Young Enterprise 2016 Annual Report

For the year ended 31 December 20162 0RAnepnouratl16

2 1198Total teachers Young EnterpriseFast Facts 2016 11%We’re proud to work with our regional coordination partners, We worked with 1198 teachersteachers and volunteers. Supported by our amazing funders and across all our programmes andsponsors we change the lives of thousands of students every year. resources – an increase of 11%.How awesome is that!Māori YES students 94.5% 803Companies completed550 YES Students created 803 companies – an 24%550 Māori students from 124 schools began increase of 24%YES with 94.5% completing the programme. 28% Pasifika YES students 90% 6.5%3406YES Students 16% of products on Total schools the market3406 secondary students 651took part in YES – an Pasifika student numbers increased by 16%increase of 28% with 90% of Pacific YES Companies in Auckland Our teachers came from 651 successfully taking their product to market. schools – an increase of 6.5%

2016 Annual Report 3Contents4 Year in Review Chairman and CEO’s Report10 Alumni Awards – 35 years of YES Our Programmes and Events Entrepreneurs in Action Global Mindset Venture Up Students Class of 2016 Teachers Coordinators Mentors and Volunteers Our Partners28 New Zealand Business Hall of Fame29 Patron and Trustees Financial Statements and Auditor’s report39 Our Sponsors, Partners & Funders

4 Young EnterpriseChairman and CEO reportWow – what a year! After starting our With our pyramid in mind, we are now reviewing ourtransformation programme in 2015, we activities against these three questions::really started to see the benefit of our earlierinvestment. Our big initiatives over the last • Does it grow the base of our pyramid? Does it help us totwo years have been the expansion of our engage more rangatahi?roaming teacher model and the introductionof our digital strategy. Both were designed to • Does it push students up the pyramid? Does it unleashhelp us reach more students by supporting their entrepreneurial spirit?more teachers. • Does it provide greater impact to those at the top half ofWe are seeing results with increased participation overall as the pyramid? Are we providing more opportunities forwell as within our flagship programme The Lion Foundation those who show an entrepreneurial spirit?Young Enterprise Scheme (YES). The total number ofteachers we work with rose to 1,198 (a 11% increase from These simple three questions have helped us to make2015). We also saw a rise in the number of YES students. decisions about where we do invest our limited time andWe had 3,406 students (a 28% increase) set up 803 YES resources.companies. That growth is expected to continue with anestimated 4,000 YES students in 2017. The first phase of our digital strategy was focused on ease of use and access in order to drive greater participation. TheWe have focused on growing participation because we know next two phases will be focused on impact, connection andhow much students benefit from our programmes and we e-learning.believe that all students should have the opportunity. It’snot just about learning business skills such as business One of the best student activities that’s focused on theplanning, sales and marketing and dealing with suppliers. top half of our pyramid is the Entrepreneurs in ActionIt’s about learning critical life skills such as teamwork, (EIA) weekend. The best way to describe this is “YES oncommunication and problem solving, as well as building steroids” meets “Start-up weekend for youth”. Studentsconfidence. At least, that’s what our students tell us. that participate in EIA go onto to future programmes in the ecosystem such as Venture Up, Start Up Weekends and evenDuring 2016, we reviewed our strategic plan to ensure we were Lightning Labs.focusing in the right direction and engaged in discussion withlots of stakeholders. One of the results of these conversations So, for 2017, we have committed to running not just one EIAwas a model we have started to use to describe what we are weekend but two. We’ve also committed to an overseastrying to achieve. We call it our pyramid (refer to page 6). study tour based on the life changing experience six of our students had in 2016 in Silicon Valley.We know that not all of our students will becomeentrepreneurs, but we do want all students to develop those Young Enterprise is only the start of the journey for ourcritical skills that employers are looking for. For some, we rangatahi, which is why five years ago we launchedhope to unleash an entrepreneurial spirit in them that they our alumni programme. To celebrate 35 years of Youngdidn’t know they had. Enterprise we focused on our alumni. The inaugural Young Enterprise Alumni awards saw a large number of high calibre nominations. Stefan Lepionka (Founder of Stefan’s Juice and Charlie’s Juice) was awarded the Distinguished Alumni of the Year award and Nathalie

2016 Annual Report 5Whitaker (Founder of Givealittle) was awarded the Emerging To our sponsors, partners and donors – thank you for yourAlumni of the Year Award. financial contributions that fund our work.We created a wall of companies with the logos of businesses To our volunteer judges, coaches and mentors – thankthat were founded by YES Alumni. The more we promoted you for making it a real business experience for our students.it, the more alumni reached out to us to ask us to add theirlogo. It’s an impressive list and makes you think how many To our alumni – thank you for sharing your successes withjobs have been created by our past students. us, and for letting us brag about you.We say it every year, but we would not have the breadth, To our students – thank you for embracing the opportunityscale and impact that we do without our very large extended and for your energy, optimism and creativity. Thank you forfamily of supporters. being our inspiration and the future of New Zealand.To our Board and Council – thank you for your vision and Our focus is on increasing the number of people who achievegovernance. more in business and in life because of their interaction with us. Around 3400 students operated a small business beforeTo our staff, facilitators, regional coordinators and they left school in 2016. For many the next step is furtherteachers – thank you for the work you do to develop and study or employment where they will help other businessesdeliver so many programmes across the country. to thrive. For others, they will start a business of their own.Terry Shubkin Nigel Gould ONZM, JPCEO, April 2017 Chairman, April 2017

6 Young EnterpriseGrowing the Pyramid I LR n ee n as P o di r el o v ri b a se t n l h disrupto c e i i m v e rs pe T S C h o o i n ceo & founders vlmTk i ei start ups cm an internal innovators n u mg work ready & in demand g n i w o a r t i k o n Young Enterprise Trust The pyramid is a visual representation of what we hope our students will go on to become as they leave school andenter the workforce. The skills and attributes they learn whilst participating in our programmes are designed to provide value regardless of their chosen pathway. It’s about creating confidence and self belief to help young people see the world in an optimistic way

2016 Annual Report 7Our ValuesIn our 35th year we’ve captured reflections from our students, alumni, the innovators,founders and disruptors at different stages of their enterprising journey. Looking forward,it’s about growing the pipeline through our core values of trying new stuff, connecting andcollaborating, making it real, aiming for awesome and loving what we do.Founded by Young Enterprise Alumni

8 Young EnterpriseAlumni Awards – 35 Years of YESIn 2016 we celebrated the 35thanniversary of Young Enterprise Schemein New Zealand. Since then thousands ofalumni have reconnected and told us theirstories. We celebrated their success withour inaugural Alumni Awards.Distinguished Alumni 2016Stefan LepionkaStefan Lepionka took part in the Young Enterprise Schemeat St Patrick’s College Silverstream. His first businessventure post-school saw him making fresh orange juiceat 17. Seven years later, the business was acquired byFrucor and Stefan headed to the UK. Stefan returned toNew Zealand and cofounded Charlie’s with two friends.Charlie’s grew exponentially, expanding rapidly to 16countries, acquiring Phoenix Organics in 2005 and listingon the NZX in 2006. Charlie’s was sold to Asahi in 2011,but Stefan remained involved and was the CEO of Charlie’sgroup until the start of 2016. Finalists Nigel Bamford Paul Brock Lisa King Founder and CEO of Escea CEO Kiwibank Founder and CEO Eat My Lunch

