#1United Utilities Credit Credit Investor presentation Summer/Autumn 2021 United Utilities Water for the North West United Utilities • Credit Investor presentation#2Contents Background Systems Thinking and innovation 3-8 9-15 Environmental, Social and Governance (ESG) 16-21 Economic regulation 22-28 Operational transformation 29 - 32 Outcome Delivery Incentives (ODIS) 33-41 Financial summary Sustainable Finance Framework Summary Glossary Full year results - 2020/21 Cautionary statement 42-53 54-62 63-64 65 66-108 109 United Utilities • Credit Investor presentation . 2#3Background United Utilities Water for the North West United Utilities Credit Investor presentation#4Where we operate Regulated UK water and wastewater business Around 3 million Regional population household and of around 7.3 million 200,000 non-household customer premises people in the North West of England Coleraine Ballymena Omagh Belfast Enniskillen Norther Serving the North West since privatisation in 1989 United Utilities Group PLC - FTSE 100 company, listed on the London Stock Exchange 681.9 million shares - Market capitalisation c£6.87 billion as at 1 June 2021 (1008p share price) Ireland Stornoway Thurso Newquay Truro St Ives Inverness Scotland Dundee Perth Dunfermline Edinburgh Livingston Glasgow Paisley East Kilbride Hamilton Ayr Kirkwall Aberdeen North Carlisle East North West England England Newcastle upon Tyne Sunderland Durham Darlington Yorkshire and the Humber York Blackpool Preston Leeds Bradford Kingston upon Hull Liverpool Birkenhead Manchester Doncaster Sheffield Chester Wrexham Stoke-on-Trent Derby East Midlands Nottingham Wolverhampton Leicester Wales Birmingham Coventry West Midlands ●Peterborough Llanell Swansea Gloucester Luton Oxford Cordiff Newport Bristol Bath Greater Swindon London East of England Cambridge Norwich Ipswich Colchester Reading London Southend-on-Sea South East England Portsmouth Brighton and Hove Canterbury South West England ●Southampton Exeter Bournemouth ●Torquay Plymouth United Utilities • Credit Investor presentation . 4#5Our Board Breadth and depth of experience Sir David Higgins, Chairman Nomination Committee Sir David has spent his career overseeing high profile infrastructure projects. Chairman of Gatwick Airport Limited and a member of the Council at the London School of Economics. Former chief executive of Network Rail, The Olympic Delivery Authority, and English Partnerships Steve Mogford, Chief Executive Officer Corporate responsibility committee Former chief executive of SELEX Galileo, chief operating officer at BAE Systems PLC and a member of its PLC board, Steve spent his earlier career with British Aerospace PLC. Ceased to be a non-executive director of G4S plc, following the acceptance of an offer and its subsequent delisting in April 2021. Phil Aspin, Chief Financial Officer Treasury committee Over 25 years' experience at United Utilities. Prior to his appointment as CFO, Phil was group controller having previously been group treasurer. He was appointed as a member of the UK Accounting Standards Endorsement Board in March 2021 and is chair of the pensions committee of the 100 Group. Mark Clare, Senior NED Nomination and remuneration committees Chairman of Grainger plc, non- executive director and chairman designate at Aggreko plc, non-executive director of Premier Marinas Holdings Ltd and Wickes Grup plc. Former chief executive of Barratt Developments plc, and held senior executive roles in Centrica plc and British Gas Stephen Carter CBE, NED Nomination, audit and corporate responsibility committees Group chief executive of Informa plc. Formerly held senior executive roles at Alcatel Lucent Inc. and public sector roles including founding chief executive of Ofcom and stepped down as a non-executive director at the Department for Business Energy and Industrial Strategy in December 2020 Kath Cates, NED Nomination and remuneration committees Non-executive director at RSA Insurance Group plc, TP ICAP Group Plc and Columbia Threadneedle Investments. Former chief operating officer at Standard Chartered plc and a number of roles at UBS, prior to which she qualified as a solicitor Alison Goligher, NED Nomination, remuneration and corporate responsibility committees Non-executive director Meggitt PLC, Technip Energies NV and part-time executive chair Silixa Ltd. Former roles at Royal Dutch Shell, most recently Executive Vice President Upstream International Unconventionals Brian May, NED Nomination, audit, treasury and remuneration committees Former Finance director at Bunzl plc and previously qualified as a chartered accountant with KPMG. Brian has been chair of the audit committee for five years and has considerable knowledge of the company and the utilities sector Paulette Rowe, NED Nomination and audit committees CEO of Integrated and Ecommerce Solutions and member of the Paysafe Group executive. Formerly held directorships at Facebook, Barclaycard Payments Solutions, NBNK Investments plc, Tesco Personal Finance, RBS, and chief executive of European Consumer Finance Doug Webb, NED Nomination and audit committees NED and audit committee chair at Johnson Matthey plc, BMT Group Ltd, and the Manufacturing Technology Centre Ltd. Former CFO roles at Meggitt plc, London Stock Exchange, and QinetiQ Group plc, and NED and audit committee chair at SEGRO plc United Utilities Credit Investor presentation • 5#6Our regulation Well placed as we begin AMP7 We operate in 5-year regulatory cycles called Asset Management Periods (AMPS) We have recently completed the sixth five-year period since privatisation (AMP6-running from April 2015 to March 2020) and entered the seventh (AMP7 - running from April 2020 to March 2025) Our economic regulator, Ofwat, sets the price, service and incentive package we must deliver in each of these five-year periods There are four main areas in which companies can outperform by delivering a superior level of performance and/or doing so at a lower cost: Total expenditure (totex) Financing performance Outcome Delivery Incentives (ODIs) Customer satisfaction (measured using Ofwat's C-Mex assessment in AMP7) We have transformed our performance in recent years and exit AMP6 operating at the upper quartile across a range of metrics We were fast-tracked through the most recent price review (PR19) and given one of the lowest cost challenges in the sector by Ofwat We reinvested £130 million of AMP6 outperformance, targeting key performance areas to give us a flying start to AMP7 United Utilities • Credit Investor presentation 6#7Our vision and strategy Clear vision to be the best UK water and wastewater company Three consistent strategic themes: The best service to customers At the lowest sustainable cost In a responsible manner United Utilities • Credit Investor presentation . 7#8Why invest in United Utilities Regulatory outperformance Sustainable performance improvements and track record of outperformance in AMP5 and AMP6 Systems Thinking approach Use of technology, data and machine intelligence, which provides us with a competitive advantage Strong management team Extensive commercial, operational and regulatory experience across the business Best in class treasury management Low cost of debt locked in, stable A3 credit rating, robust capital structure with target 55%-65% RCV gearing range Low dependency pension schemes Stable IAS19 pension surplus, and low dependency funding position in line with TPR recommendations Clarity on allowed returns to 2025 Wholesale revenue and asset base linked to CPIH inflation through to at least 2025 ESG credentials Strong record of high ESG standards with external recognition of our approach to ESG United Utilities • Credit Investor presentation . 8#9Systems Thinking and innovation United Utilities Water for the North West United Utilities Credit Investor presentation#10Systems Thinking PRESTON WIGAN OT HELSING Pioneering approach and one of our competitive advantages Looks at how each individual element interacts with the other parts of the system in which it operates - expanding the view to consider larger numbers of interactions rather than isolating small elements - using technology, data and machine intelligence Rather than operating each asset or treatment works in isolation, we use real-time data from telemetry installed across our network to analyse the entire system and all its linkages, enabling us to find the best all-round solutions Improves efficiency, optimises costs, and delivers superior service performance and operational resilience Helped us deliver operational improvements and cost savings during AMP6, with further developments planned for AMP7 and beyond as part of our long-term strategy BLACKPOOL BLACKBURN SOUTHPORT United Utilities • Credit Investor presentation . 