to connect New Zealand businesses with trade and investment opportunities.

www.nzte.govt.nzwww.newzealand.com www.marketnewzealand.comwww.investmentnz.govt.nz0800 555 888

This is the Annual Report of New Zealand Trade and Enterprise for the year ended 30 June 2007. This fourth report to Parliament by New Zealand Trade and Enterprise covers the 12-month period from 1 July 2006 to 30 June 2007, and is presented to the House of Representatives pursuant to section 150 (3) of the Crown Entities Act 2004. ISSN 1177-665X.

G45

20473 NZTE AR 2007 fo PDF.indd 220473 NZTE AR 2007 fo PDF.indd 2 11/10/07 11:51:41 AM11/10/07 11:51:41 AM

G45

20473 NZTE AR 2007 fo PDF.indd Sec1:120473 NZTE AR 2007 fo PDF.indd Sec1:1 11/10/07 11:51:44 AM11/10/07 11:51:44 AM

The year under review has been a challenging one for exporters. The future is not plain sailing for New Zealand business. The challenges of a fl uctuating exchange rate and more manufacturing operations shifting offshore, as well as the work of the New Zealand Institute and Export Year activities, have all helped focus people’s minds on some of the wider issues facing New Zealand’s economy. Growing internationally successful fi rms is an area where we clearly must do more and better. It can’t be simply business as usual.

Many New Zealand companies have taken on the challenge of operating internationally and are delivering success both for themselves and the New Zealand economy.

Through our Better by Design and Beachheads programmes, over the last year we have seen many outstanding examples of businesses that are moving beyond traditional export models to potentially more valuable ones based on operating in world markets.

We’ve done some research into what an international New Zealand business looks like.

The results show that there is no one model for success. What we have found are some of the common factors across companies that are operating internationally, including a strong focus on key ingredients such as adding value, branding, design, distribution channels, fi nance, and market know-how.

Ambition also defi nes a successful international operator.

The issue is how we encourage more companies to develop this global skill set.

OU R ROLE IS TO PROVI DE TH E PRACTICAL SU PPORT TO H ELP MORE N EW ZEALAN D BUSI N ESSES GO I NTERNATIONAL.

This means that we don’t just work with individual fi rms to help them succeed overseas but we have a much broader role in raising export aspirations.

The question for New Zealand Trade and Enterprise (NZTE) is how to do this while achieving the best value for money for all New Zealanders out of our annual budget.

We have to help ensure that there is a healthy and resilient base of companies in New Zealand. From this base will come the companies with the desire and ability to take advantage of offshore opportunities.

Size is irrelevant in our decisions on which businesses to support – what matters is that fi rms have the ambition and capability to succeed internationally.

Four years on, we believe our resources are well balanced with more than 60 percent of our annual operating budget spent overseas for the benefi t of exporters. The balance delivers a range of programmes designed to increase chances of business success.

In the year under review, the America’s Cup business events and client hosting series was completed successfully. These events have provided unique opportunities for business discussions, and many of the New Zealand participants have confi rmed new business leads following time spent on the base with offshore guests.

At the sector level, this year has seen the establishment of Aquaculture New Zealand – a key action that was identifi ed in the industry-led strategy launched last year. In supporting the aquaculture sector to reach its $1 billion sales target by 2025,

INTRODUCTION

TIM GIBSON, CHIEF EXECUTIVE AND PHIL LOUGH, CHAIR

FROM THE CHAIR AND CHIEF EXECUTIVE

2 NEW ZEALAND TRADE AND ENTERPRISE ANNUAL REPORT 2007

G45


the Government will provide $6.5 million over the next four years to help with market development activities.

The Food and Beverage Taskforce presented its recommendations in August 2006 and in July 2007 the Government announced a range of initiatives in response. These included $19 million of additional funding for expanded in-market assistance for New Zealand food and beverage fi rms in key markets over the next four years.

Taking a collaborative approach is paying dividends. Our food and beverage companies are fi nding traction in South East Asia and China through the Shangri-La initiative; 10 of the 40 companies at Hewlett Packard’s ‘ Cooltown’ initiative in Singapore are from New Zealand; the New Zealand Focus Centre in Hong Kong is giving our companies a foot in the market; and the Health IT mission to Canada earlier this year used the companies’ combined profi le to raise awareness in the market of New Zealand e-health capabilities.

The CeBIT and Bio international trade events continue to generate signifi cant results through the associated business meetings, introductions and activities tailored by NZTE staff to the needs of the individual businesses. This approach, and our high profi le brand work in international markets to provide a sales platform for all New Zealand businesses, has attracted the attention of other countries. For the second year in a row, we ‘out-blitzed’ the Australians at CeBIT, according to their own media.

This year we have had a particular focus on providing integrated, customised programmes and activities in international markets designed to encourage improved performance and internationalisation.

The refocus of our world-renowned Beachheads Programme on the value of independent, expert business advisory networks in-market is one example.

Business capability building is an important part of what we do. Just as the trades can’t ignore apprentices and sports codes can’t ignore junior development teams, so NZTE can’t ignore the need to support the development and growth of companies in New Zealand.

Following the completion of the manufacturing vision, Manufacturing+, NZTE has been working with manufacturers, Business New Zealand and the Employers and Manufacturers Association to deliver workshops aimed at helping manufacturers create more value from their businesses in a rapidly changing global economic landscape.

More businesses than ever are realising the power of design thanks to our award-winning Better by Design programme. Eighty-fi ve companies are now in the programme and this year’s associated CEOs Summit attracted considerable attention and plaudits.

You will fi nd more detail on these programmes and activities, and a selection of our other main achievements over the year in review, later in this report.

EXPORT YEAR HAS PROVI DED ADDITIONAL OPPORTU N ITI ES FOR N EW ZEALAN D BUSI N ESSES TO TH I N K ABOUT ENTERI NG OR EXPAN DI NG I NTERNATIONAL MARKETS.

Export Year was launched by the Prime Minister at the 40th anniversary Export Awards in November 2006. This was a timely reminder of the resilience and determination of New Zealand exporters, despite the changing economic environment.

There is a healthy realism in the business community as to what can be realised in a 12-month period, but NZTE has worked hard in the fi rst six months to create opportunities for business people to learn from those with experience on how to become globally competitive. Ken Stevens, the Export Year Business Champion, has been an inspiration to all in this regard.

We have supported Business Mentors New Zealand to recruit additional mentors with export experience, revised and expanded the exporter education programme, worked with regions to coordinate their export activities, and delivered an expanded export breakfast series in partnership with Export New Zealand.

NEW ZEALAND TRADE AND ENTERPRISE ANNUAL REPORT 2007 3

G45

This

year

7 m

ajor

regi

onal

initi

ative

s re

ceive

d en

dors

emen

t and

fi na

ncia

l su

ppor

t fro

m g

over

nmen

t

INTRODUCTION

12

4 st

art-u

p co

mpa

nies

grad

uate

d fro

m 8

incu

bato

rs

145,7

02

visit

s wer

e mad

e to

onl

ine

trade

dire

ctor

y ww

w.m

arke

tnew

zeal

and.

com



G45 INTRODUCTION

New Thinking Week in March 2007 was the fi rst major Export Year event. Expanded and refocused in its second year, it brought businesses together with international investors and potential partners, to widespread acclaim.

New Thinking Week coincided this year with NZBio’s annual conference, which focused the world’s attention on New Zealand’s biotechnology achievements. It has been heartening to see the growth in the biotechnology sector over the last year.

Our new education strategy, which brings together cross-sectoral projects focused on exploring and developing New Zealand’s capability across the agriculture, education development, tourism/hospitality and aviation sectors, was also launched at the International Education Summit, a New Thinking Week event.

We’re increasing our investment into China and India, and we are planning to open New Zealand concept centres in China and Japan. New Beachheads Boards are also being established, with Chairs already appointed in South East Asia and India.

We received an additional $33.75 million in the 2007 Budget as a one-off boost in Export Year for the market development component of the enterprise development scheme, to help more companies undertake new international market development activities.

We organised a programme of meetings, seminars and activities for New Zealand companies around the Trade Mission to Australia, led by Prime Minister Helen Clark.

As world attention focuses on environmental sustainability, NZTE has been active in protecting New Zealand’s reputation through the food miles debate and looking at the opportunity New Zealand has to position itself as a sustainable nation, and as a source of sustainability-based products and services for other countries.

We have established a project team to look at sustainability issues for NZTE and for New Zealand businesses. NZTE will

review its own carbon footprint, looking for ways to embed sustainability into both our own and New Zealand business practices, and investigate to what extent sustainability provides an international commercial opportunity for New Zealand businesses.

TH IS YEAR HAS SEEN FU RTH ER WORK TO REFI N E NZTE’S PORTFOLIO OF PRODUCTS AN D SERVICES.

These reviews are of particular interest to the NZTE Board and management. We are constantly looking to ensure our programmes meet the current and future needs of New Zealand businesses.

Formal evaluations have been undertaken of seven of NZTE’s programmes by the Ministry of Economic Development (MED) – supported by NZTE, the Ministry of Foreign Affairs and Trade (MFAT) and Treasury. The programmes evaluated were:

• Information Services• Escalator• Sector Projects• World Class New Zealanders• Enterprise Network Fund• GIF Industry Governed Bodies Fund• GIF Sector Project Fund.

The evaluations recommended a number of changes and these were announced by the Minister of Economic Development Trevor Mallard to take effect from 1 July 2007.

The Regional Partnership Programme has also been replaced with a Regional Strategy Fund, which NZTE administers to help 14 regions improve the quality of their business environment through regional economic development strategies. The Regional Strategy Fund works alongside MED’s new contestable Enterprising Partnerships Fund which focuses on substantial regional projects.

30

new

com

pani

es a

chie

ved

inte

rnat

iona

l gr

owth

thro

ugh

the B

each

head

s pro

gram

me.

36

6 co

mpa

nies

bui

lt th

eir c

apab

ility

th

roug

h th

e Ent

erpr

ise D

evel

opm

ent G

rant

– C

apab

ility

Bui

ldin

g.

54

1 co

mpa

nies

expl

ored

new

mar

kets

th

roug

h th

e Ent

erpr

ise D

evel

opm

ent G

rant

– M

arke

t Dev

elop

men

t.



G45INTRODUCTION

At an operational level, NZTE’s planning process has evolved in the last year to refl ect the changing needs of the organisation.

WE ARE PLACI NG A GREATER FOCUS ON FEWER PRIORITI ES, A STRONGER EMPHASIS ON TRANSFORMATION AN D I N NOVATION, AN D PUTTI NG MORE DECISION-MAKI NG I N TH E HAN DS OF OU R OFFSHORE STAFF.

Key to this has been gaining a better understanding of who our clients are, providing a more seamless handover for clients between our services onshore and offshore, and measuring the impact and effectiveness of what we do.

We acknowledge the support and guidance of our Ministers, the Hon Phil Goff and the Hon Trevor Mallard, during the past year. Their understanding of the challenges facing New Zealand businesses wanting to be internationally successful and their genuine passion for New Zealand trade and export growth strengthens our ability to deliver.

We would like to thank NZTE’s Board of Directors for their continuing guidance. Their combined experience, and strong independent business expertise and connections bring considerable value to the organisation.

We particularly value the dedication of senior management and the commitment of all staff to ensuring that NZTE continues to be recognised at the forefront of economic development and is the envy of our peers worldwide.

Most important is the positive support we receive from New Zealand businesses.

The results of our culture survey show a strong commitment to leadership and career enhancement by our staff. NZTE not only continues to provide great leadership to the business community but is also a great place to work.

It has been our privilege to lead this organisation over the last year and we look forward to another challenging and productive year ahead.

P V Lough CHAIR T D Gibson CHIEF EXECUTIVE

Mor

e th

an 14

,00

0 el

igib

le cl

ient

s co

mpl

eted

an

NZTE

trai

ning

pro

gram

me.

Mor

e th

an 11,

00

0 sm

all a

nd m

ediu

m

size e

nter

prise

s wer

e par

ticip

ants

in N

ZTE-

supp

orte

d tra

inin

g pr

ogra

mm

es.

12,4

18 ca

lls w

ere m

ade

to th

e NZT

E En

terp

rise 0

800

Hotli

ne Se

rvice

.

7 su

cces

sful

fore

ign

dire

ct in

vest

men

ts

wer

e neg

otia

ted.


GLOBAL SECTOR PROJECTS

These projects provide a snapshot of NZTE’s current work around the globe.

Biotechnology Medical device commercialisation (United States, Europe)NZTE is supporting the NZBio Special Interest Group as a national cluster driving best practice in innovation and creating critical mass. Biotechnology leadership (Americas, Europe)

NZTE is working with the biotechnology sector to ensure its leadership position across a range of cross-sectoral projects, including in integrated healthcare and across the food value chain. International profi le (Australasia, United States, Europe, Japan)

NZTE is raising the biotechnology industry’s profi le in selected overseas markets, through a presence at strategic missions such as AusBio, BioEurope, Bio 07 and Medica.

Creative industriesWool products and technologies into market (Europe, North America)

Developed in partnership with the New Zealand wool industry, this project aims to identify where New Zealand wool products, brand applications and technologies can offer world-leading and highly competitive solutions in a range of niche markets.Building a sustainable New Zealand entertainment sector (United States, Europe, Asia, New Zealand)

This project promotes New Zealand as a premium destination for a wide range of in-bound screen production opportunities, and improves local industry sustainability. Better by Design programme (New Zealand)

This programme is helping New Zealand companies gain a competitive edge in export markets by improving their design capability. The programme’s main initiative is the Design Integration Programme; a six-stage design process to help companies create better designed and branded products and services. (See detail in the case study in the Building Business Capability section on page 29).

EducationCorporate, industry and government markets (Middle East, Asia, South America, Europe)

NZTE is working on projects that seek to build New Zealand’s capability and to identify international opportunities in the corporate, industry and government markets. The main areas of focus include: gaining industry and agency buy-in via the International Education Summit, research and scoping of international markets, defi ning New Zealand’s current capability, and identifying sector specifi c development opportunities.New education business model (Global)

NZTE has transferred the responsibility for generic and student marketing to Education New Zealand under a Service Level Agreement. This is allowing NZTE to focus on the development of corporate, industry and government markets.E-learning (South East Asia)

This project is helping New Zealand education service providers with e-learning solutions to participate in large-scale international projects. The project will continue to focus on government initiatives in South East Asia and support the evolution of commercial/government partnerships in New Zealand and the target region.

Food and beverage (F&B)Retail channel development and brand support (North America)

NZTE has gained a much greater understanding of the behaviours and business models needed to transform traditional exporters into international companies operating in North American markets. Initiatives such as the Ambassador Chef programme, engagement with key retail and food service targets, and participation in major trade shows have provided stepping stones for selected high-growth companies. Retail channel development (China)

NZTE is helping 28 companies to enter the China market for the fi rst time via the retail ‘store-within-store’ concept. Four companies have already moved to full commercial relationships with the logistics provider, with a further three companies negotiating full commercial relationships. With the Shangri-La Hotel

Group now looking to expand in China, there is an opportunity to link in with the Shangri-La Leveraging Project to make the most of opportunities in the food service channel.

Information and communications technology (ICT)

CeBIT (Germany) NZTE organised a very

successful New Zealand pavilion at CeBIT, Hannover. Fifteen New Zealand companies demonstrated their capabilities at the world’s largest ICT trade event. Minister Cunliffe supported the companies, and hosted a New Zealand event that attracted 150 leading technology players New Zealand Immigration also participated, highlighting New Zealand as a desirable place for technology workers to live and work. Health IT (North America)

NZTE organised a successful e-Health mission to Canada, featuring nine leading Health IT companies, and representatives from New Zealand health providers. The mission created many potential business opportunities and partnerships for participating companies, and media exposure helped highlight New Zealand’s leadership in Health IT. Transport and logistics (Global)

NZTE supported companies attending the Intelligent Traffi c Systems World Congress in London. A strong working relationship has been developed between a leading European rail company and a number of New Zealand technology suppliers. Opportunities were also explored on a South East Asia business mission. Multi-national corporation engagement (Global)

NZTE is developing projects with a number of multi-national technology companies that have provided opportunities for New Zealand companies. One successful result to date has been the establishment of a relationship with a leading Indian technology company, through Massey University’s eCentre, which opens a signifi cant market channel for New Zealand companies.

Specialised manufacturingMarine industry (Europe and Middle East, North America, South East Asia, Australia)

As well as helping the New Zealand marine industry to build its manufacturing capability, NZTE is working

to increase the industry’s profi le overseas using New Zealand New Thinking as an umbrella brand across the spectrum of boat building, re-fi ts, and marine technology. NZTE supports the marine industry at a number of global trade events and hosts international marine experts in New Zealand. This year NZTE also built a programme around the America’s Cup in Valencia to raise the industry’s profi le further.New technology development (New Zealand)

This project is developing collaborative structures within the electronics, plastics and metals industries, and across sectors to improve design, speed to market, and scale. For example, NZTE, in conjunction with AUT University, has promoted the advantages of Friction Stir Welding to New Zealand’s light alloy manufacturing industry.National project offi ce (New Zealand)

NZTE is coordinating the establishment of a national project offi ce that will help New Zealand companies to qualify, scope and tender for offshore projects under one consolidated entity. The offi ce will assist companies in the engineering, building and construction sectors to collaborate, present and bid effectively for offshore projects that might otherwise be too large, complex, or beyond the capability of individual companies.

TourismTourism high performance (New Zealand)

This is a two to three-year programme of engagement with niche groupings showing greatest growth potential. The process will be facilitated by NZTE, led by external partners and will focus on improving yield, collaboration, innovation and international engagement from selected tourism operators.

Wood, building and interiors New Zealand Wood Innovation Centre (China)

The Wood Innovation Centre has run several major promotions in the last year to extend the profi le and reach of New Zealand’s wood products industry in China. New Zealand wood product companies are now considering joint venture commercial operations in China to support the brand development the centre has achieved.

1

2

3

4

5

6

7

10

12

13

17

18

20

G45 GOING GLOBAL

19

GOING GLOBAL


8

9

11

14

15

16


N ZTE H U B S A N D S P O K E S

NZTE operates a hub and spoke approach to offshore locations to ensure depth and expertise in markets while retaining operational fl exibility. Hub offi ces are permanent locations housing the regional director and trade commissioner, investment, sector and market specialists. Hubs support the regionally located spokes. Spoke offi ces are intended to be fl exible, with their duration and resourcing refl ecting changing market opportunities.

BiotechnologyInformation and communications technology (ICT)

Creative industriesSpecialised manufacturing

Food and beverageWood, building and interiors

EducationTourism

HUBS:

AucklandHamburgHong KongLos AngelesSingapore

SPOKES:

Ankara Bangkok Beijing Buenos AiresDubai GuangzhouHo Chi Minh CityJakarta

KarachiKuala Lumpur LondonMadrid Manila Melbourne Mexico City MilanNew Delhi

New York NoumeaPapeete Paris RiyadhSantiagoSao PaoloSeoul Shanghai

SuvaSydney Taipei TokyoTorontoVancouverWashington DC



G45G45GOING GLOBAL


NZTE WORKS IN PARTNERSHIP WITH SECTORS OF THE ECONOMY WHERE COMPETITIVE NEW ZEALAND PRODUCTS AND SERVICES CAN MEET GROWING INTERNATIONAL DEMANDS. NZTE ENCOURAGES AND SUPPORTS COLLABORATION BY INDUSTRY, GOVERNMENT AND INTERNATIONAL PARTNERS TO IDENTIFY AND DEAL WITH ISSUES CONCERNING INVESTMENT AND GROWTH IN THESE SECTORS AND TO ENCOURAGE AND SUSTAIN MARKET DEVELOPMENT AND PENETRATION.

G45 GOING GLOBAL

“… the opportunity has never been greater to create a mini-multi-national based in New Zealand – designed and owned in New Zealand, made in Thailand, assembled in China, sold in the USA – why not?”

– Chris LiddellMicrosoft Chief Financial Offi cer


G45


A M E R I CASIn the competitive, sophisticated markets of the Americas, successful New Zealand companies generally share common attributes: they have a well-developed product or service, proven capability and commitment, and rigorous planning disciplines. NZTE supports these companies by elevating awareness of New Zealand’s business offerings and opportunities, connecting them with individuals and networks that will help market entry and development, and providing in-market intelligence. The Americas provide signifi cant trade and investment opportunities for New Zealand, with many economies in the region forecasting annual GDP growth of three to eight percent. The United States remains our second biggest export market, at a value of NZ$4.2 billion. Additionally, US foreign direct investment in New Zealand exceeds NZ$40 billion.

• Bio 2007: NZTE supported more than 35 New Zealand companies attending the world’s second largest biotechnology trade show in Boston in May 2007. NZTE set up more than 60 targeted meetings for New Zealand companies and organisations that enabled meaningful engagement between the New Zealand representatives, potential investors, and business partners in the region.

• Health IT mission to Canada: In February, the New Zealand and Canadian governments jointly sponsored a New Zealand e-health mission to Canada to raise the profi le of New Zealand e-health capabilities in Canada, thereby creating business opportunities for New Zealand companies. Since the mission, New Zealand vendors have reported that they made more than 50 high value contacts, resulting in more than 19 leads and the potential entry of fi ve New Zealand companies into the Canadian market.

• Food and beverage channel development project: See details in the food and beverage sector highlights on page 17.

• South American food value chain: Commercial and NZTE-led developments have created a high level of interest in the opportunities for the agritechnology sector in South America. NZTE is working with 30 New Zealand agritechnology and food technology companies to capture business associated with the strongly

growing dairy and beef sectors in Chile, Argentina, Uruguay and Brazil. The project involves transferring New Zealand pasture production technologies, through companies such as DPA, (a Fonterra joint venture), to other countries in the region.

• Aviation: NZTE organised 30 meetings for New Zealand companies participating in the Export Network Mission attending the AAAE Airport Conference and Expo in Washington DC, in June. The meetings involved leading aviation experts, airport integrators, contractors, consultants, Transportation Safety Authority (TSA) and International Air Transport Association (IATA) offi cials, and provided the companies with key intelligence, legal guidance, business advice, leads and contacts. NZTE also hosted a reception at the Ambassador’s residence attended by more than 70 senior executives, including members of the Metro Washington Airport Authority. North America is the largest market for New Zealand’s aviation exports.

• Music Showcase: NZTE’s Los Angeles-based investment team coordinated the inaugural Music Showcase – an event aimed at encouraging greater use of New Zealand music in screen and digital projects. Last year, NZTE began a direct marketing campaign to high profi le players in the US entertainment industry. The showcase was the next step in building a two-way relationship. Licensing

agreements that embed New Zealand-created intellectual property into international content represent one of the best opportunities for deriving real economic benefi ts from locally produced music. See more details in the creative industries and services sector highlights on page 15.

• Beachheads programme: A further 16 companies joined the Americas Beachheads programme. The programme provides opportunities for high-growth potential companies to engage more deeply in the market, and gain ongoing support from expert advisors in developing networks and contacts. See more details in the case study on the Beachheads programme in the international connections section on page 23.

• UCLA Global Access Programme (GAP): During NZTE’s four-year association with the UCLA’s Anderson Graduate School of Business GAP programme, 33 New Zealand companies have used the service. Fully-employed MBA students develop business strategies for selected companies to enable them to move to the next level of corporate development in the US market. One company from the 2006 intake has obtained more than US$1.8 million in fi nancing from an investor group as a result of participation in the GAP.

H I G H L I G HTS

G45

MARKET OVERVIEWS AND HIGHLIGHTS


NZTE

conn

ects

New

Zea

land

com

pani

es

with

indi

vidu

als a

nd n

etw

orks

to h

elp

mar

ket e

ntry

and

dev

elop

men

t in

our

seco

nd b

igge

st ex

port

mar

ket.

GOING GLOBAL


G45

AU STR A L I A A N D TH E PAC I F I CNZTE’s strategy for the Australia/Pacifi c region is focused on driving a change in thinking beyond exporting to Australia to operating across Australasia. We are also working to increase the number and success rate of new exporters, as well as developing opportunities for New Zealand and Australian collaboration into third markets.

H I G H L I G HTS

E U RO P E , M I D D L E EAST A N D A F R I CA ( E M EA )In Europe NZTE has consolidated its focus on growing the specialised manufacturing, ICT and biotechnology sectors and has been proactive in dealing with issues such as ‘ food miles’. In the Middle East we have successfully responded to the growing demand for education services and encouraged double digit growth in the ICT and food and beverage sectors. Europe remains one of the wealthiest and most sophisticated markets globally, and the Middle East’s evolving consumption patterns mean there is rapid growth in demand for premium priced imports and multi-million dollar service contracts.

• Marine: Events such as the 32nd America’s Cup provided an outstanding platform for the promotion of a wide range of New Zealand technology and business capabilities, but particularly for the marine industry. See details in the case study in the international connections section on page 24.

• CeBIT: CeBIT 2007 saw 14 New Zealand ICT companies, plus Hudson Recruitment and Immigration New Zealand, exhibit under the New Zealand New Thinking banner. CeBIT is the world’s largest digital show

and the New Zealand pavilion created signifi cant business and media interest. Outstanding pavilion design, valuable networking events, a media campaign and Minister Cunliffe’s attendance once again ensured New Zealand’s visibility as an innovative and technology savvy country, as well as delivering an effective platform for business leads and revenue generation for the companies attending.

• Sustainability: The past year has seen climate change and sustainability fi rmly established on political and consumer

agendas, with Europe and the United Kingdom in particular taking a lead. Media and pressure groups have been quick to tap into growing consumer concern and are infl uencing both purchasing attitudes and marketing behaviours. This is particularly evident in the food and beverage industry where the concept of

‘ food miles’ has had an effect on the UK market. In response to this, NZTE, MFAT and New Zealand industry are working together to address short-term market impacts and capture medium-term opportunities for New Zealand.

H I G H L I G HTS

GOING GLOBAL


• Australian Trade Mission: New Zealand Prime Minister Helen Clark and Economic Development Minister Trevor Mallard headed an intensive four-day trade mission across three Australian states to promote New Zealand trade and investment as part of Export Year. They were accompanied by 60 representatives of New Zealand’s leading businesses across the food and beverage, specialised manufacturing and biotechnology sectors. They met around 2,000 infl uential business people, politicians and media to discuss the importance of trans-Tasman collaboration while highlighting New Zealand innovation.

