Page 10 - NZPM Annual Report 2020

Our strategy to broaden our customer and revenue
base, invest in capability and use technology to improve

efficiency and lower costs will assist the co-operative to

be competitive into the future.

This year, elected directors John DeBernardo and Mark are currently being finalised and will be designed to
Whitehead retire by rotation and being eligible have maximise shareholder participation while providing
offered themselves for re-election. low-risk and cost-effective options for shareholder
engagement. We anticipate being able to get together
REBATE DIVIDEND in larger groups in the future and have scheduled our
2021 Annual Meeting to be in Rotorua.
Our rebate dividend policy is to provide a long-term
target distribution of 80% of net profit after tax and The 2020 Plumbing World Overseas Shareholder
before lease accounting adjustments and a short-term Convention to Beijing was deferred for one year due to
target distribution range of 65% – 95% and other such the travel restrictions associated with COVID-19.
financial factors as the board determines.
LOOKING FORWARD
In July 2020, NZPM declared an interim gross rebate
dividend of 4.0% of ‘A Grade’ Cash to be paid as one NZPM is well positioned to respond to the challenges
lump sum, in cash, in September 2020. The declaration that will arise from the economic downturn that is
of an interim dividend allows the co-operative to pay an expected to impact our industry during the current
appropriate rebate dividend to shareholders in a timely financial year. While we cannot predict market
basis, while preserving our liquidity position to manage demand, the consistent message from economic
our way through what we expect to be an uncertain commentators is that future demand will be lower than
period. The company will consider the payment of a current levels.
final dividend later in the financial year.
Our strategy to broaden our customer and revenue
NZPM believes that the co-operative continues to base, invest in capability and use technology to
provide a compelling value proposition to our members improve efficiency and lower costs will assist the
through a combination of rebate dividends, our Go co-operative to be competitive into the future. This
for Gold exclusives rebate programme, MaxPoints and strategy will be maintained with the expectation
NZPM Extra benefits. that we can at least hold our relative market share
through any economic downturn with the appropriate
SHAREHOLDERS adjustment to our cost base and business reinvestment
to ensure that the business remains sustainable.
The co-operative continues to attract a very good
number of new shareholder members. During the year, On behalf of the board and the executive team, I
65 new members joined the co-operative to increase would again like to thank our shareholders, customers,
our total ordinary shareholding to 895 members. suppliers and staff for their ongoing commitment to,
Ordinary shareholder redemptions were static with and support of, the NZPM Group co-operative.
a significant portion continuing to be from business
retirees.
COVID-19 has resulted in a number of changes to
our normal in-person interaction with shareholders.
The Shareholder Roadshows have been scheduled
for mid-July using a digital-only platform, while the
Annual Meeting will be held in smaller audio-visual
linked gatherings concurrently in Auckland, Wellington John Debernardo, Chair
and Christchurch. These novel presentation styles On behalf of the Board and Leadership Team.

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NZPM GROUP LIMITED ANNUAL REPORT 2020