Transparency, page-11

From the company -
Thank you for your query in relation to the composition of the distribution to investors. I understand your frustration in being unable to see clearly in the accounts how the operations of the underlying assets are funding the distribution to investors. While the portfolio is in the process of being constructed and brought into operation the cashflows and the way in which the financing of those projects is undertaken creates a large number of transactions and fund flows which obscure the direct path from operational cashflow to distributions to investors. This is specific to this stage of the portfolio's maturity. To provide an indicative picture of the earning capacity of the assets, we provide the unaudited earnings of the underlying operating portfolio which you can compare to the value of distributions. Accordingly, for the 1H 2019 results, you can see that the cashflow statement shows distributions to investors of $13.9 million (page 48 in the half yearly report) compared to underlying portfolio EBITDA attributable to NEW of $11.2 million (page xviii in the half yearly report). As we have said from ASX-listing and consistent with other infrastructure businesses, in the early stages of the business when assets are being brought into operation, distributions typically comprise a combination of capital and early stage earnings. I agree with the sentiment that the complicated nature of infrastructure vehicle funding makes it difficult for investors to appreciate the investment proposition. Our expectation is that next year, when the construction activity is complete, it will be easier for investors to appreciate the value of NEW's portfolio.