• Path to Market: NZTE took 21 companies to Australia to experience the market and establish commercial links as part of NZTE’s Path to Market programme, which aims to increase the number and success

rate of new exporters into Australia. The programme offers companies intensive coaching before they enter a market around a particular trade event and helps them establish commercial links.

• Trans-Tasman biotechnology partnerships: The Australia New Zealand Biotechnology Partnership Fund ( ANZBPF), administered by NZTE, encourages trans-Tasman collaboration and helps fi rms to commercialise their ideas. An MED review of the fund showed that after three years the fund is making a positive impact in supporting the commercialisation of biotechnology fi rms in both countries.

• Australian perception study: To gain a better understanding of Australian perceptions of New Zealand business, NZTE commissioned Nielsen to conduct business qualitative and consumer

quantitative surveys in the market. The resounding message was that Australian companies want to do business with New Zealand fi rms. They would often prefer to do business with New Zealand before other parts of the world such as the United States and Asia. In fact, they consider doing business with New Zealand companies comparable to doing business with other states of Australia.

• Trade shows: As New Zealand’s largest export market, a presence at major Australian trade shows continues to be critical to raising the profi le of New Zealand’s New Thinking campaign. This year, NZTE managed stands at fi ve shows, including Rosemount Australian Fashion Week, CeBIT Australia, Australian National Manufacturing Week, Fine Foods Australia and AusBiotech.

Even

ts a

nd tr

ades

how

s pro

vide

a p

latfo

rm

for N

ZTE

to p

rom

ote N

ew Z

eala

nd

tech

nolo

gy a

nd b

usin

ess c

apab

ilitie

s.


G45

N O RTH AS I AThe economies of North Asia are revolutionising global business and provide considerable opportunities for New Zealand companies. Two of the world’s largest economies (Japan and China) are in the region and the middle to upper income groups in North Asia are larger than those in the United States, United Kingdom and Australia combined. With a growing middle class in China, rapidly growing ‘silver market’ in Japan, and an increased focus on health and well-being, New Zealand suppliers of top line food and beverage products, agricultural technologies, wood products, marine products, education and many other premium goods and services are well positioned to capitalise on the opportunities on offer.

• Building a presence in China: New Zealand’s largest trade mission to Asia was led by Trade Minister Phil Goff to Shanghai as part of Air New Zealand’s inaugural direct fl ight to the city. Some 150 New Zealand business people, media and government offi cials participated in a week of activities aimed at promoting New Zealand’s trade and investment potential. The highlight was a targeted symposium for New Zealand businesses to learn the intricacies of doing business in China from in-market experts as well as New Zealand companies now well-established in the market. A number of participants have increased their engagement with China through, for example, establishing their own offi ce presence to support their distribution networks, and report positive outcomes.

• New Zealand Focus Centre, Hong Kong: New Zealand’s fi rst concept centre has had considerable success in its second year. By providing an excellent showcase for New Zealand products and services, it has played an important role in supporting NZTE’s brand-building efforts in Asia’s retail hub. The centre has helped NZTE plug New Zealand companies into appropriate channels to get faster return on investment and provides a New Zealand-themed venue for their events. Ten products have advanced from the centre to wider distribution this year.

• China retail channel development project: See details in the food and beverage sector highlights on page 17.

• New Zealand Wood Innovation Centre, Shanghai: See details in the Global Sector Projects section on page 6.

• China Agricultural Technology Transfer Project (CATT): The CATT Project focused on three main initiatives this year including the Fonterra Dairy Farm project in Tangshan, the Heilongjiang World Bank Project, and the YiLi Dairy Farm project. NZTE has also worked closely with a number of other agritechnology companies to develop business in China. An important milestone was the successful visit of a 15-member Dairy Association of China (DAC) delegation to National Fieldays in June. Delegates met more than 20 individual agritechnology companies and had two full days at Fieldays. NZTE also organised and managed the second China-New Zealand dairy seminar as part of the DAC annual conference and exhibition.

• Trade missions: Missions over the past year have covered digital content, fi lm co-productions and race horses in Korea; wine throughout the region; and TV commercials in China. NZTE set up targeted meetings for New Zealand businesses with potential clients and investors and New Zealand’s strengths in key sectors, as well as company profi les, were also highlighted in the media. These activities netted more than $850,000 worth of new business and helped deepen our engagement with industry contacts.

• Prime Minister’s visit to Hong Kong and Macau: The Prime Minister’s visit to Hong Kong and Macau provided excellent

leveraging opportunities for NZTE. A targeted meeting for an NZTE client supported by the Prime Minister’s attendance helped build goodwill with one of Asia’s leading oil companies.

• Strategic relationships: NZTE offi ces around the region have developed strong relationships with key infl uencers, partners and potential investors including Heng Tai (China and Hong Kong), China Resources Group (China and Hong Kong), Daesung Group and Dongwon Group (Korea), Mitsubishi Group (Japan) and Shangri-La Group (Asia-wide).

• Consulate-General opening in Guangzhou: In April 2007, NZTE’s offi ce in Guangzhou was accorded consular status. This was a formal recognition of New Zealand’s increasing commitment to China and, from a trade perspective, recognised the important role the Pearl River Delta plays both in China’s thriving economy and in the bilateral trade relationship.

• Asia expansion strategy: NZTE is to increase its footprint in Asia signifi cantly. In the 2007 Budget, $23.8 million was allocated for a number of initiatives including up to fi ve more offi ces in China, New Zealand concept centres (similar to the New Zealand Focus Centre in Hong Kong) in China and Japan, and extension of the Beachheads programme into China. The expansion strategy also includes relocation and appointment of senior personnel to provide greater strategic direction and leadership in the region.

H I G H L I G HTS

G45


NZTE

is h

elpi

ng e

nsur

e th

at ki

wi

supp

liers

are

wel

l pos

ition

ed to

capi

talis

e on

the o

ppor

tuni

ties i

n th

e rap

idly

gr

owin

g ec

onom

ies o

f the

Asia

regi

on.

GOING GLOBAL


G45

S O UTH A N D S O UTH EAST AS I AStrong economic growth across the South and South East Asia region provides many opportunities for New Zealand companies. The characteristics of the region are impressive – annual gross domestic product growth rates of at least fi ve percent in every country, rapidly developing economies where market positions are still being determined, and increasing numbers of young people with disposable income. Trade agreements and greater acceptance of different business models, including partnerships, joint ventures, and other alliances, have also broadened market access in the area. To take advantage of these developments, NZTE is increasing its investment into India, putting New Zealand companies in a better position to capitalise on future growth there.

H I G H L I G HTS

GOING GLOBAL


• Beachheads programme: Two leading Asian businessmen were appointed as chairs to new Beachheads Advisory Boards in South East Asia and India following an expansion of the programme in Asia. See more details in the case study in the international connections section on page 23.

• Wine for Asia: The largest-ever contingent of New Zealand wine companies attended the Wine for Asia 2006 trade event in Singapore. Thirty-seven wine producers from all of New Zealand’s key wine-producing regions exhibited at the event, culminating in strong interest from the

region’s distributors. NZTE organised presentations and seminars for the companies, including meetings with representatives from the Shangri-La hotel group.

• E-learning project: For the past two years, NZTE and a number of New Zealand fi rms have been working together to match New Zealand’s e-learning capability with Malaysia’s drive to improve its education system and methods of teaching. Innovation New Zealand Education (iNZed ), a company formed to act as a single point of contact for a number of New Zealand e-learning companies, has completed a

pilot programme for fi ve schools in the State of Perak. The success of the pilot has positioned iNZed very well for the future roll-out of the programme.

• Relationship building: New Zealand has expertise that global markets seek, as shown in the development of links between companies in New Zealand and South and South East Asia. For example, the relationship developed by Massey University with Indian ICT company CMC has paid off through the establishment of a partnership which will open new routes for New Zealand IT companies into the Indian market and beyond. See more details in the Information, communications and technology sector highlights on page 18.

• Shangri-La leveraging project: This project, established in 2005, seeks to address some of the main issues facing New Zealand food and beverage companies operating in South East Asia. The Shangri-La hotel chain also has a strong and growing presence in China. As a result of our relationship with Shangri-La, NZTE has been asked to help with food and beverage, hotel fi t-out, ICT infrastructure solutions and educational training services in the China market.

New

Zea

land

has

expe

rtise

that

gl

obal

mar

kets

seek

, as s

how

n in

the

deve

lopm

ent o

f NZT

E-fa

cilita

ted

links

be

twee

n co

mpa

nies

in N

ew Z

eala

nd

and

Sout

h Ea

st A

sia.



B I OTE C H N O LO GY NZTE’s biotechnology team continues to work towards accelerating the development and growth of an integrated and internationally-acclaimed New Zealand biotechnology sector. New Zealand leads the world in many niche biotechnology application and commercialisation areas, and has strong relationships with investors, collaborators and markets.

• Cosmeceuticals mission: A public relations event in Paris allowed a number of New Zealand natural product companies to showcase their products to French beauty journalists, with interest from more than 30 media representatives, including major international fashion publications Elle and Marie Claire, and representatives from some of France’s major retail chains.

• Australia New Zealand Biotechnology Partnership Fund ( ANZBPF): See details in the Australia Pacifi c highlights on page 11.

• BIO 2007: See details in the Americas highlights on page 10.

• Japan market development: NZTE boosted its staff in the Tokyo offi ce and hosted a roundtable biotechnology meeting involving the Hon Trevor Mallard and Japanese biotechnology companies in Kyoto. This included profi ling 18 New Zealand biotechnology companies and organisations to 14 pharmaceutical and biotechnology companies from Osaka and Kyoto.

• L.E.K. growth report: The New Zealand Biotechnology Industry Growth Report produced by L.E.K. Consulting found the New Zealand biotechnology sector to be in good health. The industry continues to grow at a steady pace, with export revenues increasing by 30 percent between 2004 and 2005 alone. Biotechnology is a major player in the New Zealand economy, contributing in the region of NZ$300-400 million a year and employing more than 2,200 people domestically.

• NZBio conference: NZTE was the major sponsor of industry body NZBio’s annual conference in Auckland in March 2007, which attracted 600 registrants, including more than 100 from overseas. In addition, NZTE’s biotechnology sector team helped identify and secure international speakers for the conference, and organise the associated company visit programmes of 15 overseas visitors, including delegations from the State of Iowa and the Canadian Province of Manitoba.

• Client engagement: NZTE’s biotechnology team has continued to engage closely with high-growth potential clients, resulting in a number of successes. These have included Argenta Ltd which recently gained Food and Drugs Administration (FDA) approval for a range of products to be sold into the United States; CoDA Therapeutics (see detail in the Investment sector highlights on page 20); and Comvita, which aims to grow from NZ$39 million to $100 million by 2010.

H I G H L I G HTS

SECTOR OVERVIEWS AND HIGHLIGHTS

NZTE

is w

orki

ng w

ith h

igh-

grow

th

com

pani

es to

acc

eler

ate

the d

evel

opm

ent

of a

n in

tegr

ated

New

Zea

land

bi

otec

hnol

ogy s

ecto

r.

G45 GOING GLOBAL



NZTE

is fo

cusin

g on

nich

e opp

ortu

nitie

s in

sele

cted

glo

bal m

arke

ts to

gen

erat

e vi

sibili

ty a

nd su

stai

ned

wea

lth fo

r Ne

w Z

eala

nd’s

crea

tive c

ompa

nies

.

C R EATI V E I N D U STR I E S A N D S E RV I C E S NZTE’s creative team is focused on identifying niche opportunities in high-growth global markets for entertainment and designer lifestyles, and supporting companies across all sectors through the Better by Design programme. As a knowledge-based sector, it is less vulnerable than commodity-based sectors to New Zealand’s distance from market and has the potential to generate wealth on a sustained basis.

• Better by Design: See more detail on this award-winning programme in the case study in the Building Business Capability section on page 29.

• AnimFXNZ 2006 conference: In November 2006, NZTE organised and sponsored AnimFXNZ, the inaugural New Zealand digital entertainment conference. The event, which brought together local experts in animation and game development with international delegates (from companies including Pixar, Dreamworks and Warner Bros), was a great success. The relationships that were created have since produced signifi cant results for New Zealand companies.

• Cannes Lion 2007: As part of its strategy to promote the New Zealand television commercial industry internationally, NZTE used an interactive campaign to highlight Kiwi creativity at the Cannes Lion advertising festival in June 2007.

gave New Zealand high visibility at the event, as delegates queued up to contribute to the campaign’s digital installation hosted at www.justaddnewzealanders.com. Visits to the website, showcasing work by New Zealand companies, soared during and after the festival, putting the local industry in front of their key audience.

• New Zealand music: NZTE promotes New Zealand music to major Hollywood studios and key music infl uencers, such as Sony, NBC and Walt Disney, as part of a strategy to increase economic returns to local musicians from existing intellectual property. Several television shows have featured New Zealand music in the past 12 months and Pluto’s album Long White Cross has been synched into Cricket 07, an electronic arts video game.

• Wool products and technologies: NZTE continues to work closely with partners in

the wool industry to move the fi bre and added value components of the industry from price takers to price setters. The focus is on understanding end-market needs, and close management of the vertical value chains required to deliver the fi nal product to market. Work continues on delivering value solutions to a premium global player in the automotive industry and a number of high-end niche hotel chains.

H I G H L I G HTS

GOING GLOBAL G45


G45G45


NZTE

is w

orki

ng to

defi

ne N

ew Z

eala

nd’s

curre

nt ca

pabi

litie

s and

iden

tify s

ecto

r-sp

ecifi

c dev

elop

men

t opp

ortu

nitie

s for

Ne

w Z

eala

nd ed

ucat

ion

supp

liers

.E D U CATI O N Over the past year, NZTE’s education team has begun implementing its new strategy by working on projects that build New Zealand’s capability and identify international opportunities in the corporate, industry and government markets. Main areas of focus include gaining industry and agency buy-in via the International Education Summit, research and scoping of international markets, defi ning New Zealand’s current capabilities and identifying sector-specifi c development opportunities.

• New business model: NZTE has negotiated a new partnership agreement with Education New Zealand that allocates a portion of NZTE offshore resources to generic student marketing activities. Remaining NZTE resources are dedicated to developing the new education strategy. NZTE is also working towards a partnership protocol with the Ministry of Education and Education New Zealand that will describe the differing roles and responsibilities of the three international education agencies and how they will work together.

• Bahrain Polytechnic development project: With the assistance of NZTE, Polytechnics International New Zealand (PINZ) secured a multi-million dollar contract to establish the Kingdom of Bahrain’s new national polytechnic. The largest contract ever awarded to a New Zealand education company in the Middle East, it exemplifi es the value in an industry-government partnership approach to international education, and the opportunities in the developing economies of the Middle East.

• Saudi scholarship programme: The King Abdullah East Asia/Oceania scholarship programme was announced by the Ministry of Higher Education in Saudi Arabia. Following intensive liaison by the Ministry of Education, Education

New Zealand and NZTE, more than 300 students arrived in New Zealand for undergraduate and postgraduate study at universities. This programme is expected to continue in subsequent years.

• Vietnam Ministry of Education and Training: New Zealand universities will provide professional development training for up to 300 Vietnamese teachers, as part of the Vietnamese Government’s plans to reform their education system.

• iNZed: See details in the South and South East Asia highlights on page 13.

• Corporate training: Two New Zealand organisations have secured major contracts with Microsoft to provide highly customised training solutions for their customers. The Small Business Company offers a wide range of online and CD-rom-

based small business lessons to Microsoft’s customers in Australia, the United Kingdom, United States and France. Agitavi has developed for Microsoft’s partners a software business management course that has been rolled out to 17 European countries, with future plans to expand into the Middle East.

• International Education Summit: This inaugural event was held during New Thinking Week 2007 and was successful in gaining industry buy-in and support for NZTE’s new education strategy and for kick-starting the development of cross-sectoral projects. Initially, these projects will focus on exploring and developing New Zealand’s capability in the agriculture, education development, tourism/hospitality and aviation sectors.

H I G H L I G HTS

GOING GLOBAL


GOING GLOBAL


NZTE

is h

elpi

ng N

ew Z

eala

nd fo

od

and

beve

rage

com

pani

es to

enga

ge

inte

rnat

iona

lly th

roug

h a

rang

e of

busin

ess m

odel

s, in

itiat

ives

and

act

iviti

es.

F O O D A N D B EV E R AG ENZTE’s food and beverage team has been focusing on accelerating the growth of globally successful businesses from the primary sector, by shifting the emphasis from exporting to engaging internationally using a range of business models. NZTE has been working closely with various government agencies following the release of the Food and Beverage Taskforce Report in August 2006 to develop a strategy and an appropriate programme of activity addressing the issues facing the industry in New Zealand.

• Food and Beverage Taskforce: The taskforce committee, a joint government-industry initiative, delivered its report to Government in August 2006, with the aim of protecting New Zealand’s existing productive base while developing new products and processes, and expanding into new markets. The Government responded on 10 July 2007 with a programme of initiatives focused on lifting high-value food and beverage exports. The programme includes $19 million of additional funding ($6.5 million of which will go to Aquaculture for 2007/08) for expanded in-market assistance for New Zealand food and beverage fi rms to develop new markets. This funding will be administered by NZTE. See details in the Global Sector Projects section on page 6.

• China retail development project: As part of a project aiming to create long-term business opportunities for New Zealand food and beverage exporters in China, a

New Zealand ‘shop within a shop’ concept was launched in two retail stores in Shanghai in May 2006. NZTE is working with a Chinese logistics service provider, a distributor (Heng Tai Group) and a retail chain (Parkson) to provide a low-cost format that allows companies to keep control of costs, volumes, prices and distribution choices until they are ready to make a greater commitment to the market. Negotiations are now underway to expand the model to encompass other retailers and locations in China.

• Brand support and retail channel development in North America: New relationships have been developed with selected retail chains in the United States, Canada and Mexico. NZTE is introducing New Zealand food and beverage companies into these chains by helping to reduce barriers to market entry, including assistance with achieving economies of scale, and reducing marketing costs.

The Wine Brand Manager programme was expanded in February 2007, and is now into its second year.

• North America ambassador network: NZTE has carried out a host of activities aimed at increasing trade and consumer exposure for New Zealand food and beverage products and producers in North America. The resulting relationships have increased sales of New Zealand products to retail and food service outlets. Four ambassador table events across the United States have been held, achieving subsequent media exposure and placement of New Zealand food and wine in major US cities.

• Channel developments in targeted regions: NZTE organised a New Zealand presence at selected trade shows as well as targeting public relations and marketing activity to support other in-market activities. Signifi cant achievements have included a successful business mission to Australia led by the Prime Minister, consisting of 15 New Zealand food and beverage companies, a catering mission undertaken by fi ve companies to the Middle East, and also very productive wine missions to Asia, visiting Singapore and Hong Kong in November 2006 and Tokyo, Shanghai and Seoul in January 2007. The mission to Singapore and Hong Kong was the largest wine mission yet from New Zealand, with 30 wineries represented.

H I G H L I G HTS

G45


G45G45


NZTE

pro

vide

s opp

ortu

nitie

s for

Ne

w Z

eala

nd te

chno

logy

com

pani

es to

ne

twor

k and

esta

blish

in-m

arke

t con

tact

s th

roug

h ev

ents

and

initi

ativ

es a

roun

d th

e wor

ld.

I N FO R M ATI O N A N D COM MU N I CATI O N S TE C H N O LO GY ( I C T ) NZTE’s ICT team is working to accelerate the development of globally competitive ICT businesses, based on our world-class intellectual property, and to increase the uptake of such technology to generate value throughout the New Zealand economy.

• CeBIT: See details in the EMEA highlights on page 11.

• Health IT: See details in the Americas highlights on page 10.

• Connect New Zealand: After a review of successful pilot projects in Auckland and Canterbury that provided advisory services to more than 130 companies and helped them to secure more than $6 million in investment fi nance, Connect New Zealand was established as a national body. It will continue to deliver programmes to enhance technology commercialisation and support the growth of technology-based companies in offshore markets, through funding from the private sector, local government and NZTE.

• Transport and logistics: The 13th World Congress and Exhibition on Intelligent Transport Systems and Services (ITS), held in London in October 2006, proved successful for several companies that are developing business relationships with European-based organisations. A memorandum of understanding was concluded between the relevant industry bodies, ITS United Kingdom and ITS New Zealand. There were also promising outcomes from the Transport and Logistics event as part of NZTE’s America’s Cup leveraging project.

• Multi-national project: The CMC Technology Export Centre at Massey University’s e-centre successfully brokered deals for several New Zealand companies with Tata Group-owned CMC Ltd, a major Mumbai-based player in the Indian IT marketplace. Leading telecommunications infl uencers were introduced to

New Zealand ICT capabilities at the America’s Cup venue.

• UCLA Anderson School of Business Global Access Programme: See details in the Americas highlights on page 10.

• Aichi leveraging project: NZTE commissioned high-level research into the Japanese ICT market, with Health IT emerging as a leading area of opportunity. A visiting journalist showcased New Zealand ICT capability in the Nikkei newspaper and a technology business mission to Japan was organised to take place in July 2007.

• e-payments: Participation in Cartes 2006, the leading event for the smart card industry, helped build key European relationships and networks for members of the newly created New Zealand e-payments industry cluster. The

introduction of EMV (EuroPay, MasterCard, Visa) standards and the establishment of a SEPA (Single European Payments Area) are creating market opportunities for New Zealand companies.

• Wireless: NZTE supported eight companies attending 3GSM, the leading wireless tradeshow in Barcelona in February, where there were opportunities for networking and making in-market contacts.

• South and South East Asia Focus Fortnight: This initiative in May gave 15 New Zealand ICT companies from the health IT, and transport and logistics sectors business introductions to Microsoft, Hewlett Packard, and the Healthcare Information and Management Systems Society Conference in Singapore. The companies also visited businesses and markets in Thailand, Vietnam, Malaysia and India.

H I G H L I G HTS

GOING GLOBAL


GOING GLOBAL


NZTE

is w

orki

ng w

ith in

dust

ry to

hel

p bu

sines

ses r

ecog

nise

opp

ortu

nitie

s an

d de

velo

p st

rong

er co

nnec

tions

w

ith cl

ient

s and

the m

arke

t to

prov

ide

inno

vativ

e sol

utio

ns.

S P E C I A L I S E D M A N U FAC TU R I N GNZTE is helping businesses in a number of ways to achieve the collective industry vision for the manufacturing sector to be recognised as a high performance sector, and a major and growing contributor to the New Zealand economy.

• Aichi lean manufacturing programme: Funded through the Aichi Leveraging Fund, this training programme aims to increase competitiveness and create value through better productivity. The original companies that took part in 2005/06 continue to participate in the training network and fi ve companies graduated from the programme in 2006/07. Seven companies are in the 2007/08 programme.

• High temperature superconductor project: High temperature superconductors (HTS) transport high electricity loads with little or no loss of energy. In 2003, NZTE identifi ed opportunities for the technology, which Industrial Research Limited acted on to set up HTS-110, that won the 2007 Start-Up Exporter of the Year award. NZTE has since funded an update on future opportunities for HTS technology and is

working with companies in New Zealand and overseas on these.

• General aviation manufacturing: NZTE led a summit for general aviation aircraft manufacturers and suppliers to gather capability information, coordinate industry initiatives, and make better use of current industry linkages. More than 70 companies attended, with three larger, locally-based companies seeking subcontractors and suppliers. Since the summit, European Aeronautic Defence and Space Company (EADS), which owns Airbus, has invited the New Zealand industry to engage more deeply with its international aircraft manufacturing divisions.

• Manufacturing+: NZTE coordinated the development of an industry strategy, Manufacturing+, A Vision for World Leading Manufacturers, which was

launched in November 2006. A pilot workshop in Hamilton tested the strategy’s Value Creation Model as a framework for deeper engagement with companies. Businesses recognised the need to develop capable and creative business models, and stronger connections with clients and the market, as well as the advantages of innovative solutions co-created with customers. Workshops are now being rolled out across the country.

• Plastics industry: NZTE provided support and funding to Plastics New Zealand to complete a study into the constraints and opportunities that exist for New Zealand’s mould-making sector. The research, carried out by Unitec, outlined four models of collaboration that could be developed to capitalise on the sector’s innovation.

H I G H L I G HTS

TO U R I SMNZTE’s tourism strategy focuses on identifying opportunities to take New Zealand companies offshore to grow their businesses, and on building business capability domestically to help companies to take advantage of this growing industry.

• Asian market growth: NZTE is researching opportunities for New Zealand tourism companies to establish operations in the fast-growing Asian market, with an initial focus on Vietnam.

• Scoping studies: NZTE undertook research on the key business drivers and success factors behind the emerging collaborative tourism model, as well as a study of business capability levels within the cultural and heritage sector. These studies will improve NZTE’s understanding of the market and are being used to refi ne NZTE’s tourism sector engagement.

H I G H L I G HTS

G45


G45G45


WO O D, B U I L D I N G A N D I NTE R I O R S NZTE’s wood, building and interiors team works with companies in the wood processing industry to develop sustainable business models. The goal is to achieve critical mass in the value-added wood products market for medium to long-term growth of the sector.

• New Zealand Wood Innovation Centre, Shanghai: See details in the Global Sector Projects section on page 6.

• New Zealand Treated Timber Design Awards in China: The New Zealand Wood Innovation Centre in Shanghai, in collaboration with Nanjing Forest University (China), kicked off the inaugural New Zealand Treated Timber Design Awards in 2006. More than 250 designs

were submitted by Chinese design students and eight were chosen for special commendations and awards. Four of the winning designs have now been built and will be on permanent display at the university. This was an excellent opportunity to showcase the versatility and durability of New Zealand pine and the beauty of New Zealand design themes in the Chinese context.

• Bodyguard takes on the United States: NZTE’s growth services funding has enabled a new market entry model for wood product exports to the United States. Bodyguard Wood Products has developed a range of value-added wood products. The company uses a joint venture model to collaboratively fund in-market distribution arrangements to capture value from the lucrative US market.