2016 Annual Report 9 Emerging Alumni 2016 Nathalie Whittaker Nathalie Whittaker went to Chilton St James School and went through the Young Enterprise Scheme in 2000 and 2001. Her first YES company made corporate branded plastic cushions. Nathalie then went on to create New Zealand’s first crowdfunding site, Givealittle in 2008. Givealittle has now mobilised more than $55m in its eight years. Givealittle was acquired by the Spark Foundation in 2012, and Nathalie went on to create Two Tales, a business specialising in crowd mechanics, peer to peer systems and social ventures. Nathalie is also a director of four businesses and a Trustee of the Spark Foundation.FinalistsJamie Beaton Jake Millar Shay WrightCo-Founder and CEO Founder and CEO Co-Founder Te WhareCrimson Education Unfiltered Hukahuka

Primary10 Young Enterprise years 1–8Our Programmes Teacher favourites Programmes Units of Work PREP (Year 1–8) Pick Up & Go collection (Year 1–8) Create your own ‘country’ with the PREP Resources to enhance common school activities. programme. Students will earn wages, run Choose from five topics including Overnight Camp their own ventures, and hold a market day. and School Gardens. Enterprise 4 Kids (Year 4–8) Money Smart (Year 1–8) Students set up businesses and become One-hour lessons to introduce financial capability. producers, consumers and citizens in their society. Choose from ten topics including Our Notes & Includes resources and weekly lesson plans. Coins and Budgeting Fun. Junior Enterprise Challenge (Year 5–8) Webquest (Year 5–8) Introduces primary and intermediate students to An online activity where students learn the costs enterprise and finance. Teams create products and involved in buying and caring for a pet dog. services and hold a market day.Junior Programmes Units of Work Secondary Enterprise Studies (Year 9–10) Money Savvy (Year 9–10) years 9–10 Students learn about New Zealand entrepreneurs before forming Introduce financial capability with short teams to create products or services that are sold at a market activities.Senior day. Hot Topics (Year 9–10) Secondary The EPIC Challenge (Year 9–10) Get your students ready for life beyond Help your students learn about the wide range of careers school. 12 topics including Budgeting, years 11–13 available in the primary industries. Credit Cards and Banking, plus an integrated GrowingNZ Innovation Challenge (Year 10) case study. An interschool innovation challenge that inspires students to Webquest (Year 9–10) use their science, technology and commerce skills to tackle a An online activity where students design and furnish pressing issue effecting Primary Industries. a room then calculate the costs of paint and carpet. Programmes Units of Work Start-Up (Year 11) Hot Topics (Year 11–13) A 9-week programme where students learn how to run a small Get your students ready for life beyond school. 12 topics including business. Can be integrated with a Level 1 Business Studies Flatting, Student Loans and Kiwi Saver, plus an integrated case course. study. BP Business Challenge (Year 11) Webquest (Year 11–13) Your students will create and research a business idea before An online activity focused on buying and maintaining a car. Can be pitching it to judges from your local community. used with Accounting Achievement Standard 90981. The Lion Foundation Young Enterprise Scheme (Year 12-13) Are You Covered? Your first Guide to Insurance (Year 11–13) Students set up and run a real business over a school year. Resource set including booklet, case studies and a webquest. Each YES company creates and sells a product or service to Financial Capability unit standards (Year 11–13) customers. Use this to deliver some level 2 and 3 business studies Choose from eight packages. Each package includes workbooks, achievement standards. assessments and assessor’s guides.

2016 Annual Report 11GamesClimb the Money Tree (Year 2–4) Preparing studentsSnakes and Ladders meets financial literacy. for the real worldConcentration (Year 2–6) How we help teachers:Our financial education version of the popular card game, Memory. • All programmes aligned to curriculumSuccess Saver (Year 3–6) • Teacher Professional DevelopmentHelp students learn about balancing savings with volunteer work. • Responsive support desk • Free programmes, resources and assessmentsBalance The Books (Year 4–6) • Find, preview and download resources instantlyDesigned to help students learn to manage their money. • Manage resources in your online dashboardGoal 300 (Year 5–8) Engage your students as they:Students choose low, medium or high risk pathways to achieve a • Develop Key Competenciessavings goal of $300. • Experience authentic learning • Gain creditsDecisions (Year 5–8) • Take part in competitionsTeach students to balance saving • Develop life skillsmoney and volunteer work. • Unleash their entrepreneurial spiritGames Tactix (Year 5–10) Tactix helps students learn how toInEx (Year 9–10) make good financial decisions.Students earn wages and decide howto balance their needs, wants and savings. Credit Crunch (Year 9–12) Players race to pay off a debt that they’ve created on their credit card. We help young people to unleash their entrepreneurial spirit, develop critical life skills and realise that good financial decisions give you more choices in life.

12 Young EnterpriseEntrepreneurs in Action80 students, 10 company hosts, 48 hours, 2 business challenges Jack Downs, YES Class of 2016 participated in the Lion Foundation Young Enterprise Scheme at TakapunaThanks to long time sponsors Massey University and New Zealand Trade and Grammar. His team created Trident Weather, an applicationEnterprise, we’re able to offer YES student leaders the chance to take part in the that contains all relevant marine weather information inannual “Entrepreneurs in Action” competition weekend. Student reps from across one place. The team coordinated international suppliers tothe country get the opportunity to team up with other YES students passionate about release an android and iOS application that could be usedentrepreneurship and get alongside some of New Zealand’s amazing companies for globally. The team took home the Callaghan Innovationa weekend of high octane business mashup. There’s also a business field trip up for award for Best Digital Technology Company at the 2016 YESgrabs to add to the pressure! National Awards. Jack stepped up to attend Entrepreneurs in Action competition weekend as part of his YES Experience. What are you doing now that you’ve left school? I’m currently working at The Instillery as their Frontend Developer. As well, I’m studying at Massey University in Albany towards a Bachelor of Business with a major in management. My whole first year is funded by the Future Leaders Scholarship, Massey Business Boot Camp Scholarship and Enterprise in Action Scholarship, all thanks to my involvement in YES. What are some of the key things that you learnt doing Young Enterprise last year? The Young Enterprise Scheme taught me so much over the period of 2016. I started off with a fear of talking in front of crowds, and left only wanting more chances to talk to a crowd. It also taught me many useful business skills which have helped me accelerate my career into a role that usually would be taken up by a university graduate. YES taught me to be an innovative leader. As part of my Future Leaders Scholarship to Massey, I am involved in a monthly leadership program which before YES I would never have thought to aim for. How has your YES experience influenced what you’re doing now? YES has helped me grow as a leader, employee, and in everyday life. Without YES I would probably be in another University course with no idea what to do with my degree afterwards. Thanks to YES I had an idea of what it was like to run my own business – this was the best thing I ever did throughout high school as it taught me real life skills in a practical setting.

