0% 2% 1% 96% Information Services Civic Three waters Solid Waste 07 Metered Water Rates

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1 Statement of Comprehensive Revenue and Expenses For the 10 months ended 30 April 2017 YTD YTD Actual YTD AP Variance Apr16 Note Apr $000s $000s $000s $000s REVENUE FROM NONEXCHANGE TRANSACTIONS 7,003 Grants and Subsidies Operational 01 9,010 7,865 1,145 5,313 Grants, Donations, Subsidies and Contributions Capital 02 7,776 10,193 (2,417) 1,543 Other Non Exchange Revenue 03 1,712 1, ,412 General Rates And Uniform Annual General Charge 04 15,796 15, ,056 Targeted Rates 37,595 37,595 (0) REVENUE FROM EXCHANGE TRANSACTIONS 324 Development and Financial Contributions Capital (403) 8,363 Other Revenue 06 7,050 7,710 (660) 1,896 Metered Water Rates 07 2,028 2,149 (121) 6 Dividends Interest Received Other Gains/(Losses) Profit on Sale of Assets 10 (30) 10 (40) 76,972 Total Revenue 81,204 83,127 (1,923) OPERATING EXPENSES 15,556 Employee Benefit Expenses 11 15,931 15, ,299 Expenditure on Operating Activities 12 39,230 37,569 1,660 17,975 Depreciation and Amortisation 17,102 17, ,544 Financing Costs 13 1,496 1,666 (170) 67,373 Total Expenses 73,759 71,755 2,003 9,599 Net Surplus/(Deficit) before Taxation 7,445 11,371 (3,926) 679 Loss/(gain) on movement in FV of Interest Rate Swaps 14 (952) 0 (952) 8,920 Total Comprehensive Revenue and Expenses 8,397 11,371 (2,974) Operational Grants and Subsidies Graph 2016/17 YTD Actual: What makes up this revenue 0% 1% 0% 2% 1% 96% 0101 Govt Grants 0120 NZTA Subsidy 0121 NZTA Admin Fees 0122 NZTA Safety Coordinator 0123 NZTA State Highway Refund 0145 Other Grants & Subsidies Capital Grants, Donations, Subsidies and Contributions Graph 2016/17 YTD Actual: What makes up this revenue 76% 24% 6420 Grants Capital Projects 6421 NZTA Capital Notes to the Statement of Comprehensive Revenue and Expenses 11 Employee Benefit Expenses 01 Grants and Subsidies Operational (Refer to Operational Grants and Subsidies graph above) This is higher mainly due to no longer oncosting to expenditure on operating activities. As can be seen in the graph, 96% of this revenue comes from the NZTA Subsidy. We recover 62% of costs on annual plan 12 Expenditure on Operating Activities (Refer to Expenditure on Operating Activities graph below for what makes up this expenditure by activity) roading maintenance excluding emergency work. We recover 82% of costs on NZTA approved emergency work. The The unfavourable variance from annual plan is mainly due to higher roading costs relating to repair work done due to flooding. In addition expenditure of variance from annual plan is mainly due to higher expenditure related to roading emergency repair work due to flooding $500K in rural fire, and a provision of $474k payable to central government for accumulated stationary and vehicle charges that the council recovered which increases the NZTA subsidy amount. through parking infringement fees. 02 Grants, Donations, Subsidies and Contributions Capital (Refer to Grants, Donations, Subsidies and Contributions Graph above) 13 Financing Costs Interest cost is lower than the annual plan due to lower than annual plan market interest rates. This variance from annual plan is mainly due to the timing of receipt of grant funding for the HB Williams Memorial Library and Tairawhiti Navigations Projects. 14 Loss/(gain) on movement in FV of Interest Rate Swaps Fair value movement of interest rate swaps may not reflect the value at the end of the year as it is a market valuation at this point in time. 03 Other Non Exchange Revenue (Includes penalties, infringement fees, court enforcement fees, and other fees) The variance from annual plan is mainly due to higher than annual plan court enforced fees and infringement fees received. Expenditure on Operating Activities Actual 2016/17 YTD: Where 04 General Rates And Uniform Annual General Charge The variance from annual plan is due to the timing of billing capital rates against annual plan. this expenditure is incurred 05 Development and Financial Contributions Capital (Part of Capital Grants) The variance from annual plan is due to the same reason mentioned above under Grants, Donations, Subsidies and 3% Contributions Capital. 06 Other Revenue (Rent income, lease income, and all other fees and charges) 3% The unfavourable variance from annual plan is mainly due to being $1.6m under annual plan as the Vehicle Testing Station and Holiday Park revenue are included within the annual plan but are actually $Nil. This is because the final decision for the phasing of GHL stage 2 was made after the adoption of the annual plan but took effect from 1 July This was offset by over annual plan variances across a large number of areas including rural fire recharges and consents. 31% 15% 6% Information Services Civic Three waters Solid Waste 07 Metered Water Rates Roading The variance from annual plan is mainly due to seasonal fluctuation in water usage. 6% Reserves 08 Dividends YTD Actual represents the dividend received from LGFA for the shares we hold in LGFA. 36% Other 09 Interest Received The variance from annual plan is mainly due to the level of cash and deposits held throughout the year. 10 Other Gains/(Losses) Profit on Sale of Assets YTD Actual represents the loss incurred following the GHL Phase 2 Asset transfer. Location:GDC File plan; Financial Management;Management Reporting;Management Reporting 2016/17;Financial Reports;[CE Report 10 April (A765857).xlsx]