H I G H L I G HTS

I NV E STM E NT N EW Z EA L A N DNZTE’s Investment New Zealand team helps international corporates to invest in, and work with, New Zealand companies on global ventures, to expand their business activities in New Zealand to supply international markets, and to establish greenfi eld operations. Long-term partnerships with offshore investors are an important contributor to economic development in transferring skills and new technologies, funding research and development, and providing access to new markets. NZTE’s investment managers, based around the world, promote New Zealand as an attractive investment destination, and build relationships with overseas companies in selected growth sectors.

• Multi-national Cadbury expands in Dunedin: See details in the case study in the Improving the Environment for Enterprise and Growth section on page 32.

• Capital investment for clinical trials: This year CoDa Therapeutics Ltd, a company established by New Zealand and UK-based academics, began preparation for multiple clinical trials in New Zealand for its innovative wound-care technology, Nexagon™. Two trials are scheduled to begin in 2008. Investment New Zealand worked closely with CoDa Therapeutics during its formation and ongoing development activities. Funded by US$20 million in venture capital, its clinical programmes mean signifi cant capital and capability investment in New Zealand, while the future commercialisation of Nexagon could bring signifi cant income to the country.

• Fostering scientifi c collaboration: Opportunities for biotechnology

collaboration between New Zealand and Singapore, one of the fastest-growing markets for the life sciences sector, are being explored through an Investment New Zealand/MFAT programme to bring life science researchers from Singapore to New Zealand. This has resulted in a partnership between Industrial Research Ltd (IRL) and the Singapore-based Institute of Molecular and Cell Biology (IMCB). Under the agreement, IMCB, a leader in stem cell research, and IRL will work together on synthetic production of molecules for pre-clinical research and applications – with the Singaporeans doing the biology, the New Zealanders the chemistry.

• The Chronicles of Narnia: Prince Caspian: Investment New Zealand has continued to work with leading fi lm companies Walden Media and Walt Disney Pictures, securing work on The Chronicles of Narnia: Prince Caspian for New Zealand. Prince Caspian is the second in a potential six-fi lm series,

based on the classic novels by C.S. Lewis, and will be released in 2008. Principal fi lming for the movie took place in Auckland, the Coromandel and several South Island locations. Leading companies from the New Zealand creative sector have worked on the production, and some post-production work will also be undertaken in the country.

• South Pacifi c Aerospace Centre of Excellence (SPACE): NZTE, through its three-year-old SPACE initiative, is working with New Zealand’s aerospace industry to create global market-driven commercial and investment opportunities. As part of the initiative, Investment New Zealand is building relationships with three of the world’s largest overseas equipment manufacturers to support New Zealand companies’ interests through a range of opportunities including design engineering, pilot training, manufacturing and new technologies.

H I G H L I G HTS

NZTE

is w

orki

ng w

ith N

ew Z

eala

nd

com

pani

es to

take

gre

ater

adv

anta

ge o

f va

lue-

adde

d op

port

uniti

es in

the w

ood

prod

ucts

mar

ket.

NZTE

’s In

vest

men

t tea

m

help

s sec

ure m

ajor

pro

duct

ion

oppo

rtuni

ties

such

as T

he C

hron

icles

of N

arni

a.

GOING GLOBAL



The objective of Export Year 2007 is to improve New Zealand’s long-term export performance.NZTE is the Government’s main implementation agency for Export Year 2007, working alongside MED and MFAT. Private sector organisations involved in the Export Year initiative include business and industry organisations, education providers, unions and commercial enterprises. Export Year work done by NZTE in the period to 30 June 2007 includes:

• Expansion of the Path to Market programme: This programme helps export-ready companies to fast-track their entry into specifi c markets. This year’s Path to Market programme included the ICT and specialised manufacturing sectors and focuses on markets in Australia.

• Education and capability building initiatives: These have included supporting the development and launch of the Thinking Globally education resources for primary and secondary schools; revising and expanding the content of the Exporter Education Programme; helping Export Training Services to pilot the internationally accredited tertiary level Certifi cate and Diploma in International Trade; supporting export-focused efforts by business incubator The ICEHOUSE; and supporting Business Mentors New Zealand to recruit additional mentors with export experience.

• Development of regional plans: NZTE worked with other regional business organisations to put in place plans throughout New Zealand to coordinate the assistance available to exporters from various private sector and government agencies. These included export facilitator pilot programmes in Wellington, Auckland, Northland and Bay of Plenty, and exporter clubs and clusters in Taranaki and Hawkes Bay.

• Boost to market development scheme (EDG-MD) by $33.7 million.

• Event and trade mission support. • New Thinking export breakfasts: NZTE

co-hosted, along with Export New Zealand, a series of very popular breakfast events where exporters received informal training, learnt from each other, and networked.

• Communications programme: NZTE carried out a communications and public relations campaign focused on raising export aspirations among people in business and informing people about grants, training and coaching help available to them.

• Online resources: online training courses, online assessments, exporter news, market information and other resources and tools are now available at www.exportyear.co.nz and updated exporter guides at www.marketnewzealand.com.

Ken Stevens, Chairman of luggage handling systems manufacturer Glidepath Group, was appointed as Export Year 2007 Business Champion.

Ken Stevens started Glidepath in 1972 when he bought a small Auckland general engineering business. He is an indentured Tool and Die Maker by trade but now describes himself simply as ‘an exporter’.

Glidepath designs, manufactures and installs airport baggage handling systems and has completed 449 projects in 48 countries. Glidepath has factories in Auckland, the United States and China and offi ces in Australia, Dubai, Canada, Chile and Peru.

Ken Stevens is a member of the private sector Business Reference Group that is advising government agencies involved in Export Year. Other members are drawn from Business New Zealand, Export New Zealand, the Economic Development Association of New Zealand, Employers and Manufacturers Association (Northern) Inc, the New Zealand Council of Trade Unions, the New Zealand Pacifi c Business Council, the Auckland Chamber of Commerce, the Canterbury Employers’ Chamber of Commerce, and the Wellington Chamber of Commerce.

“The

fact

of t

he m

atte

r is t

hat t

hey

[gov

ernm

ent]

can’

t do

the b

usin

ess. T

hey

can

set t

he cl

imat

e for

it a

nd h

ave t

heir

agen

cies s

et th

e ton

e and

help

pick

up

mar

ket l

eads

. But

whe

n al

l’s sa

id a

nd d

one,

it’s g

ot to

be b

usin

ess t

hat d

oes t

he b

usin

ess.”

– Ken

Stev

ens,

Chai

rman

of G

lidep

ath,

Ex

port

Year

Bus

ines

s Cha

mpi

on

Export Year 2007 is a joint initiative between the Government and the private sector and is focused on increasing New Zealand’s sustainable export base by supporting both new and existing exporters and encouraging businesses to globalise their operations.

EXPORT YEAR 2007

G45GOING GLOBAL


N Z T E P R O G R A M M E S F O R I N C R E A S I N G I N T E R N AT I O N A L CO N N E C T I O N S

New Zealand is a small market. Businesses that prosper do so by looking beyond New Zealand’s shores to develop larger, higher value markets where they can sell their products and services at higher margins.

They do this in many ways – by becoming exporters, by supplying exporters or overseas businesses, by investing offshore, and by taking steps to become global players in the sectors they operate in.

NZTE helps make their way smoother, by working to:

• develop understanding of offshore markets and players• increase the sustained value added from engaging in international markets • increase demand for New Zealand products and services• facilitate access to global value chains• attract and sustain value-adding foreign direct investment in New Zealand.

TR A D E A N D M I N I STE R I A L M I S S I O N S S U P P O RTE D BY N ZTE 2 0 0 6 / 0 7MISSION MI N ISTER DATE SECTOR

Shanghai Hon Phil Goff November 2006 Air New Zealand inaugural fl ight to Shanghai

Germany – CeBIT, Hannover Hon David Cunliffe March 2007 Information and communications technology

USA – Pre-Oscars, Los Angeles Hon Trevor Mallard March 2007 Investment/Film/Creative

USA – Bio2007, Boston Hon Trevor Mallard April 2007 Biotechnology

Australia Prime Minister Helen ClarkHon Trevor Mallard

May 2007 Biotechnology/Food and beverage/Specialised manufacturing

Valencia Hon Trevor Mallard June 2007 Specialised manufacturing

INCREASING INTERNATIONAL CONNECTIONS


Beachheads: Beachheads help high-growth potential exporters to establish and expand in new markets by providing access to business networks, information and advice.

Exporter education: Workshops, coaching and advice on exporting.

International consultancy: Through its network of international offi ces, NZTE provides a range of services to help businesses with market development.

Market intelligence: Through its international offi ces, NZTE keeps exporters up to date with the latest intelligence from global markets.

Online trade enquiries: www.marketnewzealand.com enables businesses with proven export track records to profi le themselves to international customers and receive online trade enquiries.

Sector initiatives: NZTE works with high-growth-potential sectors to improve international competitiveness and encourage initiatives that achieve export-led growth.

INCREASING INTERNATIONAL CONNECTIONSG45

“Goi

ng fo

rwar

d, th

is ap

proa

ch [o

f fi rm

s re

loca

ting

prod

uctio

n to

oth

er p

arts

of t

he

wor

ld] i

s like

ly to

be u

sed

as a

pla

tform

fo

r int

erna

tiona

l gro

wth

that

wou

ld n

ot

have

bee

n po

ssib

le u

sing

a tra

ditio

nal

expo

rtin

g m

odel

.” – D

avid

Skill

ing,

New

Zeal

and

Inst

itute


BEACHHEADS HELP NEW ZEALAND COMPANIES ACCELERATE GROWTH BY TAPPING INTO IN-MARKET EXPERTISENZTE’s Beachheads programme continued its rapid growth during 2006/07, with expansion into new markets and a further increase in the number of companies taking part. At the end of the year, 65 companies were working through Beachheads in the United States, United Kingdom/Europe, Japan and Dubai – 30 of them signed up in the last fi nancial year.

“We continue to attract a steady stream of exporters who have high aspirations for either market entry or growth,” says Greg Cross, Chair of the New Zealand Beachheads Advisory Board. “If anything, the strength of the programme means we’re attracting more of the larger companies now.”The programme’s key feature is access to top business leaders on Beachheads advisory boards within each market. These business leaders – a mixture of expatriate New Zealanders and locals who are committed to helping New Zealand businesses – offer robust advice about operating in each market and sector, and access to executive networks. “Tapping into these networks provides a platform for faster growth,” says Cross. “As the old saying goes, business is about who you know, not what you know.”Highly successful airport baggage handling systems exporter Glidepath is in the Beachheads programme in the United States and Dubai. Chairman Ken Stevens says the boards are “particularly helpful” in introducing Beachhead participants to the right people and providing business guidance for each market. That helps to increase the range of opportunities available and speed up market entry and growth.

“Quite often in foreign markets it can be diffi cult to know if you are dealing with the right person. You can be going down a blind alley. The Beachheads help you to cut through all that… It’s a very worthwhile initiative.”

TH E B EAC H H EA D S P RO G R A M M E I S E XPA N D I N G I N AS I A .

In 2007, the fi rst steps were taken to expand the Beachheads network into South East Asia and India with the appointment of highly experienced Asian business people to lead Beachheads advisory boards in those regions. Beca Asia Holdings Ltd Chairman Chuan Seng Lee has been appointed to head the new South East Asia Beachheads Advisory Board, based in Singapore, and former Thomas Cook India Chair and managing director Pradip Madhavji is heading the new India Beachheads Advisory Board. Both see their roles as opening up new opportunities for New Zealand businesses.

“Strategically, Asia is very important for NZTE and for Beachheads,” says Greg Cross. “Firstly, some of the biggest and fastest-growing economies in the world are Asian. And, secondly, because of language and cultural differences, having access to executive-level networks within those markets is particularly valuable.”

C A S E S T U D Y



“The

Bea

chhe

ads i

nitia

tive i

s a tr

uly g

reat

th

ing…

it a

ccel

erat

es th

e com

pany

’s ex

posu

re a

nd p

enet

ratio

n in

to th

e m

arke

t.”

– Glid

epat

h Ch

airm

an K

en St

even

s.

“The

per

sona

l con

tact

s tha

t we c

an

offe

r will

hel

p op

en d

oors

fast

er fo

r Ne

w Ze

alan

d su

pplie

rs a

nd b

usin

esse

s.”

– Chu

an Se

ng Le

e, Ch

air, N

ZTE B

each

head

s So

uth

East

Asia

Adv

isory

Boa

rd.

V I S ITI N G M E D I A P RO G R A M M ENZTE’s Visiting Media Programme brings international media to the country, to raise New Zealand’s profi le as a nation of new ideas and new thinking in specifi c regions or sectors. Highlights• Articles in leading Spanish daily El Pais

focused on leading New Zealand companies in the creative and industrial sectors, and on Auckland’s experiences as the host of the America’s Cup.

• A series on IT trends from New Zealand, printed in Japan’s Nikkei, the largest economic daily in the world, profi led the country’s development and use of electronic technologies and innovative software in the health and entertainment sectors.

• Ground-breaking research on disease-causing genes was the subject of a feature article on New Zealand scientists in the Financial Times Deutschland.

• New Zealand design and lifestyle was the focus in Elle Decoration, France’s leading interior architecture magazine.

• Italy’s business daily Il Sole 24 Ore profi led high quality New Zealand knitwear achieving success in European markets.

• Germany’s Technology Review wrote about the upsurge of global interest in New Zealand research into implanting animal cells in humans.

G45


G45G45

AMERICA’S CUP EVENTS HELPED BUILD VALUABLE CONTACTS FOR NEW ZEALAND BUSINESSESSun, sea, great food and wine, a relaxed environment, a behind-the-scenes look at Emirates Team New Zealand’s high-tech campaign, and the chance of a multi-million-dollar deal or two… These were the key ingredients in an America’s Cup leveraging programme that brought tangible benefi ts to many of the 55 New Zealand companies that took part.

For some, the benefi ts came through introductions to potential business partners in Europe or the Middle East. For others, the deals were already being done as the boats moved out onto the water in Valencia.The programme – run by NZTE – aimed to promote New Zealand technology, services and products to high value offshore business contacts and audiences.

TH E R E L A XE D A M E R I CA’ S C U P E N V I RO N M E NT H E L P E D TO C E M E NT R E L ATI O N S H I PS.

New Zealand businesses hosted contacts in a hospitality centre that served top quality New Zealand food and wine.And 11 events were held to showcase high-growth sectors – transport and logistics technology, ICT, marine, telecommunications, biotechnology, functional foods, wine, food and beverage, aviation, fi lm and TV, and New Zealand investment. The Millennium Cup, hosted in Palma de Mallorca, drew particular focus to the New Zealand superyacht industry.Each of the sector events took place over two days with dinners, a visit to Animation Research, and a behind-the-scenes visit to the Emirates Team New Zealand base. Visitors learned about the technology involved in the campaign and got to see the race boat go out on the water.Altogether, more than 600 people were hosted from 160 carefully selected

companies from Europe and the Middle East – including senior executives from companies such as telecommunications giant BT.

“It was a very relaxed, friendly, sporting environment, so it was instantly an environment where you became friends and got into the excitement of supporting the team,” says Jane Cunliffe, NZTE’s Commissioner General America’s Cup. “And it was a showcase for New Zealand technology and new thinking values.”

While translating a networking opportunity into a business deal takes time, early results included:

• new business opportunities worth more than $10 million under negotiation for companies that took part in the transport and logistics forum

• promising connections for New Zealand screen companies which may see new fi lms produced in New Zealand and a collaborative partnership between New Zealand and UK animation companies

• confi rmed orders and signifi cant new business under negotiation for marine industry companies

• introductions for New Zealand telecommunications companies to senior executives in UK and European counterparts, leading to potential deals

• at least 160 stories published during a media campaign highlighting New Zealand’s innovation, creativity and technology.

O N E O F TH E COM PA N I E S E XP E C TI N G TA N G I B L E R E S U LTS F ROM ITS I NVO LVE M E NT I S JA D E S O F T WA R E .

Jade took part in the transport and logistics technology event. “For us, it was about putting a huge effort into some very carefully targeted customers from whom we now expect some substantial benefi ts in future,” says Jade’s Head of Marketing, Sales and Channel Development Gavin Mitchell.

“We ended up with customers feeling well-loved, not just by Jade but by the New Zealand industry as a whole, as represented by the government.”

Holding the event as part of the America’s Cup – a high tech event where New Zealand was doing well – was crucial, because it helped to showcase the full range of New Zealand capabilities. Also important was the government backing, which demonstrated that New Zealand is serious about developing as an international IT ‘centre of excellence’.

Mitchell says Jade is defi nitely expecting business deals to result.

“I would say that the relationship with our customers took a signifi cant step forward as a result of this event.”

C A S E S T U D Y




HEWLETT PACKARD’S ‘VISION OF THE FUTURE’ – THE COOLTOWN CUSTOMER CENTRE IN SINGAPORE – IS 25 PERCENT KIWIWhen Hewlett Packard (HP) selects the technology to display in its Cooltown customer centre, it can choose from anywhere. Yet, of 40 companies represented, 10 are from New Zealand.

Cooltown is HP’s vision of the future, showcasing a world of ‘pervasive computing’ in which everyone and everything is connected to the internet.The centre’s audience is senior executives from Asia and around the world. Each visit is a hands-on experience, centred around a particular sector or theme – from products and services for the home, to banking or transport.For the New Zealand companies involved, being part of Cooltown offers not only exposure but also the opportunity to be part of the worldwide HP ‘ecosystem’ – meaning HP sales teams understand their technology, and they can get introductions to HP clients – says Paul Gestro, NZTE’s ICT Regional Manager for South and South East Asia. All companies at Cooltown are HP partners.NZTE’s role has been to develop a strategic relationship with Cooltown and HP vertical industry units to introduce New Zealand companies that will fi t with Cooltown’s vision of the future. NZTE then makes the most of its international network to link in with other HP offi ces globally using Cooltown as a proof of concept.

I NVO LVE M E NT I N CO O LTOW N G I V E S N EW Z EA L A N D COM PA N I E S E XP O S U R E A N D ACC E S S TO H P ’ S G LO BA L SA L E S N E T WO R KS.

One New Zealand company that has benefi ted from the exposure is Paxfl ow, which is developing wireless technology that will allow airports to instantly locate and assist every passenger and airport personnel, improving security and reducing delays.

“ Cooltown offered us a unique opportunity to show our offering in a highly credible and sophisticated environment,” says CEO Jon Lowther.

“HP have been incredibly supportive and it’s helped us gain credibility in the market, and gain access to senior executives. It’s opened up many doors, both to credibility in market and in the investment community.”The relationship with HP has fl ourished, helping Paxfl ow to develop its product and bring it to market. With HP offering support, the company is now piloting its technology at Geneva Airport, “a very credible, very strategic opportunity,” says Lowther.

C A S E S T U D Y



G45

“The

Coo

ltow

n ex

perie

nce,

with

NZT

E su

ppor

t, ha

s bee

n tre

men

dous

ly h

elpf

ul

to Pa

xfl o

w in

term

s of o

ur g

o-to

-mar

ket

stra

tegy

. In fa

ct, I’

ll say

it’s

been

pivo

tal.”

– P

axfl o

w C

hief

Exec

utive

Jon

Low

ther

.

YO U CA N TR U ST U S : W E ’ R E K I W I S I N B U S I N E S SAmerican and British businesspeople see their New Zealand counterparts as honest and trustworthy but not high in business acumen, according to research carried out for NZTE.

The research, by Nielsen, aims to help New Zealand businesses position themselves in international markets, by aiding understanding of overseas awareness of and attitudes to New Zealand.

New Zealand businesspeople were seen as being open and direct, in contrast to international companies which often had hidden agendas and undisclosed confl icts of interest.

However, New Zealand companies were also seen as lacking hunger and a sense of urgency, and as too risk-averse.Other key fi ndings included:• awareness of New Zealand business

was not high – US and UK businesspeople didn’t know about specifi c New Zealand companies

• Americans saw New Zealand as innovative and ‘fresh’, offering potential for undiscovered gems, whereas British saw New Zealand as conservative and staid.

Nielsen suggested New Zealand business values were a good fi t for small and medium enterprises in both markets, and for larger businesses that emphasise human values.

“Bus

ines

s peo

ple …

talke

d abo

ut th

e op

enne

ss an

d dire

ctne

ss in

New

Zeal

and

busin

ess b

eing i

n co

mpl

ete c

ontra

st to

in

tern

atio

nal b

usin

ess.”

– Nie

lsen

surv

ey o

n Am

erica

n an

d Br

itish

bus

ines

s att

itude

s to

New

Zeal

and.


N Z T E B U S I N E S S C A PA B I L I T Y P R O G R A M M E S

Most companies start small – many with just an idea, or a single contract, and one or two motivated people. To grow, they need to acquire new knowledge and skills, connect with customers and business partners in New Zealand and overseas, acquire or develop new technology, and raise capital.

Several NZTE programmes help businesses to gain the capabilities they need to get started and grow. In particular we:

• improve the skill base of New Zealand entrepreneurs, business owners and managers with potential to internationalise• increase the capacity of the New Zealand economy by increasing the accessibility of growth fi nancing, investment and

resources to build capability• facilitate access to and use of the best ideas and technologies.

BUILDING BUSINESS CAPABILITY


Better by Design: Assistance for exporters to use design and branding to differentiate themselves and achieve higher margins in global markets.

BIZ: Business information centres, freephone and website for SMEs.

Business clusters: Assistance for groups of companies/organisations from related sectors working together to achieve growth.

Business incubators: Advice, mentoring, and access to networks and skills, in shared premises with other high-potential companies.

Business mentoring: Advice and guidance from experienced businesspeople.

Enterprise Development Grants: For capability building and development of new international markets.

Enterprise training: Business management training and coaching.

Escalator: Information and guidance on capital-raising.

Growth Services Fund: Support for high-growth-potential businesses to purchase advice, expertise and market development services.

Industry Capability Network: Working to identify New Zealand companies that can contribute to major projects.

BUILDING BUSINESS CAPABILITYG45

“Suc

cess

com

es fr

om a

n un

wav

erin

g de

dica

tion

to a

spec

ifi c g

oal, f

rom

te

amw

ork i

n th

e fac

e of a

dver

sity a

nd

from

aim

ing

high

in a

com

petit

ive w

orld

.”– A

ngus

Tait,

Tait

Elec

troni

cs


M A R K E T D EV E LO PM E NT G R A NTS BY M A R K E T

120

100

80

60

40

20

0

RUSS

IA

“EU

ROPE

”

GER

MA

NY

VIE

TNA

M

UA

E

KORE

A

IND

IA UK

STH

AM

ERIC

A

NTH

AM

ERIC

A

USA

JAPA

N

SIN

GA

PORE

CAN

AD

A

9

88

146 5

11 11

56

10

42

104

1826

16

MA

LAYS

IA

HO

NG

KO

NG

CHIN

A

28

59

COU NTRI ES CHOSEN FOR ENTRY BY COMPAN I ES

NU

MBE

R O

F CO

MPA

NIE

S CH

OO

SIN

G T

O E

NTE

R

THE MARKET DEVELOPMENT PROGRAMME EXPANDED DURING 2006/07 TO HELP EVEN MORE NEW ZEALAND BUSINESSES DEVELOP OFFSHORE MARKETSNZTE’s Enterprise Development Grants – Market Development programme received a $15 million boost in the May 2007 Budget, to help more companies explore and develop offshore markets.

In recent years, more than 680 companies have had funding approved under the programme to help them break into and develop new markets. One example is Maxwell Rodgers, which markets New Zealand natural fi bre bed throws to some of the world’s most exclusive hotels and resorts in more than 30 countries – including Caesar’s Palace in Las Vegas. It used a market development grant to increase its in-market presence and develop a website and other marketing collateral, helping to increase its sales.With this year’s budget boost, the grants will be able to help more

companies than ever before to enter markets or increase sales.

From an initial funding pool of $6.5 million in January 2005, the programme grew to an annual $36.3 million in 2006/07, and will increase to $51.4 million in 2007/08.

The grants are available for market development activities such as advertising and promotions, market visits, in-market representation, attending trade fairs and events, and market research.

Grants are available only for New Zealand companies with turnover

of less than NZ$50 million, for market development projects that represent a signifi cant growth step for the company. Exporters must match NZTE’s contribution at least dollar for dollar.

“The increased commitment refl ects the programme’s past success at making a real difference for New Zealand exporters,” says NZTE’s market development programme manager Julie Harris.

“As Export Year 2007 reminds us, we must ‘think global’ and help grow more fi rms that are export capable.”

C A S E S T U D Y



G45

“Our

expo

rts t

o th

e Uni

ted

Stat

es a

re

cert

ainl

y gro

win

g fa

ster

than

the o

ther

pa

rts o

f our

bus

ines

s and

that

’s be

en a

di

rect

resu

lt of

the e

xtra

fund

ing.”

– M

axw

ell R

odge

rs M

anag

ing

Dire

ctor

, Ro

ger G

reen

.



ENTERPRISE TRAINING HELPS COMPANIES TAKE THE FIRST STEP TOWARDS JOINING INTERNATIONAL VALUE CHAINSNew Zealand is recognised as one of the most entrepreneurial countries in the world in terms of business start-ups, but our rate of business growth lags. The vast majority of New Zealand’s 350,000 businesses employ fewer than 10 people and do not export.

For NZTE Business Development Manager Euan Purdie and his team, helping people translate their ideas into business growth is what enterprise training is all about. Offered through 15 providers throughout New Zealand (many of them regional economic development agencies), the training offers an introduction to management, planning, marketing and other key business skills.

“From NZTE’s point of view, our job is exporting and internationalising New Zealand companies,” says Purdie.

“So the role of enterprise training is to help smaller or early stage companies take the fi rst step up. What skills or capabilities do they need so they can grow and eventually become exporters or fi t into the value chains of exporters?”

Training providers select businesses for enterprise training for strategic reasons, based on their ability to contribute to regional growth. All of the 12,000 businesses involved each year are offered an initial capability assessment, training and follow-up coaching. As well as learning and increasing

motivation, companies that take part say they have benefi ted from networking with other companies.