2016 Annual Report 13Young Entrepreneurs Develop Global MindsetInspiring high potential young entrepreneurs was the driving force behind the businessfield trip to San Francisco. The trip included students researching each company, soloreflection time, future goal setting and a jam-packed itinerary with lots of quality timewith some very inspiring people! Site visits included Facebook, UBER, Xero, IDEO,Microsoft, Kiwi Landing Pad, New Zealand Trade and Enterprise, Apple, Instagram, StanfordUniversity, Singularity University, Genentech, Renaissance Leadership, WeWork and FedEX.Thomas Goodin from the YES class of 2016 was one of the six students who won a place inthe Business Field Trip to Silicon Valley through his participation in the “Entrepreneurs inAction” competition weekend.“The San Fran trip was an eye opener. It made me realise that we have our place in theworld; as Kiwis we are natural innovators and problem solvers. We also have a global view,as our backyard is so small that we can only look outwards. Additionally, heading to the KiwiLanding Pad made me understand that by utilising tools, going global isn’t as intimidating asit seems.I think this trip has changed the way I look at many things. Alongside what the trip hasdone to my thought process, the factual knowledge and insight has helped me throughthe last half of my uni semester. In San Fran we heard some very interesting stories fromwell-established Kiwis working in large businesses in Silicon Valley. Hearing these excitingstories gives me confidence in the future of New Zealand and my own confidence to bepart of that. At IDEO we learned about design thinking. This concept resonated with meimmensely as at the time I was half way through a statistics paper at university where wewere taught to ignore the outliers, which is the polar opposite. It also encouraged me to beas open minded as possible, as ignorance and complacency leads to missed opportunities.The NZ start up space is awesome, but there is one thing culturally different about theseplaces; confidence. In New Zealand, we suffer from Tall Poppy Syndrome, where we shyaway from success and accomplishments, whereas in the States they are celebratedhighly. I believe that New Zealand is held back by this cultural stigma and as a part of thatI hope that one day I can contribute to making the New Zealand start up space an area ofcelebration and pride.”Our thanks to Air New Zealand and FedEx for supporting this experience. Thomas wenton to participate in the Venture Up accelerator programme in 2017.

14 Young EnterpriseVenture Up – Connecting Students to the EcosystemThe Venture Up team from Creative HQ Alistair and his team began developing a platform thatin Wellington have just concluded their allows students to review all aspects of their universitythird successful youth focused business life to help inform future students. After pivoting theiraccelerator. Forty young entrepreneurs idea two weeks out from showcase, Alistair used hisfrom across the country came together at previous knowledge from YES to get the team on trackAUT for six weeks to build their skillsets and and ready to pitch.learn leading start up methodologies fromexperienced business leaders. Lily Latu was also a YES student in 2016, her team were working on an app that provided instant gratification toYoung Enterprise first worked with Creative HQ in 2014 users to help them achieve their saving goals. She hadon the 2014 Venture Up accelerator in Wellington. It’s a previously attended Entrepreneurs in Action weekend sorelationship we value highly. We knew we had students was used to the high pressure of business accelerators.hungry for more at the end of their YES year and Creative Although she described that as a breeze compared to theHQ’s Venture Up programme was the perfect next step full time commitment of Venture Up!in their entrepreneurial journey. As an organisation, wealso benefit from the close connection to Venture Up – it After touring around Silicon Valleys top companies withexposes us to the latest thinking and tools being used in five other YES students in 2016, Thomas Goodin had athe start-up space so that we can feed these back into our good understanding of what the start up world was like.programme. Over the last couple of years, lean canvas His Venture Up team were helping coach small businessesand design thinking have been two concepts that we’ve on social media optimisation within New Zealand’sintroduced to teachers and students. Tourism Industry.After taking out the top title for the Lion Foundation “Young Enterprise has created a rock solid springboardYoung Enterprise Scheme in 2016, Alistair King decided for young New Zealanders to realise their ambitions into get involved with this years Venture Up. “It’s incredibly enterprise in whatever sector they have a passion for.motivating to be around like-minded people all day”. Venture Up has been successful in taking the type of energy kickstarted in the YES programme and showing it a pathway into the business world through a full immersion experience in a supercharged entrepreneurial environment. The support and insights from our partnership with Young Enterprise is helping build an entire generation of driven, connected and experienced young Kiwis with the world in their headlights” Nick Churchouse Head of Customer Engagement, Creative HQ

2016 Annual Report 15Igniting Entrepreneurial SpiritInspiring young people to discover their potential in business and in life.Making this happen is what excites us. That’s why we love what we do.At Young Enterprise HQ our programmes provide real business experiences. Our RoamingTeachers and Regional Coordinators are the connectors for teachers, students and business.Adapting to changing circumstances, failing fast, feeling success and collaborating in a teamhelps students unleash their entrepreneurial spirit. Roaming Teacher and Regional Coordinator Roles Young Enterprise HQ Roaming School Regional Teacher relations Coordinator Input to YES Business resource & Students supportprogrammedevelopment Collaborate Mentor Teacher Regional media Teacher training & promotiondevelopment RegionalCurriculum sponsorship & NCEA assessment Events advice Facilitating Programme business monitoring involvement

16 Young EnterpriseOur YES Students “At EIA , I learnt so much, how to generate ideas, present, work in a team and be a better leader. I walked away feeling that I could really achieve all my dreams and better prepared to go out and work on business – Incredible experience” “YES taught me resilience and how to help others work to their bestability. Now that we are nearing the end of this venture, we all feel asense of united excitement about our success. I am very proud of this” “YES has helped me to clarify my life direction. It made me realise that business is an exciting and dynamic field that I see myself being a part of a few years down the track”

2016 Annual Report “Entrepreneurs in Action was a massive 17 motivation boost and an incredible learning curve for me not only in terms of idea generation and presenting but also how to really work in a team and lead more effectively” “Not only has YES changed my way of thinking, but it has also changed my way of life”“YES is the embodiment of real life business. It’s by far the Two years on and going strongbest way that a college student can get business experience, Olelei are serious about developing a sustainable business and have meet a myriad of like-minded entrepreneurs while just completed their second year of YES at Henderson High School in discovering their place in the world” Auckland. Over that period they have successfully brought to market AL-YO (almond yoghurt), AL-ICE (almond ice-cream) and Al Milk (almond milk). The team worked with renowned ice-cream maker, Giapo Grazioli to refine and produce their almond ice cream. They also enlisted Kate Kay, a local Pasifika influenced graphic designer, to design their eye-catching logo and packaging. All of which resulted in a unique, high quality product with a sophisticated brand image. Three new Al Ice flavours – chocolate, vanilla and berry use cocoa from Samoa, vanilla beans from Tonga and berries from New Zealand. Olelei products are sold in Farro Fresh Foods outlets and online. Olelei will be expanding their businesses in 2017 – watch this space!