10#11Systems Thinking is a competitive advantage Approach to Systems Thinking, innovation and digital delivers best performance Systems Thinking Benchmarking suggests sector shifting improvements can be delivered through Systems Thinking 12-30% cost savings 3-20% service improvements 8-50% productivity increases Innovation An established innovation model delivering £445m savings from AMP5 to AMP7 Accessing the innovation ecosystem Academia & leveraged funding Breakthrough innovation Innovation culture Digital Leveraging value through AMP6 investment to deliver benefits in AMP7 Sensors Data & analytics Machine intelligence United Utilities • Credit Investor presentation • 11#12Sector's most embedded innovation culture Use of technology delivering efficiencies and improved service Advanced technology Systems thinking Machine learning & AI Innovation lab Improved service "Out of all the water company business plans we have assessed, United Utilities' plan has the best evidence of an embedded culture of innovation." Ofwat: DD, April 2019 United Utilities • Credit Investor presentation . 12#13Our innovation model We have an established innovation model that is estimated to deliver £445m of total savings through innovation from AMP5 to AMP7 The 4 core components of our innovation model Accessing the innovation ecosystem Lab 1-3 suppliers awarded contracts Lab 2-4 promising ODI related innovations Academia and leveraged funding Academic research to scale-up (e.g. blockage prediction) Breakthrough innovation Catchment, real-time sensing Carbon blocks Innovation culture Innovation as a corporate value The 'Innovation 100' Annual CEO Challenge Apprentice sprints Embedded crowd sourcing capability We are encouraged by the Innovation Fund Ofwat is establishing for AMP7 United Utilities • Credit Investor presentation . 13#14°))) Exploiting Digital Technology Our technology strategy is focused on leveraging value through the investment made in AMP6. This is now enabling us to exploit this technology across AMP7 to deliver performance & cost benefits. Sensors An existing fixed sensor network of 99,018 devices monitoring pressure, flow, level, quality, temperature, power and sound Further enhancement of the fixed sensors network in AMP7 ― broader coverage and new traits and characteristics to measure Plus our new, advanced mobile sensor network Data and analytics Best in class data and analytics platforms 1/2 billion rows of data automatically loaded daily 185,000 analytic requests automatically processed daily Advanced analytics developments underway for leakage and C-MeX performance Machine intelligence Simple Machine Intelligence Robotic Process Automation - embedded approach with 1/3 million human tasks now completed by robots saving 33,000 hours per year Advanced Machine Intelligence Shifting our business from costly response and mitigation to predictive system management with our operational Als: HARVI and ERWAN, soon to be joined by our third Al - EDDS United Utilities • Credit Investor presentation . 14#15Breakthrough innovation to tackle leakage Mobile sensors supplementing other innovations • Three mobile sensors • Reading taken every millisecond • Artificial intelligence pinpoints leaks Confirms leak likelihood and severity • Low cost, real time results Supplements existing activities Sniffer dogs Satellites Customer leak finder app Acoustic leak sensors Leakage AMP7 incentive range -£14m to +£15m United Utilities • Credit Investor presentation • 15#16Environmental, Socia and Governance (ESG) United Utilities Water for the North West • United Utilities Credit Investor presentation#172000 A strong track record of leading on ESG Significant achievements against environment, social and governance Business in the Community 'Company of the year' FTSE4Good MEMBER OF Dow Jones 2009 Business in the Community 'Company of the year' Sustainability Indices In Collaboration with RobecoSAM glassdoor 2020 BEST PLACES pwc TO WORK BPTA winners 2015 Fair Tax 2001 Established director level committee focused on responsible business AMP3 *AMP4 2005 Led sector's approach to catchment management through SCAMP 2006 Set our first carbon reduction target CDP DISCLOSURE INSIGHT ACTION AMP5 2014 Early adopter 2011 of integrated reporting Three strategic themes introduced AMP6 2016 2019 Achieved Priority self-sufficiency Services of pensions launched scheme 2019 23% female apprentices (sector average 5-7%) Planted over 2 million trees Over £600m outperformance reinvested £43m community investment United Utilities • Credit Investor presentation . 17#18Behaving responsibly Delivering for customers and the community 4 year qualitative SIM scores 2015-2019 4.60 • Upper quartile for AMP6, achieving SIM outperformance 4.40 • 25 awards across customer service, 4.20 collections and debt management 2015/16 • 3 accreditations 2016/17 -Industry Ave 2017/18 2018/19 -UU • • Strong C-Mex performance to date AMP7 incentive range of +/-£66m CICM BRITISH CREDIT AWARDS 2020 WINNER Consumer Tam of the Year QUALITY CICM Q ACCREDITED U&T 2019 AWARDS WATER TEAM OF THE YEAR COLLECTIONS UNITED UTILITIES WATER Utility Week AWARDS 2018 ServiceMark Accredited from Aug 18 to Aug 227 The Institute of Customer Service We are GOLD AWARD WINNERS THE COMPLAINT HANDLING AWARDS 19 In Partnership with 40 30 20 10 0 Complaints per 10,000 connected properties 2015/16 2016/17 2017/18 2018/19 2019/20 United Utilities • Credit Investor presentation • 18#19£71m Behaving responsibly Delivering for customers and the community £71 million voluntary funding in AMP7 to provide financial assistance to customers who need it 100,000 Registered for Priority Services £35m Receiving help from the sector's most 120,000 comprehensive range of affordability schemes 1 Including contributions to the UU Trust Fund Industry firsts A contribution of over £35 million to our local communities during AMP61 Payment breaks Hardship Hubs Data share with other industries ং Motivated and engaged workforce BRITAIN'S HEALTHIEST THE WORKPLACE WORKPLACE WELLBEING CHARTER glassdoor 2020 BEST PLACES TO WORK United Utilities • Credit Investor presentation . 19#20Top performer on EPA Leading performance in minimising pollution with zero serious incidents in AMP6 Expecting 4* industry leading status on the Environment Agency's environmental performance assessment for 2020 Sector leading catchment management Led sector's approach to catchment management through SCAMP Catchment Systems Thinking delivers an optimised integrated approach Behaving responsibly Delivering for the environment Tonnes carbon dioxide equivalent 700,000 600,000 500,000 400,000 300,000 200,000 100,000 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 Carbon dioxide Methane Nitrous oxide Reported emissions -50% reduction from 2005/06 baseline 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 (2) Outperforming our 2020 target Carbon footprint significantly reduced since 2005/06 baseline 100% electricity usage from renewable sources from October 2021 Credit Investor presentation United Utilities • • 20#21Behaving responsibly Delivering on governance Strong track record • Quality and transparency of reporting Financial resilience • Prudent financial risk management • A3 credit rating with Moody's • Pension fund already achieved low dependency Fair Tax Mark PwC's Building Public Trust Awards 2018 Winner of Reporting in Financial Services in the FTSE 350 Celebrating openness MEMBER OF Dow Jones Sustainability Indices In Collaboration with RobecoSAM < FTSE4Good Award winning annual report and strong performance on investor indices EURONEXT vigeqiris INDICES UK 20 CDP DISCLOSURE INSIGHT ACTION United Utilities • Credit Investor presentation • 21#22Economic regulation United Utilities Water for the North West United Utilities Credit Investor presentation#23Ofwat's legal duties 1 Primary Ensure companies properly carry out their functions Ensure companies can finance their functions Protect interests of consumers, wherever appropriate by promoting effective competition Secure the long-term resilience of water and sewerage systems¹ 2 Secondary Promoting economy and efficiency Contributing to the achievement of sustainable development Ensure Ofwat gives no undue preference¹ 1 Added as part of the Water Act 2014 United Utilities • Credit Investor presentation . 