E NTE R P R I S E TR A I N I N G E XPA N D S B U S I N E S S H O R I ZO N S A N D S U P P O RTS R E G I O N A L D EV E LO PM E NT.

While enterprise training covers business basics such as marketing/branding, tax and HR, it also allows regions to upskill businesses for strategic projects.Venture Southland, for example, has used enterprise training to support regional economic development initiatives such as:

• oil and gas exploration in the Great South Basin

• a European Space Agency monitoring station planned for Southland

• initiatives to develop tourism in the region and to encourage the region’s 300+ food processors to add value to their products.

The benefi t of this approach, says Venture Southland Enterprise Services Manager Alistair Adam, is that it allows businesses to plan ahead so they’re

ready as a project comes on stream. The training can then evolve with the project “so we’re giving them the tools not just to be aware of the project but to participate fully.”

The training also opens people’s eyes to opportunities in other parts of the country or overseas. A company that upskills to support Southland oil and gas exploration, for example, “will start to see how they can be involved in the oil and gas industry in Australia or Taranaki or further afi eld.”

Adam says training related to specifi c industries and projects adds to a core of business basics workshops on topics such as tax and HR. Altogether, training is provided to more than 800 business people in the region each year. The networks that form from training workshops are as important as the training itself.

Feedback from training recipients emphasises the benefi ts, with most fi nding it gives them new ideas, helps with planning and business activities, and is “incredibly motivating.”

C A S E S T U D Y

“Gre

at ch

ance

to b

e exp

osed

to th

is ne

w

indu

stry

… Th

anks

!”– M

ark H

osie

, att

ende

e at V

entu

re

Sout

hlan

d’s b

usin

ess p

lann

ing

for o

il an

d ga

s ind

ustry

wor

ksho

p, Ap

ril 20

07.

“ Ent

erpr

ise tr

aini

ng is

abl

e to

adju

st

to a

rang

e of n

eeds

. Tha

t’s a

real

st

reng

th o

f the

pro

gram

me.

It’s

able

to a

dapt

to w

hate

ver i

s goi

ng

on in

the r

egio

n.”

– Ven

ture

Sout

hlan

d En

terp

rise

Serv

ices M

anag

er, A

lista

ir Ad

am.

BUILDING BUSINESS CAPABILITYG45


B E T TE R BY D E S I G N E NTR A NTS BY S E C TO R 2 0 0 6 / 0 7

WOOD, BU I LDI NG AN D I NTERIORS 3%

BIOTECH NOLOGY 6%

CREATIVE I N DUSTRI ES 19%

FOOD AN D BEVERAGE 12%

ICT 19%

SPECIALISED MAN U FACTU RI NG 41%

THE AWARD-WINNING BETTER BY DESIGN PROGRAMME HIGHLIGHTS THE KEY ROLE DESIGN PLAYS IN EXPORT SUCCESSNZTE’s Better by Design programme aims to transform New Zealand businesses by using design to achieve an edge in global markets.

Founded in 2004, the programme has grown steadily. An additional 32 companies were selected to join during 2006/07, bringing the total number to 85.Its success was recognised when it won the export support category at the 2007 Vero Excellence in Business Support Awards – an award that recognises the tangible success Better by Design is now bringing to New Zealand businesses.

“This award shows that many exporters now see that design has the ability to give them the competitive edge in global markets,” says Better by Design director Judith Thompson.

“It also validates that our unique service is proving to be a valuable tool. Better by Design combines the strength of government with the expertise of the private sector to deliver a high quality programme.”

COMPANIES IN THE PROGRAMME HAVE SHOWN A RECORD OF STRONG GROWTH, AND SAY BETTER BY DESIGN HAS ACCELERATED BUSINESS DEVELOPMENT.

Companies selected for the programme work through a six-stage process to help them integrate design across their businesses, starting with a 360 degree assessment by an external team. A key part of the process is understanding that design is about more than aesthetics – it’s what links a company with its customers, and creates differentiated products and services that command bigger margins. The Better by Design programme also provides ongoing support through design management education, events, internships and the www.betterbydesign.org.nz website. The CEOs Summit in May 2007 featured fi ve international keynote speakers and eight leading New Zealand CEOs and addressed fi ve design-related themes: insight; product and service development; branding; innovation; and leadership.Selecon CEO Jeremy Collins described it as “the best organised, most interesting and motivating conference I have ever attended. My colleagues and I have learnt a lot, so much to digest and contemplate”.

C A S E S T U D Y



G45

“Bei

ng in

the B

ette

r by D

esig

n pr

ogra

mm

e w

as a

real

ly w

orth

whi

le p

roce

ss –

it w

as

robu

st, r

igor

ous a

nd d

eman

ding

and

mad

e us

ans

wer

a lo

t of q

uest

ions

… W

e now

ha

ve a

lot o

f con

fi den

ce in

the u

niqu

enes

s of

our

des

ign,

the q

ualit

y of o

ur p

rodu

ct,

and

in o

ur a

bilit

y to

artic

ulat

e our

bra

nd

stor

y to

buye

rs.”

– Mok

um M

anag

ing D

irecto

r, Ed

win

Ryse

nbry

N EW Z EA L A N D G OV E R N M E NT B U S I N E S S W E B S ITEA team within NZTE has worked on the development of a new whole-of-government website, www.business.govt.nz

The site has been developed in consultation with government departments, business groups and business service providers. It is the place to fi nd and access all government business information and services, as well as information from non-government business sources.

Continual improvements to www.business.govt.nz should eventually result in the site becoming the primary point for New Zealand business people to interact and transact with the whole of government, as well as continuing to be a source of knowledge from non-government business information providers.


MA JOR REGIONAL INITIATIVES (MRIs)NZTE’s Regional Partnership Programme (RPP) has provided funding to New Zealand’s regions to create regional economic development strategies and develop Major Regional Initiatives for six years. On 1 July 2007 the programme was replaced by a Regional Strategy Fund, which NZTE administers to help 14 regions improve the quality of their business environment through the implementation of regional economic development strategies. The Regional Strategy Fund works alongside MED’s Contestable Enterprising Partnerships Fund which focuses on substantial regional projects.During the six years that NZTE operated the RPP, it funded 26 MRIs.

TaupoMotor Sport Park – tourismClean Energy Centre – sustainability

Wanganui Wanganui, Rangitikei Ruapehu

Tourism – tourism

AucklandScreen production – creative

HamiltonInnovation Centre – biotechnology

Aviation Business Park – specialised manufacturing

Eastern Bay of Plenty MaintainNZ – specialised manufacturing

RotoruaRADI Centre – wood processing

TaranakiCAPENZ – specialised manufacturing

Hawkes BayFood Hawkes Bay – food and beverage

ManawatuBioCommerce Centre – biotechnology

WellingtonScreen production – creative

MarlboroughWine Research Centre – food and beverage Heritage Aviation Park – tourism

West CoastRegional Tourism

Strategy – tourismCanterburyGeospatial Technology Centre – ICT

SouthlandBroadband – ICT

Kapiti-Horowhenua DesignTex – creative

Hawkes BayApple Futures Project – food and beverage

WairarapaCuisine and Fine Wine – food and beverage

WaikatoWaihi Gold Discovery Centre – tourism

CanterburyWool Industry Network – creative

OtagoApple Futures Project – food and beverage

AucklandHobsonville Marine Precinct – specialised manufacturing

NelsonApple Futures Project

– food and beverage

Southland Discover Fiordland International

Wilderness Centre – tourism

2006/07 Previously

Attracting investment: Helping international corporate investors to relocate to New Zealand, establish greenfi elds operations, or work with New Zealand businesses on global ventures.

Enterprise Culture and Skills Activities Fund: Supporting a wide range of projects that foster business knowledge and enterprising attitudes among young people.

New Zealand Export Awards: Recognising outstanding achievement and growth by New Zealand exporters.

New Zealand New Thinking: Building international recognition for New Zealand’s creativity, innovation and technology.

Regional economic development: Giving regions guidance and funding to develop sustainable economic development projects.

World Class New Zealand: Connecting high-potential New Zealand sectors with the best in international talent, and celebrating individual New Zealanders who make outstanding contributions to the country’s development.

N Z T E P R O G R A M M E S F O R I M P R OV I N G T H E E N V I R O N M E N T F O R E N T E R P R I S E A N D G R O W T H

To reach their potential, businesses need a positive environment: one that celebrates success, minimises regulatory barriers, and provides access to investment capital.

NZTE works closely with its partner agencies and businesses to address issues affecting the business environment. In particular, we work to:

• integrate economic development activities • infl uence the development of a supportive regulatory and policy environment • celebrate and promote New Zealand business success• foster positive attitudes to business, enterprise and growth domestically and promote a positive image of New Zealand internationally.

IMPROVING THE ENVIRONMENT FOR ENTERPRISE AND GROWTH


G45

“Peo

ple h

ave s

aid

that

it d

oesn

’t st

op yo

u be

ing

an ic

onic

New

Zeal

and

com

pany

if

your

man

ufac

turin

g is

offsh

ore.

I thi

nk

peop

le a

ppre

ciate

that

the k

ey th

ing

is to

re

tain

the R

&D,

the b

rand

ing,

des

ign

and

tax

base

. The

key t

hing

for u

s is t

o ke

ep th

e ec

onom

y mov

ing

up th

e val

ue ch

ain

and

reta

inin

g th

e hig

h va

lue p

arts

of th

e pro

cess

.”– P

rime M

inist

er H

elen

Cla

rk


NorthlandActivate Northland – tourism


AN EXPANDED PROGRAMME AND GREATER INPUT FROM NZTE HELPED TRANSFORM NEW THINKING WEEK 2007 INTO AN IDEAL SHOWCASE FOR NEW ZEALAND BUSINESS INNOVATIONHeld in Auckland from 12-16 March, the event brought together the creative, education, food and beverage, ICT and specialised manufacturing sectors, providing opportunities to explore collaboration and synergies through panel discussions, seminars, workshops, and networking events.

Main events included:

• regional workshops featuring market experts from Australia, China, Europe, Japan, the Middle East, South Asia and the United States

• sector workshops• seminars on business strategies for

offshore markets• NZBio’s annual conference, bringing

together companies and expertise in the biotechnology sector

• the World Class New Zealand Awards and the annual awards ceremony for Incubators New Zealand.

Speakers included businessman and motivator John Hart, New Zealand Institute CEO Dr David Skilling, Geoff Ross of 42 Below, Trade Minister Phil Goff, Glidepath founder and owner Ken Stevens, Economic Development Minister Trevor Mallard, and New Zealand Beachheads Advisory Board Chair Greg Cross.

NZTE co-ordinated the week’s events, expanding its role from the inaugural New Thinking Week in 2006 when it sponsored events run by other organisations.

More than 2000 people attended throughout the week. Informal feedback suggested businesses found the combination of events in one location at one time extremely helpful.

“In a couple of days someone could go to a couple of sector workshops, a regional workshop, meet key people from offshore Beachheads Advisory Boards, and network with people from their own and other sectors – that was the real benefi t,” says the event’s organiser, NZTE corporate marketing manager Bev Cassidy-Mackenzie.

C A S E S T U D Y



G45

“In a

coup

le o

f day

s som

eone

coul

d go

to

a co

uple

of s

ecto

r wor

ksho

ps, a

regi

onal

w

orks

hop,

mee

t key

peo

ple f

rom

offs

hore

Be

achh

eads

Adv

isory

Boa

rds,

and

netw

ork

with

peo

ple f

rom

thei

r ow

n an

d ot

her

sect

ors –

that

was

the r

eal b

enefi

t.”

– Bev

Cas

sidy-

Mac

kenz

ie



A GRANT FROM INVESTMENT NEW ZEALAND SMOOTHED THE WAY FOR A MAJOR EXPANSION OF CADBURY’S DUNEDIN PLANTThe NZ$2 million grant from Investment New Zealand’s Strategic Investment Fund (SIF) helped to secure the future of the Dunedin chocolate processing facility – one of the city’s leading employers.

In November 2006, Cadbury announced an expansion of the facility, investing NZ$18 million on new buildings, plant and environmental work to expand its facility. The expansion will enable the factory to more than treble its production of crumb – a base ingredient used in manufacturing chocolate. The decision to expand was made as a result of the SIF grant, which will be used for research and development (R&D) on chocolate crumb. The Otago University Food Science department will provide assistance with the R&D. Investment New Zealand had previously funded a feasibility study which demonstrated the plant’s competitiveness as a supplier of chocolate crumb.The new state-of-the-art facility will position Dunedin as a leading source of chocolate crumb for Cadbury in the Asia Pacifi c region, which has enormous potential for growth. The site will

become a centre of excellence for innovation and development.

Cadbury Confectionery Ltd is New Zealand’s largest chocolate manufacturer, with a market share of more than 50 percent. Cadbury is a major employer in Dunedin, with 500 full-time and 150 seasonal employees. It is seen as an important part of the city by the local population.

The Dunedin facility has been located on its existing central city site since the early 1900s when it was a privately owned chocolate and biscuit factory. Today, it manufactures a wide range of chocolate products and muesli bars as well as chocolate crumb.

Cadbury Schweppes’ Managing Director Australia and New Zealand, Mark Smith, said: “We worked closely with Investment New Zealand to secure this funding. We chose to invest in New Zealand, and in particular, in

Dunedin because the plant is already highly effi cient, and we have access to quality ingredients, such as fresh milk.Both Cadbury and the New Zealand Government are focused on specifi c growth agendas. By working together for mutual benefi t, we were able to achieve a positive outcome for both, and for the city of Dunedin.”

Much of the material used for the expansion is being sourced locally. Construction of the crumb facility is underway and it is expected the plant will be ready for production in October 2007.

Investment New Zealand’s Ross Campbell said the state of the art expansion would enhance the factory’s viability and strengthen signifi cantly its ability to bid for further expansion projects.

“It sends a clear signal to international investors that New Zealand is a desirable location for globally competitive fi rms.”

C A S E S T U D Y

“We’r

e ver

y app

recia

tive o

f the

Ne

w Ze

alan

d Go

vern

men

t’s g

rant

, whi

ch

is be

ing

used

spec

ifi ca

lly fo

r est

ablis

hing

th

e res

earc

h an

d de

velo

pmen

t cen

tre.”

– Cad

bury

Schw

eppe

s’ M

anag

ing

Dire

ctor

Au

stra

lia a

nd N

ew Ze

alan

d M

ark S

mith

.

IMPROVING THE ENVIRONMENT FOR ENTERPRISE AND GROWTHG45


THE NZTE EXPORT AWARDS IN 2006 MARKED THE 40TH YEAR OF CELEBRATING WORLD CLASS NEW ZEALAND BUSINESS ACHIEVEMENTThe fi rst winners of the awards in 1966 included the manufacturers of Tonka Toys and Morrison lawn mowers, as well as publishers A.H. and A.W. Reed.

Over the years, other winners include household names such as Tip Top Ice Cream, Fletchers, Lion Breweries, the New Zealand Dairy Board, Bowron Sheepskin, Crown Lynn Pottery and Zespri. Included in their ranks are also many companies that have achieved world fi rsts, such as C.W.F. Hamilton and Co Ltd, pioneers of jetboat propulsion, and the Gallagher Group, inventor of the electric fence.The Export Awards recognise outstanding success among New Zealand exporters, and provide an opportunity to showcase that success to other businesses and to the country as a whole.Winning a New Zealand Export Award can help put a company on the map, as well as fostering staff pride and respect in New Zealand and overseas. Past winners attest to the positive impact that winning a New Zealand Export Award has on their business, both

internationally and domestically.The 2006 winner of the DHL Supreme Exporter of the Year Award was international engineering, architecture, planning and property management consultancy Opus International Consultants. Other winners included Comvita, phil&teds Most Excellent Buggy Company, Healtheries, Provenco, Skellerup, and Pacifi c Forest Products.While past winners enjoy enhanced profi le in the marketplace, other entrants also see value in simply applying for the awards.

“It was almost a forced operations review covering all aspects of our business from marketing, sales and distribution to staff management and fi nancial systems,” says Spy Valley Wines General Manager Blair Gibbs.

“The feedback we got reinforced what we were doing right, and helped identify areas for improvement that we’ve since gone on to address.”

C A S E S T U D Y


“The

Expo

rt A

war

ds ce

lebr

ate

the

achi

evem

ents

of w

orld

clas

s Ne

w Ze

alan

d co

mpa

nies

and

the

valu

able

cont

ribut

ion

they

are

m

akin

g to

the e

cono

my.”

– N

ZTE C

hief

Exec

utive

Tim

Gib

son

2 006 N ZTE E XP ORT AWA R D WI N N E RS

The 2006 NZTE Export Award winners were:

DHL supreme exporter of the year, services exporter of the year

Opus International Consultants, Wellington

Agritechnology, life sciences and biotechnology exporter of the year

Comvita Ltd, Bay of Plenty

Creative exporter of the year

phil&teds, Wellington

Food and beverage exporter of the year

Healtheries of New Zealand Ltd, Auckland

Information, communications and technology exporter of the year

Provenco Group, Auckland

Specialised manufacturing exporter of the year

Skellerup Industries Ltd, Canterbury

Wood building and interiors exporter of the year

Pacifi c Forest Products Ltd, Auckland

New Thinking commendations

phil&teds and 42Below Ltd

IMPROVING THE ENVIRONMENT FOR ENTERPRISE AND GROWTH G45



G45

NZTE is a Crown Entity established under the New Zealand Trade and Enterprise Act 2003. It is the New Zealand Government’s economic development agency formed on 1 July 2003 from the merger of Trade New Zealand and Industry New Zealand.

GOVERNANCE

G45

TH E RO L E O F TH E B OA R D A N D COM M IT TE E S

The NZTE Board currently has eight members, appointed by the Ministers responsible for NZTE. Two special advisers to the Board are the Chief Executives of MED and MFAT. The Board is the governing body of NZTE, with the authority, in NZTE’s name, to exercise the powers and perform the functions of NZTE. All decisions relating to the operation of NZTE are made by or under the authority of the Board in accordance with the New Zealand Trade and Enterprise Act 2003 and the Crown Entities Act 2004. Committees of the Board are convened to deal with specifi c governance matters. The current committees are the Audit and Risk, Programme Review (formerly called Grants) and Human Resources and Remuneration committees. Those committees meet regularly, and other ad hoc committees may be formed from time to time to deal with specifi c issues.

D E L E GATI O N F R A M EWO R K

There are formal policy frameworks in place relating to NZTE’s principal operations, delegation of fi nancial authority to managers and meeting Ministerial expectations as set out in the Output Agreement.The Board’s delegation of the conduct of the day-to-day affairs of NZTE to the Chief Executive is made within this framework.

R I S K M A N AG E M E NT

NZTE is committed to managing its risks in a proactive, ongoing and positive manner.Our comprehensive Risk Management Framework is aligned to the Australian/New Zealand Risk Management Standard AS/NZS 4360:2004. The main driver behind the framework is the desire to ensure consistency of approaches and techniques when identifying, measuring, prioritising, managing and reporting risks. During

2006/07, we further refi ned the framework and risk management policy, and commenced a phased implementation of the framework.Our focus for 2007/08 is to continue the phased implementation with emphasis on enhanced risk identifi cation at Board and senior management level, and on project risk. We are working towards a culture where a common risk language and approach is adopted by all staff and good risk management practices are applied to strategic planning, management reporting and assurance.The Audit and Assurance function incorporates an advisory role and an internal audit role. It is a core component of NZTE’s corporate governance, providing the Board (via the Audit and Risk Committee) and management with assurance that robust processes, internal controls and other risk mitigation strategies are in place and are operating effectively.

P E R F O R M A N C E M A N AG E M E NT F R A M EWO R K

Over the past 18 months, NZTE has developed a Performance Management Framework (PMF) focusing on intervention outcomes and quality of delivery. The primary objective of the PMF is to help NZTE and its stakeholders to determine the organisation’s impact and contribution to economic transformation goals. This is essential if the government resources allocated to economic development are to make their greatest impact.The PMF is being introduced to support existing accountability and reporting mechanisms between NZTE and the government. Progress made during 2006/07 included:

• developing and implementing impact measurement tools for intensively managed (high-growth potential) and enterprise training clients

• introducing a net economic benefi t calculator to estimate the expected results from NZTE activities where the working relationship is not with an individual fi rm and for other areas of signifi cant investment (for example, large Growth Services Fund grants)

• completing client value research across all NZTE services

• undertaking a baseline costing exercise for staff who deliver to more than one output and output class (typically client-facing staff on and offshore)

• piloting and applying performance measures in the Americas region business unit

• developing an organisation level PMF, using a balanced scorecard approach.

Plans are in place to roll out the PMF to all business units in stages, beginning in September 2007.Continued commitment by NZTE to the development and implementation of the PMF in 2007/08 is crucial. Once the PMF system is fully implemented, the effectiveness of the measures and the framework in achieving their objectives will be regularly reviewed by NZTE.

O RGA N I SATI O N A L CA PA B I L IT Y

The focus of the strategic Human Resources Business Plan for 2006/07 was to continue to build the leadership capability within NZTE. This continues the work programme commenced in 2005/06. The culture survey conducted in 2004 was repeated in early 2007 with substantial improvements in most areas. The programmes we have put in place to address differing levels of training and development needs for leaders have supported a 20 percent increase in leadership capability. NZTE’s leadership development programme includes:

• 360º feedback: The 360º feedback process was completed for all second and third level managers in May 2007.

GOVERNANCE



G45

The Senior Executive Team now has a clear and detailed understanding of our leadership capability and of areas needing development. Strengths for our managers are:– commitment– intellectual capability– achieving outcomes.

• NZTE mentoring programme: Sixteen participants from around the world were selected for the 2007 programme. We continue to grow our internal pool of mentors, which also assists with NZTE’s leadership development. By the end of the 2007 programme, one third of our managers will have been mentored.

• Succession planning and talent management: The succession planning programme continued in the 2006/07 year.

• Toolkit and training for managers: A training programme and manual has been developed for all NZTE managers. The training is being provided to all NZTE managers over the next two years, with a workshop held each quarter.

These programmes will continue during 2007/08 as part of our three-year organisational capability development programme.All staff participate in PERCAPITA!, NZTE’s individual performance management system, which includes a component on training and development to enhance staff capability and to support NZTE’s strategy. Individual gaps in knowledge or skills are identifi ed and development interventions implemented.

N ZTE R E C R U ITM E NT A N D S E L E C TI O N

NZTE manages its own internet recruitment site. The career centre received 69,715 visitors for the 2006/07 fi nancial year including:

• 183 vacancies advertised • 2262 registrations• 2355 applications.This is the third year the internet-based career centre has been in operation. NZTE continues to be an employer of

choice in a challenging recruitment market. Over the last 12 months there has been an average of 12 applications per role, with an average of 200 visitors per day to the career centre.

G O O D E M P LOYE R M AT TE R S

NZTE is required under the ‘Crown Entities Act 2004’ to be a good employer. NZTE has a range of programmes and policies to ensure that the organisation is a good employer and an employer of choice in a challenging employment environment. Under those provisions, policies are made available to all staff on the staff intranet. Policies relating to employment at NZTE are reviewed annually to ensure that they remain relevant to staff in a global environment, and meet legislative requirements. The review process includes staff focus groups.

P E R M A N E NT STA F F I N G

As at 30 June 2007, the permanent staffi ng * level in NZTE was 542.67 full time equivalents (FTEs). This is an increase of 1.35 percent over last year. Staff are located at our offi ces in New Zealand and internationally, with the highest concentration of numbers in Auckland (112.12 FTEs) and Wellington (159.63 FTEs).

TU R N OVE R

Turnover to 30 June 2007 was 20 percent, the same as at 30 June 2006. Turnover is closely monitored to ensure there is a balance in the retention of institutional knowledge and talent, while at the same time encouraging a healthy turnover in a tight recruitment market. The average length of service for NZTE is 3.94 years. This has not changed signifi cantly since NZTE was established.

E TH N I C IT Y

The New Zealand European ethnic group continues to be the dominant group within NZTE at 37.89 percent. Other ethnic group breakdowns are: Asian 8.62 percent; Maori 2.60 percent; Other European 7.32 percent; other groups 4.23 percent; Pacifi c Peoples 0.65 percent. Thirty-nine percent of staff have not provided ethnicity information.

G E N D E R

The gender ratio in NZTE is currently 59.51 percent/40.49 percent (female/male). This has not changed signifi cantly since NZTE was established.

F L E XI B I L IT Y A N D WO R K D E S I G N

NZTE monitors work life balance to ensure staff have adequate time for rest and recreation and there is a balance between NZTE’s requirements and the employee’s need. All staff have access to NZTE’s leave policy, which is reviewed regularly with a cross-section of staff. NZTE’s practice is to consider approaches from staff to support fl exible work arrangements, where these can be accommodated. Arrangements in place include part-time employment, fl exible and fi xed working hours, work from home or alternate offi ce locations and graduated return to work.

R E MU N E R ATI O N , R E CO G N ITI O N A N D CO N D ITI O N S

NZTE has an equitable, transparent remuneration policy which is available to all staff on our intranet. This policy is reviewed regularly with a cross-section of staff. The policy is publicised each year during NZTE’s annual performance review process.

H A R AS SM E NT A N D B U L LYI N G P R EVE NTI O N

Through its induction programme NZTE provides training and support around policy and procedures in relation to harassment and bullying. All staff have access to this policy and understand how the organisation addresses complaints of this nature. This policy is reviewed regularly with a cross-section of staff.

H EA LTH A N D SA F E T Y

All staff at NZTE have access to NZTE’s Health and Safety policy. A cross-section of staff make up our Health and Safety Committee. NZTE creates an environment that supports health, safety and well-being. Initiatives include access to the Employee Assistance Programme, workstation assessments and minimisation of risks.

*This excludes fi xed term, casual, contractors, consultants and executive lease.

GOVERNANCE


Phil Lough – Chair Phil Lough was Chief Executive of the Sealord Group Limited from 1994 until 2002. He was previously Deputy Chief Executive of the New Zealand Dairy Board and held various senior positions at the Dairy Board for almost 20 years. His current directorships include Port Nelson Ltd, Tatua Dairy Co-operative, Crop and Food Research, Livestock Improvement Corporation and Methven Ltd.Mr Lough was appointed Chairperson of the Establishment Board in December 2002 and reappointed as Chairperson of the NZTE Board in December 2006.