18 Young EnterpriseOur Teachers –Champions ofEnterpriseThe future of work is becoming increasinglymore difficult to accurately predict or evenimagine. Focusing on the types of skillsand knowledge young people need fromeducators is more important than ever.“The time for examinations is over...the capacity to innovate,to solve problems creatively or bring new possibilities to life,is far more important than academic knowledge.” JarrodAberhart – YES teacher Nelson College and winner of the2016 Sir James Fletcher award for Outstanding Contributionto Enterprise.Jarrod is passionate about start-ups, integrating technologyinto the classroom, student ownership and making lessonspractical and meaningful. He is one of the hundreds ofteachers who champion enterprise education. We applaudthem for their enthusiasm to bring enterprise experiencesinto their classrooms

22001166 AAnnnnuuaall RReeppoorrtt 19 Roaming Teacher and Mana College Kick Start Enterprise Through sponsorship we now have a helping with language for presentations and teachers team of six roaming teachers growing were able to find evidence for credits. teacher expertise and confidence to deliver Business Studies and NCEA qualifications In the Year 10 programme we had several new immigrant in an enterprising way. students who had just started at our school. It was amazing to watch how quickly bonds were formed with Bruce Bennett is the Deputy Principal at Mana College other students and team work happened through the in Porirua. Our roaming teacher, Jane Watson worked enterprise model. This was of real benefit integrating new with Bruce and his staff to support the introduction of students into the wider school community. enterprise education into their school in 2016. We asked Bruce to tell us about the impact of the roaming teacher Then in the YES scheme, Jane was showing our staff role for his staff and students. how to integrate the programme into the classroom and working alongside us as the programme was put into “The availability of a roaming teacher was the 100% practice. Also, it was great to have new concepts like deciding factor in introducing enterprise. There are a scrum boards etc. introduced and modelled. whole lot of reasons why introducing a new curriculum is challenging like time constraints, confidence in the For our students, there has been lots of growth in their curriculum, professional development. Having a specialist confidence and communication skills. Our YES group had like Jane available to come into the school has had an to put themselves out there talking to customers and amazing influence. suppliers. The dragons den was a huge challenge for them and they really grew in confidence from that experience. There are multiple ways that it helped. Initially, it was They are still selling and looking at how they can scale up sitting down and planning courses that would work in our sales and expand their product range this year. school and were tailored to our needs. Jane came up with a staircasing plan for introducing both our students and Having enterprise in the curriculum has been good for the teachers to enterprise so it wasn’t a “one size fits all” school. It’s opened up the school to the community – there approach. have been lots of conversations with parents and others in our community through the junior programme market day We began with a four week programme with our juniors. It and the YES projects. Our YES company thought about the was awesome and inspirational. community they are part of and this was reflected in the Kawakawa product they chose to produce. Enterprise has Really interesting for me – we had lots of teachers also reconnected us with ex-pupils who are entrepreneurs from all curriculum areas and they loved it. They saw and brought them back into the school as role models. The how they could do enterprise all the time and found real-world experiences our students have had this year ways to incorporate enterprise into their subject areas. through enterprise has lifted their horizons and exposed Technology were making things – English teachers were them to new opportunities and career options.”

20 Young EnterpriseConnecting & CollaboratingGavin Miller is the YES coordinator for the Wellington region,one of 17 coordinators across New Zealand.“As Regional Coordinators (aka Student Wranglers) for The Lion Foundation YoungEnterprise Scheme we arrange events like workshops, dragons den pitches, sellingopportunities and awards nights to help maximise the students’ YES journey. We vistschools, liaise with teachers, help to find mentors and business contacts and sometimesjust lend an ear to students when they have a tough week.Meeting the team from Mana College for the first time at school, it was clear they werea little nervous and not entirely sure of what was in store for them in the year ahead.When it came time for their dragon’s den pitch – they had already made a huge leap inskill level, bringing their business knowledge to their pitch. Their presentation on theirkawakawa balm product, based on traditional Māori healing practices, blended Māoricustoms and traditions into the story of their product. They articulated the cultural,social and enviromental sustainability aspects of their business very well and took homea portion of the cash pool handed out – a deserved result. The team went on to attendthe Wellington Trade Fair Days, took advantage of the business contacts that they metand they won two excellence awards.It is always satisfying to see the students win awards, receive accolades and feature innews articles. But more often than not, the most gratifying moments come when you seethese amazing young people realise they can achieve more than they thought possible– and knowing that we played a part in helping them come to that realisation. Those arethe moments that we remember long after the YES year is done and dusted.“

2016 Annual Report 21 Mentors Making it Real Each year our alumni and local business people volunteer their time to mentor students participating in the Lion Foundation Young Enterprise Scheme. Rees Vinsen participated in the programme in 2014 and is the CEO of Aducco Design – a creative advertising services business that grew out of his YES venture. Rees has since mentored over 20 students. Why do you mentor YES students? Mentoring students is my way of personally repaying the YES ecosystem for the opportunities, facilitation and guidance that it extended to me. I love being a part of it and can safely say that I will endeavour to continue to affiliate myself with YES as long as I can! I guess it’s just personal satisfaction for me – being able to see their minds explode and feel their excitement. What is a highlight of your mentoring experience so far? Seeing some of the students faces when I sit down with them for an hour and connect the dots to show them how they can succeed. It’s rather uplifting to see their excitement and it’s something that I do enjoy. Aside from that I mentored the group Where’s Woolly over two years, helping those boys take home 2016 YES Company of the Year, which was pretty cool. What three pieces of advice would you give to others considering mentoring? Remain totally objective. It’s very easy to rubbish an individual’s idea or influence the results of their decisions based on your personal experiences, opinions and feelings. Constantly encourage. YES businesses will pivot every way, or completely change their idea just because the students are discouraged. Assuming the idea is feasible, really push and encourage the students to drive through the tough early stages when they feel their idea isn’t sticking. Put yourself in their shoes. Sitting in a position with few constraints and access to considerably more resources, knowledge and experience, it’s very easy to give students advice that can only be applied in your world. Take their constraints and resources into consideration when mentoring.

22 “This was my second time and it’s Young Enterprise awesome to help them evolve their ideas into real businesses.” – Ajay SinghBP’s VolunteersEnergise Our StudentsAn active volunteering programme sees BPstaff across the country regularly attendingYoung Enterprise programmes like the BPBusiness Challenge and The Lion FoundationYoung Enterprise Scheme.What value does your organisation get from havingyour staff volunteer?“We take our partnerships seriously and we are committed tobuilding and maintaining long-term, enduring relationshipsthat have measurable impacts on the community. We alsobelieve that community investment is about much more thanjust funding, which is why many BP employees and partnersvolunteer across multiple Young Enterprise Trust programmesevery year.BP has been operating in New Zealand since 1946, so ourteam has plenty of business knowledge and experience toshare! Our employees get a real kick out of spending timewith our future business men and women and find the “Having been through Young Enterprise Scheme when I was at school, it was great to be able to flip sides and give back.” – Anna Radich

2016 Annual Report “I am so pleased I took the 23 opportunity to work with our future ‘Shakers and experience really rewarding – many return to volunteer year- Movers’, they had so much after-year. Many BP employees and partners participated enthusiasm and energy.” in Young Enterprise programmes when they were students themselves, so the BP volunteering programme enables our – Ruth Fisher employees to give back to those who gave so much to them years ago!“ “We were able to provide all the groups Why is enterprise/business education an area that with sound business advice mainly around you see value in supporting? who their potential customers would be, “It’s one thing to have a good idea, but without structure and support, good ideas won’t always be fully developed costings, distribution, marketing…” or delivered. It’s this structure and support that Young – Neil Wilson Enterprise programmes provide for the next generation of business leaders in New Zealand. We have partnered with the Young Enterprise Trust for 24 years because we think that fostering the next generation of kiwi business leaders is great for New Zealand.” What are some of the highlights from the partnership? “Having been involved with the Young Enterprise Trust since 1993, we’ve spent more than two decades being amazed by the entrepreneurial spirit shown by young Kiwis. We have even sold some of the products the students have created in our retail stores. The BP Business Challenge is a great extension of our enduring relationship and another way we are trying to inspire and engage the next generation of business leaders in New Zealand.” “I enjoy talking to and meeting diverse groups, from the shy to the extrovert. It’s uplifting to see the positive attitudes from the students and the open-minded thinking.” – Phil Gorinski