2 Total YTD Actual Revenue, Expenditure Trend Over The Year and Net Surplus Vs Annual Plan 90,000 80,000 70,000 60,000 YTD Actual ($000) 50,000 40,000 30,000 20,000 10,000 10,000 Jul16 Aug16 Sep16 Oct16 Nov16 Dec16 Jan17 Feb17 Mar17 Apr17 Revenue Expenditure Net surplus Annual Plan Net surplus

3 14,000 Reconciliation of Total YTD comprehensive income between Annual Plan and Actual 12,000 10,000 8,000 6,000 4,000 2,000 (2,000) (4,000) Variance ($000) Reconciliation of Total YTD comprehensive Income between annual plan and actual ($000)

4 Statement of Comprehensive Revenue and Expenses For the period ended 30 June 2017 as at 30 April 2017 Full Year Full Forecast Full Year Variance Notes to the Statement of Comprehensive Revenue and Expenses 2016 Note (Including YTD Annual Grants and Subsidies Operational $000s Actual) Plan $000s The variance from annual plan is mainly due to higher expenditure related to roading emergency repair work due to flooding REVENUE FROM NONEXCHANGE TRANSACTIONS which increases the NZTA subsidy amount. 7,881 Grants and Subsidies Operational 01 10,583 9,438 1,145 7,380 Grants, Donations, Subsidies and Contributions Capital 02 9,815 12,232 (2,417) 02 Grants, Donations, Subsidies and Contributions Capital 1,850 Other Non Exchange Revenue 03 1,889 1, This variance from annual plan is mainly due to the timing of receipts of grant funding for the HB Williams Memorial Library 16,748 General Rates And Uniform Annual General Charge 15,748 15,748 0 and Tairawhiti Navigations Projects. 35,077 Targeted Rates 37,595 37,595 0 REVENUE FROM EXCHANGE TRANSACTIONS 03 Other Non Exchange Revenue (Includes penalties, infringement fees and court enforcement fees etc) 227 Development and Financial Contributions Capital (403) 9,770 Other Revenue 05 8,389 9,049 (660) The variance from annual plan is mainly due to higher than annual plan court enforced fees and infringement fees received. 2,371 Metered Water Rates 06 2,458 2,579 (121) 6 Dividends ,459 (1,453) 04 Development and Financial Contributions Capital 66 Interest Received The variance from annual plan is due to the timing of billing capital rates against annual plan. 318 Other Gains/(Losses) Profit on Sale of Assets 09 (28) 12 (40) 81,694 Total Revenue 86,834 90,433 (3,598) 05 Other Revenue (Rent and lease income, All other fees and charges) OPERATING EXPENSES 19,157 Employee Benefit Expenses 10 19,019 18, ,689 Expenditure on Operating Activities 11 46,747 45,087 1,660 20,049 Depreciation and Amortisation 20,522 20, ,875 Financing Costs 12 1,830 1,999 (170) 84,770 Total Expenses 88,118 86,115 2, Metered Water Rates 1,021 Subvention payment from GHL 07 1, ,464 This is due to seasonal fluctuation in water usage. (2,055) Net Surplus/(Deficit) before Taxation 180 4,318 (4,137) 856 Loss/(gain) on movement in FV of Interest Rate Swaps 13 (952) 0 (952) 07 Dividends / Subvention payment from GHL (2,911) Total Comprehensive Revenue and Expenses 1,132 4,318 (3,185) The unfavourable variance from annual plan is mainly due to being the Vehicle Testing Station and Holiday Park revenue are included within the annual plan but are actually $Nil. This is because the final decision for the phasing of GHL stage 2 was made after the adoption of the annual plan but took effect from 1 July This was offset by over annual plan variances across a large number of areas including rural fire recharges and consents. Forecast represents the dividend received from LGFA for the shares we hold in LGFA. $1.5m under annual plan relating to dividends from GHL, as subsequently it was decided that a subvention payment of $1.5m will be paid by GHL in May Therefore a subvention payment of $1.5m can be seen over annual plan. 08 Interest Received Variance is mainly due to the level of cash and deposits held throughout the year. 09 Other Gains/(Losses) Profit on Sale of Assets YTD Actual represents the loss incurred following the GHL Phase 2 Asset transfer. 10 Employee Benefit Expenses This is higher due to no longer oncosting to expenditure on operating activities. 11 Expenditure on Operating Activities The unfavourable variance from annual plan is mainly due to higher roading costs relating to repair work done due to flooding. In addition expenditure of $500K in rural fire, and a provision of $474k payable to central government for accumulated stationary and vehicle charges that the council recovered through parking infringement fees. 12 Financing Costs Interest cost is lower than the annual plan due to lower than annual plan market interest rates. 13 Loss/(gain) on movement in FV of Interest Rate Swaps Fair value movement of interest rate swaps resulting from a current favourable position held. Location:GDC File plan; Financial Management;Management Reporting;Management Reporting 2016/17;Financial Reports;[CE Report 10 April (A765857).xlsx]