Craig EllisonCraig Ellison has been an active participant in the New Zealand fi shing industry, is currently President of the New Zealand Fishing Industry Association and is on the boards of a number of companies in the seafood sector. Of Ngai Tahu descent, he is a director of Aotearoa Fisheries and was a commissioner with the Treaty of Waitangi Fisheries Commission (Te Ohu Kai Moana) until 2004.Mr Ellison is Chairperson of the New Zealand Seafood Standards Council and the Prepared Foods Group and a director of New Zealand Airways Corporation and the Trade Liberalisation Network. Mr Ellison was on the previous Trade New Zealand Board.

Peter MenziesPeter Menzies was the Chief Executive of Mainzeal Group

Limited from 1970 to 1990 and Chairperson from 1987 to 1992. Since that time he has been a company director and consultant. Mr Menzies is currently a council member of the University of Auckland, a director of Dam Watch Services Limited, New Zealand Seed Fund and Neuronz Limited and is a member of the Growth and Innovation Advisory Board.

Jane Hunter Jane Hunter has been owner, viticulturalist and Managing Director of Hunter’s Wines since 1987, and has strong skills and experience in company management and international trade. Mrs Hunter has been a director of HortResearch New Zealand, and the New Zealand Wine Guild, and a member of the Prime Minister’s New Zealand 2000 Task Force. Mrs Hunter was the inaugural winner of the International Women in Wine Award in 2004 at the Guildhall in London. In 1993 she was awarded an OBE for service to the wine industry and in 1997 she was awarded an Honorary Doctorate of Science from Massey University for her outstanding contribution to the industry.

Alan IsaacAlan Isaac has extensive experience in the fi eld of corporate governance, corporate management and in commercial accounting. He retired as Chair of KPMG New Zealand in March 2006

after 35 years with the company. Mr Isaac is a Fellow of the College of Chartered Accountants and the Institute of Chartered Secretaries and Administrators and a member of the Institute of Directors. He is a member of the New Zealand Cricket and New Zealand Golf Boards and of the Board of Rugby New Zealand 2011 Limited which will have responsibility for New Zealand’s hosting of the Rugby World Cup in 2011.

Peter Maire Peter Maire was the founder and past President of Navman NZ Ltd and has a strong background in establishing and growing companies, in particular exporting companies in the ICT sector. Since his retirement from Navman, Mr Maire has made signifi cant investments in New Zealand-based companies Rakon, Cadmus, Orion Systems and Fusion Electronics. Mr Maire is a member of the Government’s Growth and Innovation Advisory Board, the Hi Growth Advisory Board and is an Honorary Fellow of the Institution of Professional Engineers New Zealand. He is also the Chairman of the New Zealand Innovation Fund’s Investment committee, a new multi-million-dollar private sector venture investment fund.

Lorraine WittenLorraine Witten has 20 years’ experience in a range of senior management, fi nance and director roles in both large and small companies. She

has worked in a wide variety of industries and companies, including fast-moving consumer goods, importing, exporting production, manufacturing, clothing, hospitality, primary produce, telecommunications and health. Ms Witten was General Manager of Telecom Mobile until 2002 and now operates as a business consultant and Executive Chairman of telecommunications company CallSouth and client management company Pulse Business Solutions.

INCOMING BOARD MEMBER

The following member was appointed to the Board of Directors in January 2007:

Peter ConwayPeter Conway is Economist and Director of Policy with the New Zealand Council of Trade Unions. In this role he is involved in a number of trade areas including the Doha round, Thailand, P4, ASEAN, the China FTA and the OECD Guidelines for Multi-national Enterprises. Other relevant areas of work include productivity, innovation, economic development, industry training, and industry strategies.

SPECIAL ADVISORS

There are two special advisors to the Board: Simon Murdoch, Secretary of the Ministry of Foreign Affairs and Trade; and Geoff Dangerfi eld, Chief Executive of the Ministry of Economic Development.

BOARD OF DIRECTORS


G45

LORRAINE WITTEN, PHIL LOUGH (CHAIR), CRAIG ELLISON, ALAN ISAAC, PETER CONWAY, PETER MENZIES, JANE HUNTER, PETER MAIRE.

BOARD OF DIRECTORS


SENIOR MANAGEMENT


G45

Tim Gibson – Chief ExecutiveTim Gibson took over as Chief Executive of the newly established NZTE in July 2003. Before joining NZTE, Tim held senior positions in the New Zealand dairy industry, both domestically and internationally.Tim has degrees in German Literature and Law and has studied at several overseas business schools.

Jonathan Kings – Group General Manager Wood Processing, Investment, Creative, Tourism, Education, Europe and the Middle East Jonathan Kings leads the Investment team and manages NZTE staff in the Europe and Middle East region. Until December 2006 he was on a two-year secondment to the OECD. Jonathan was part of the original Industry New Zealand establishment team and from June 2002 was responsible for establishing the core corporate functions of the organisation. Prior to his secondment he was Group General Manager Strategy.

Rod MacKenzie – Group General Manager Food and Beverage, North AsiaRod MacKenzie joined NZTE from Trade New Zealand in July 2003. During his time at Trade New Zealand he held roles as Senior Trade Commissioner for North America, General Manager Marketing and EBusiness and acting CEO for six months before the merger with Industry New Zealand. Before joining

Trade New Zealand in 1996, Rod was the inaugural Chief Executive of The New Zealand Way. Rod has also had many years’ experience in the private sector as a director and senior public relations and marketing consultant.

Jack Stephens – Group General Manager, Business and Regional CapabilityJack Stephens has had extensive international business experience working as a trade commissioner and regional manager with Trade New Zealand in Australia, Asia and the Middle East.On his return to New Zealand in 1997, Jack became General Manager responsible for Trade New Zealand’s international operations in Asia and Australia/Pacifi c and, in 2001 was made responsible for the operations of Trade NZ’s global network. Jack continued to manage the offshore network for NZTE until his appointment to his current role.

Julian Moore – Group General Manager Marketing and Corporate ServicesJulian has a background in fi nancial services.His early career was with Midland Bank in the UK where he held a number of roles inretail and commercial banking before moving into marketing in 1988. He immigrated to New Zealand in 1991 and has held senior marketing roles for Prudential, Colonial and AXA.

Julian joined Industry New Zealand in 2002 and was appointed General Manager Marketing for NZTE on its formation in 2003. His role was expanded to include Corporate Services in early 2005.

Neil Maxwell – Group General Manager Specialised Manufacturing, Auspac, South and South East AsiaNeil Maxwell has a background in strategic management and international business. Neil was a Partner in Ernst & Young for 13 years, and Managing Director of their Hong Kong management consultancy practice for fi ve years.He returned to New Zealand in 2001 and held the position of General Manager Sectors, in Industry New Zealand prior to being appointed General Manager at NZTE in 2003.

Peter Lennox – Group General Manager ICT, Biotechnology, AmericasPeter Lennox was Industry New Zealand’s biotechnology sector director before joining NZTE in 2003.From 1999 to 2002, Peter was the Director of Biotechnology Networks for Scottish Enterprise. He also spent fi ve years in New York working for Scotland’s Foreign Direct Investment Agency; headed-up Scottish Trade International (STI) and has extensive private sector experience working in the food and beverage sector.

Cheryl Crooks – Group General Manager Human Resources and Strategic RelationsCheryl has had an extensive career in human resource management. She was the Director Human Resources for NZTE, and previously the Human Resources Manager at Industry New Zealand. Before that, Cheryl worked at the Ministry of Agriculture and Forestry and the Ministry of Fisheries, where she was the Human Resources Manager.Cheryl has been involved in human resources work since she graduated from Victoria University, with a degree in English literature and art history.

Anna Heiler – Director of StrategyAnna Heiler returned to New Zealand in 2003 after fi ve years working for Highlands and Islands Enterprise, the economic development agency for the northern half of Scotland. While there, Anna worked as a client manager and subsequently headed up the strategic planning and research team. Prior to this, she worked in the private and public sector in New Zealand and Australia in areas of economic research, forecasting, business diagnostics and credit rating.

Back: CHERYL CROOKS, NEIL MAXWELL, ANNA HEILER, JONATHAN KINGS, JACK STEPHENS. Front: JULIAN MOORE, TIM GIBSON, PETER LENNOX. Absent: ROD MACKENZIE

SENIOR MANAGEMENT


ORGANISATIONAL STRUCTURE


G45

ORGA

NISA

TIONA

L STR

UCTU

RE

GGM

Bu

sines

s &

Regi

onal

Cap

abili

ty

Jack

Step

hens

(WN)

GGM

M

arke

ting

&

Corp

orat

e Ser

vice

s

Julia

n M

oore

(WN)

GGM

Hu

man

Res

ourc

es &

St

rate

gic R

elat

ions

Cher

yl Cr

ooks

(WN)

GGM

W

ood

Proc

essin

g,

Inve

stm

ent,

Crea

tive,

Tour

ism,

Educ

atio

n, EM

EA

Jona

than

Kin

gs (W

N)

GGM

Fo

od &

Bev

erag

e, No

rth

Asia

Rod

Mac

Kenz

ie (H

K)

GGM

Au

sPac

, SSE

A Sp

ecia

lised

M

anuf

actu

ring

Neil M

axw

ell (

WN)

GGM

IC

T, Bi

otec

hnol

ogy,

Amer

icas

Pete

r Len

nox (

AK)

New

Zea

land

Trad

e

and

Ente

rpris

e Boa

rd

Chie

f Exe

cutiv

e

Tim

Gib

son

(WN)

Exec

utiv

e Ass

istan

t

Doro

thy H

arpe

r (W

N)

Dire

ctor

Stra

tegy

Anna

Hei

ler (

WN)

Dire

ctor

Aud

it &

Ass

uran

ce

Lyne

tte D

ixon

(WN)


STATEMENTS

40 Statement of responsibility

41 Financial commentary

42 Statement of service performance

56 Statement of accounting policies

58 Statement of fi nancial performance

58 Statement of movements in equity

59 Statement of fi nancial position

60 Statement of cashfl ows

61 Statement of commitments

61 Statement of contingent liabilities

62 Notes to the fi nancial statements

72 Audit report

73 Statement of transition to New Zealand equivalents

to the international fi nancial reporting standards

73 Other statutory reporting requirements

FINANCIAL INFORMATION


G45


The Board of New Zealand Trade and Enterprise (NZTE) is responsible for the preparation of the annual fi nancial statements, and statement of service performance, and the judgments used in them.The Board of NZTE is responsible for establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of fi nancial reporting.In the opinion of the Board of NZTE the annual fi nancial statements and statement of service performance for the year ended 30 June 2007 fairly refl ect the fi nancial position and operations of NZTE.

On behalf of the Board:

P V Lough CHAIR A R Isaac BOARD MEMBER T D Gibson CHIEF EXECUTIVE

20 September 2007 20 September 2007 20 September 2007

STATEMENT OF RESPONSIBILITY


The fi nancial statements are for the year ended 30 June 2007. Budget comparatives are extracted from the NZTE Statement of Intent issued at the beginning of the fi nancial year.

Revenue for the year received from the Crown totalled $143 million. This is $1.2 million above last year and $ 5.8 million above the budget. The increase on the previous year is due primarily to an increase in operational funding, due to increased funding for the Export Year initiative.

The increase above the budget is due to the following major items:

• new funding received for the Export Year initiative totalling $2.3 million

• additional operational funding to administer the increased Market Development Grant

• Aichi leveraging funding to take advantage of the business opportunities around the Aichi World Expo in Japan in 2005.

Client income totalling $1.3 million represents revenue received from clients for services – primarily information, advice and in-market support – by the overseas offi ce network.

Other revenue of $2.9 million includes primarily rent and conference fee recoveries, America’s Cup recoveries from clients for expenses, and sponsorships of events.

Total expenditure for the year is $148.4 million – an increase of $2.3 million – refl ecting the increase in the revenue received from the Crown. The increase represents the new Export Year initiative covering the 2007 calendar year. A total of $2.7 million is budgeted for the next fi nancial year, to cover the second half of the 2007 calendar year.

Depreciation expenditure for the year is $4.4 million, comparable to the previous year.

The net operating position for the year is a defi cit of $0.7 million, compared to a surplus last year. The defi cit comprises the revaluation of the net assets overseas, held in currencies

other than New Zealand dollars, due to the appreciation of the New Zealand dollar. Last year there was a decline in the New Zealand dollar compared to the previous year’s exchange rates at 30 June. In addition, a web-based asset not being used has been fully provided for.

The equity of NZTE records a small decrease due to the net operating defi cit, partially offset by a capital contribution from the Crown to fund the investment in the whole-of-government website, www.business.govt.nz

Bank balances at 30 June 2007 increased by $1.1 million, primarily due to fi xed asset purchases being lower than depreciation recoveries. Accounts receivable are $3.8 million above the previous year, due to increased activity in the month of June, especially in sector and other project initiatives.

The investment in fi xed assets decreased from the previous year by $1.6 million, due to depreciation being higher than new fi xed assets purchased. This was affected by the timing of overseas offi ce refurbishments and the deferral of motor vehicle replacements in New Zealand. A total of $3.3 million was invested in new assets, primarily in the whole-of-government website, www.business.govt.nz, computer hardware and software, and the commencement of the fi nancial management information system replacement.

Accounts payable is $3.2 million higher than the previous year refl ecting the increased level of activity in the month of June, compared to the same time last year.

Employee entitlements included within current liabilities represents annual leave due to employees. The amount of $2.5 million included within non-current liabilities represents long service and retirement leave primarily for overseas employees due to the local statutory requirements.

FINANCIAL COMMENTARY


This Statement of Service Performance covers the period from 1 July 2006 to 30 June 2007.

Service performance is measured against priorities specifi ed in the New Zealand Trade and Enterprise (NZTE) Statement of Intent 2006-2009. NZTE also has an Output Agreement with the purchasing Ministers. The Agreement provides more detailed performance measures on specifi c activities and programmes. This Statement of Service Performance includes reporting against priorities in the Statement of Intent 2006-2009 only.

NZTE regularly monitors delivery against its performance targets, with quarterly reporting provided to the purchasing Ministers. A joint Ministry of Economic Development (MED) and Ministry of Foreign Affairs and Trade (MFAT) monitoring unit within MED provides support to the Ministers in monitoring achievement by NZTE of its performance targets and identifying areas for improvement. Specifi c areas of activity undergo regular in-depth reviews by MED to evaluate the effectiveness and effi ciency of delivery.

In 2006/07, NZTE’s activities were funded through seven output classes, as follows:

I . E N A B L I N G S E RV I C E S

Enabling services is funded by the Government under two output classes:

Output Class 1: Facilitating the development and implementation of sector and regional strategies

Output Class 2: Promotion of New Zealand business and development of investment opportunities

Enabling services involve NZTE working with key stakeholders, including sectors, regions, groups of businesses and other government agencies to identify opportunities for, and constraints to, growth at a systemic level. Services include (but are not limited to):

- Sector facilitation, which involves working with sectors on strategy development and implementation initiatives

- Beachheads, World Class New Zealanders and Enterprise Networks programmes

- Supporting Growth and Innovation Framework (GIF) initiatives, including funding industry bodies and specifi c GIF projects

- Regional facilitation, which includes the Regional Partnership Programme, developing clusters of businesses and supporting business incubators

- Industry Capability Network- Marketing programmes- Investment promotion and attraction.

I I . F O U N DATI O N S E RV I C E S

Foundation services is funded by the Government under two output classes:

Output Class 3: Business information and advice

Output Class 4: Training and capability building

NZTE’s foundation services aim to build basic business capability among entrepreneurs and small businesses, including start-ups and new exporters, by providing information, advice and training.

I I I . G ROW TH S E RVI C E S

Growth services is funded by the Government under two output classes:

Output Class 5: Customised information and advice

Output Class 6: Identifi cation and leveraging new business opportunities

Growth services involve NZTE providing businesses with customised business and international market development assistance, targeted at individual and groups of businesses with signifi cant growth potential, to accelerate their development and enhance their contribution to New Zealand’s overall economic growth.

I V. G R A NT A DM I N I STR ATI O N A N D M A N AG E M E NT

Grant management is funded by the Government under the following output class:

Output Class 7: Grant administration and management

NZTE administers grant programmes on behalf of the Crown and provides policy support to MED and MFAT.

STATEMENT OF SERVICE PERFORMANCE 2006/07


OUTPUT CLASS 1: ENABLING SERVICES: FACILITATING THE DEVELOPMENT AND IMPLEMENTATION OF SECTOR AND REGIONAL STRATEGIESOutput Class one includes services that will support collaboration, linkages and the development and implementation of strategies between sectors, regions, clusters of businesses and government that are aimed at exploiting opportunities for growth and overcoming constraints to growth. Facilitating the recognition, development and implementation of sector and regional strategies and linkages between fi rms and groups of fi rms will enhance New Zealand’s growth prospects both in the medium and long term.

financial performance:BU DGET AS PER STATEMENT

OF FORECAST SERVICE PERFORMANCE FOR TH E YEAR

EN DI NG 30 J U N E 2007, $000

REVISED BU DGET$000

ACTUAL$000

COMMENTARY

40,192 48,417 48,165 The revised budget represents updated cost allocations approved during the year. Actual fi nancial performance was $0.3 million below the revised budget due to lower regional facilitation and Industry Capability Network expenses, partially offset by higher sector initiative expenditure.

non-financial performance:

O UTP UT C L AS S 1 : P E R F O R M A N C E M EAS U R E S A N D E XP E C TATI O N S

K EY AC H I EV E M E NTS

Deliver sector projects according to project plans – scope, timeframe and budget. Projects selected by senior management will be monitored by the NZTE Project Management Offi ce. In 2006/07, NZTE will implement processes for systematic capture of project outcomes.

NZTE’s project management framework provides the mechanism to capture the anticipated outcomes for major sector projects, including those selected for monitoring by senior management. Outcomes can often take several years to be realised.Major projects, measures and targets for 2006/07 are detailed in Section 4 of the Statement of Intent 2006-2009. Progress against the major projects is reported below. Performance against the major measures and targets is covered within the Statement of Service Performance.

B I OTE C H N O LO GY / AG R ITE C H N O LO GY

PRIORITY STATUS

Industrial biotechnologyAssist with developing a national special interest group (industry-led) under NZBio to focus capability on rapid technology growth markets in the industrial Biotechnology arena.

OngoingA suite of New Zealand companies/research groups in the industrial biotechnology area participated in the Bio2007 mission to the United States. A research project is ongoing to profi le the strength and breadth of industrial biotechnology in New Zealand. Several key partnership meetings established.

Medical devicesFacilitate the emergence of the NZBio MedBio Special Interest Group as a national cluster to drive best practice in innovation (run jointly with public and private sector partners).

OngoingA pilot mission of eight New Zealand medical device companies to the Medica conference in Germany in November 2006 was rated as a success. A three to fi ve year market audit will be incorporated into the Integrated Healthcare Strategic Initiative in 2007/08.

C R EATIVE

PRIORITY STATUS

Better by DesignAssist New Zealand businesses to use design to create a meaningful point of difference for their products and services in global markets. The programme includes design audits and mentoring for approved companies, funding for specifi c design projects, education courses, design education internships and information resources and events.

OngoingThe Better by Design programme is now in year three. This year: • 32 new companies entered the Design Integration Programme. The total number of

companies accepted into the programme is 85.• Better by Design co-funded 21 Design Integration projects.Awareness of the programme was improved through a CEO Summit held in May, which was attended by 305 delegates and garnered subsequent media coverage in relation to the CEO Summit.


Wool products and technologies/Designer lifestyle opportunitiesNew Zealand wool products, brand applications and technologies offer world leading, highly competitive market solutions in a range of niche markets (for example, automotive). We aim to develop partnerships with the New Zealand wool industry to assist in expansion into other markets by incorporating research into lifestyles of health and sustainability in offshore markets.

OngoingAchievements include new contacts made via Swedish partner Borgstena and fi ve new contacts developed for research purposes on behalf of the Wool Industry Group. A range of carpet options for Volvo UK was also developed.

Build a sustainable New Zealand entertainment sector (screen production)Promote, market and leverage New Zealand as a premium destination for a wide range of screen production opportunities.

OngoingImproved consistency and stability of demand was achieved through global promotional activities at Cannes Lions Advertising Festival by the Television Commercials Enterprise Network (six companies and one company attending through the EDG-MD programme).

E D U CATI O N

PRIORITY STATUS

Develop new market segments – eg corporate educationUndertake development work in new market segments. Initial targets will include segments and/or regions where New Zealand has a perceived international competitive advantage and a reasonably active capability.

CompletedSupport was given to New Zealand bids for Middle Eastern projects. This has resulted in a contract for Polytechnics International of New Zealand in Bahrain. In addition, progress has been made in developing a collaborative model within the university teacher education sector for a possible future project collaboration.

Diversifi cation of marketsUndertake development work in new markets (over three to fi ve years) to reduce dependence on core and established markets as part of the Market Risk Management Strategy. Development work is aimed at building a platform for market development, establishing a presence and building strategic relationships in the market.

OngoingIncreased New Zealand participation was achieved in the following key markets: United States, Sri Lanka, Indonesia and the United Kingdom.

F O O D A N D B EV E R AG E

PRIORITY STATUS

Retail channel development and brand supportDevelop relationships with selected retail chains in the United States, Canada and Mexico.

CompletedNZTE introduced New Zealand food and beverage companies into US, Canadian and Mexican retail chains and assisted with reducing barriers to market entry in these markets. The Wine Brand Manager programme was extended into its second year from February 2007. Relationship building with US buyers and Mexico retailers took place to promote New Zealand products.

Retail channel development in ChinaDevelop relationships with a retailer and logistics service provider in China to enable New Zealand exporters to access the retail market in mainland China.

OngoingSix of the 20 companies that have been introduced to the market have established commercial distribution arrangements. A new promotional platform will be expanded to include other retailers in 2007/08.

Hotel Restaurant and Institutions (HRI) channel developmentCreate access to the South East Asian fi ve star hotel market through development of a strategic relationship with Shangri-La Hotels and the establishment of a reliable supply chain.

CompletedKey relationships have been established within the Shangri-La corporate and regional group. Boutique New Zealand wine labels have been introduced with ongoing orders in place.

Europe wine logisticsAssist industry with achieving their stretch sales targets in selected European wine markets.

CancelledFollowing consultation with the industry it was concluded there was insuffi cient support for this activity and the project did not proceed. Funds allocated for the project were reallocated.


New Zealand Focus CentreMaintain operation of the New Zealand Focus Centre in Hong Kong.

OngoingThe New Zealand Focus Centre has held several events. The centre continues to provide an excellent platform for New Zealand companies and associated businesses to reach into Hong Kong.

Health and wellness – functional foods and nutraceuticalsDevelop market entry and partnership opportunities for clusters of New Zealand companies with functional foods, nutraceutical and cosmetic ingredients.

Completed/ongoingThis was a joint food and beverage/biotechnology sector project which aimed to take advantage of consumer demand in this area. Consultation with both industries was completed during the year and resulted in an agreement with stakeholders in the pipfruit industry to collaborate on investing in a marketing strategy for fresh and processed fruit, targeting health and wellbeing. The focus is now on preparing a business case for commercialising innovation for functional foods. .

ICT

PRIORITY STATUS

CeBIT CeBIT is the world’s largest ICT Trade Show. NZTE sponsors and manages the New Zealand Pavilion.Support a comprehensive programme of activity around CeBIT in Hannover, Germany, including organising the New Zealand Pavilion.

CompletedA full and complete CeBIT 2007 leveraging programme was delivered including marketing, PR and support to 16 New Zealand exhibitors (including 14 ICT companies, one ICT recruitment company and NZ Immigration). Positive feedback was received from exhibitors and media on the New Zealand presence, culminating in 150 revenue and 100 partnership leads.

Health ITWork with a limited number of leading New Zealand Health IT companies, the New Zealand Health IT cluster, other domestic agencies and key international partners to generate signifi cant additional revenue in offshore markets.

OngoingIn 2006/07 the project was concentrated in the United States and Canada, but there was also a strong onshore component. Achievements included:• Successful Health IT Mission to Canada completed, with nine New Zealand Health IT

companies participating. • Strong Multi-National Corporation participation with both Microsoft and HP hosting events

for New Zealand companies.• Excellent contacts made with leading hospital chief information offi cers across the

United States and Canada.• Introductions made between the US healthcare organisations and New Zealand Health IT

medical device companies. Most parties expressed an interest in further collaboration.

Transport and logisticsWork with a number of leading New Zealand transport and logistics companies to capture offshore opportunities by building relationships with key international players. Develop engagement strategies for specifi c sub-sectors (for example, rail transport) as part of this project.

OngoingAchievements included:• The America’s Cup leveraging event at Valencia provided immediate opportunities for at least

three companies.• Sponsoring Supply Chain Management Centre of Excellence to be an incubator for the

industry to develop new ideas and create global opportunities.• Engagement strategies developed with English, Welsh and Scottish Rail.

Multi-national corporation (MNC) engagementBuild relationships with MNCs to assist the ICT industry to be internationally competitive and use the distribution channels, relationships with customers and the Research and Development capability of MNCs. The project will complement and align with Investment New Zealand’s activities in this area.

OngoingAchievements include:• Microsoft: NZTE has contracted with Group Intelligence to be a partner in Microsoft’s local

software community programme in Singapore.• Telco (EMEA): successful telecommunications activity undertaken at Valencia. Work being

undertaken on further developing relationships in Europe, Middle East and Africa.• E-Centre and CMC (India): a strong pipeline of New Zealand companies is now being

established to export to India through CMC networks.

S P E C I A L I S E D M A N U FAC TU R I N G

PRIORITY STATUS

Marine N/AThis was not a standalone project during 2006/07. Please refer to specialised manufacturing, National Project Offi ce project below.


Collaboration, aggregation, scale/National project offi ceProgress the National Manufacturing Strategy through a series of sub-projects focusing on identifi ed strategic themes, including achieving greater collaboration, aggregation and scale. This will be achieved through tendering for projects via the National Project Offi ce and collaborative activities within the engineering, sustainable energy, electronics and plastics industries.