24 Young EnterpriseOur 2017 Partners “For one of our students this was a pivotal experience. After the course she was motivated and leapt ahead andWe work with some amazing organisationswho share our mission to grow New achieved NCEA Level 1 this year.” – TPU TeacherZealand’s economic future. Our regionalpartners are the flag wavers and supporters “They were made to feel their ideas andwho coordinate The Lion Foundation Young input was valued and that’s huge for ourEnterprise Scheme across New Zealand to kids. It breeds motivation for learning!”give us national reach. “I hope they will share some of their learning and • Auckland Tourism Events and Economic understanding with their families. I also hope that they Development – ATEED will remember some of these key ideas which might help them make sound financial decisions in the future.” – Sandy • BCC, Manawatu • CORE Education Limited, Canterbury “Teaches you how to budget money so • DNA (Digital Natives Academy) you are not spending it on things you • Eastern Bay of Plenty Chamber of Commerce • Gisborne Chamber of Commerce don’t really need.” – Student • Hawke’s Bay Chamber of Commerce • Nelson Marlborough Institute of Technology (NMIT) • Northland Youth Development Trust • Otago Chamber of Commerce • Smart Waikato Trust • South Canterbury Chamber of Commerce • Southland Chamber of Commerce • Taranaki Chamber of Commerce • Venture CentreThank you to our outgoing 2016 partners, TaurangaChamber of Commerce and Rotorua Lakes Council. “Our kids had a blast and came back absolutely buzzing” – Principal

2016 Annual Report 25Projects in Teen Parents ManageFinancial Capability their Financial FutureGrowing the financial capability of our youth is critical For teen parents, their financial responsibilities cometo the health of New Zealand. We’ve had some special earlier than expected and a financial capability knowledgeprojects with awesome partners in 2016. gap can put them and their families at risk. In 2016 we worked with eight teen parent units delivering FinancialInsurance Savvy Capability workshops run over a two-day period. Attendees are exposed to key financial fundamentalsSponsored by the Insurance Council of New Zealand (ICNZ) as part of Money such as managing income, setting goals and budgeting.Week, Insurance Day is a financial capability challenge for intermediate There is a lot of discussion on how these fundamentalsstudents, introducing concepts such as managing risk in a fun way. can impact on the future for them and their child. Having financial knowledge and the confidence to act on thisDuring the day, students used an online tool called Banqer – a website that knowledge is an important outcome from the practicalgives students a simulated bank account to aid learning key financial concepts and interactive sessions. After one workshop, the Teenand life skills such as paying taxes, buying houses and earning interest. To Parent staff organised a local lawyer to visit and arrangewrap up the day, students created a poster capturing a key message about wills for the young mums. The workshops also result in theinsurance and presented what they had learned to judges. girls gaining credits to go towards the NCEA qualification they are working on. We also connect the girls to otherStudents were lucky enough to be mentored by the insurance experts of eight organisations and the financial capability tools thosedifferent insurance companies including AA, AIG, FMG, IAG, Latitude, QBE, Tower organisations offer like the Commission for Financialand Vero. This “one on one” guidance added immense value to the students. Capability “Sorted” site and the NZ Federation of FamilyA key aim of Insurance Day was for students to take the information away and Budgeting Services.start discussions at home with their family members regarding insurance. “What a day! Our kids loved every minute of it, our teacher can’t wait to get started and I know I was extremely impressed seeing it in action. It is an outstanding programme and the benefits are endless for our kids. “ – Principal

26 Young EnterpriseOur 2016 NZ Business Hall of Fame Laureates The Business Hall of Fame was founded by the Young Enterprise Trust in 1994. The honour recognises and celebrates past and present business leaders who have significantly contributed to the economic and social development of New Zealand. The laureates were inducted at the 2016 gala dinner and have iconic kiwi stories of enterprise, hard work and success.Hon. Philip Burdon Sir Rob Fenwick CNZMKNZM Noel Holyoake Sir Peter Jackson ONZKNZMFood Production, Business Environmental Leadership, Heating, Ventilation and FilmmakingLeadership and Public Policy Entrepreneurship and Governance Air ConditioningPhilip Burdon co-founded Meadow Rob Fenwick is a passionate Noel Holyoake is a pioneer of New Sir Peter Jackson is an award-Mushrooms which employs more environmental entrepreneur. His Zealand’s heating, ventilation and winning filmmaker who hasthan 500 staff in Canterbury and business ventures include organic air conditioning (HVAC) industry. changed the New Zealand filmis one of the largest and most waste processor Living Earth, Holyoake Industries is the largest industry and its reputation acrosssuccessful agri-businesses in New bottled water brand NZ Natural and manufacturer of air distribution the globe. Sir Peter co-owns a fullZealand. Philip has held a wide Te Matuku Bay Oysters. Rob has equipment in the Asia-Pacific region, suite of studio production facilitiesrange of governance roles, was a held governance roles with many and employs more than 350 people in Wellington, enabling filmmakersCabinet Minister for six years and organisations including Landcare in New Zealand and Australia. A to make films in New Zealand to ancreated the Asia New Zealand Research, TVNZ, St John, Antarctica proud Rotarian, Noel established international standard. He activelyFoundation with Don McKinnon NZ, NZBCSD and Ngāti Whātua Rotary’s Trees for Survival Project encourages young filmmakersin 1994. He is a generous supporter Ōrākei and was a finalist in this year’s which has planted almost two and supports many organisationsof the Arts. New Zealander of the Year Awards. million trees since its inception. throughout Wellington, New Zealand and internationally.

2016 Annual Report 27Malcolm McConnell Bruce Plested Ward Reid Sir John Roberts(1930–1995) (1887–1960) (1845–1934) Global Logistics andEngineering Transportation Rubber Industry Leadership and IndustryMalcolm McConnell was an Bruce Plested founded Mainfreight George Chapman Ward Reid is Sir John Roberts was born ininnovative pioneer of New Zealand’s in 1978 and has seen the company widely acknowledged as the founder Scotland and moved to Otagomodern engineering industry. He co- grow to become the global logistics of New Zealand’s rubber industry. in 1868 to establish a stock andfounded McConnell Dowell in 1960 provider it is today, with over 6,400 Ward launched his business in station business. He was a proudand led the company’s expansion employees in 243 branches across 1933 and his rubber products supporter of the Otago businessthroughout New Zealand, Australia, New Zealand, Australia, Asia, the revolutionised New Zealand’s dairy community and helped launchAsia and the Middle East. He helped Americas and Europe. Bruce and industry. The company expanded its New Zealand’s frozen meat trade.create the Engineering Export Mainfreight are long-time supporters product range to include everything Sir John held a number of publicAssociation of New Zealand and of Duffy Books in Homes, The from hot water bottles to car tyres. roles, including Mayor of Dunedinwas also a director of New Zealand Life Education Trust and Bairds Ward was President of the Penrose and Vice-Chancellor of OtagoRailways Corporation, the DFC and Mainfreight Primary School. Industrial Progress Association and University. He was knighted in 1891.NZ Steel. He passed away in 1995. the Auckland Manufacturers Council.

