Annual Report

Washington H. Soul Pattinson and Company Limited

Annual Report 2016

New Hope reported a net profit after tax and before non-regular items of $5.0 million for the year ended 31 July

2016. This result comprised: a loss of $3.6 million from coal mining, marketing and logistics operations; a loss of

$4.1 million from oil operations; and a profit of $12.7 million from treasury. The result was down 90.3% on the 2015

result of $51.7 million.

After non-regular items, the result for the year was a net loss after tax of $53.7 million. This comprised: a loss of

$34.9 million from coal mining, marketing and logistics operations; a loss of $26.5 million from oil operations; and

a profit of $7.7 million from treasury. This result was down 146% on the 2015 loss of $21.8 million.

During the year New Hope generated an operating cash surplus of $61.2 million (including receipts from

customers and payments to suppliers) and received interest of $25.4 million from held to maturity investments

(term deposits). Cash outflows from investing activities rose due to the acquisition of a 40% interest in the

Bengalla project ($898 million including acquisition costs).

Before non-regular items, basic earnings for 2016 were 0.6 cents per share, compared to 6.2 cents per share in

2015. After non-regular items basic earnings were (6.5) cents per share for 2016 against (2.6) cents in 2015.

New Hope paid a fully franked final dividend of 2.0 cents per share (2015: 2.5 cents and 3.5 cents special dividend).

Mining Operations

Coal production for the year was 6.6 million tonnes compared to 5.7 million tonnes produced in 2015. Bengalla

contributed 1.4 million tonnes during the five months of New Hope’s ownership and the Queensland mining

operations produced 5.2 million tonnes compared to 5.7 million tonnes produced in 2015.

Coal sales for 2016 totalled 6.9 million tonnes (including 1.5 million tonnes from Bengalla) which was well above

the 5.7 million tonnes sold in 2015.

New Acland Stage 3 Development (NAC03)

The approvals process for the NAC03 mining leases progressed with the Queensland Land Court expected to

deliver a recommendation by December 2016, approximately six months later than previously anticipated.

Construction of NAC03 is planned to commence in the first quarter of 2017 pending grant of the mining leases

and environmental authority. Federal Government approval is expected in 2016.

NewHope Corporation Limited

Controlled entity:

59.6% held

Dividends paid to WHSP:

$39.7 million

Total Market Capitalisation:

$1.33 billion

Value of WHSP’s Holding:

$793 million

ASX code:

NHC

OPERATING

CASHSURPLUS

$61m