23#24Exceeded our targets in AMP6 Executed and delivered our purpose E 201 Accelerated investment Systems Thinking & Innovation Relentless focus on customers Motivated and engaged workforce Delivered outperformance Fast track business plan Sharing outperformance To provide great water and more for the North West United Utilities • Credit Investor presentation • 24#25Summary of UUW's AMP7 final determination A balanced settlement overall +1.5% -1.8% 13.8% real reduction in average bills £5.8bn Opportunities represented by ODIS £ totex allowance Delivering for the environment Targeting 20% reduction in pollution 15% reduction in leakage Increasing resilience through Haweswater Aqueduct Resilience Programme (HARP) 110km long I UUG dividend maintained with CPIH growth A purpose led company, recognising the needs of all of our stakeholders United Utilities • Credit Investor presentation • 25#26AMP7 totex allowance increased from draft determination £5.8bn AMP7 totex allowance AMP7 net totex allowances (£m) £5,564m £508m £5,056m Wholesale Draft Determination Retail £5,798m £475m £ £5,323m Final Determination Final determination allowance was £234m higher than draft determination سا 50:50 customer sharing ratio Weighted average PAYG of 59.6% - aligned to the natural rate £57m HARP allowance and £44m for strategic water resource development Exiting AMP6 at the required totex run rate United Utilities • Credit Investor presentation • 26#271,600 Totex run rate on target AMP6 investment delivering efficiencies to be sustained into AMP7 Totex¹ 1,400 1,200 Capex 1,000 Capex Capex € 800 600 400 200 0 Opex Opex Opex & IRE & IRE & IRE 2015/16 2019/20 AMP7 FD average Source: Company PR19 business plan submission, September 2018 and Final Determination 1 2017/18 prices, including £250m AMP6 additional investment but not the further £100m announced in May 2019. United Utilities • Credit Investor presentation . 27#28Already delivering efficiencies AMP6 focus on innovation, market testing and cost challenge delivering efficiencies required for AMP7 Innovation Identified as having the most embedded culture of innovation Systems Thinking delivering efficiencies and better service for customers Innovation Lab a source of global ideas to keep us at the frontier of new ideas Market testing Market Engagement Methodology to procure as efficiently as possible Appointed two capital delivery partners as preferred bidders for over £300m of AMP7 capital programme achieving £40m savings versus the traditional delivery route W Cost challenge Risk and value assessment across all major projects expected to deliver £100m savings in our plan £110m reduction in scope of wastewater environment programme through working proactively with the Environment Agency United Utilities • Credit Investor presentation • 28#29b9inu 2hil Operational transformation United Utilities Water for the North West bajinu 29i1iJiU 2012 United Utilities Credit Investor presentation#30|<<<< ph my 25 20 15 10 5 0 2015/16 Operational transformation: Water Interruptions to water supply 2016/17 • • 39% reduction in supply interruptions over AMP6 Focus on 3Rs: Response Restoration Repair • ICC support • Growing fleet of ASVs 2017/18 2018/19 2019/20 ■UU performance -Industry average performance 69% reduction in significant water quality events (Cat 3 or greater) over AMP6 £180m resilience investment in AMP6 West Cumbria project delivered early providing environmental benefit United Utilities • Credit Investor presentation . 30#31Operational transformation: Wastewater Leading performance on Wastewater Environmental Performance Assessment Performance Rating 2014 2015 2016 2017 2018 2019 Anglian 3 3 3 3 3 2 Northumbrian Water 3 3 2 2 4 2 Severn Trent Water 3 St 4 3 4 3 4 Southern Water 2 3 3 3 2 1 South West Water 2 1 Thames Water 3 22 3 2 2 2 2 United Utilities 3 4 3 4 3 3 3 3 Wessex Water 3 4 4 3 4 Yorkshire Water 3 3 3 2 3 Leading performer on reducing pollution On track for 4* industry leading status for 2020 performance United Utilities • Credit Investor presentation • 31#32Customer Services Strategy We have a clear strategy in place delivering new services and capabilities to position us now and in the future... ...and at the same time we are responding to the unique demographics of our region. Great Service Costs Less Reducing costs Improving Service Innovating for now and the future United Utilities • Credit Investor presentation . 32#33Outcome Delivery Incentives (ODIs) United Utilities Water for the North West United Utilities Credit Investor presentation#34Outcome Delivery Incentives (ODIs) AMP6 performance well in excess of our original most likely outcome Reward (Penalty) in 5 years 2015-20 (£m) Outperformance P90 +£140m £43.9m Private sewers service index Wastewater category 3 pollution incidents Sewer flooding index Thirlmere transfer to West Cumbria Total leakage at or below target 36.9 16.4 (9.3) 21.6 13.1 Reliable water service index (31.9) Most likely outcome (P50) Average minutes supply lost per property 12.5 Water quality service index (14.2) Other 11 wholesale ODIS (1.2) P10 Total wholesale ODIS 43.9 -£470m United Utilities • Credit Investor presentation • 34#35-150 -200 -250 -300 Severn Trent Yorkshire այ -50 -100 United Utilities Anglian 0 100 50 Wessex Northumbrian 150 200 South West & B'mouth South Staffs & Camb Sutton & E Surrey Hafren Dyfrdwy South East Portsmouth Cumulative ODI incentives over AMP6 Dwr Cymru Southern Bristol Affinity Thames United Utilities • ODI reset Lessons learned from AMP6 ODIS have incentivised company behaviour ODIS are not a proxy for operational efficiency Incentives to be reset with greater consistency required Cross sector comparisons require harmonised performance measurement methodologies Credit Investor presentation • 35#36AMP7: Customer commitments: Outcome Delivery Incentives (ODIs) 7 comparative -£252m to +£128m Measuring against the sector with comparative targets 46 commitments across our full end to end service delivering the outcomes that are important to customers with rewards available in all areas 5 Common -£69m to +£31m 27 Bespoke ODI -£214m to +£249m Measuring against the sector with rewards based on company specific targets Unique to us offering outperformance opportunities where we truly deliver what matters to our customers 7 Reputational No financial incentive United Utilities • Credit Investor presentation • 36#37£m impact Robust plans across common AMP7 ODIS £100m flying start investment targeting improved performance in key areas P10 penalties (£55) (£50) (£45) (£40) (£35) (£30) (£25) (£20) (£15) (£10) (£5) £0 Water quality compliance (CRI) Reducing interruptions to water supply Leakage Per capita consumption Mains repairs Unplanned outage Internal flooding Incidents Pollution incidents Sewer collapses Treatment works compliance P90 rewards £5 £10 £15 £20 £25 £30 £35 Projected P10 underperformance payments and P90 outperformance payments for United Utilities' common and comparative performance commitments over 2020-25 excluding C-MeX and D-MeX. Source: Ofwat Final Determination, December 2019 سا Accelerated investment with a flying start Smarter networks, increased visualisation and predictability Systems Thinking & Innovation Central planning and decision making capability Embedded innovative technologies with AMP7 trials already underway Leading Capability in our people and ways of working Integration, optimisation and collaboration across all our asset plans United Utilities • Credit Investor presentation . 37#38Opportunities across bespoke AMP7 ODIS Opportunities to unlock outperformance across bespoke ODI measures P10 penalties P90 rewards £m impact (£45) (£40) (£35) (£30) (£25) (£20) (£15) (£10) (£5) £0 £5 £10 £15 £20 £25 £30 £35. Reducing water quality contacts Number of properties with lead risk reduced Helping customers look after water in their home Vyrnwy Reducing areas of low water pressure Water service resilience Manchester and Pennine resilience Keeping reservoirs resilient Thirlmere transfer into West Cumbria Abstraction incentive mechanism Protecting the environment from the impact of growth and new development Enhancing natural capital value for customers Recycling biosolids Better Air Quality Number of customers lifted out of water poverty Voids Non-household vacancy incentive scheme Gap sites (Wholesale) Gap sites (retail) Sewer blockages External flooding Incidents Raising customer awareness to reduce the risk of flooding Hydraulic internal flood risk resilience Hydraulic external flood risk resilience Projected P10 underperformance payments and P90 outperformance payments for United Utilities' bespoke performance commitments over 2020-25 Source: Ofwat Final Determination, December 2019 OQQ || || || Optimised investment plan for multiple benefit Industry leading technologies backed by industry leading innovation culture Systems Thinking enabling a data driven proactive approach United Utilities • Credit Investor presentation 38 •#39Ambition and innovation across our performance commitments (PCs) We have co-developed with our customers some really innovative PCs that are important to them, they are industry leading and with incentives that provide good opportunities for outperformance First in the industry to commit to tackling the issues of air quality by incentivising a reduction of emissions from our energy generation activities through an ODI. £4.3m reward £2.6m penalty Reducing the number of properties with water quality risk from lead. The most stretching target of any other company, with equally leading outperformance opportunities. £12.7m reward £3.1m penalty Reducing the hydraulic risk of flooding using innovative advanced modelling techniques for risk and investment planning. Exploring more scenarios in minutes than you could do manually in months. £68.0m reward £61.2m penalty Delivering additional natural capital value. First in the industry to unlock opportunities for outperformance by generating value for communities across the North West from ecosystems services. £5.5m reward £2.0m penalty Engaging with customers to change their behaviour. Using an innovative methodology to raise customer awareness to reduce the risk of flooding. £3.0m reward £3.0m penalty New contingency plans increase the resilience in our water service. The first forward looking measure in the industry to incentivise long term resilience. All figures are reflective of Ofwat's view of our P10 and P90 positions in United Utilities Final Determination: December 2019, with the exception of Water Service Resilience which has been adjusted to reflect the variability in this measure £9.3m reward £5.5m penalty United Utilities • Credit Investor presentation • 39#40Customer Services Performance Commitments 12 of United Utilities' performance commitments are focused on customer services, delivering the outcomes that are important to customers with rewards available for outperformance on specific performance commitments. 4 Common Measuring against sector, with rewards based on company specific targets 8 Bespoke Unique to us, offering outperformance opportunities where we fully deliver what matters to customers Reward range £132m 9 Financially incentivised Of the 12 performance commitments, rewards are available across 9 of the performance commitments Penalty range -£163m 3 Reputational No financial incentive United Utilities • Credit Investor presentation . 40#41Transition from SIM to C-MeX and D-MeX Old SIM measure Satisfaction survey of customers who have contacted us 75% New C-Mex measure Customer Contactor Satisfaction Survey of customers who have contacted us (similar to SIM) 50% Customer Experience Survey, survey of any customer across the North West 50% Quantitative element, scoring based on volumes and severity of complaints 25% Reward/penalty range = +/-£66 New D-Mex measure Qualitative Component, developer services customer satisfaction Survey 50% Quantitative component, company performance against a key set of Water UK metrics 50% Reward/penalty range = +£36m - £72m Reward/penalty range = +£13m to -£26m United Utilities • Credit Investor presentation . 41#42Financial summary United Utilities Water for the North West United Utilities Credit Investor presentation#43Best in class treasury management Track record of delivering significant financing outperformance Financing outperformance in AMPs 5 and 6 AMP7 AMP5 AMP6 Confident of delivering further outperformance >£500m >£500m AMP5 AMP6 1 Pre-tax on an actual company basis Quantum subject to outturn inflation Flexibility to reinvest over £600 m across AMPs 5 and 6 Financial resilience to withstand credit crises United Utilities • Credit Investor presentation . 43#44Yield (%) 4.00 3.50 3.00 2.50 2.00 1.50 Benefit of our treasury policies and excellence We typically outperform the index for new debt by 50-100bps iBoxx yields compared with UU funding The iBoxx A/BBB 10 yrs+ non- financials index minus 15bps UU funding Shaded area shows the yield differential between A index minus 15bps and the BBB index minus 15bps (both 10y yrs+ non-financials) and averages 27bps over the period 1.00 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 United Utilities • Credit Investor presentation • 44#45Credit rating summary Aim to at least retain UUW credit ratings to support efficient access to debt capital markets Moody's Fitch S&P UUW¹ rated A3 UU PLC rated Baal A3 threshold: net debt to RCV ratio <65% A3 threshold: adjusted UUW¹ rated² A- UU PLC rated² A- A-threshold: net debt to RCV ratio <67% A-threshold: PMICR³ >1.6x UUW¹ rated BBB+ UU PLC rated BBB (debt rated BBB-) BBB+ threshold: adjusted FFO to debt 9-11% interest cover >1.7x 1 Any notes issued by UUW's financing subsidiary United Utilities Water Finance PLC (UUWF) are expected to be rated in line with UUW's credit rating 2 Rating for senior unsecured debt, issuer default rating is one notch lower 3 Post maintenance interest cover ratio United Utilities • Credit Investor presentation • 45#46Weighted average cost of capital 1 (WACC) AMP6 AMP7 Cost of debt 2.59% Cost of equity 5.65% Cost of debt 1.15%2 Gearing 62.5% Appointee WACC 3.74% Retail margin adjustment 0.14% Wholesale WACC 3.60% 1 Vanilla, real 2017/18 FYA RPI-stripped 2 Cost of debt split: 1.43% embedded debt (assumed to be 80% of total); -0.45% new debt (assumed to be 20% of total) Gearing 60% Cost of equity 3.18% Industry average WACC based on notional company with 60% gearing Debt indexation to apply for new debt assumed to be 20% of total debt Appointee WACC 1.96% Retail margin adjustment 0.04% Wholesale WACC 1.92% CPIH to be adopted for the indexation of future price controls United Utilities • Credit Investor presentation • 46#47Risk reduction - Interest rate hedging policy Aims to minimise regulatory risk • AMP7 cost of debt set through PR19 process • • • We target around half of our debt to be in index-linked form, and we keep index-linked debt un-swapped as a good match for the RCV, which is 50% RPI-linked and 50% CPIH-linked as at 1 April 2020 with post-2020 new additions linked to CPIH We fix underlying rates on the remaining nominal floating rate debt on a 10-year reducing balance basis This helps to manage uncertainty regarding Ofwat's approach to setting the cost of debt at future price reviews 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 10-year rolling interest rate profile Lock in rolling 10-year average interest rate on nominal debt Illustrative net debt fix/float/IL mix - prior to AMP6 additional hedging 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Floating Index linked ■Fixed United Utilities • Credit Investor presentation . 47#485,000 4,500 4,000 £79m 3,500 surplus £275m £126m surplus 3,000 surplus 2,500 2,000 1,500 1,000 500 Mar-15 Sep-15 Mar-16 Pensions United Utilities' pensions are fully funded on a low dependency basis IFRS pensions surplus £699m £654m £215m £344m surplus £248m £220m £484m surplus surplus surplus £754m surplus surplus surplus £326m £689m surplus surplus surplus IAS19 surplus, no funding deficit Sep-16 Mar-17 Sep-17 Mar-18 Assets Liabilities Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Low risk assets, hedged for inflation and interest rate risk No deficit on a self-sufficiency basis Future contributions are ongoing service costs only United Utilities • Credit Investor presentation • 48#49Defined Benefit Funding Consultation - Long term objective (LTO) Low dependency by time scheme is significantly mature Fast Track G+25/50, duration 12-14yrs 3 March 2020 Fast Track compared with Bespoke valuations Covenant Stronger covenants can take more risk but trustees required reduce reliance over time Fast track limited to 3 to 5 years Investment strategy Consideration of investment risk including liquidity and hedging Journey plan Linkage from LTO to TPS Stepping stones Recovery plans and dividends As short as affordability allows Equitability of deficit recovery contributions opposite dividends & management bonuses Stressed schemes Very long recovery periods or unsupported investment risk will not qualify for Fast Track Technical provision (TP) Basis of funding Maturity and covenant linked matrix of acceptability for Fast Track Contingent assets Not allowed for Fast Track Open schemes Benefits accruing should be secure The Pensions Regulator Mangach https://www.thepensionsregulator.gov.uk/en/document-library/consultations/defined-benefit-funding-code-of-practice-consultation United Utilities • Credit Investor presentation . 