28 Young EnterprisePatronWe are extremely privileged to have as Patron the Governor General Governor General, Lt. General Sir Gerry Mateparaeof New Zealand. Our thanks to Lt. General Sir Gerry Mateparae for his Rt. Hon. Dame Patsy Reddyvery personal engagement with our students in his tenure in the office.We are honoured to have the Patronage of Her Excellency The Rt. Hon.Dame Patsy Reddy confirmed in 2016. It was a highlight to have TheirExcellencies Dame Patsy Reddy and Sir David Gascoigne attend theNational Awards in December. The Patronage of the Governor General’soffice is a wonderful endorsement for students and their educators alike.Board of TrusteesOur Trustees are an Rachel Taulelei and Mark Vivian are both YES alumna giving back on our governance board. Previously, Rachelamazing group of talented founded the sustainable seafood company Yellow Brick Road Ltd and has taken this demonstrable commitment toexperts in their respective kaitiakitanga into her current CEO role at Kono NZ, one of New Zealand’s top 100 food and beverage companies.fields, passionate about Rachel talks about why she came “on board” at Young Enterprise.the importance ofdeveloping enterprising “I took part in YES at St Oran’s College and I’ve been a huge fan ever since. One of my highlights each year is judging theyoung people for New national competition and I’m constantly amazed at the achievements of the students and the growing sophistication ofZealand’s future. their business models. I’m really excited about the vision for Young Enterprise preparing more students for business but also empowering them to be confident and resilient. It’s encouraging to see more students graduate into various start-up and leadership opportunities after YES to keep their business and leadership experience going. For me, being able to contribute to Young Enterprise Trust in a governance role brings me full circle from being a YES student and entrepreneur to Trustee.”Nigel Gould ONZM (Chairman) Lilias Bell Mark Eglinton Sheena HendersonPhillip Meyer Rachel Taulelei MNZM Norm Thompson Mark VivianWith thanks to our outgoing board member in 2016, Bryan Gundersen.

2016 Annual Report 292016 Financial SummaryYoung Enterprise returned We are grateful for the support we get from the corporate, philanthropic and communitya small surplus for 2016 of foundation sectors. Collectively, they provide us with 54% of the funding we need. We thank$12,583 which was 0.47% them for not just their generosity, but the longevity of the relationships. The Lion Foundation hasof our total expenses. been our principal funder for 15 years and BP has been a key partner of ours for over 23 years. We have seen an increase in funding from government in recent times, predominantly from contracts with the Ministry of Youth Development and Ministry for Pacific Peoples to fund our new initiative of roaming teachers. It’s great to see the recognition from government of the impact of the work we do, and the importance of supporting our wide family of teachers. Finally, we continue to rely on international contracts to subsidise our domestic operations. Last year we had a contract to scope out work in the Solomon Islands. Not only was this fascinating work for our team, but it did provide a contribution to salaries and overheads which allowed us to return a surplus.How we are funded 3% 1% 7 International Contracts Interest % Private Foundation 10% 32% Fees and Sales Government Agencies 18%Community Foundation 29% Corporate Sponsorship

30 Young EnterpriseLevel 6 PO Box 1208 T +64 4 472 791995 Customhouse Quay Wellington 6140 F +64 4 473 4720Wellington 6011 New Zealand W staplesrodway.co.nzNew ZealandIndependent Auditor’s ReportTo the Trustees of Young Enterprise TrustReport on the Audit of the Financial Statements Responsibilities of the Trustees for the Financial Statements The Trustees are responsible on behalf of the Trust for the preparation and fairOpinion presentation of the financial statements in accordance with PBE Standards RDR,We have audited the financial statements of Young Enterprise Trust (‘the Trust’) and for such internal control as the Trustees determine is necessary to enable thewhich comprise the statement of financial position as at 31 December 2016, preparation of the financial statements that are free from material misstatement,and the statement of comprehensive revenue and expense, statement of whether due to fraud or error.movements in equity and statement of cash flows for the year 2016 then ended, In preparing the financial statements, the Trustees are responsible on behalfand notes to the financial statements, including a summary of significant of the Trust for assessing the Trust’s ability to continue as a going concern,accounting policies. disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate theIn our opinion, the accompanying financial statements present fairly, in all Trust or to cease operations, or have no realistic alternative but to do so.material respects, the financial position of the Trust as at 31 December 2016,and its financial performance and its cash flows for the year 2016 then ended Auditor’s Responsibilities for the Audit of the Financial Statementsin accordance with Public Benefit Entity Standards Reduced Disclosure Regime Our objectives are to obtain reasonable assurance about whether the financial(‘PBE Standards RDR’). statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.This report is made solely to the Trustees of Young Enterprise Trust, in accordance Reasonable assurance is a high level of assurance, but is not a guarantee thatwith schedule 1 clause 5 of the Trust Deed. Our audit work has been undertaken an audit conducted in accordance with ISAs (NZ) will always detect a materialso that we might state those matters which we are required to state to them in an misstatement when it exists. Misstatements can arise from fraud or error and areauditor’s report and for no other purpose. To the fullest extent permitted by law, considered material if, individually or in the aggregate, they could reasonably bewe do not accept or assume responsibility to anyone other than the Trustees of expected to influence the economic decisions of users taken on the basis of theseYoung Enterprise Trust, for our audit work, for this report or for the opinions we financial statements.have formed. A further description of the auditor’s responsibilities for the audit of the financial statements is located at the External Reporting Board’s websites at:Basis for Opinion https://xrb.govt.nz/Site/Auditing_Assurance_Standards/Current_Standards/We conducted our audit in accordance with International Standards on Auditing Description_Auditors_responsibilities.aspx(New Zealand) (‘ISAs (NZ)’). Our responsibilities under those standards are The engagement partner on the audit resulting in this independent auditor’sfurther described in the Auditor’s Responsibilities for the Audit of the Financial report is Robert Elms.Statements section of our report. We are independent of the Trust in accordancewith Professional and Ethical Standard 1 (Revised) Code of Ethics for Assurance STAPLES RODWAY AUDIT LIMITEDPractitioners issued by the New Zealand Auditing and Assurance Standards Wellington, New ZealandBoard and the International Ethics Standards Board for Accountants’ Code of 18 April 2017Ethics for Professional Accountants (IESBA Code), and we have fulfilled our otherethical responsibilities in accordance with these requirements and the IESBACode. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.Other than in our capacity as auditor we have no relationship with, or interests in,Young Enterprise Trust.

