Page 8 - 2021 NZPM Annual Report

Chair’s Report

SHAREHOLDER RETURNS Zealand to better serve our customer base. In 2022 NZPM
Properties expects to build a new branch on land that
Our rebate dividend policy is to provide a long-term target we purchased in Drury, South Auckland, and this will be
distribution of 80% of net profit after tax and before lease complemented by leased sites in other regions and shared-
accounting adjustments, and a short-term target distribution site opportunities with co-operatives such as ITM in Turangi.
range of 65% – 95% and other such financial factors as the
board determines.
LOOKING AHEAD
Gross rebate dividend 8% of ‘A Grade’ cash
60% payable in September 2021 Our progress in the last few years in transforming NZPM into a
truly omnichannel business has prepared us well for the future
and puts us in a position to accelerate our strategies going
In July 2021 the NZPM Board declared a gross rebate dividend forward. We will continue to innovate to create a frictionless
of 8% of ‘A Grade’ Cash to be paid as one lump sum, in cash, customer experience and deepen our customer relationships,
in September 2021. The declaration of this dividend allows which will enable us to further diversify and strengthen our
the co-operative to pay an appropriate share of profit to business model.
our Shareholders in a timely manner, while preserving our
liquidity position to manage our future commitments for the Your directors and management are confident that our
development and growth of the co-operative. co-operative has the right strategy, leadership and culture
to deliver on its full potential, while remaining well prepared
We believe that NZPM continues to provide a compelling to respond to operational risks. Our consistent strong
value proposition to our members through a combination of performance, together with the ongoing execution of our
rebate dividends, MaxPoints, Redeemable Preference Share strategy will ensure that NZPM can continue to look to the
dividends, the NZPM Extra Benefits programme and our Go future with confidence.
for Gold quarterly rebate.
On behalf of the board and executive team, I would like to
thank our members, our customers, our suppliers, and our
BUSINESS REINVESTMENT people for their enduring commitment to, and support of the
NZPM Co-operative.
NZPM continues to reinvest across the co-operative and in
a range of initiatives to improve the quality and capability
of our business network. We take pride in offering a range
of affordable and reliable industry solutions that thousands
of people rely on every day. As the country emerges from a
year of unprecedented challenges, we intend to continue
to demonstrate our consistent, prepared, and adaptive
strengths as we move into the future. John DeBernardo, Chair
On behalf of the Board and Executive Team
We believe that investing in our people and our culture is
essential for success. Our human capital management
objectives are focused on hiring, developing, and retaining
critical talent, and fostering a culture that values diversity and
inclusion, and employee engagement. We believe innovative
solutions to the most complex challenges emerge when
diverse people, ideas and experiences come together in an
inclusive environment.

NZPM continues to develop new ways to leverage the scale
and breadth of our operations, bringing technology to life
to better serve our customers and our people. This past year
has accelerated many of the customer trends we have been
strongly focused on such as e-commerce adoption, and
in doing so has confirmed that our digital and technology
investment strategy is the right one.
We will also continue our programme of strategic property
investment as we expand our physical network across New

6 NZPM Group Limited