49#50IFRS deficit Extra funding deficit The pensions iceberg The ESG journey to remove the "pensions iceberg" at UU Discount rate of 2.05% = Gilts +75bps Position today IFRS £754m IFRS £689m Mar-10 Funding £nil IFRS £(271)m Mar-20 Mar-21 Discount rate of 1.65% = Gilts +35bps Pension scheme fully funded on a low dependency basis with no further pension deficit contributions due Strong position consistent with the Pensions Regulator's fast track classification United Utilities • Credit Investor presentation • 50#51Regulated revenue Impact of inflation Short-term timing differences - for 2020/21 year end Dividends Regulatory capital value (RCV) Index-linked debt4 Price limits are based on the movement in CPIH³ inflation between November 2018 and November 2019 (i.e. 1.5%) Dividends are linked to the same inflation as regulated revenue in order to mirror the inflationary uplift in price limits Opening RCV is inflated by the movement in inflation between March 2020 and March 2021, 50% linked to RPI1 inflation and 50% linked to CPIH³ inflation Plus RCV additions (from totex) during the year, gives 31 March 2021 RCV (which is used for year-end gearing calculation) RPI 3 month lag: Adjustment to principal is based on the movement in RPI¹ inflation between January 2020 and January 2021 RPI 8 month lag: Adjustment to principal is based on the movement in RPI¹ inflation between July 2019 and July 2020 CPI 3 month lag: Adjustment to principal is based on the movement in CP12 inflation between January 2020 and January 2021 1 Retail Prices Index (RPI) 2 Consumer Price Index (CPI) 3 Consumer Price Index adjusted for Housing (CPIH) 4 Indexation of principal is calculated based on monthly movements in RPI / CPI United Utilities • Credit Investor presentation • 51#52United Utilities #Thankyou NHS COVID-19 Great service in challenging times United Utilities #Thankyou Keyworkers • • • Around 60% of workforce working from home Increasing the number of customers eligible for social tariff support £3.5m available immediately for those most in need Accelerating payments to suppliers Limited exposure to business retail • failure United Utilities • Credit Investor presentation . 52#53COVID-19 impacts on 2019/20 year end Great service in challenging times Description Revenue Income statement line Impact on profit Adjusted item Revenue ↓ £5m Operating costs ↓£1m ↓ £17m Bad debts ↓ £1m Incremental operating costs Incremental C-19 HH bad debt (ECL) Incremental C-19 NHH bad debt (ECL) Share of Water Plus losses Loss on loans to Water Plus (ECL) Bad debts Share of losses of JVs Financing expense £32m ↓ £5m United Utilities • Credit Investor presentation . 53#54United Uulities Sustainable Finance Framework United -Utilities Water for the North West United Utilities United Utilities 4 TRWIN RECORD PLAR/SOUN RE United Utilities Credit Investor presentation#55Sustainable Finance Framework: Strategy and Rationale United Utilities' business model has an important role to play in the transition towards a more sustainable, resilient, and lower-carbon economy, both through the current investment portfolio and future investments The technologies and assets United Utilities is investing in, should enable us to make a meaningful contribution to the UN SDGs and the objectives of the Paris Agreement on Climate Change UN SDGs Alignment of 6 CLEAM WATER AFFORDABLE AND AND SANITATION CLEAN ENERGY 11 SUSTAINABLE CITIES AND COMMUNITIES 14 LIFE 15 LIFE BELOW WATER ON LAND the Sustainable Finance Framework 2 • By establishing this Sustainable Finance Framework, United Utilities believes it will provide the opportunity for investors to more directly link the benefits of the funding which they provide to the United Utilities' sustainability objectives Byrday BALTI UU's sustainable finance framework and SPO is available: https://www.united utilities.com/corporate/investors/credit-investors/sustainable-finance/ United Utilities Credit Investor presentation • 55#56Introduction to the Sustainable Finance Framework • • The United Utilities Sustainable Finance Framework is aligned with the four core components of the ICMA Green Bond Principles (GBP), Social Bond Principles (SBP) and Sustainability Bond Guidelines (SBG) as well as LMA Green Loan Principles (GLP) Under this Framework, United Utilities may issue a number of financing instruments, including, but not limited to, bonds, private placements, loans or other forms of debt instrument ⚫ 7 Green Eligible Categories Use of Proceeds • 1 Social Eligible Category • Managed on a portfolio basis Management of Proceeds • 3-year look-back period prior to issuance • United Utilities Sustainable Finance Project Evaluation & Selection Committee will review the evaluation and selection of projects Reporting • Allocation and Impact reporting will be available within one year of issuance and until full allocation United Utilities has obtained a Second Party Opinion from Sustainalytics which confirmed alignment to the ICMA GBP/ SBP/ SBG and LMA GLP SUSTAINALYTICS SECOND- PARTY OPINION United Utilities • Credit Investor presentation • 56#57Green and Social Bonds Principles Category Sustainable Water and Wastewater Management Renewable Energy Energy Efficiency Example Green Projects Use of Proceeds Sewer flooding improvement programme Installation of customer water meters Renewable energy generation from solar power on land or water or renewable energy generation from wind power Renewable energy storage Refurbishment of pumps to improve efficiencies Example Impact Metrics Operational emissions per megalitre of treated water System energy consumption % reduction Avoided emissions from renewable electricity generated, tCO2e EU Taxonomy / NACE Codes / Categories Water collection, treatment and supply (E36.0.0) Production of Electricity from Solar PV Production of Electricity from Wind Power (D35.1.1) Relevant SDGs GLEAN MEN ANDSANITATION WHOLE MO O VINES Pollution Prevention and Control Environmentally Sustainable Management of Living Natural Resources and Land Use Refurbishment of anaerobic digestion facilities Improvements to the Manchester Bioresource Centre Wetland creation (including reedbeds) Moorland restoration - protecting and enhancing upland peat habitats Fish passage solutions MWh of storage capacity added KWh/per cubic meter of water billed Methane leakage reduction Avoided emissions associated with biomethane exported Increase in Natural Capital value . Km of river improved Anaerobic Digestion of Sewage Sludge (E37.0.0) Terrestrial and Aquatic Biodiversity Conservation • Km of river improved Site of Special Scientific Interest (SSSI) protection schemes • Increase in SSSI land classed as improving Clean Transportation Access to Essential Services Nissan E-NV200 Battery Electric investment program Charging infrastructure Priority Services Scheme Hardship Hub Youth Programme tCO2e avoided • Number of beneficiaries in target population Anaerobic Digestion of Sewage Sludge (E37.0.0) SUMABLE LEE INLAND 14 BELOW WATER 11 CLEAN MER ANDSANITATION#58Evaluation and Selection PAC1 The financial approval gateway at the start of the project where the business case is presented in order for funds to be released to commence the 'Identify and Define' phases. The purpose of the funding is to identify / confirm the need and develop the required contract documentation. PAC2 The financial approval gateway at the end of the 'Identify and Define' phase where the business case is presented in order for funds to be released to commence the 'Deliver and Close' phases. The PAC 2 meeting is prior to project contract award and indicates full approval of the investment. PAC3 The financial approval gateway at the end of the project. The purpose is to review items such as the benefits and present any lessons learned during the investment and how these can be applied in the future. • The Programme Approval Committee (PAC) approves the release of allocated funding for each stage of a project 1. 2. 3. Each committee has delegated authority to approve spend based on limits set out in the United Utilities Internal Control Manual Project team delivering the project provides the first level of project assurance. This involves the Project and Programme Manager ensuring that the delivery team are following the correct processes and procedures Programme Management Office (PMO) provides the second level of assurance. The PMO provides an independent view and assures the project constantly throughout delivery Corporate Audit provides a third level of assurance on project delivery. External parties or Corporate Audit complete annual reviews on specific areas to ensure that projects are being delivered according to the agreed processes United Utilities • Credit Investor presentation • 58#59Management of Proceeds • The net proceeds arising from the issuance under this Framework will be managed by our Treasury function, and will be wholly allocated to finance, refinance or invest in Eligible Projects · • Our Treasury team will ensure on a best efforts basis that the portfolio of Eligible Projects exceeds, or at least is equal to, the amount of Sustainable Financing Instruments raised under this Framework Pending allocation, proceeds will be invested on a temporary basis in accordance with the relevant internal policies, in cash, cash equivalents or similar instruments United Utilities • Credit Investor presentation . 