OngoingAchievements include:• The launch of the Manufacturing+ strategy at the National Manufacturing Summit in

November.• Ongoing work with the Marine Industry Association, Plastics New Zealand and the Aviation

Industry Association to align NZTE support to their strategies.

New technology development, eg semi-solid castingDevelop collaborative structures within the electronics, plastics and metals industries, and across the sectors to improve design, speed to market and scale. A new manufacturing centre in Auckland using the latest semi-solid casting technology was to be incorporated in this project; however this did not proceed as no investor was found.

OngoingCross-sectoral involvement in the aviation area progressed with work between Investment NZ and the regional and education teams. Research into capabilities of the mould-making sector through Unitec was also completed.

Business transformation programmeAssist companies to improve performance and productivity.

OngoingA concept developed by International Executive Strategies (Melbourne) will be used. A small pilot was completed in 2005 by NZTE – this pilot will be expanded into a wider regional initiative in Auckland and Wellington. Strategies are being reviewed for next fi nancial year.

TO U R I SM

PRIORITY STATUS

Tourism high-performanceEngage over the next two to three years with sub-sector/niche groupings showing greatest growth potential (for example, cultural/adventure tourism operators, luxury accommodation providers and hostel accommodation). Assist with strategic development plans for these groups based on building business capability, improving yield, collaboration, innovation and international engagement.

OngoingAchievements include the development of collaborative groups around the high profi le cultural/heritage and adventure segments, and ongoing work with key adventure tourism companies to develop joint development initiatives.

WO O D, B U I L D I N G A N D I NTE R I O R S

PRIORITY STATUS

New Zealand Wood Innovation Centre, ShanghaiWork with stakeholders to organise commercial arrangements for the development of their products and supply to Chinese customers. Implement the fi rst full year promotion and technical and outreach programmes as agreed between the stakeholders, NZTE and the New Zealand Wood Innovation Centre (NZWIC).

CompletedAchievements included:• An NZWIC outreach programme was completed with 14 technical/networking seminars and

one trade show promotion.• Product range completed and promotional materials outlining the range were distributed.

Market development in IndiaWork with the New Zealand Wood Innovation Centre and a group of New Zealand companies on development of commercial relationships with Indian companies.

Not completedDiscussions around a potential collaborative venture in India were held. Further commercial investments in a collaborative model in India are unlikely due to current market pressures.


O UTP UT C L AS S 1 : P E R F O R M A N C E M EAS U R E S AN D EXPECTATIONS


BeachheadsThe Beachheads programme helps high-growth potential exporters to establish presence and accelerate their growth in new markets by providing access to business networks, advice and offi ce space.Operate established Beachheads in the following locations:• United States• Singapore• London• Dubai• Tokyo Attract 30 new companies into existing Beachheads by 30 June 2007.

Achieved• Thirty new companies in 2006/07 (including two conditionally

approved) across all sectors.• A total of 85 percent of applicant companies were accepted into

the programme in 2006/07.• Beachheads locations and total number of companies in each

location:– United States – 32– Singapore – 0 (5 “A” prospects in pipeline with 12 in total)– London – 20– Dubai – 8– Tokyo – 5

Enterprise NetworksThe Enterprise Networks programme targets groups of organisations (three or more) who are working together strategically as a network to gain competitive advantage.Deliver an estimated 80 targeted Enterprise Networks in the following sectors – food and beverage; creative; tourism; wood, building and interiors; biotechnology/agritechnology; ICT; specialised manufacturing and education.

Exceeded• A total of 82 Enterprise Networks were supported involving 581

companies.• Enterprise Networks were operated in accordance with internal

programme guidelines.• All Enterprise Networks were aligned to Sector Engagement Plans.• Client Value Score on a scale of one (poor) to fi ve (excellent) is 3.1• The Enterprise Networks programme was disestablished as of

1 July 2007.

World Class New ZealandersThe World Class New Zealanders programme is designed to facilitate visits by international business leaders and specialists to share their expertise with New Zealand businesses. Facilitate 25-35 visits of world class expert network members by 30 June 2007.

Exceeded• A total of 52 visits were organised and facilitated across a range of

sectors, sub-sectors and regions in 2006/07.• The programme was operated in accordance with internal

programme guidelines.

Supporting Growth and Innovation FrameworkNZTE will administer funding on behalf of the Crown and engage in a range of initiatives with the industry bodies formed out of the design, screen production, ICT and biotechnology taskforces.Deliver GIF projects as per project plan – scope, timeframe, budget.Administer the GIF Sector Project Fund and the GIF Industry Governed Bodies Fund. Funding will adhere to internal programme guidelines and Cabinet criteria.

Achieved• Funding was contracted across the four Industry Bodies:

– NZBio– The Screen Council– Better by Design– HiGrowth.

• One hundred percent of funding spent by 30 June 2007.• All internal processes adhered to project management checklists.

Industry Capability NetworkThrough its Industry Capability Network (ICN) unit, NZTE will administer the Government Electronic Tendering Service (GETS). An estimated 1200 tenders will be notifi ed through GETS by 30 June 2007.

N/AGETS was transferred to the Ministry of Economic Development effective 1 July 2006.

Total competitive import substitution from major projects and government procurement support will be $25 million in the 2006/07 fi nancial year.

ExceededThe total competitive import substitution recorded from the activities of the ICN is $30.3 million.

Regional economic developmentNZTE will work across regional groups, business, and local and central government to build the economic development capability of regions.

AchievedNZTE worked with all key stakeholders in the 26 Regional Partnerships Programme regions to assist in building economic development capability through the delivery of the Programme.

Administer the Regional Partnership Programme. Funding will adhere to internal guidelines and Cabinet criteria.

AchievedNZTE administered the Regional Partnerships Programme by providing grants to assist regional economic development initiatives. All funding approved adhered to internal guidelines and Cabinet criteria.

Regular reporting will be provided to the Minister of Trade and the Minister for Industry and Regional Development on outcomes achieved by the Major Regional Initiatives against targets specifi ed in proposals.

AchievedNZTE provided quarterly updates to Ministers detailing projects receiving funding under the Regional Partnerships Programme and alerting Ministers to potential projects in regions.


OUTPUT CLASS 2: ENABLING SERVICES: PROMOTION OF NEW ZEALAND BUSINESS AND DEVELOPMENT OF INVESTMENT OPPORTUNITIESOutput Class two provides for the promotion of New Zealand’s products and services both on and offshore to attract and facilitate investors and to support the development of international trade by New Zealand businesses. The services are also aimed at building a supportive business environment in New Zealand, by fostering a culture of entrepreneurship and business success and by promoting the benefi ts and value of internationalisation and global connectedness.



EN DI NG 30 J U N E 2007, $000

REVISED BU DGET$000

ACTUAL$000

COMMENTARY

25,169 27,732 27,569 The revised budget represents updated cost allocations approved during the year, less $0.5 million funding that was returned to the Crown for the 2006/07 fi nancial year. Actual performance was in line with the revised budget.



K EY AC H I EVE M E NTS

Develop and implement two to six media/promotional campaigns in key sectors and key markets by 30 June 2007.

AchievedMedia and promotional campaigns were delivered in key sectors and key markets during 2006/07. Please refer below for detail.

S E C TO R / M A R K E T CA M PA I G N K EY AC H I EV E M E NTS

Food and beverage China retail channel development (China).

• Worked with distributor Heng Tai in Hong Kong to establish “New Zealand’s Finest Choice” promotional programme in Parkson’s retail outlets.

Foundation activity support including Ambassador Chef Programme (North America).

• Ambassador chefs visited New Zealand with a programme around Pinot Noir in January/February 2007.

• Four ambassador chefs events in Chicago, Washington DC, New York and Los Angeles.

Specialised manufacturing Leverage America’s Cup including NZ Millennium Cup and ongoing media relations programme (Europe/Middle East).

• New Zealand Millennium Cup held on last day of Super Yacht Cup in Palma, Spain.

• Events targeting the aviation and marine sectors were run as part of the America’s Cup promotion. The specialised manufacturing team was also able to leverage off the ICT, biotechnology, functional foods, and food and beverage capabilities of New Zealand to give a more comprehensive understanding of the innovative products and technologies being developed in New Zealand. This improved the understanding that companies in the aviation and marine industries have of New Zealand. We also progressed a number of the relationships New Zealand companies have in Europe, which will considerably improve our commercial prospects in that market.

Biotechnology Media Relations Programme – North America and Bio 2007 event (North America).

• New Zealand New Thinking pavilion at Bio 2007 in Boston, United States.

ICT Marketing support to CeBIT event (Europe).

• New Zealand New Thinking pavilion at CeBIT 2007 in Hannover, Germany.

Creative industries Marketing and communications campaigns for at least three sector activities including screen production, fashion and textiles sub sectors (Australia, North America, North Asia).

Screen Production:• justaddnewzealanders.com landing page• Digital Directory (www.nzdigital.biz) launched• Music convergence project• Cannes Lion• Asia Pacifi c Advertising Festival, ThailandFashion:• New York Fashion Week in September 2006• Australian Fashion Week in May 2007.


Cross sectoral programmes New Zealand Focus Centre marketing and communications programme (North Asia).

• In-store Christmas promotion• China mission• Women’s Day promotion – retail• Rugby Sevens promotion – media• Ray McVinnie event – media.



Develop and implement marketing and communications campaigns in conjunction with other government agencies promoting New Zealand New Thinking positioning.

AchievedOffshore campaigns delivered on time and to the satisfaction of sector and agency partners.

Support sector goals with a targeted set of industry sector awards. AchievedThe NZBio Awards, Cuisine Champions of Cheese Awards, Massey University Food Awards, Regional Business Excellence Awards (nationwide), and Plastics Industry Awards were supported.

Maintain and support the www.newzealandthinking.com website. AchievedThe website was developed with 427 registered users at 30 June 2007.

Manage the annual Export Awards. AchievedThe 40th annual Export Awards were held in November 2006. The 2007 Export Awards ceremony will be held in November to align with Export Year 2007.

Produce six issues of Bright magazine by 30 June 2007 to help raise awareness of the success of New Zealand companies.

AchievedSix issues of Bright were published.

Promotion of enterprise cultureAdminister the ECSA fund. Funding will adhere to internal guidelines and Cabinet criteria.

AchievedThe 2006/07 ECSA funding round was completed by August 2006 in accordance with internal guidelines and Cabinet criteria. Overall satisfaction with the ECSA programme was favourable; clients were particularly satisfi ed with the information provided about applying for funding and the management of expectations regarding what they could receive from the funding.

Investment promotion and attraction Investment New Zealand aims to:• build and maintain relationships offshore with Head Offi ces and

Regional Offi ces of MNCs, large regional businesses, and fi nancial investors who are potential investors or infl uencers of investment into New Zealand

• build and maintain relationships onshore with the local offi ces of MNCs, EDAs, relevant government departments, relevant associations and investors

• build and maintain relationships with NZTE client base companies who are, or will be, investment ready or seeking signifi cant partnerships with offshore companies.

Success will be measured through the Investment New Zealand case load and conversion of cases to conclusion. An estimated two to fi ve successfully completed cases will result in Foreign Direct Investment in the 2006/07 fi nancial year.

Achieved• Seven successful Foreign Direct Investment cases have been

confi rmed:– Sign-off for CoDa Therapeutics capital raising US$20 million

from two United States venture capital investors. – Sign-off from Pindar for NZ$2 million. – Second biotechnology sector sign-off for assistance, total value

NZ$3.5 million– Sign-off from Cadbury’s for NZ$20 million for expansion of their

Dunedin plant (including a NZ$2 million grant from Investment New Zealand’s Strategic Investment Fund).

– Sign-off from Lion TV for NZ$9 million for the production of the BBC TV series Castaway.

– YouMail Inc. for NZ$10 million venture capital investment into Research and Development.

– Daesung Group for NZ$10 million.• Investment NZ continues building and maintaining relationships

with MNCs, large regional businesses, potential fi nancial investors, relevant government departments and associations, and NZTE client base companies to promote New Zealand and attract investment opportunities.

Administer the Visiting Investor Programme (VIP). An estimated eight to 10 successful applications and subsequent visits will be completed through the VIP programme by 30 June 2007.

ExceededA total of 13 successful visits were held by 30 June 2007.

NZTE will administer the Strategic Investment Fund. Ten to 15 business cases for feasibility studies will be developed. NZTE estimates that two to three major grants or underwrites will be submitted to the Board and Ministers for support and approval.The Strategic Investment Fund will operate in accordance with internal programme guidelines and Cabinet criteria.

Not achieved• Six feasibility studies were approved by 30 June 2007. One

feasibility study was cancelled due to changes in the project and in the shareholding structure of the applicant company.

• The target for feasibility studies was not met due to several projects not proceeding as per the original timeframe and/or changes in the overall projects.


Export Year 2007 Export Year 2007 is a key initiative supporting the government’s Economic Transformation Agenda. Export Year 2007 aims to improve New Zealand’s export performance through growing more globally competitive fi rms, raising export aspirations and awareness, building export capability, providing facilitation, development and determining economic settings and export related policies.

On track Export Year 2007 performance measures and targets were developed in early 2007. The following performance measures and results are a sub-set only and a report on Export Year 2007 performance at 30 June 2007.

Build export capability through leveraging existing and developing new export oriented events and initiatives including Export Awards, New Thinking Week, Chief Executive/Founder forums and export-focused seminars.NZTE Export Year 2007 events and initiatives are well attended and attract a broad range of participants.

Progress to 30 June 2007:• A total of 15 breakfasts was held, attended by almost 1,000 people.• A total of 13 high profi le events was sponsored with Export Year

2007 key note speakers and ministerial attendance. • The Business Champion attended approximately 44 events. • Export Year 2007 branding was displayed at each event.

Develop at least eight regional plans for Export Year that will outline Export Year 2007 activities and events in the regions and involve key stakeholders in these plans.

• A total of 12 regional plans was developed, with contracts in place.

Plan and deliver a major marketing and communications campaign promoting Export Year 2007.

• Marketing campaigns and programmes are on track, with positive commentary reported about Export Year 2007, NZTE events and grants.

• Improvements to the website were completed and included an online Export Ready survey, easier events fi ltering, and information on training courses.

OUTPUT CLASS 3: FOUNDATION SERVICES: BUSINESS INFORMATION AND ADVICEOutput Class three provides for the delivery of a range of business assistance services targeted at a wide business audience, but with a particular focus on smaller fi rms, entrepreneurs, start-ups and new exporters. The services are largely focused on building and supporting the development of management skills and capabilities such as raising capital, business management and exporting, through the provision of information and advice.



EN DI NG 30 J U N E 2007, $000

REVISED BU DGET$000

ACTUAL$000

COMMENTARY

8,220 9,083 9,107 The revised budget represents updated cost allocations approved during the year. Actual performance exceeded revised budget. The unappropriated expenditure is a consequence of the higher than budgeted amount of overheads required to deliver business information and advice services.




Between 20,000 and 25,000 client jobs will be logged onto the biz service.

Not achievedThe total number of jobs logged by 30 June 2007 was 18,320. Jobs logged refers to an inquiry from a client made by phone, fax, or personal visit that resulted in an action by biz service staff. The action could be a referral to assistance or the provision of information. Note that job volumes are driven by external factors and demand was lower than expected.

Between 100,000 and 140,000 biz referrals are estimated to be made to other organisations and NZTE services.

Not achievedThe total number of referrals by 30 June 2007 was 75,147. These are counted when a client is provided with a referral to another organisation/source of assistance or provided with a publication or other resource material. Note that biz referral volumes are driven by external factors and demand was lower than expected.


Manage contracts with biz centres nationally for the delivery of services. Performance of biz centres and staff will be monitored by third party providers.

AchievedThere was 100 percent compliance with the Quality Standards Manual. The Manual covers how services will be delivered, recruitment, response times, keeping up-to-date records, and database management.

Between 8,000 and 10,000 New Zealand businesses will access online information on international market developments in the 2006/07 fi nancial year via www. marketnewzealand.com

On trackOnline information accessed via website: 145,702 visits by 30 June 2007 (note that NZTE is unable to measure the exact number of businesses). Information includes Country Briefs, City Guides, Offshore Sector Profi les, and How to Guides and Checklists. The information is mostly delivered on-line via www.marketnewzealand.com and www.nzte.govt.nz, and is updated on an annual cycle or more frequently if required.

OUTPUT CLASS 4: FOUNDATION SERVICES: TRAINING AND CAPABILITY BUILDINGOutput Class four provides for the cost of purchasing services for the delivery of training to build and enhance management capabilities of small businesses, entrepreneurs, start-ups and new exporters.



EN DI NG 30 J U N E 2007, $000

REVISED BU DGET$000

ACTUAL$000

COMMENTARY

11,784 12,078 12,043 The revised budget represents updated cost allocations approved during the year. Actual performance was in line with the revised budget.




Deliver training programmes to 12,000 to 14,000 eligible clients (includes Investment Ready, Enterprise Training, Pacifi c Business Training) by 30 June 2007.

ExceededA total of 14,292 eligible clients completed a training programme by 30 June 2007.

An estimated 9,500 to 11,500 SMEs will undertake training in an NZTE training programme by 30 June 2007.

AchievedA total of 11,225 SMEs participated in NZTE-supported training programmes.

Deliver up to 15 High Impact training programmes aligned to local Regional Development strategies by 30 June 2007.

ExceededA total of 36 High Impact training programmes was delivered.

An estimated 300 to 480 Ma-ori trustees or potential trustees will attend the Ma-ori Trustees Training workshops.

ExceededA total of 647 actual and/or potential trustees attended Ma-ori Trustees Training workshops. Training was also provided to facilitators in Waikato, which included a Hui to discuss the potential for programme improvements.

Between 600 and 800 individuals trained under the Advanced Exporter Education programme (AEEP) by 30 June 2007.

ExceededA total of 80 training courses were held, with 820 participants receiving training.

An estimated 150 individuals who undertook the AEEP will receive follow-up coaching.

ExceededA total of 335 individuals received follow-up coaching.

Deliver a marketing campaign to increase industry awareness of the value of mentors by 30 June 2007.

AchievedA marketing campaign was undertaken through television, radio and print media.

An estimated 4,000 individuals will enter the mentoring programme in the 2006/07 fi nancial year.

Not achievedDuring 2006/07, 3,137 individuals entered the mentoring programme

Costs of training programmes will follow guidelines agreed with MED. AchievedTraining programmes undertaken during 2006/07 were in line with guidelines agreed with MED.


OUTPUT CLASS 5: GROWTH SERVICES: CUSTOMISED INFORMATION AND ADVICEOutput Class fi ve provides for the development and delivery of customised information and advice to New Zealand businesses that are committed to achieving medium to high-growth. The services are aimed at assisting companies to identify and respond to opportunities and address constraints to achieving their growth objectives.



EN DI NG 30 J U N E 2007, $000

REVISED BU DGET$000

ACTUAL$000

COMMENTARY

20,480 12,430 12,570 The revised budget represents updated cost allocations approved during the year. Actual performance was $0.1 million above budget. The unappropriated expenditure is a consequence of the higher than forecast cost of maintaining NZTE’s offshore network.




High-growth companies assisted through mentoring and capability building. Measurement of outputs and outcomes will be confi rmed in 2006/07 through the NZTE Performance Management Framework.

On track• Client engagement plans were completed for 486 high-growth

potential clients.• Clients continue to be assessed for high-growth potential and

provided with appropriate advice.• Client impact score on a scale of one (poor) to fi ve (excellent): 4.1.

Administer the Growth Services Fund. Funding will adhere to internal guidelines and Cabinet criteria.

AchievedA total of 46 Growth Services Fund grants were approved in line with internal guidelines and Cabinet criteria.

Deliver 800 to 1,200 international market intelligence reports and other paid in-market jobs to clients through the NZTE offshore network.

Not achievedMarket intelligence reports delivered to 602 clients.

Generate an estimated $1.5 million in revenue from the provision of market intelligence reports and other in-market services for which NZTE charges a fee.

Not achievedA total of $723,000 of revenue was generated during 2006/07. The offshore revenue generation target has been lowered to $1 million for 2007/08.


OUTPUT CLASS 6: GROWTH SERVICES: IDENTIFICATION AND LEVERAGING NEW BUSINESS OPPORTUNITIESOutput Class six provides services relating to the identifi cation, and leveraging, of international business opportunities. The services provided are customised to support and assist New Zealand businesses with medium to high-growth potential. The services are largely focused on facilitating and leveraging international market opportunities.



EN DI NG 30 J U N E 2007, $000

REVISED BU DGET$000

ACTUAL$000

COMMENTARY

27,442 26,946 28,931 The revised budget represents updated cost allocations approved during the year. The actual performance was above budget due to increased overseas expenses and time spent on the Class.

non-financial performance:O UTP UT C L AS S 6 : P E R F O R M A N C E M EAS U R E S AN D EXPECTATIONS


New Zealand companies assisted in identifying business opportunities. Opportunities will be captured through the online delivery channel: www.marketnewzealand.com An estimated 1,300 to 1,500 online trade enquiries will be registered at www.marketnewzealand.com in the 2006/07 fi nancial year.

Not achievedA total of 486 online trade enquiries were registered on marketnewzealand.com. This number was lower than forecast as regions are increasingly receiving enquiries directly rather than online.

New Zealand companies assisted through NZTE’s monitoring overseas markets through ProjectLink, World Bank, Asian Development Bank, www.marketnewzealand.com and NZTE in-house market monitoring.The number of subscriptions to ProjectLink will reach 80 to 100 by 30 June 2007.

Not achievedThere were 71 subscribers to the ProjectLink Service by 30 June 2007.

Facilitate clients to participate in Ministerial missions as agreed with the Minister of Trade.

AchievedNetwork of offshore posts maintained and staffed with relevant expertise.

Mandate 30 to 50 deals under the Escalator programme. ExceededA total of 57 deals was mandated in 2006/07. (An additional seven deals have been approved by the Deal Broking Panel, but fi nal mandates have not been received from the clients. This would bring the total deals mandated to 64 for the year.)

Conduct 20 Escalator workshops in the 2006/07 fi nancial year. ExceededThere were 28 Escalator workshops held in 2006/07.

$15 million in capital will be raised by clients via the Escalator programme and other aligned sources.

ExceededThe total value of capital raised directly, indirectly (mandated) or raised indirectly (non-mandated) was $15.27 million.The Escalator client value score on a scale of one (poor) to fi ve (excellent) was: 3.4.

Manage NZTE-led projects under the Aichi Leveraging programme. AchievedProjects have been successfully delivered on most activities. Exceptions are the postponement of the ICT mission (to July 2007) and some delays in the Digital ICT project.


OUTPUT CLASS 7: GRANT ADMINISTRATION AND MANAGEMENTNZTE will administer a number of grant schemes on behalf of the Crown. Output Class seven provides for the purchase of services to ensure the delivery of business assistance grants, consistent with agreed policy guidelines and criteria. In addition, a range of services will be purchased to support government policy development, particularly relating to the development of ‘economic and regional development’.



EN DI NG 30 J U N E 2007, $000

REVISED BU DGET$000

ACTUAL$000

COMMENTARY

3,949 4,812 4,321 The revised budget includes additional funding to administer the increase in the Market Development grant approved during the year. Actual performance was below budget due to the timing of increasing administrative resources.

non-financial performance:O UTP UT C L AS S 7 : P E R F O R M A N C E M EAS U R E S AN D EXPECTATIONS


Grant administration and managementGrant applications are assessed and awarded, and claims against awarded grants are paid, in accordance with Cabinet criteria and NZTE grants processing guidelines.

AchievedGrant processes (application assessments and claim payments) comply with Cabinet criteria and NZTE processing guidelines in 100 percent of cases.*

NZTE will participate in external evaluations of grant programmes (led by MED) as appropriate, including the contribution of information and in follow-up actions from evaluation fi ndings.

On trackIn 2006/07 NZTE participated in the evaluation of the Incubators programme, the Australia New Zealand Biotechnology Partnership Fund, the GIF Sector Project Fund, the GIF Industry Governed Bodies Fund, and the Enterprise Network Fund. For a full list of programmes evaluated by MED in 2006/07 see page 4.

Policy supportPrepare 500 to 600 responses to Ministerials.

Not achievedA total of 255 replies were provided to Ministerial requests. Note that Ministerial volumes are driven by external factors and demand was lower than expected.

Process 10 to 20 requests under the Offi cial Information Act. ExceededNZTE provided 33 replies to Offi cial Information Act requests.

Respond to 130 to 170 Parliamentary Questions. ExceededA total of 447 replies were provided to Parliamentary Questions.

Prepare 90 to 130 briefi ng papers and reports to Ministers. ExceededA total of 160 briefi ng papers and reports were provided to Ministers.

Reports to Ministers meet the expectations of Ministers.Offi cial Information Act requests, Parliamentary Questions and Ministerial correspondence is responded to within agreed and statutory timeframes.

AchievedAll briefi ngs and reports were completed within agreed and statutory timeframes.All Ministerial requests, Parliamentary Questions and Offi cial Information Act requests were responded to within agreed and statutory timeframes.

Client satisfaction will be gauged at least annually for all programmes. Baseline measurement will be determined in 2006/07. Refer to page 34 of this report for a more detailed discussion of NZTE’s Performance Management Framework.

AchievedA survey of client perceptions of NZTE service delivery has been undertaken for key programmes in 2006/07. This is part of NZTE’s continuous improvement initiative. Samples of clients are surveyed for each of the programmes and performance is scored on a scale from 1 to 5, where 1 is poor and 5 is excellent. Please see below for further detail.

* For a list of grants with number of approvals and total value, see page 55


CLIENT VALUE RESEARCHA survey of client perceptions of NZTE service delivery was undertaken for key programmes in 2006/07. This is part of NZTE’s continuous improvement initiative. Samples of clients are surveyed for each of the programmes and performance is scored on a scale from 1-5, where 1 is poor and 5 is excellent.