2016 Annual Report 31Statement of Comprehensive Revenue and ExpenseFor the year ended 31 December 2016The accompanying notes form part of and are to read in conjunction with these financial statements

32 Young EnterpriseStatement of Movements of EquityFor the year ended 31 December 2016The accompanying notes form part of and are to read in conjunction with these financial statements

2016 Annual Report 33Statement of Financial PositionFor the year ended 31 December 2016The accompanying notes form part of and are to read in conjunction with these financial statements

34 Young EnterpriseNotes to the Financial StatementsTo the Trustees of Young Enterprise TrustStatement of Accounting Policies The financial statements have been prepared on the assumption that the entity1. REPORTING ENTITY will continue to operate in the foreseeable future.Young Enterprise Trust (“the Trust”), previously Enterprise New Zealand Trust, was 3. CHANGES IN ACCOUNTING POLICYestablished under a trust deed dated 18 November 1986. The original trust deed For the year ended 31 December 2015, the Trust prepared its financial statementswas replaced by a revised deed effective 1 December 2003, with a further revision using the New Zealand Financial Reporting Standards (“NZ FRS”). These havein December 2008. The Trust is registered under the Charitable Trusts Act 1957 now been restated to Not-For-Profit PBE IPSAS – RDR. An explanation of howand the Charities Act 2005 and was granted donor organization status by Inland the transition to Tier 2 Not-For-Profit PBE Accounting Standards has affectedRevenue in August 2010. the reporting Statement of Financial Position and Statement of Comprehensive Revenue and Expense is provided in Note 18 of the financial statements.The financial statements of the Trust are presented for the year ended 31December 2016. 4. SUMMARY OF ACCOUNTING POLICY The significant accounting policies used in the preparation of these financialThese financial statements and the accompanying notes summarise the financial statements as set out below have been applied consistently to both yearsresults of activities carried out by the Young Enterprise Trust. The Trust delivers presented in these financial statements.programmes to students in the areas of enterprise and financial education, andprovides support to their teachers. 4.1 BASIS OF MEASUREMENT These financial statements have been prepared on the basis of historical cost,These financial statements have been approved and were authorised for issue by with the exception of certain items for which specific accounting policies havethe Board of Trustees on 10 April 2017. been identified.2. STATEMENT OF COMPLIANCE 4.2 FUNCTIONAL AND PRESENTATIONAL CURRENCYThe financial statements of Trust are general purpose financial statements and The financial statements are presented in New Zealand Dollars ($), which is thehave been prepared in accordance with Generally Accepted Accounting Practice Young Enterprise Trust’s functional currency. All financial information presentedin New Zealand (“NZ GAAP”). They comply with Public Benefit Entity International in New Zealand dollars has been rounded to the nearest dollar.Public Sector Accounting Standards (“PBE IPSAS”) and other applicable financialreporting standards as appropriate that have been authorized for use by the 4.3 REVENUEExternal Reporting Board for Not-For-Profit entities. Revenue is recognised to the extent that it is probable that the economic benefit will flow to the Trust and revenue can be reliably measured. Revenue is measuredFor the purposes of complying with NZ GAAP, the Trust is a public benefit not-for- at the fair value of the consideration received. The following specific recognitionprofit entity and is eligible to apply Tier 2 Not-For-Profit PBE IPSAS on the basis criteria must be met before revenue is recognised.that it does not have public accountability and it is not defined as large. 4.3.1 Revenue from non-exchange transactionsThe Board of Trustees has elected to report in accordance with Tier 2 Not-For- Donation and sponsorship income is recognised when received unless theProfit PBE Accounting Standards and in doing so has taken advantage of all donor or sponsor specifies a period for which the funding is to be allocated orapplicable Reduced Disclosure Regime (“RDR”) disclosure concessions. This any specified activities are deferred to a later period in which case the income isdecision results in the Trust not preparing a Statement of Service Performance for allocated accordingly.both reporting periods.The accompanying notes form part of and are to read in conjunction with these financial statements

2016 Annual Report 35Goods and services provided to the trust free of charge and sponsorship in kind are Financial assets at fair value through surplus or deficitrecorded at the fair value of the goods, services and sponsorship in kind received. Financial assets at fair value through surplus or deficit include items that are either classified as held for trading or that meet certain conditions and are4.3.2 Revenue from exchange transactions designated at fair value through surplus or deficit upon initial recognition.Contract revenue is recognised in accordance with the payment terms of the contract. Loans and receivablesRevenue from fees and sales is recognised when invoiced or received, whichever Loans and receivables are non-derivative financial assets with fixed ormight be applicable. determinable payments that are not quoted in an active market. After initial recognition, these are measured at original cost less any allowance forInterest revenue is recognised as it accrues, and is calculated using elapsed days impairment. The Trust’s cash and cash equivalents, receivables from exchangeand a 365-day year. transactions and receivables from non-exchange transactions fall into this category of financial instruments.4.4 FINANCIAL INSTRUMENTSFinancial assets and financial liabilities are recognised when the Trust becomes a Available for sale financial assetsparty to the contractual provisions of the financial instrument. Available-for-sale assets are non-derivative financial assets that are either designated to this category or do not qualify for inclusion in any of the other4.4.1 Financial Asset categories of financial assets. The Trust’s investment in ordinary shares isFinancial assets within the scope of NFP PBE IPSAS 29 Financial Instruments; classified as an available for sale financial asset.Recognition and Measurement are classified as financial instruments at fair valuethrough surplus or deficit, loans and receivables, held-to-maturity investments or 4.4.2 Impairment of financial assetsavailable-for-sale financial assets. The classifications of the financial assets are The Trust assesses at the end of reporting date whether there is objectivedetermined at initial recognition. evidence that a financial asset or a Trust of financial assets are impaired. A financial asset or a Trust of financial assets is impaired and impairment losses areThe category determines subsequent measurement and whether any resulting incurred if there is objective evidence of impairment as a result of one or moreincome and expense is recognised in surplus or deficit or in other comprehensive events that occurred after the initial recognition of the asset (a “loss event”) andrevenue and expenses. that loss event has an impact on the estimated future cash flows of the financial asset or the Trust of financial assets that can be reliably estimated.Financial assets are classified as financial assets at fair value through surplusor deficit, loans and receivables or as available for sale financial assets. Young For financial assets, if there is objective evidence that an impairment loss onEnterprise Trust’s financial assets include: cash and cash equivalents, short term loans and receivables has been incurred, the amount of the loss is recognised indeposits, receivables from non-exchange transactions, receivables from exchange the surplus or deficit for the reporting period.transactions and investments. In determining whether there is any objective evidence of impairment, theAll financial assets except for those at fair value through surplus or deficit are Trust first assesses whether there is objective evidence of impairment forsubject to review for impairment at least at each reporting date. Financial assets financial assets that are individually significant, and individually or collectivelyare impaired when there is any objective evidence that a financial asset or Trust significant for financial assets that are not individually significant. If theof financial assets is impaired. Different criteria to determine impairment areapplied for each category of financial assets, which are described below.The accompanying notes form part of and are to read in conjunction with these financial statements