59#60مهام Allocation and Impact Report will be produced annually Reporting • Within one year of issuance, and annually thereafter until full allocation of the Sustainable Financing instrument net proceeds, we will publish an external report • The External Report will include (i) an Allocation Report; along with (ii) an Impact Report, subject to the availability of suitable information and data. These reports will be made available publicly at www.united utilities.com • Allocation Report will include: 1. The proportion of Total amount of proceeds allocated to Eligible Projects, per category; 2. Proceeds allocated to refinancing of existing Eligible Projects; and 3. Unallocated proceeds United Utilities • Credit Investor presentation • 60#61Credible and impactful framework - second party opinion from Sustainalytics SUSTAINALYTICS SECOND- PARTY OPINION "Sustainalytics is of the opinion that the United Utilities Sustainable Finance Framework is credible and impactful and aligns with the Green Bond Principles 2018, Social Bond Principles 2020, Sustainability Bond Guidelines 2018 and Green Loan Principles 2020" "Sustainalytics considers United Utilities reporting commitments to be in line with market practice and highlights in particular the granularity of the identified impact metrics" "Sustainalytics is of the opinion that United Utilities has implemented adequate measures and is well positioned to manage and mitigate environmental and social risks commonly associated with the eligible categories" "Sustainalytics is confident that United Utilities is well-positioned to issue sustainability bonds and loans and that that United Utilities Sustainable Finance Framework is robust, transparent..." United Utilities • Credit Investor presentation • 61#62Catchment approaches Use of Proceeds - examples Morecambe Wastewater treatment works enhancement Leakage: Acoustic loggers Water for the North West United Waterler t Nor A Green fleet West Cumbria Supplies project Priority Services United Utilities • Credit Investor presentation • 62#63Summary United Utilities Water for the North West United Utilities • Credit Investor presentation#64Key credit highlights Regulatory outperformance: Sustainable performance improvements and track record of outperformance in AMP5 and AMP6 Clarity on allowed returns to 2025: Wholesale revenue and asset base linked to CPIH inflation through to at least 2025 Strong management team: Extensive commercial, operational and regulatory experience across the business Low dependency pension schemes: Stable IAS19 pension surplus and low dependency funding position ESG credentials: Strong record of high ESG performance with external recognition of our approach Best in class treasury management: Low cost of debt locked in, stable A3 credit rating, robust capital structure with target 55%-65% RCV gearing range Systems thinking approach: Use of technology, data and machine intelligence, which provides us with a competitive advantage United Utilities • Credit Investor presentation . 64#65Glossary Term AMP6/ AMP7 APR C-MeX / D-MeX CPI/ CPI-H Description Asset Management Plan periods. The five-year regulatory price control periods since privatisation. AMP6 runs from 01/04/2015 to 31/03/2020. AMP7 runs from 01/04/2020 to 31/03/2025. Annual Performance Report. Separate from the statutory financial statements, this provides detailed regulatory performance information. C-MeX: measure of customer satisfaction for AMP7. Similar to qualitative SIM assessment in AMP6. D-MeX: measure of developer satisfaction for AMP7. Consumer Price Index / Consumer Price Index including Housing. CPI-H is the UK Government's preferred measure of inflation, and will be used by Ofwat to calculate inflation of revenue and RCV in AMP7. CPI is the closest proxy for which debt and derivatives are available in the financial markets. Term Description PAYG ratio PR14/ PR 19 RCV RCV run-off DWI Drinking Water Inspectorate. Independent quality regulator that assesses our comparative performance in the water side of our business. RPI EA Environment Agency. Independent environmental regulator that assesses our comparative performance in the wastewater side of our business. SIM FD Final Determination. The regulatory settlement Ofwat gives each company to deliver for the 5-year regulatory price control period. IAP ODIS Ofwat Initial Assessment of Plans. Ofwat graded water companies' business plan submissions for AMP7 across 9 key test areas and categorised the plans, leading to different timelines and base returns for higher/lower rated plans. Outcome Delivery Incentives. The rewards and penalties associated with operational performance against regulatory targets agreed for the period. Independent economic regulator for the water sector in England and Wales. TCQi Totex Pay-as-you-go ratio. The allocation of expenditure between that recovered through revenues in the current regulatory period and that added to the RCV to be recovered in future periods (see RCV run-off), helping to ensure intergenerational equity by sharing the cost of long-term investments. Price Review years. PR14: the price review process for AMP6, concluded in 2014. PR19: the price review process for AMP7, will be concluded in 2019. Regulatory Capital Value. This represents the value of accumulated investment in the company's asset base, and is used as a building block upon which companies earn a return in each 5-year regulatory price control period. The rate at which expenditure previously added to the RCV (see PAYG ratio) is recovered through revenues in a regulatory period. Retail Price Index. Until recently (see CPI-H) this was the UK Government's preferred measure of inflation, and RPI is being used by Ofwat to calculate inflation of revenue and RCV in AMP6. Service Incentive Mechanism. This is the metric used to measure customer satisfaction during AMP6, with separate assessments of quantitative SIM and qualitative SIM giving an overall combined SIM score for the period that can be used to compare performance versus peers within the water sector. Time Cost and Quality index. This is the internal measure we use to assess our capital projects, giving equal weighting to cost efficiency, quality, and on- time delivery. Total expenditure. This comprises operating costs, infrastructure renewals expenditure (IRE) and capital expenditure. Any variation from companies' allowed level of totex for the period represents out- or under-performance. United Utilities • Credit Investor presentation • 65#66Full year results Year ended 31 March 2021 United Utilities Group PLC United Utilities Water for the North West United Utilities 2020/21 full year results#67Unite Highlights A digital utility - delivering excellent performance ESG is at our heart United Utilities Water for the North West YD17 NMK Investing incremental £300m for sustainable performance - fully remunerated Robust financial performance backed by a strong balance sheet Targeting around £150m of AMP7 customer ODI rewards Leak Engineer United Utilities • Credit Investor presentation • 67#68Digital transformation delivering excellent performance 53% reduction in water supply interruptions Lowest ever level of leakage Zero serious pollution incidents for two consecutive years; best in sector performance 31% reduction in environmental pollution incidents 13% improvement in water compliance risk index (CRI) 93% improvement in water event risk index (ERI) 100% wastewater treatment works compliance; best in sector performance 4 star ("industry leading company") Environment Agency performance rating forecasted for 2020 Denotes measures that are included or have elements that directly contribute to one or more common ODIs in AMP7 United Utilities • Credit Investor presentation • 68#69Excellent customer service delivery Supporting the most vulnerable 200,000 helped with affordability 133,000 on Priority Services register Digital transformation Open Banking - innovating to help customers better 1 million engaging with us through digital channels In-house development of Apps Significant AMP7 customer ODIS Upper quartile for customer service measures On track for rewards for both C-MeX and D-Mex £24m future ODI benefit already secured United Utilities • Credit Investor presentation • 69#70700 £300m additional totex investment in sustainable performance Net regulatory capex (£m) 600 500 400 300 200 100 2020/21 2021/22 Base capex 2022/23 Additional capex 2023/24 2024/25 FD capex profile 1. The light blue blocks on the chart amount to c£220m representing the capex elements of the £300m additional totex across the AMP with the remaining c£80m relating to opex and IRE. 2. £300m additional totex remunerated through c£90m uplift to PR19 allowance, c£105m increasing RCV or AMP8 revenues through totex sharing mechanism and balance from expected customer ODI rewards. In addition, further potential tax benefits are expected from enhanced capital allowances. 