P RO G R A M M E (O UTP UT N UM B E R ) OVE R A L L C L I E NT VA LU E S CO R E 2 0 0 6 / 0 7

Enterprise Networks (1.2) 3.1

Beachheads (1.2) Qualitative fi ndings due to small sample (<20)

Enterprise Culture Skills and Activities (2.2) Qualitative fi ndings due to small sample (<20)

Investment New Zealand (2.3) Qualitative fi ndings due to small sample (<20)

Enterprise Training (4.1) 4.6

Advanced Exporter Education (4.2) 4.3

Mentoring (4.3) 3.8

Paid client work (5.2) 3.6

Customised management information (5.1) 4.1

Escalator (6.2) 3.4

Note: the Client Value Score was changed in 2006/07 to a scale of 1-5, whereas in previous years this was 1-10. This makes comparisons between years unreliable.

G R A NTS N UM B E R O F G R A NTS A P P ROVE D TO 3 0 J U N E 2 0 0 7

VA LU E O F G R A NTS A P P ROVE D $ M I L L I O N

Enterprise Development Grant – Capability Building 366 3.2

Enterprise Development Fund – Market Development 541 36.3

Enterprise Culture & Skills 13 1.5

Growth Services Grant 46 8.8

Strategic Investment Fund 9 3.4

Incubator Awards 8 2.7

Regional Partnership Programme 48 16.2

ANZBPF ( Australia New Zealand Biotechnology Partnership Fund) 11 4

GIF – Industry Governed Body Fund 4 1

GIF – Sector Project Fund 13 0.9


STATEMENT OF ACCOUNTING POLICIESR E PO RTI N G E NTIT Y

New Zealand Trade and Enterprise (NZTE) is a Crown Entity established on 1 July 2003 under the New Zealand Trade and Enterprise Act 2003.

These fi nancial statements have been prepared in accordance with the New Zealand Trade and Enterprise Act 2003, the Crown Entities Act 2004, and the Public Finance Act 1989.

In addition, NZTE has reported the funding administered on behalf of the Crown as notes to the Financial Statements.

M EAS U R E M E NT BAS E

The fi nancial statements have been prepared on a historical cost basis.

ACCO U NTI N G P O L I C I E S

The following particular accounting policies, which materially affect the measurement of fi nancial performance and fi nancial position, have been applied.

• RevenueNZTE derives revenue primarily through the provision of outputs to the Crown and for services to third parties. Such revenue is recognised when earned and is reported in the fi nancial period to which it relates.

• Leases Operating leases are recorded by expensing the lease payment in the period in which it is incurred. In these leases, the lessor effectively retains the risks and benefi ts of ownership of the leased assets.

Finance Leases are classifi ed as those which effectively transfer to NZTE substantially all the risks and benefi ts incident to ownership of the leased item. These leases are capitalised at the lower of the fair value of the asset, or the present value of the minimum lease payments. The leased assets and corresponding lease liabilities are recognised in the Statement of Financial Position. The leased assets are depreciated over the period that NZTE is expected to benefi t from their use.

• Accounts ReceivableAccounts receivable are stated at their estimated net realisable value after providing for doubtful accounts. Bad debts are written off in the year they are identifi ed.

• Property, plant and equipmentProperty, plant and equipment from the New Zealand Trade Development Board and Industry New Zealand have been transferred to NZTE at the carrying value. All subsequent additions are recorded at cost. The costs of purchased assets is the value of the consideration given to acquire the assets and the value of other directly attributed costs required to place the asset in service.

Any write-down of an item to its recoverable amount is recognised in the Statement of Financial Performance.

• Depreciation and amortisationDepreciation or amortisation of fi xed assets is calculated on a straight-line basis to allocate the cost of assets, less the estimated residual value, over their useful lives. The calculations are performed using the following standard for useful lives:

– Leasehold Improvements: four to nine years (11.11% to 25%)

– Furniture and Fittings: four to fi ve years (20% to 25%)– Offi ce Equipment: four to fi ve years (20% to 25%)– Motor Vehicles: four to fi ve years (20% to 25%)– Computer Equipment: three years (33%)– Computer Software: three to four years (25% to 33%).

Capitalised project costs comprise direct project costs only. The costs of these development projects are accumulated as work in progress until the project is completed. After completion, the costs are transferred to the appropriate fi xed asset category. Capital work in progress is not depreciated.

• Provision for Employee EntitlementsProvision is made in respect of NZTE’s liability for annual leave, long service leave and retirement leave allowances, both in New Zealand and overseas.

Allowances are calculated as the estimated amount payable to employees on the basis of statutory and contractual requirements. Annual leave and other entitlements expected to be settled within 12 months of the reporting date are measured on an actual entitlement basis, calculated from current salary rates. Long service leave and retirement leave are measured on an actuarial basis, calculated from the present value of the expected future entitlement.

• TaxationNZTE is a public authority in terms of the Income Tax Act 1994 and consequently is exempt from the payment of income tax.

• Goods & Services Tax (GST)The fi gures shown in these fi nancial statements are GST exclusive, except for accounts receivable and accounts payable, which are shown GST inclusive.

• Associate companiesAssociates are investees (but not subsidiaries) in which NZTE has the capacity to affect substantially, but not unilaterally determine, the operating and/or fi nancial policy decisions. Associates have been refl ected in the fi nancial statements on an equity accounting basis which recognises NZTE’s share of retained surpluses in the Statement of Financial Performance and its share of post acquisition increases or decreases in net assets in the Statement of Financial Position. The investment is recorded at the lower of carrying value and recoverable amount.

• Financial instrumentsNZTE is party to fi nancial instruments as part of its normal operations. These fi nancial instruments include:– Cash and bank– Debtors– Investments– Creditors– Forward Foreign Exchange Contracts

(unrecognised items).


NZTE enters into foreign exchange contracts to hedge currency transactions. Any exposure to gains or losses on these contracts is generally offset by a related loss or gain on the item being hedged.

Revenues and expenses in relation to all fi nancial instruments are recognised in the Statement of Financial Performance.

All fi nancial instruments, other than Forward Exchange Contracts relating to future periods, are recognised in the Statement of Financial Position.

• Foreign currenciesTransactions in foreign currencies are converted to New Zealand dollars at the rate of exchange ruling at the date of the transaction. Where transactions have been hedged by forward exchange contracts, they have been converted at the forward rates specifi ed in those contracts. Foreign currency monetary assets are converted at the rate ruling at balance date, with exchange variations arising from the translation process being credited or charged to the Statement of Financial Performance based on the balances of the respective accounts. Exchange gains / (losses), whether realised or unrealised, are charged to the Statement of Financial Performance.

• CommitmentsCommitments that may result in material changes to the fi nancial position of the company are to be disclosed in the fi nancial statements. These commitments include operating and capital commitments arising from non-cancellable contractual obligations.

• Budget fi guresThe Board approves the budget fi gures at the beginning of each fi nancial year. These fi gures are prepared in accordance with generally accepted accounting practices and are consistent with the accounting policies adopted by the Board for the preparation of the fi nancial statements.

• Statement of cashfl owsThe following defi nitions are used in the statement of cashfl ows:– Cash is considered to be cash on hand, bank account

balances, on call deposits and foreign currencies held in banks.

– Operating activities are all activities other than investing and fi nancial activities. The cash infl ows include cash received from the sale of goods and services and other sources of revenue that support NZTE’s operating activities. Cash outfl ows include payments made to employees, suppliers and for indirect taxes.

– Investing activities are those relating to the purchase and sale of non-current assets and investments.

– Financing activities are those activities that result in a change in the equity and debt capital structure of NZTE and those activities relating to the cost of servicing the equity capital.

• Cost of service statementsThe cost of service statements, as reported in the Statement of Service Performance, report the net cost of services for the outputs of NZTE and are represented by the costs of providing the output less all the revenue that can be allocated to these activities.– Cost allocation

NZTE has derived the net cost of service for each signifi cant activity of NZTE using the cost allocation system outlined below.

– Cost allocation policyDirect costs are charged directly to signifi cant activities. Indirect costs are charged to signifi cant activities based on cost drivers and related activity/usage information.

– Criteria for direct and indirect costs‘Direct costs’ are those directly attributable to a signifi cant activity.

‘Indirect costs’ are those costs which cannot be identifi ed in an economically feasible manner with a specifi c signifi cant activity.

– Cost drivers for allocation of indirect costsThe cost of internal services not directly charged to activities is allocated as overheads using appropriate cost drivers such as actual usage and full time equivalents.

C H A N G E S I N ACCO U NTI N G P O L I C I E S

There have been no changes in accounting policies since the date of the last audited fi nancial statements.

All policies have been applied on a basis consistent with the previous year.


NZTE ANNUAL REPORT 2007 FINANCIALSG45


STATEMENT OF FINANCIAL PERFORMANCEFOR THE YEAR ENDED 30 JUNE 2007

BUDGET NOTES ACTUAL ACTUAL

2007

$000

2007

$000

2006

$000

Revenue

137,236 Crown operating 142,956 141,819

1,500 Client income 1,321 1,636

1,330 Other revenue 2,898 2,545

420 Interest income 535 428

140,486 Total Revenue 147,710 146,428

Expenses

56,081 Personnel 61,944 61,147

80,333 Operating 1 81,986 80,629

4,072 Depreciation 5 4,444 4,340

140,486 Total Expenses 148,374 146,116

– Net operating surplus / (defi cit) (664) 312

The accompanying accounting policies and notes form part of these fi nancial statements

STATEMENT OF MOVEMENTS IN EQUITYFOR THE YEAR ENDED 30 JUNE 2007


2007

$000

2007

$000

2006

$000

21,698 Equity as at 1 July 2006 22,010 20,918

– Net operating surplus / (defi cit) for the year (664) 312

– Total recognised revenue and expenses (664) 312

1,870 Capital contributions by the Crown 560 780

23,568 Equity as at 30 June 2007 21,906 22,010

The accompanying accounting policies and notes form part of these fi nancial statements.


NZTE ANNUAL REPORT 2007 FINANCIALS G45



2007

$000

2007

$000

2006

$000

Equity

23,568 General funds 21,906 22,010

Represented by:Current assets

8,062 Cash and bank accounts 2 10,598 9,449

14,295 Accounts receivable 3 19,800 16,003

2,700 Deposits and prepayments 4 2,336 2,687

25,057 Total current assets 32,734 28,139

Non-current assets

13,336 Property, plant and equipment 5 11,152 12,753

0 Investment in associate 6 0 0

13,336 Total non-current assets 11,152 12,753

38,393 Total assets 43,886 40,892

Current liabilities

8,905 Accounts payable 7 16,075 12,827

2,500 Employee entitlements 8 2,479 2,408

100 Current portion term liabilities 9 124 119

11,505 Total current liabilities 18,678 15,354

Non-current liabilities

2,500 Employee entitlements 8 2,480 2,582

820 Term liabilities 9 822 946

3,320 Total non-current liabilities 3,302 3,528

14,825 Total liabilities 21,980 18,882

23,568 Net assets 21,906 22,010


For and on behalf of the Board of Directors, which authorised the issue of the fi nancial statements on the day of 20 September 2007.

P V Lough CHAIR A R Isaac BOARD MEMBER T D Gibson CHIEF EXECUTIVE

STATEMENT OF FINANCIAL POSITIONAS AT 30 JUNE 2007




STATEMENT OF CASHFLOWSFOR THE YEAR ENDED 30 JUNE 2007


2007

$000

2007

$000

2006

$000

Cashfl ows from operating activities

Cash was provided from:137,236 Revenue from Crown 139,554 149,597

2,950 Client and other income 4,907 3,353

300 Interest received 535 428

140,486 Total cash received 144,996 153,378

Cash was applied to: – Net goods and services tax (865) 156

(138,284) Payments to suppliers and employees (140,723) (145,411)

(138,284) Total cash applied (141,588) (145,255)

2,202 Net cashfl ows from operating activities 10 3,408 8,123

Cashfl ows from investing activities

Cash was provided from: – Sale of property, plant and equipment (26) 107

– Total cash received (26) 107

Cash was applied to:(4,072) Purchase of property, plant and equipment (2,766) (6,423)

(4,072) Total cash applied (2,766) (6,423)

(4,072) Net cashfl ows from investing activities (2,792) (6,316)

Cashfl ows from fi nancing activities

Cash was provided from:1,870 Capital contribution from the Crown 560 780

1,870 Total cash received 560 780

1,870 Net cashfl ows from fi nancing activities 560 780

– Net increase (decrease) in cash held 1,176 2,587

8,062 Plus opening cash 9,449 6,477

– Effect of exchange rate changes on cash (27) 385

8,062 Closing cash balance 10,598 9,449

8,062 Cash and bank accounts 10,598 9,449





STATEMENT OF COMMITMENTSAS AT 30 JUNE 2007

At balance date NZTE had commitments in respect of:

ACTUAL ACTUAL

2007

$000

2006

$000

Operating commitments

Non-cancellable operating lease commitments payable:No later than one year 8,638 10,825

Between one and two years 4,767 4,250

Between two and fi ve years 7,748 6,953

More than fi ve years 2,807 4,198

23,960 26,226

Non-cancellable operating lease commitments are for offi ce rental, offshore residential rental, offi ce equipment and information technology service agreements.

ACTUAL ACTUAL

2007

$000

2006

$000

Non-cancellable contracts:No later than one year 6,289 4,426

Between one and two years 3,340 499

Between two and fi ve years 3,190 105

More than fi ve years – –

12,819 5,030

Total non-cancellable operating commitments 36,779 31,256

Non-cancellable contracts include contracts for sponsorships and the supply of goods or services.

ACTUAL ACTUAL

2007

$000

2006

$000

Capital commitments

Capital commitments approved and contracted 68 82

Note 17 details grant commitments on behalf of the Crown as at 30 June 2007.


STATEMENT OF CONTINGENT LIABILITIESAS AT 30 JUNE 2007

NZTE is dealing with a small number of low risk unresolved personal grievance claims by former employees. The estimated maximum value of these contingent liabilities (including costs) is estimated at nil as at 30 June 2007. (2006: $165,000)Note 17 details grant contingent liabilities on behalf of the Crown as at 30 June 2007.





NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2007

N OTE 1 OPERATING EXPENSES

2007

$000

2006

$000

Fees paid to auditors – external audit 152 137

Fees paid to auditors – IFRS audit 15 2

Bad debts written off 0 7

Board fees 189 194

Capital charge 1,638 1,676

Change in provision for bad debts 0 (8)

Development and implementation of sector strategies including the Growth and Innovation Framework 12,923 13,864

Enterprise training and mentoring services 14,478 14,581

Aichi World Expo 0 1,019

America’s Cup Leveraging 2,005 216

Finance charges on fi nance leases 38 44

Foreign exchange losses – realised 113 73

Foreign exchange losses – unrealised 27 0

Property, plant and equipment written off 504 18

Rental expense on operating leases 11,608 11,727

Services provided by third parties 6,635 5,566

Sponsorship, Brand NZ, enterprise culture and offshore promotions 10,652 11,217

NZTE pays a capital charge on its Equity to the Crown as at 30 June and 31 December each year. The capital charge rate for the year was 7.5 percent. (2006: 8.0 percent)

NZTE effected directors’ and offi cers’ liability insurance. A premium of $11,250 was paid for this insurance for the period 1 July 2006 to 30 June 2007. (2006: $11,250)

N OTE 2CASH AND BANK ACCOUNTS

2007

$000

2006

$000

Cheque account 407 493

Call account 8,779 6,941

Foreign currency accounts 1,412 2,015

10,598 9,449

Interest rates received for bank accounts 0.00% – 7.00% 0.00% – 6.75%

N OTE 3ACCOUNTS RECEIVABLE

2007

$000

2006

$000

Crown debtor – operating 18,616 14,056

Trade debtors 747 1,145

Less provision for doubtful debts (10) (10)

19,353 15,191

Sundry debtors 447 666

Goods and services tax 0 146

19,800 16,003





N OTE 4DEPOSITS AND PREPAYMENTS

2007

$000

2006

$000

Deposits 1,086 1,119

Prepayments 1,250 1,568

2,336 2,687

N OTE 5PROPERTY, PLANT & EQUIPMENT

2007COST

$000

ACCUMULATED

DEPRECIATION

$000

NET BOOK

VALUE

$000

DEPRECIATION

EXPENSE

$000

Computer hardware 5,059 4,155 904 878

Computer software 9,099 4,779 4,320 877

Furniture, fi xtures, fi ttings 2,870 1,805 1,065 408

Leased telecommunication assets 150 150 – –

Leasehold improvements 8,114 4,211 3,903 1,551

Motor vehicles 1,627 1,223 404 323

Offi ce equipment 1,958 1,402 556 407

28,877 17,725 11,152 4,444

2006COST

$000

ACCUMULATED

DEPRECIATION

$000

NET BOOK

VALUE

$000

DEPRECIATION

EXPENSE

$000

Computer hardware 4,966 3,627 1,339 964

Computer software 7,311 3,979 3,332 679

Furniture, fi xtures, fi ttings 2,773 1,475 1,298 553

Leased telecommunication assets 150 150 – 50

Leasehold improvements 8,528 3,265 5,263 1,307

Motor vehicles 1,787 1,113 674 383

Offi ce equipment 1,864 1,017 847 404

27,379 14,626 12,753 4,340

N OTE 6 INVESTMENT IN ASSOCIATE

NZTE has a 50 percent shareholding in The New Zealand Way Limited. This company is the operating entity of a joint venture between NZTE and Tourism New Zealand.

The carrying value of $75 as at 30 June 2007 represents NZTE’s share in the issued and paid-up capital of The New Zealand Way Limited. The fi nancial year-end of The New Zealand Way Limited is 30 June. (Year ended 30 June 2006 – $75)

The New Zealand Way Brand provides marketing opportunities to those companies which meet quality and environmental standards. The Brand is promoted as a mark of outstanding quality and superior service and unique New Zealand characteristics.




N OTE 7ACCOUNTS PAYABLE

2007

$000

2006

$000

Creditors and accruals 15,766 12,827

Goods and services tax 309 –

16,075 12,827

N OTE 8EMPLOYEE ENTITLEMENTS

2007

$000

2006

$000

Annual leave 2,479 2,408

Long service and retirement leave 2,480 2,582

4,959 4,990

Represented by:2007

$000

2006

$000

Current 2,479 2,408

Non-current 2,480 2,582

4,959 4,990

N OTE 9TERM LIABILITIES

2007

$000

2006

$000

Analysis of fi nance lease liabilitiesPayable no later than one year 159 158

More than one year 920 1,078

Less future fi nance charges (133) (171)

Recognised as a liability 946 1,065

The effective interest rates for the life of the fi nance leases are 6.19 percent to 11 percent. The fi nance leases for offi ce equipment are secured over the assets to which they relate. Finance leases for leasehold improvements are unsecured.

Represented by:2007

$000

2006

$000

Current 124 119

Non-current 822 946

946 1,065





N OTE 1 0RECONCILIATION OF THE NET SURPLUS FROM OPERATIONS WITH THE NET CASH FLOWS FROM OPERATING ACTIVITIES

2007

$000

2006

$000

Net (defi cit)/surplus from operations (664) 312

Add/(less) non-cash items:Depreciation 4,444 4,340

Unrealised foreign exchange losses 27 (385)

Net loss/(gain) on disposal of property, plant and equipment (49) (40)

Increase/(Decrease) in non-current employee entitlements and fi nance lease liability (226) 426

Total non-cash items 4,196 4,341

Add/(less) working capital movements – (Increase)/Decrease in receivables & prepayments (3,443) 7,671

Increase/(Decrease) in payables 3,248 (4,188)

Increase/(Decrease) in employee entitlements 71 (13)

Total working capital movements (124) 3,470

Net cashfl ow from operating activities 3,408 8,123

N OTE 1 1SEGMENTAL REPORTING

NZTE’s primary functions are to : – contribute to a supportive environment for enterprise– provide assistance to businesses to build their capability– improve international connectedness of New Zealand businesses– increase the quality and the quantity of foreign direct investment in New Zealand

NZTE is committed to providing a range of high-quality, responsive services to New Zealand businesses to improve their international competitiveness and sustained profi tability. It has 10 offi ces in New Zealand and 38 offi ces overseas.





N OTE 1 2RELATED PARTY TRANSACTIONS

NZTE is a wholly owned entity of the Crown. The Government signifi cantly infl uences the roles of NZTE as well as being its major source of revenue.

All transactions entered into with government departments and other crown entities are conducted at arms length on normal business terms. In overseas countries NZTE operates with other government agencies in securing cost effective representation. These transactions are not considered related party transactions.

A number of companies in which the NZTE directors have an interest are members of industry groups.

All transactions with these industry groups are on the same basis as all other industry groups. These transactions are not considered related party transactions.

The following schedule presents material related party transactions, for the year ended 30 June 2007, which were at arms length on normal commercial terms. No permissions to act, in terms of s.68 Crown Entities Act 2004, were granted in the year ended 30 June 2007.

NAME OF DIRECTOR & ENTITY RELATIONSHIP TRANSACTION

AMOUNT

$

BALANCE

OUTSTANDING

AS AT

30 JUNE 2007

$

Craig Ellison

NZTE purchased/provided the following:

Absolute Foods Director Enterprise Network grant 5,328

NZTE supplied and invoiced the following:

Airways International Ltd Director Market visit programme 4,375

Prepared Foods Ltd Director Advice and information, and market visit programme

19,737 4,375

Phillip Lough


Methven Limited Director Growth Services grant and Beachheads rent reimbursement

21,025


Fisher & Paykel Healthcare Shareholder Dubai Beachheads participation fee 28,444

Massey University Trustee Venue rental and market visit programme

4,757

Provenco Group Shareholder Ministerial mission 848

The Tatua Co-op Dairy Director Advice and information 11,000

Peter Maire


Rakon NZ Ltd Director/Shareholder

Overseas exhibition costs 8,757

Talon Technology Ltd Director Ministerial mission 422





N OTE 1 2 CO NTI N U E DRELATED PARTY TRANSACTIONS

Peter Menzies


Auckland University Council Member

Enterprise Network grants, Incubator grant and World Class New Zealanders Programme

328,721

Protemix Corporation Ltd Shareholder Enterprise Network grant 2,764

Xsol Limited Shareholder IT software and market development grant

23,949


Auckland University Council Member

Advertising reimbursement and market visit programme

5,801 500

Esphion Shareholder Market visit programme 14,173

Pumpkin Patch Limited Shareholder Market visit programme 2,344

Lorraine Witten


Open Cloud Shareholder Growth Services grant, Sector project Expenditure, Reimbursement of accommodation and Beachheads rent

113,091

RMA Solutions Director/Shareholder

NZ Beachheads Advisory Board Meeting fees

4,500

Run The Red Business Consulting

Growth Services grant 25,729


N OTE 1 3FINANCIAL INSTRUMENTS

NZTE is a party to fi nancial instruments as part of its normal operations. These fi nancial instruments include bank accounts, deposits, accounts receivable and payables. NZTE has a series of policies providing risk management for interest rates, operating and capital expenditures denominated in foreign currency. NZTE is risk averse and seeks to minimise its exposure from its treasury activities. Its policies do not allow for any transactions which are speculative in nature to be entered into. Revenues and expenses are recognised in the Statement of Financial Performance.





N OTE 1 3 CO NTI N U E DCURRENCY RISK

Currency risk is the risk that the amount due to/from debtors, creditors and other monetary assets in foreign currencies will fl uctuate because of changes in foreign exchange rates.

NZTE has offi ces overseas and undertakes transactions denominated in foreign currencies. As a result of these activities exposures in foreign currency arise. It is the NZTE policy to hedge foreign currency risks and use forward and spot foreign exchange contracts to manage this exposure. In accordance with Crown policy the foreign exchange forward contracts are completed approximately nine months prior to the commencement of the fi nancial year. The appropriation from the Crown for the fi nancial year is primarily based on these same foreign exchange contracted rates. The total foreign exchange exposure hedged during the year ended 30 June 2007 was 73 percent.

Amounts of forward foreign exchange transactions outstanding at balance date are as follows:

2007

$000

2006

$000

Forward foreign exchange contracts 28,302 31,822

CREDIT RISK

Credit risk is the risk that a third party will default on its obligations to NZTE, causing it to incur a loss.

In the normal course of business NZTE incurs credit risk from trade debtors and fi nancial institutions. There are no signifi cant concentrations of credit risk from trade debtors and exposures to them are monitored on a regular basis. NZTE does not require any collateral or security to support fi nancial instruments due to the quality of the fi nancial institutions dealt with.

To the extent that NZTE has a receivable from another party there is a credit risk in the event of non-performance of that counter party. Financial instruments that potentially subject NZTE to credit risk principally consist of bank balances. The Board places its investments with institutions that have a high credit rating. There is no signifi cant concentration of credit risk.

Maximum exposures to credit risk at balance date, being the carrying amount in the Statement of Financial Position are:

2007

$000

2006

$000

Cash and bank accounts 10,598 9,449

Accounts receivable 19,800 16,003

INTEREST RATE RISK

Interest rate risk is the risk that NZTE return on the funds it has invested will fl uctuate due to changes in market interest rates.

All investments are held on a short-term basis, thus minimising any interest rate risk. The effective interest rate on short-term deposits as at 30 June 2007 was between 0 percent and 7.0 percent. (2006: 0 percent and 7.0 percent)

FAIR VALUE

The fair value of fi nancial instruments is approximately equivalent to the carrying amount disclosed in the Statement of Financial Position except for forward foreign currency contracts, as follows:

2007

CARRYING

AMOUNT

$000

2007

FAIR VALUE

$000

2006

CARRYING

AMOUNT

$000

2006

FAIR VALUE

$000

Foreign currency contracts – current 28,302 26,319 31,822 36,340

Foreign currency contracts – non-current – – – –





N OTE 1 4EMPLOYEE REMUNERATION

The following table discloses the number of NZTE employees who received remuneration, payments and/or benefi ts excluding cessation payments of $100,000 or more during the year ending 30 June 2007 and 30 June 2006.