5 Statement of Financial Position As at 10 months ended 30 April 2017 Note Opening period 30 June 2016 Current period 30 April 2017 Net Funds Employed (Assets less Liabilities) 1,940,087 1,947, Employee Benefits Liabilities and Suspense Net Working Capital (Current Assets less Current Liabilities) 15,973 6,779 Includes holiday pay and other current employee benefit liabilities. Current Assets (Assets expected to be realised within next 12 months) 21,250 24,159 Cash & Bank Provisions for Other Liabilities Non Exchange Trade and Other Receivables 02 5,264 16,550 Provision for various legal matters and other liabilities. Exchange Trade and Other Receivables 03 5,718 4,614 Inventories Derivative Financial Instruments Investments 04 1,333 1,377 Interest rate swaps. Non Current Assets Held for Resale 05 8,529 1,134 Current Liabilities (Liabilities expected to be settled within next 12 months) 37,223 17, Property Plant and Equipment Deposits Held Council's Fixed assets. Trade and Other Payables 07 17,030 11,360 Employee Benefits and Suspense 08 1,897 2, Intangible Assets Borrowings 15 14,615 0 Includes computer software. Provisions for Other Liabilities 09 2,603 2,603 Derivative Financial Instruments Biological Assets Non Current Assets (Assets expected to be recovered for more than 12 months after the reporting period) 1,977,806 1,984,711 Includes the value of livestock and forestry. Trade and Other Receivables 0 0 Property Plant and Equipment 11 1,946,217 1,946, Non Current Investments Intangible Assets 12 3,636 3,636 Includes investments in GHL and CCTO increased by $7m due to GHL transfer phase 2. Biological Assets 13 3,277 3,277 Investments 14 24,676 31, Borrowings Non Current Liabilities (Liabilities expected to be settled after 12 months) 21,747 44,359 Current portion of the borrowing for this month is nil as the adjustment to split the borrowing into current and non current occurs at the Borrowings 15 17,000 40,565 end of the financial year. At the moment all borrowing is showing as non current borrowing. Employee Benefit Liabilities Provisions for Other Liabilities 16 1,698 1, Provisions for Other Liabilities Derivative Financial Instruments 10 2,723 1,771 Includes non current provisions such as Paokahu landfill and Waiapu landfill aftercare provisions. Equity #(excluding YTD Net Surplus/(Deficit) after Taxation) 1,942,998 1,938,733 Accumulated Surplus #(excluding YTD Net Surplus/(Deficit) after Taxation) 406, , Special Funds Special Funds 17 36,983 38,866 Includes various reserves such as depreciation reserves. Revaluation Reserves 18 1,499,262 1,495,934 YTD Surplus / (Deficit) 2,911 8, Revaluation Reserves Notes to the statement of Financial Position 01 Cash & Bank Westpac current account balance. 02 Non Exchange Trade and Other Receivables Includes rates receivable and other current receivables such as NZTA receivables. Current period is higher compared to the opening balance as this is a rates installment period. 03 Exchange Trade and Other Receivables Includes sundry debtors, prepayments and GST where receivable. 04 Investments Includes term deposits. 05 Non Current Assets Held for Resale Includes assets held for resale. Current period is lower compared to the opening balance as GHL phase 2 assets were transferred during this month. 06 Deposits Held Includes footpath deposits, bond deposits and theatre ticket sale deposit. 07 Trade and Other Payables Includes accounts payable, sundry creditors, audit fee accruals, GST where payable & other IRD payables, Waerenga o Kuri Liability. Gain on assets revaluation. Location:GDC File plan; Financial Management;Management Reporting;Management Reporting 2016/17;Financial Reports;[CE Report 10 April (A765857).xlsx]