36 Young EnterpriseTrust determines that there is no objective evidence of impairment for an 4.9 SIGNIFICANT JUDGEMENTS AND ESTIMATESindividually assessed financial asset, it includes the asset in a Trust of financial In preparing the financial statements, the Board of Trustees is required to makeasset with similar credit risk characteristics and collectively assesses them judgments, estimates and assumptions that affect the reported amounts offor impairment. Assets that are individually assessed for impairment and for revenues, expenses, assets and liabilities, and the disclosure of contingentwhich an impairment loss is or continues to be recognised are not included in a liabilities, at the end of the reporting period. The uncertainty from thesecollective assessment for impairment. assumptions and estimates could result in outcomes that may result in a material adjustment to the carrying amount of the asset or liability.If in a subsequent period, the amount of the impairment loss decreases and thedecrease can be related objectively to an event occurring after the impairment The Trust bases its assumptions and estimates on parameters available whenwas recognised, the previously recognised impairment loss is reversed by the financial statements are prepared. However, existing circumstances andadjusting the allowance account. assumptions about future developments may change due to market changes or circumstances arising beyond the control of the Trust. Such changes are reflectedIf the reversal results in the carrying amount exceeding its amortised cost, the in the assumptions when they occur. The key significant judgements andamount of the reversal is recognised in surplus or deficit. estimates used in the preparation of these financial statements are as follows:4.4.3 Financial liabilities InventoriesThe Trust’s financial liabilities include trade and other creditors. In arriving at the inventory value of saleable goods in the Statement of Financial Position the recognised cost is its fair value at the date of acquisition.All financial liabilities are initially recognised at fair value and are measuredsubsequently at amortised cost. Income in Advance The Trust occasionally receives some sponsorship in advance of the period to4.5 CASH AND CASH EQUIVALENTS which it relates. At the time the funds are received, management consults theCash and cash equivalents are short term, highly liquid investments that are related documentation and makes a determination as to the period to which thereadily convertible to known amounts of cash and which are subject to an funding relates.insignificant risk of changes in value. 4.10 INCOME TAX4.6 SHORT TERM INVESTMENTS Young Enterprise Trust is registered as a charitable entity under the Charities ActShort term investments comprise term deposits which have a term of greater than 2005. Any surplus from activities is exempt from income tax.three months and therefore do not fall into the category of cash and cash equivalents. 5. DONATIONS4.7 INVENTORY Donations received during each reporting period are made up of the following:Inventory is valued at the lower of cost and net realisable value. Individuals 2016 20154.8 FIXED ASSETS Foundations 31,575 64,989Fixed assets are stated at cost less accumulated depreciation. TOTAL 155,000 158,000 186,575 222,989Depreciation is provided for on a straight-line basis at a rate of 33%, a ratecalculated to allocate the assets’ cost or valuation less estimated residual value,over their estimated useful lives.The accompanying notes form part of and are to read in conjunction with these financial statements

2016 Annual Report 376. COMPONENTS OF NET SURPLUS Reconciliation of the carrying amount at the beginning andSurplus/Deficit for the year includes: end of the period:Depreciation 2016 2015 Office Equipment 2016 ($) 2015 ($)Leasing & Rental Costs 11,552 11,888 Opening Balance 15,117 5,471Employee Cost 54,055 51,452 Additions 9,152 21,534Trustees’ fees & expenses 1,221,095 1,249,014 DepreciationLoss/(gain) on investments 2,843 2,744 Net Book Value (11,552) (11,888) (8,568) 4,488 12,717 15,1177. AUDITOR’S REMUNERATION 11. KEY MANAGEMENT PERSONNELStaples Rodway provides audit services to the Trust. Provision has been made The key management personnel, as defined by PBE IPSAS 20 Related Partyfor a fee of $8,496 (2015 $8,496). No non-audit services are provided by Staples Disclosures, are the members of the governing body which is comprised ofRodway. the Board of Trustees, the Chief Executive, the Corporate Services Manager, Communications Manager, Special Projects Manager, Training and Support8. CASH AND CASH EQUIVALENTS Manager, Head of Junior Secondary, Relationship Manager – Schools, and HeadCash and cash equivalents include the following: of YES, which constitutes the governing body of the Trust. No remuneration is paid to members of the Board of Trustees.Cash at bank 2016 ($) 2015 ($) 1,377,132 1,261,870 The aggregate remuneration of key management personnel and the number of individuals, determined on a full-time equivalent basis, receiving remuneration is as follows:9. INVESTMENTS Total remuneration 2016 2015The Trust holds an investment in Infratil at the reporting date. The funds are Number of persons 767,497 772,095classified as an available for sale financial asset. Market value of the investmentat 31 December 2016 was $44,880 (2015 $53,448) 8 810. PROPERTY PLANT AND EQUIPMENT Remuneration and compensation provided to close family members of key management personnel 2016 ($) 2015 ($) During the reporting period, a small amount of remuneration or compensationOriginal Cost 95,738 100,754 was provided by the Trust to employees who are close family members of keyAccumulated Depreciation 83,021 85,637 management personnel.Net Book Value 12,717 15,117The accompanying notes form part of and are to read in conjunction with these financial statements

38 Young Enterprise12. LEASES 14. CAPITAL COMMITMENTSAs at the reporting date, the Board of Trustees has entered into the following There were no capital commitments at the reporting date. (2015: $Nil)operating lease commitments: 15. CONTINGENT ASSETS AND LIABILITIESNo later than 1 year 2016 ($) 2015 ($) There are no contingent assets or liabilities at the reporting date. (2015: $Nil). 50,763 54,055Later than 1 year and no 37,592 88,356 16. EVENTS AFTER THE REPORTING DATElater than 5 years The Board of Trustees and management is not aware of any other matters or circumstances since the end of the reporting period, not otherwise dealt with in 88,355 142,411 these financial statements that have significantly or may significantly affect the operations of the Young Enterprise Trust. (2015: $Nil).13. CATEGORIES OF FINANCIAL ASSETS AND LIABILITIESThe carrying amounts of financial instruments presented in the statement of 17. EXPLANATION OF THE TRANSITION TO PBE IPSASfinancial position relate to the following categories of assets and liabilities: The Trust financial statements for the year ended 31 March 2017 are the first annual financial statements prepared in accordance with PBE IPSAS. The Trust has 2016 2015 applied PBE FRS 47 “First-time adoption of PBE standards by entities other than those previously applying NZ IFRSs” in preparing these financial statements.Financial assets 1,261,870 68,762 The Trust’s transition date is 1 January 2016 and it has prepared its opening PBEReceivables IPSAS Trust Statement of Financial Position as at that date. 1,330,632 53,448 18.1 Reconciliation of Net AssetsCash & cash equivalents 1,377,132 2016 ($) 2015 ($) 977,015 964,432Receivables from non- 75,353 Balance at 31 Decemberexchange transactions under previous NZ FRS 1,452,485 Recognition of Investment 29,780 38,346 assetsAvailable for sale financial assetsInvestments 44,880 1,006,795 1,002,778Financial liabilities 83,608 47,394At amortised cost 83,608 7,394Trade & other creditorsThe accompanying notes form part of and are to read in conjunction with these financial statements

2016 Annual Report 392017 Sponsors, Partners and FundersYoung Enterprise is a charity. We are funded through a combination of A special thanks to our largest funder The Lion Foundation in this thegrants, sponsorships and private donations. To all of those organisations 15th year of support for our flagship programme.and individuals we say “Thank you” for helping us to reach more studentsand teachers with more programmes in more schools this year.Platinum FundersGold SponsorsSilver SponsorsNational SponsorsSupporters • Banqer • Klopache • Ricoh • Te Tumu Paeroa • Fujitsu • New Zealand Trade & Enterprise • Simplicity • The Fletcher Trust • Gallagher Charitable Trust • NZ Māori Tourism • Stafford Engineering • Thomas George Macarthy Trust • Kaimira Estate • Office Max • Te Ohu Kaimoana • University of Otago School of Business With thanks to our outgoing 2016 sponsors, Callaghan Innovation, Careers NZ, David Levene Foundation, FedEx, Snowball Effect and Xero.

Phone: 04 570 0452 Printed by: Email: [email protected] www.broderickprint.co.nz Website: www.youngenterprise.org.nz Facebook: YoungEnterpriseNZ Graphic Design by: Twitter: @youngentnz Donation: www.givealittle.co.nz/org/yetrust www.littlegemdesign.co.nzLocation: Level 2, iPayroll House, 93 Boulcott Street, Wellington 6011 Post: PO Box 25 525, Featherston Street, Wellington 6146