3. AMP7 net regulatory capex excludes IRE 4. The AMP7 net regulatory capex profile shown on the chart does not constitute a forecast and is subject to change United Utilities • Credit Investor presentation • 70#71£300m additional totex investment £300m additional totex investment over AMP7 driving long-term sustainable performance for the benefit of all stakeholders £50m driving ODI performance; totex sharing mechanism results in PR24 adjustment to WACC with remaining more than recovered through expected ODI improvements with further benefit of tax super deductions £100m Dynamic Network Management; totex sharing mechanism results in PR24 adjustment to WACC with remaining more than recovered through expected ODI improvements with further benefit of tax super deductions 1 c₤195m upward adjustment to RCV or AMP8 revenues £60m re-lining of Vyrnwy aqueduct; totex sharing mechanism results in PR24 adjustment to WACC with remaining 50% funded through AMP7 ODI 3 Funded £90m Bolton environmental scheme; adjustment to PR19 allowance so no "overspend" recorded, recovered as a PR24 adjustment to RCV including allowance for WACC through balance sheet capacity leaving headroom into AMP8 2 Expect significant ODI (AMP7 & AMP8) and tax benefits United Utilities • Credit Investor presentation . 71#72c£900m contribution to a green recovery 1 £500m 2 Accelerating existing AMP7 investment programme - bringing £500m forward into years 1-3 £150m Accelerating digital strategy to 3 4 improve performance for £150m customers and the £63m environment and deliver improved ODI rewards Confirming provisional schemes in the FD - Bolton £90m and Vyrnwy £60m Ofwat's Green Recovery proposals; predominantly relating to Bury scheme that would otherwise have been AMP8 transitional investment in AMP7 United Utilities • Credit Investor presentation • 72#73Ground breaking applications of Systems Thinking Event in Progress 1 State of the art sensors Near real-time -Healey Broadley 2 performance information Investing for sustainable performance Tottin Holco Hazelh Stubbing Dynamic Shawfield Network Shawclough Spotland Bridge Newbo Rochdale Deeplish Morland Bridge Lower Pla Management Ainsworth Black Lane Radcliffe Bank Top (DNM) Wood Side Trub A664 Cou wood Gate Whitefield Balderst 3 Predictive machine intelligence Proactive optimisation Tar 4 of system performance Middleto Rhodes Boothroyd 5 Improved customer ODI performance and efficiency Recovered through regulatory mechanisms £100m incremental totex¹ 1 £100m out of the total of £300m additional totex for AMP7 United Utilities • Credit Investor presentation • 73#74Delivering net customer ODI rewards Key ODIs contributing to 2020/21 performance 2020/21 forecast performance range (P10/P90) -20 -15 -10 Penalties Rewards -5 0 5 10 15 20 20 Met or exceeded over 80% of our performance commitments Reducing interruptions to water supply Mains repair Sewer blockages Internal flooding Incidents Hydraulic internal flood risk resilience Hydraulic external flood risk resilience Pollution incidents Voids No. of customers lifted out of water poverty C-MeX & D-Mex denotes 2020/21 performance against the range of possible outcomes Note: 2020/21 performance excludes the impact of per capita consumption (PCC) measure for which Ofwat has proposed to assess company performance at the end of the AMP £21m net reward for 2020/21 Targeting around £150m net reward for AMP7 United Utilities • Credit Investor presentation . 74#75Commitment to net zero by 2030 73% reduction in emissions - ahead of 2020 target; AMP7 plans build on enhanced resilience delivered in AMP6 Commitment to meet our science- 1 based targets (scope 1&2) 2 100% renewable electricity by 2021 3 100% Green Fleet by 2028 <+ 4 1,000 hectares of peat restoration by 2030 5 6 Planting 1 million trees to create 550 hectares of woodland by 2030 Commitment to set science-based scope 3 emissions target by 2021 Net zero by 2030 consistent with science-based targets of 42% reduction by 2030 and 100% by 2050 100% renewable electricity from renewable sources from October 2021 27 electric vehicles deployed at operational sites; trial of 44ton biogas HGV 5 sites proposed for green recovery catchment peatland restoration Established 2 tree nurseries and identified 100s of sites for new and 'replanted' woodlands Set ambitious scope 3 emissions targets submitted for endorsement by the Science Based Targets initiative (SBTi) United Utilities • Credit Investor presentation . 75#76Tallinn JV Recycling capital Renewable Energy Sold for cash consideration of €100m _ Profit on disposal of £37m Proceeds reduce net debt by £85m and gearing by c0.7% Maximised opportunities to date to achieve carbon targets Continued support of decarbonisation with power agreements through to 2045 Looking to recycle investment. to help deliver plans to achieve net zero United Utilities • Credit Investor presentation • 76#7789% employee engagement - better than UK high performance Embracing diversity and inclusion Growing 92% employees would recommend UU to friends as a great place to work membership of employee diversity networks 4.5/5 rating from former Hosted the sector's first and current employees on Glassdoor Social Mobility Summit Let's make a difference #UUtogether 2021 Bloomberg Gender Equality Index FT FINANCIAL TIMES LEADER IN DIVERSITY statista 2020 ← #10000 BLACK INTERNS Social Mobility PLEDGE See more about our plans here: https://www.youtube.com/watch?v=aUlxCKZEaE4 United Utilities • Credit Investor presentation . 77#78Household Revenue £1,808m bad debt 2.2% Financial highlights Underlying operating profit¹,2 £602m Underlying EPS1,2 56.2p of revenue 2019/20: £1,859m 2019/20: 1.8% 2019/20: £732m 2019/20: 71.3p Raising finance efficiently Strong balance sheet Leveraging strong ESG credentials 1 Underlying profit measures are reconciled to reported profit measures in the appendix 62% RCV gearing and fully funded pension 2 Underlying EPS reflects change in approach to APMS with prior year numbers re-presented for comparative purposes Return on regulated equity 4.3% real (CPIH/RPI blended basis) Dividend per share 43.24p 2019/20: 42.60p United Utilities • Credit Investor presentation • 78#79Revenue £m 1,859 13 (80) Revenue Includes strong performance in identifying void properties Consumption up due to Covid and dry weather 5.5% real reduction in typical HH bills, 1.5% CPIH increase (47) 9 6 47 1,808 Consumption down due to Covid 2019/20 revenue 2019/20 Regulatory WRFIM NHH HH Innovation revenue consumption consumption Fund changes Other 2020/21 revenue Lower consumption from businesses as a result of Covid broadly offset by higher consumption from households United Utilities • Credit Investor presentation • 79#80Strong cash performance Household statutory bad debt charge (% of household revenue) 4.00% 3.7% 3.50% 3.0% 3.00% 2.50% 3.1% reported bad debt charge included £17m exceptional charge as a result of Covid b3.1% 2.5% 2.3% 2.00% 2.2% 2.1% 1.8% 1.50% 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 1 2 Marginal increase in underlying bad debt charge of just £5m as a result of Covid Data led approach Low balance sheet risk 3 Extended social tariff provides additional £15m of support to customers 4 82% on direct debit or payment plan Use of credit reference agencies United Utilities • Credit Investor presentation • 80#81Underlying operating profit Underlying¹ operating profit £m 732 2019/20 UOP (51) Revenue (22) Network optimisation IRE £8m rates refund in 2019/20 (22) (14) (6) Depreciation (15) 602 Including £13m of COVID related costs Property rates Innovation Fund Other 2020/21 UOP 1 Underlying measures reflect the adoption of new definitions for alternative performance measures (APMs) with prior year numbers re-presented for comparative purposes. A reconciliation is provided in the appendix to show the impact of the new APMs. United