6 Debt Graphs and Cash flow graphs As at the month ending April financial year 2016/2017 DEBT FORECASTING & TRENDS 6,000 4,000 Cashflow Graph (Inverted Debt Movements) Accumulating CF 2, ,000 4,000 6,000 8,000 10,000 12,000 1/07/2016 1/08/2016 1/09/2016 1/10/2016 1/11/2016 1/12/2016 1/01/2017 1/02/2017 1/03/2017 1/04/2017 1/05/2017

7 Capital Expenditure for the 10 months ended 30 April June April June 2017 % Spent Cost Centre Period 12 Period 10 Period 12 By Apr 17 of Comments Full year Budget YTD Full year reforecast full year reforecast Excluding Major Projects Environment & Regulatory Service 11,689k 10,164k 12,854k 79% Conservation 0k 0k 0k NA Environmental Services Management 0k 0k 0k NA Environmental Monitoring & Hydrology 84k 64k 78k 82% Roading 11,067k 9,904k 12,521k 79% Rivers Asset Management 189k 1k 61k 2% Flood Control Schemes 0k 186k 186k 100% Wainui Foredune Protection 156k 10k 10k 100% Rivers Control & Land Drainage 193k 2k 2k 100% Operations 5,614k 2,420k 4,097k 59% Finance 260k 17k 61k 29% Information Management 1,898k 432k 772k 56% Due to delay in ISSP project Rural Fires 5k 0k 1k 0% Wastewater 251k 389k 806k 48% Stormwater 1,104k 113k 276k 41% Water Supply 1,321k 1,128k 1,707k 66% Property Management 0k 44k 50k 88% Facilities & Plant Management 336k 172k 228k 75% Community & Staff Housing 241k 124k 164k 76% Quarry 14k 0k 2k 0% Gisborne Vehicle Testing 6k 1k 2k 56% Holiday Park 178k 0k 30k 0% Planning & Development 2,478k 1,103k 1,632k 68% Solid Waste 72k 16k 28k 57% Theatres & Halls 15k 0k 3k 0% Conveniences 76k 0k 13k 0% Reserves 1,296k 436k 649k 67% Due to delay in various capital project related to parks Cemeteries 14k 26k 28k 92% Community Property 456k 216k 320k 68% Property Management Arts & Public Places 287k 193k 348k 56% Pool Operations 0k 6k 6k 100% District Library Operations 261k 208k 236k 88% Grand Total (Excluding Major Projects) 19,780k 13,686k 18,584k 30 June April June 2017 % Spent Major Projects Period 12 Period 10 Period 12 By Apr 17 of Comments Full year Budget YTD Full year reforecast full year reforecast Library Expansion 4,979k 233k 1,383k 17% Library Project moved to next financial year Lawson Field thetre 1,000k 25k 32k 78% Navigations 2,593k 254k 334k 76% Navigation Project delayed until next financial year. Walkways and Cycleways 1,000k 0k 0k 0% Asset Management 0k 223k 254k 88% Deciper 0k 32k 77k 42% Smarter Services 0k 261k 511k 51% Titirangi Restoration 412k 317k 430k 74% Drainwise 402k 155k 591k 26% Mainly due to delay in Hirini street project Wastewater Management Options 2,970k 1,320k 2,034k 65% Waipaoa Flood Control 500k 125k 265k 47% Major Projects Total 13,856k 2,946k 5,913k Grand Total 33,636k 16,632k 24,497k

8 Periodical CAPEX Charts 450, Capex for each month Waste water 140, Capex for each month Storm Water 300, Capex for each month Water Supply 1,400, Capex for each month Roading 400, , , , , , , 1,000, , , , , , , , , , , , , , , YTD Accumulating CAPEX Charts 3,000, YTD Accumulating Capex Waste water 1,400, YTD Accumulating Capex Storm water 1, YTD Accumulating Capex Water Supply 12,000, YTD Accumulating Capex Roading 2,500, , 1,000, ,000, ,000, ,000, , ,000, ,500, , , , ,000, ,000, , , ,000, , ,000,000.00