TOTAL REMUNERATION

AND BENEFITS

$

2007

NZ

2007

SECONDED

OFFSHORE*

2007

LOCALLY

ENGAGED

OFFSHORE**

2006

NZ

2006

SECONDED

OFFSHORE*

2006

LOCALLY

ENGAGED

OFFSHORE**

100-109,999 35 1 13 28 – 8

110-119,999 19 1 10 18 1 7

120-129,999 10 1 6 12 4 6

130-139,999 10 1 8 8 7 8

140-149,999 7 1 5 7 3 5

150-159,999 3 3 5 4 7 3

160-169,999 2 5 2 3 5 1

170-179,999 2 7 3 2 1 1

180-189,999 4 2 2 1 6 –

190-199,999 1 2 – 2 2 –

210-219,999 – 1 – 1 – –

220-229,999 – – – 2 1 –

230-239,999 2 – – – 3 –

240-249,999 2 2 – 3 – –

250-259,999 – – – 1 – –

260-269,999 1 2 – – – –

270-279,999 2 1 – – 1 –

410-419,999 – – – – 1 –

430-439,999 – – – 1 – –

450-459,999 1 – – – – –

Locally engaged employees in overseas offi ces and the allowances of New Zealand employees seconded to overseas offi ces have been included in these totals.

* Of the offshore expatriate employees disclosed, 5 receive a base salary of less than $100,000 but receive allowances to reimburse the costs associated with being an expatriate employee. This takes the total paid to more than $100,000. When these employees return to New Zealand they will be paid their base salary only. Note that for expatriate employees, base salary may be less than $100,000, however the allowances that reimburse costs for such staff living offshore take the overall payments to this amount. Note these allowances cease when the employee returns to New Zealand.

** The total remuneration paid to locally engaged overseas employees has been converted to New Zealand dollars based on the average exchange rate during the year ending 30 June 2007. This includes salary and any cessation payments.

During the year ending 30 June 2007, 20 onshore employees received cessation payments totalling $458,831.88.

During the year ending 30 June 2007, 12 locally engaged employees received cessation payments totalling $762,058.67.

The Chief Executive’s remuneration and benefi ts are in the $450,000 to $459,999 band.

Due to legislative changes, from 1 April 2007 allowances paid to expatriate staff became taxable. NZTE increased these allowances so that employees received the same net amount.





N OTE 1 5BOARD AND COMMITTEE REMUNERATION

Board members earned the following remuneration (fees) during the year.

MEMBER

2007

$

2006

$

Peter Conway (from 1 January 2007) 9,750 –

Craig Ellison 21,450 21,450

Jane Hunter 19,500 2,831

Alan Isaac 21,450 3,067

Phil Lough (Chair) 56,000 56,000

Peter Maire 19,500 2,831

Peter Menzies 21,450 19,736

Lorraine Witten 19,500 2,831

Michael Andrews (to 30 April 2006) – 17,875

Craig Boyce (to 1 May 2006) – 17,933

Ken Douglas (to 8 May 2006) – 16,669

Emily Loughnan (to 8 May 2006) – 16,669

Wendy Pye (to 30 April 2006) – 16,250

There have been no payments made to committee members, appointed by the Board, who are not Board Members during the fi nancial year.

N OTE 1 6FUNDS ADMINISTERED ON BEHALF OF THE CROWN

During the year the Board administered grants funds of $33.7m (GST exclusive) (2006: $27.4m GST exclusive) on behalf of the Crown. The funds were transacted through a separate bank account as agents for the Crown and are not included in the Statement of Financial Position. Details of grant approvals by class of grant are contained in the Statement of Service Performance.

N OTE 1 7GRANT PROVISIONS, COMMITMENTS AND CONTINGENT LIABILITIES ON BEHALF OF THE CROWN

2007

$000

2006

$000

Opening balance 50,185 44,380

Grants approved during year ended 30 June 79,400 39,450

Less payments made against provisions (33,697) (27,399)

Less unused amounts due to cessations (4,976) (6,004)

Less changes due to variation in estimated draw down rates (16,028) (243)

Closing balance as at 30 June 74,884 50,184

The provisions represents the total commitments across a range of grant programmes as at 30 June. Payments against 30 June 2007 provisions are expected to be made during 2007/2008 year or later in accordance with the grant criteria.

All values are GST exclusive. 2006 amounts have been restated to GST exclusive values.

NZTE had no contingent liabilities in relation to Crown grants as at 30 June 2007 (2006: nil).




N OTE 1 8MAJOR BUDGET VARIATIONSStatement of Financial Performance, Statement of Financial Position, and Statement of Cashfl ows

Revenue from the Crown is above budget due to increased funding approved during the year to support the Export Year initiative, operational costs related to increased Market Development Grant activity, and Aichi leveraging activity.

Other revenue is above budget due to recoveries from the America’s Cup leveraging initiative, conference fees and increased rent recoveries.

Personnel costs are above budget due to the impact of increases in funding originally classifi ed as operational costs, and one off unbudgeted costs.

The net operating defi cit arises from the revaluation of overseas net assets, primarily bank accounts, and the write-off of web based assets.

Capital contributions from the Crown are below budget due to the slower than budgeted development of the biz.org investment.

Accounts receivable are above budget due to a higher level of activity undertaken by external service providers in June 2007.

Property, plant and equipment is below budget due to deferrals in the commencement of overseas offi ce fi t outs and the replacement of motor vehicles.

Accounts payable are above budget due to increased external service provider costs in the month of June and lower than expected payments to creditors.

N OTE 1 9EVENTS SUBSEQUENT TO BALANCE DATE

There were no events subsequent to balance date that required adjustment to the fi nancial statements (2006: nil).





AUDIT REPORTTO TH E R EA D E R S O F N EW Z EA L A N D TR A D E A N D E NTE R P R I S E ’ S F I N A N C I A L STATE M E NTS A N D P E R F O R M A N C E I N FO R M ATI O NF O R TH E YEA R E N D E D 3 0 J U N E 2 0 0 7

M G TarisAudit New Zealandon behalf of the auditor-general

tauranga, new zealand

The Auditor-General is the auditor of New Zealand Trade and Enterprise. The Auditor-General has appointed me, M G Taris, using the staff and resources of Audit New Zealand, to carry out the audit on his behalf. The audit covers the fi nancial statements and statement of service performance included in the annual report of New Zealand Trade and Enterprise for the year ended 30 June 2007.

U N Q UA L I F I E D O P I N I O N

In our opinion:

The fi nancial statements of New Zealand Trade and Enterprise on pages 56 to 71:• comply with generally accepted accounting practice in

New Zealand; and• fairly refl ect:

– New Zealand Trade and Enterprise’s fi nancial position as at 30 June 2007; and

– the results of its operations and cash fl ows for the year ended on that date.

The statement of service performance of New Zealand Trade and Enterprise on pages 42 to 55:• complies with generally accepted accounting practice in

New Zealand; and• fairly refl ects for each class of outputs:

– its standards of delivery performance achieved, as compared with the forecast standards outlined in the statement of forecast service performance adopted at the start of the fi nancial year; and

– its actual revenue earned and output expenses incurred, as compared with the forecast revenues and output expenses outlined in the statement of forecast service performance adopted at the start of the fi nancial year.

The audit was completed on 20 September 2007, and is the date at which our opinion is expressed.The basis of our opinion is explained below. In addition, we outline the responsibilities of the Board and the Auditor, and explain our independence.

BAS I S O F O P I N I O N

We carried out the audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the New Zealand Auditing Standards.We planned and performed the audit to obtain all the information and explanations we considered necessary in order to obtain reasonable assurance that the fi nancial statements and statement of service performance did not have material misstatements, whether caused by fraud or error.Material misstatements are differences or omissions of amounts and disclosures that would affect a reader’s overall understanding of the fi nancial statements and the statement of service performance. If we had found material misstatements that were not corrected, we would have referred to them in our opinion.The audit involved performing procedures to test the information presented in the fi nancial statements and statement of service performance. We assessed the results of those procedures in forming our opinion.

Audit procedures generally include:• determining whether signifi cant fi nancial and

management controls are working and can be relied on to produce complete and accurate data;

• verifying samples of transactions and account balances;• performing analyses to identify anomalies in the

reported data;• reviewing signifi cant estimates and judgements made by

the Board;• confi rming year-end balances;• determining whether accounting policies are appropriate

and consistently applied; and• determining whether all fi nancial statement and

statement of service performance disclosures are adequate.We did not examine every transaction, nor do we guarantee complete accuracy of the fi nancial statements or statement of service performance.We evaluated the overall adequacy of the presentation of information in the fi nancial statements and statement of service performance. We obtained all the information and explanations we required to support our opinion above.

R E S P O N S I B I L ITI E S O F TH E B OA R D A N D TH E AU D ITO R

The Board is responsible for preparing fi nancial statements and a statement of service performance in accordance with generally accepted accounting practice in New Zealand. The fi nancial statements must fairly refl ect the fi nancial position of New Zealand Trade and Enterprise as at 30 June 2007 and the results of its operations and cash fl ows for the year ended on that date. The statement of service performance must fairly refl ect, for each class of outputs, New Zealand Trade and Enterprise’s standards of delivery performance achieved and revenue earned and expenses incurred, as compared with the forecast standards, revenue and expenses adopted at the start of the fi nancial year. The Board’s responsibilities arise from the Crown Entities Act 2004 and the New Zealand Trade and Enterprise Act 2003. We are responsible for expressing an independent opinion on the fi nancial statements and statement of service performance and reporting that opinion to you. This responsibility arises from section 15 of the Public Audit Act 2001 and the Crown Entities Act 2004.

I N D E P E N D E N C E

When carrying out the audit we followed the independence requirements of the Auditor-General, which incorporate the independence requirements of the Institute of Chartered Accountants of New Zealand.Other than the audit, we have no relationship with or interests in New Zealand Trade and Enterprise.


MATTERS RELATING TO THE ELECTRONIC PRESENTATION OF THE AUDITED FINANCIAL STATEMENTS

This audit report relates to the fi nancial statements of New Zealand Trade and Enterprise for the year ended 30 June 2007 included on New Zealand Trade and Enterprise’s website. The New Zealand Trade and Enterprise’s Board is responsible for the maintenance and integrity of the New Zealand Trade and Enterprise’s website. We have not been engaged to report on the integrity of the New Zealand Trade and Enterprise’s website. We accept no responsibility for any changes that may have occurred to the fi nancial statements since they were initially presented on the website.

The audit report refers only to the fi nancial statements named above. It does not provide an opinion on any other information which may have been hyperlinked to/from these fi nancial statements. If readers of this report are concerned with the inherent risks arising from electronic data communication they should refer to the published hard copy of the audited fi nancial statements and related audit report dated 20 September 2007 to confi rm the information included in the audited fi nancial statements presented on this website.

Legislation in New Zealand governing the preparation and dissemination of fi nancial statements may differ from legislation in other jurisdictions.


20473 NZTE AR 2007 fo PDF.indd Sec1:7320473 NZTE AR 2007 fo PDF.indd Sec1:73 11/10/07 2:22:53 PM11/10/07 2:22:53 PM



STATEMENT OF TRANSITION TO NEW ZEALAND EQUIVALENTS TO THE INTERNATIONAL FINANCIAL REPORTING STANDARDS

NZTE will adopt the New Zealand equivalents to International Financial Reporting Standards (NZIFRS) for the fi nancial year beginning 1 July 2007.

NZTE has undertaken a project to identify the differences between existing NZTE accounting policies and NZIFRS. The major areas expected to be impacted by the transition to NZIFRS are derivative fi nancial instruments, intangible assets and fi nancial statement disclosures.

The estimated fi nancial impact at 30 June 2007 is as follows, (although this should not be taken as an exhaustive list of the differences between NZTE accounting policies and NZIFRS):

• The difference between the contracted and fair value of forward foreign currency contracts is $2 million, based on exchange rates at 30 June 2007, and represents a reduction in Equity at 1 July 2007. The appropriation from the Crown is stated at the same exchange rates as the forward foreign exchange currency contracts, which reduces the exposure of NZTE to this difference.

• Websites and related assets represent a difference of approximately $2.1 million at 30 June 2007, and will be recognised as a reduction in Equity at 1 July 2007.

It is possible that the actual impact of adopting NZIFRS may vary from the provisional information presented above.

OTHER STATUTORY REPORTING REQUIREMENTS

M I N I STE R I A L D I R E C T I O N S ( S.1 1 4 A N D 1 1 5 C ROWN ENTITI E S ACT 2 0 0 4 )

No directions were given to NZTE in writing by a Minister under any enactment during the year ending 30 June 2007.

EN FORC EMENT OF ACTS (S.20 ( 3 ) C ROWN E NTITI ES ACT 2 0 0 4 )

No natural person acts were enforced against NZTE, in reliance on s.20 Crown Entities Act 2004, during the year ending 30 June 2007.


G45


ANKARAPostal Address: Guniz Sokak No:22/5 Kavaklidere, Ankara Street Address: Guniz Sokak No:22/5 Kavaklidere, Ankara

AUCKLANDPostal Address: PO Box 8680, Symonds Street, AucklandStreet Address: Levels 10, 11 & 12, The ANZ Centre,

23-29 Albert Street, cnr of Albert, Federal and Swanson Streets, Auckland

BANGKOKPostal Address: c/o New Zealand Embassy, Level 14, M Thai Tower,

All Seasons Place, 87 Wireless Road, Bangkok 10330Street Address: Level 14, M Thai Tower, All Seasons Place,

87 Wireless Road, Bangkok 10330

BEIJINGPostal Address: C/- New Zealand Embassy, No. 1 Ritan Dongerjie,

Chaoyang District, Beijing, 100600Street Address: C/- New Zealand Embassy, No. 1 Ritan Dongerjie,

Chaoyang District, Beijing, 100600

BUENOS AIRESPostal Address: New Zealand Trade and Enterprise,

Carlos Pellegrini 1427, 5º piso C1011AAC Buenos Aires

Street Address: New Zealand Trade and Enterprise, Carlos Pellegrini 1427, 5º piso C1011AAC Buenos Aires

CHRISTCHURCHPostal Address: PO Box 468, ChristchurchStreet Address: Level 8, PricewaterhouseCoopers Centre,

119 Armagh Street, Christchurch

DUBAIPostal Address: PO Box 23 156, DubaiStreet Address: Suite 1502, API Tower, Sheikh Zayed Road,

Dubai

DUNEDINPostal Address: PO Box 5642, DunedinStreet Address: WestpacTrust Building, Level 2, 106 George Street,

Dunedin

FORT LAUDERDALE (BEACHHEAD)Postal Address: 501 SE 2nd Street Suite 1002,

Fort Lauderdale, FL 33301Street Address: 501 SE 2nd Street Suite 1002,

Fort Lauderdale, FL 33301

GUANGZHOUPostal Address: Room 1160, China Hotel Offi ce Tower, Liuhua Road,

Guangzhou, 510015Street Address: Room 1160, China Hotel Offi ce Tower, Liuhua Road,

Guangzhou, 510015

HAMBURGPostal Address: New Zealand Trade and Enterprise, c/o

New Zealand Consulate General, Zuerich-Haus, Domstr. 19, 20095 Hamburg

Street Address: New Zealand Trade and Enterprise, c/o New Zealand Consulate General, Zuerich-Haus, Domstr. 19, 20095 Hamburg

HAMILTONPostal Address: PO Box 9515, HamiltonStreet Address: 5 Somerset Street, Frankton, Hamilton

HO CHI MINH CITYPostal Address: New Zealand Consulate-General, PO Box 419,

Central Post Offi ce, District 1, Ho Chi Minh City, Street Address: New Zealand Consulate General Suite 909, 235

Dong Khoi Street District 1, Ho Chi Minh City,

HONG KONGPostal Address: Suite 6502, 65/F Central Plaza, 18 Harbour Road,

Wanchai, Hong KongStreet Address: Suite 6502, 65/F Central Plaza, 18 Harbour Road,

Wanchai, Hong Kong

JAKARTAPostal Address: P O Box 2439, Jakarta 10024Street Address: C/- New Zealand Embassy, Gedung BRI II Building,

23rd Floor, Suite 2303, Jalan Jend. Sudirman Kav. 44-46 Jakarta 10210

KARACHIPostal Address: House # 108-E, Block 2, P.E.C.H.

Society Karachi-75400,Street Address: House # 108-E, Block 2, P.E.C.H.

Society Karachi-75400

KUALA LUMPURPostal Address: 21st Floor, Menara IMC,

No 8 Jalan Sultan Ismail, 50250 Kuala LumpurStreet Address: 21st Floor, Menara IMC,

No 8 Jalan Sultan Ismail, 50250 Kuala Lumpur

LIMAPostal Address: Los Abanicos, 136, P.O. Box 09-114 Lima 09Street Address: Los Abanicos, 136, Urb.La Encantada Lima 09

LONDONPostal Address: 5th Floor, New Zealand House, 80 Haymarket,

London SW1Y 4TEStreet Address: 5th Floor, New Zealand House, 80 Haymarket,

London SW1Y 4TE

LOS ANGELESPostal Address: 2425 Olympic Blvd, Suite 610 East, Santa Monica,

California 90404Street Address: 2425 Olympic Blvd, Suite 610 East, Santa Monica,

California 90404

MADRIDPostal Address: C/- New Zealand Embassy, Pinar 7 - 3a 28006,

MadridStreet Address: C/- New Zealand Embassy, Pinar 7 - 3a 28006,

Madrid

MANILAPostal Address: P O Box 3228, MCPO, Sen Gil J Puyat Avenue,

1272 Makati CityStreet Address: 23rd Floor, BPI Buendia Centre (formerly Far East

Bank), Sen Gil J Puyat Avenue, Makati City 1200, Metro Manila

MELBOURNEPostal Address: GPO Box 2014, Melbourne, 3001Street Address: Suite 2 North, Level 3, 350 Collins St, Melbourne,

3000

MEXICOPostal Address: c/o New Zealand Embassy Corporativo Polanco

Jaime Balmes # 8 Piso 4 Ofi cina 404-B Col. Los Morales Polanco C.P. 11510 Mexico

Street Address: c/o New Zealand Embassy Corporativo Polanco Jaime Balmes # 8 Piso 4 Ofi cina 404-B Col. Los Morales Polanco C.P. 11510 Mexico

NZTE DIRECTORY

NZTE DIRECTORY


G45


MILANPostal Address: Consolato Generale della Nuova Zelanda,

Via Guido d’Arezzo, 6, 20145 MilanStreet Address: Consolato Generale della Nuova Zelanda,

Via Guido d’Arezzo, 6, 20145 Milan

NAPIERPostal Address: PO Box 884 NapierStreet Address: 2nd Floor, Tourism House, Civic Court,

64 Dickens Street, Napier

NELSONPostal Address: PO Box 840, NelsonStreet Address: 39 Halifax Street, Nelson

NEW DELHIPostal Address: C/- New Zealand High Commision, Sir Edmund

Hilary Marg, Chanakyapuri, New Delhi 110 021Street Address: C/- New Zealand High Commision, Sir Edmund

Hilary Marg, Chanakyapuri, New Delhi 110 021

NEW PLYMOUTHPostal Address: PO Box 670 New PlymouthStreet Address: 41-43 Molesworth Street, New Plymouth

NEW YORKPostal Address: New Zealand Consulate-General, 222 East 41St,

Suite 2510, New York, NY 10017 Street Address: New Zealand Consulate-General, 222 East 41St,

Suite 2510, New York, NY 10017

NOUMEAPostal Address: BP 14648, 98846 Noumea Cedex Street Address: C/- New Zealand Consulate-General,

3rd Floor, 4 Boulevard Vauban, Noumea

PALMERSTON NORTHPostal Address: PO Box 12065 Palmerston NorthStreet Address: First Floor, 53-75 Queen Street, Palmerston North

PAPEETEPostal Address: B.P. 40180, 98713 Fare Tony, Vaiete, CEDEX 1,

Papeete, TahitiStreet Address: Imm. Keyala, VINI VINI, 1st Floor,

Ave du Prince Hinoi, Papeete, Tahiti

PARISPostal Address: C/- New Zealand Embassy,

7 ter rue Léonard de Vinci, 75116 ParisStreet Address: C/- New Zealand Embassy,

7 ter rue Léonard de Vinci, 75116 Paris

RIYADHPostal Address: C/- New Zealand Embassy, PO Box 94397,

Riyadh 11639Street Address: C/- New Zealand Embassy, Diplomatic Quarter,

Riyadh

SANTIAGOPostal Address: PO Box Casilla 112, Las Condes, SantiagoStreet Address: El Golf #99 - Of. 704, Las Condes, Santiago

SÃO PAULOPostal Address: Al. Campinas, 579, 15º andar,

CEP: 01404-000,Cerqueira César São Paulo - SP

Street Address: Al. Campinas, 579, 15º andar, CEP: 01404-000,Cerqueira César São Paulo - SP

SEOULPostal Address: C/- New Zealand Embassy, KPO Box 2258,

Seoul, 110-714Street Address: C/- New Zealand Embassy, 15th Floor, Kyobo

Building, Chongro, 1-ka, Chongro-ku, Seoul, 110-714

SHANGHAIPostal Address: 1607B-1608A The Centre 989 Chang Le Road

Shanghai 200031 Street Address: 1607B-1608A The Centre 989 Chang Le Road

Shanghai 200031

SINGAPOREPostal Address: 391A Orchard Road, Ngee Ann City Tower A –

#15-02, Singapore 238873Street Address: 391A Orchard Road, Ngee Ann City Tower A –

#15-02, Singapore 238873

SUVAPostal Address: Private Mail Bag, Suva Street Address: C/- New Zealand High Commission, Level T 10,

Reserve Bank Building, Pratt Street, Suva

SYDNEYPostal Address: GPO Box 54, Sydney 2001Street Address: Level 7, 55 Hunter Street, Sydney 2000

TAIPEIPostal Address: New Zealand Commerce and Industry Offi ce,

Trade Development Unit, Room 2501, 25th Floor, International Trade Building, 333 Keelung Road, Sec. 1, Taipei 110

Street Address: New Zealand Commerce and Industry Offi ce, Trade Development Unit, Room 2501, 25th Floor, International Trade Building, 333 Keelung Road, Sec. 1, Taipei 110

TAURANGAPostal Address: PO Box 568, TaurangaStreet Address: 306 Cameron Road,Tauranga

TOKYOPostal Address: c/- New Zealand Embassy, 20-40 Kamiyama-cho,

Shibuya-ku, Tokyo 150-0047Street Address: c/- New Zealand Embassy, 20-40 Kamiyama-cho,

Shibuya-ku, Tokyo 150-0047

VANCOUVERPostal Address: c/- New Zealand Consulate General, Suite 1200-

888 Dunsmuir Street, Vancouver BC V6C 3K4Street Address: c/- New Zealand Consulate General, Suite 1200-

888 Dunsmuir Street, Vancouver BC V6C 3K4

WANGANUIPostal Address: C/- Enterprise Wanganui PO Box 781, WanganuiStreet Address: 187 Victoria Street, Wanganui

WASHINGTONPostal Address: New Zealand Embassy,

37 Observatory Circle NW, Washington DC 20008Street Address: New Zealand Embassy,

37 Observatory Circle NW, Washington DC 20008

WELLINGTONPostal Address: PO Box 2878, WellingtonStreet Address: Level 15, The Majestic Centre, 100 Willis Street,

Wellington

NZTE DIRECTORY


G45


INDEX

INDEXA

America’s Cup 2, 6, 11, 18, 23, 24, 41, 45, 48, 62Aquaculture 2, 17Australia New Zealand Biotechnology Partnership Fund 11,

14, 55

B

Beachheads 2, 3, 4, 10, 12, 13, 22, 23, 31, 42, 47, 55, 66, 67Better by Design 2, 3, 6, 15, 26, 29, 43, 47Bio 2007 3, 6, 10, 48BIZ 26, 50Business clusters 26

C

CeBIT 3, 6, 11, 18, 22, 45, 48Cooltown 3, 25

E

Enterprise Culture and Skills Activities Fund 30, 49, 55Enterprise Development Grant – Market Development

21, 27, 41, 55, 67, 71Enterprise Development Grant – Capability Building 4, 55Enterprise Networks 42, 47, 55Enterprise Network Fund 4, 54Enterprise training 26, 28, 51, 55, 62Escalator 4, 26, 53, 55Export Awards 3, 30, 33, 49, 50Exporter Education 21, 22, 51, 55Export Year 2, 3, 4, 11, 21, 27, 41, 49, 50, 71

F

Food and Beverage Taskforce 3, 17Food miles 4, 11

G

GIF Industry Governed Bodies Fund 4, 54, 55GIF Sector Project Fund 4, 54, 55Growth and Innovation Framework 42, 47, 62Growth Services Fund 26, 34, 52Growth Services Grant 55, 66, 67

H

Health IT 3, 6, 10, 18, 45Hon Phil Goff 5, 12, 22, 31Hon Trevor Mallard 4, 5, 11, 14, 22, 31

I

Incubators 26, 31, 54, 55, 67Industry Capability Network 26, 42, 43, 47International Education Summit 4, 6, 16Investment New Zealand 20, 32, 45, 49

K

Ken Stevens 3, 21, 23, 31

M

Major Regional Initiatives 30, 47Manufacturing+ 3, 19, 46Mentoring 26, 35, 43, 51, 52, 55, 62

N

New Thinking Week 4, 16, 31, 50New Zealand Focus Centre 3, 12, 45, 49New Zealand New Thinking 6, 11, 30, 48, 49New Zealand Wood Innovation Centre 6, 12, 20, 46NZBio 4, 6, 14, 31, 43, 47, 49

P

Path to Market 11, 21Performance Management Framework 34, 52, 54ProjectLink 53

R

Regional economic development 30, 42Regional Partnership Programme 4, 30, 47, 55Regional Strategy Fund 4, 30Risk Management Framework 34

S

Sector Project Fund 55Shangri-La 3, 6, 13Strategic Investment Fund 32, 49, 55Sustainability 4, 6, 11, 30, 44

V

Visiting Media Programme 23

W

World Class New Zealanders 4, 31, 42, 47, 67www.business.govt.nz 29, 41www.marketnewzealand.com 2, 3, 21, 22, 51, 53


F O R TH E YEA R E N D E D 3 0 J U N E 2 0 0 7

A N N UA L R E P O RT

NEW

ZEALA

ND

TRAD

E AN

D EN

TERPRISE AN

NU

AL REPO

RT FOR TH

E YEAR EN

DED

30 JUN

E 2007

ISSN 1177-665X

20473 NZTE AR Cover FA.indd 120473 NZTE AR Cover FA.indd 1 10/10/07 11:28:41 AM10/10/07 11:28:41 AM

new zealand trade and enterprise

Documents