Utilities • Credit Investor presentation • 81#82Interest, joint ventures, tax and earnings Underlying net finance expense¹ £132.8m Joint Ventures Underlying tax charge¹ £9.3m 17% £58m lower than 2019/20 Change to alternative performance measures (APMs) Lower inflation on index-linked debt Share of underlying losses 2019/20 £6.1m share of underlying losses Disposal of Tallinn JV At £77m Total tax charge (incl. deferred tax) in line with headline rate of 19% 1 Underlying measures reflect the adoption of new definitions for alternative performance measures (APMS) with prior year numbers re-presented for comparative purposes. A reconciliation is provided in the appendix to show the impact of the new APMs. Underlying profit after tax¹ £383.0m 2019/20: £486.3m Underlying EPS of 56.2p United Utilities • Credit Investor presentation • 82#83£million 8,000 Financing performance 1 Existing debt locked in at rates favourable to the AMP7 allowed cost of embedded debt RPI-linked CPI-linked Fixed ■Floating 2 £900m £2.4bn financing to raise in AMP7 raised in 2020/21 at 3 attractive rates 7,000 6,000 5,000 2.5% 2.4% 2.2% 2.3% 2.4% 4 4,000 (0.2)% (0.6)% (0.6)% (0.6)% (0.6)% 3,000 2,000 1.3% 1.3% 1.3% 1.4% 1.4% 1,000 -1,000 2020/21 2021/22 2022/23 2023/24 The rates shown are real rates for the index-linked debt and nominal rates for the fixed rate debt. Floating rate debt will be progressively fixed in line with 10 year reducing balance hedging policy. 2024/25 2.5% effective interest rate for 2020/21 Liquidity extended out to August 2023 LO 5 Inaugural £300m sustainable bond issued United Utilities • Credit Investor presentation • 83#84Sustainable financing based on strong ESG credentials £300m notional amount More than 3x over- subscribed 2 days' Long-8yr term, maturing October 2029 0.875% coupon, lowest ever 8yr+ GBP corporate coupon Sustainable Finance Framework launched in November 2020 replacing green EIB funding no longer available Issued debut sustainable bond in January 2021 engagement with c50 institutional investors Swapped to CPI at our lowest ever rate (-1.778%) UKT+68bps, zero new issue premium Notable first time investors in the credit, 31% allocation overseas United Utilities • Credit Investor presentation • 84#85Yield % Raising finance efficiently - outperforming the index by 50-100bps UK Water sector GBP bonds (excl. fees) vs iBoxx yield less 15bps (1 April 2020 to 31 March 2021) £65m CPI linked 3.10 amortising 20yr bond £450m 17yr bond £40m 30yr bond 2.60 £375m 8yr bond £300m 20yr bond 2.10 £350m 20yr bond 1.60 UU £300m 22yr bond £50m 15yr bond UU GBP30m 19.8yr CPI linked bond £100m 35yr CPIH linked bond 1.10 UU £75m 10.7yr bond tap swapped to CPI £300m 15yr bond UU £95m CPI linked 20yr bond 0.60 UU £50m 13.1yr bond tap swapped to CPIH GBP84.7m 3yr bond £300m 6yr bond UU GBP300m 8.75yr sustainable bond swapped to CPI 0.10 Apr 20 May 20 Jun 20 Jul 20 Aug 20 Sep 20 Oct 20 Nov 20 Dec 20 Jan 21 Feb 21 Mar 21 UU debt issuance Other WASC debt issuance United Utilities • Credit Investor presentation • 85#86Strong balance sheet - low household debtor risk Household customer receivables position on the balance sheet £115m £17m one-off extra COVID provision £101m £93m £93m 2021 household debtors £m Trade debtors <1 year 65.6 £78m £78m Trade debtors 1-2 years 12.0 Trade debtors >2 years 0.0 Total 77.6 Reconciliation to UUW statutory accounts provided in the appendices Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 <1 year 1-2 years >2 years United Utilities • Credit Investor presentation • 86#87Mar-20 net debt 7,361 Strong balance sheet - net debt to RCV gearing Net debt £m RCV gearing of 62% supports Stable A3 credit rating with Moody's (1,037) Operating cash flow Proceeds from disposals (85) (8) (6) Fair value movements Dividends from JVs Net capex 53 49 12 129 292 7,398 (92) 7,306 639 Dividends RCV gearing calculated as group net debt / UUW's shadow RCV (outturn) of £11,729m Full detail of the adjustments to derive net debt under the new definition are included in the appendices Had the same adjustments been made at March-20, net debt would have been £135m lower Interest Indexation Tax Other Mar-21 net debt Adjustments Mar-21 net debt new definition United Utilities . Credit Investor presentation • 87#88Strong balance sheet - pension surplus is a key differentiator 1 £689m IFRS pension surplus at March-21 - fully funded on a low dependency basis 2 Focus on RORE as a measure of relative value – pensions not captured by RORE 3 We are not making deficit repair contributions and not eroding cash value 4 5 Deficit repair contributions of the other WACSs in 2019/20 equated to 0.8% of RORE Our strong pensions position is a relative value advantage that will persist United Utilities • Credit Investor presentation • 88#89Return on regulated equity (RORE) for 2020/21 Reported RoRE of 4.3%; underlying¹ RoRE of 4.8% Reported 2020/21 RORE is 4.3% 1.2% financing performance; 2.5% effective interest rate 0.3% customer ODI performance representing net £21m reward 3.9% base return including 0.11% fast track reward -0.3%% totex performance representing £33m additional investment fully remunerated for -0.3%% retail performance representing £13m additional Covid costs -0.5%% tax performance representing reversal of planned reduction in rate (recovered through tax sharing mechanism) and tax impact of financing outperformance RORE is presented on a real, blended CPIH/RPI basis 1 Underlying RORE adjusts for the tax impact that will be recovered through the tax sharing mechanism and the additional totex that drives better outcomes against future customer ODIS United Utilities . Credit Investor presentation • 89#90Revenue Underlying operating costs Underlying finance expense Capex 2021/22 full year outlook £625-675m • 0.6% CPIH offset by -2.0% k factor Higher IRE reflecting additional investment in DNM Inflationary increases net of efficiencies to core costs Higher inflation impacting index-linked debt Acceleration of AMP7 capex profile Includes c£50m of incremental capex ODIS c£20m reward Consistent with targeting net AMP7 reward of c£150m United Utilities • Credit Investor presentation • 90#91Financial summary Robust financial performance Resilient cash collection and bad debt position Locked in debt at low rates compared with price review assumptions Raising new debt efficiently and leveraging strong ESG credentials Strong balance sheet with leading pensions position and low household debtor risk North Wes United Utilities • Credit Investor presentation • 91#92Summary Customers and the environment benefitting from best ever operational performance Supporting customers; upper quartile customer satisfaction Industry leading environmental performance £21m customer ODI rewards in 2020/21; targeting £20m in 2021/22 and £150m for AMP7 Highest levels of employee engagement United Utilities • Credit Investor presentation • 92#93Supporting information 1. Underlying income statement 2. Underlying operating costs 3. Profit before tax reconciliation 4. Profit after tax reconciliation 5. Finance expense Finance expense: index-linked debt 6. 7. Derivative analysis 8. Statement of financial position 9. Reconciliation of net debt 10. Household debtors reconciliation 11. Strong balance sheet - pensions 12. Financing and liquidity 13. Debt structure 14. Term debt maturity profile 15. AMP7 maturity profile 16. EIB funding maturity profile United Utilities • Credit Investor presentation • 93#94Year ended 31 March £m Revenue Operating expenses Underlying income statement Infrastructure renewals expenditure EBITDA Depreciation and amortisation Operating profit Net finance expense Share of profits/(losses) of joint ventures Profit before tax Tax Profit after tax 2021 2020 Change (%) 1,808.0 1,859.3 -3% (618.8) (584.0) (164.8) (143.0) 1,024.4 1,132.3 -10% (422.3) (400.2) 602.1 732.1 -18% (132.8) (191.2) (9.3) (6.1) 460.0 534.8 -14% (77.0) (48.5) 383.0 486.3 -21% Earnings per share (pence) 56.2 71.3 -21% Interim dividend per ordinary share (pence) 43.24 42.60 +1.5% Underlying measures reflect the adoption of new definitions for alternative performance measures (APMS) with prior year numbers re-presented for comparative purposes. United Utilities • Credit Investor presentation . 94#95Year ended 31 March £m Revenue Employee costs Hired and contracted services Property rates Power Materials Bad debts Regulatory fees Other expenses Infrastructure renewals expenditure (IRE) Depreciation and amortisation Total underlying operating expenses Underlying operating profit Underlying operating costs Underlying measures reflect the adoption of new definitions for alternative performance measures (APMS) with prior year numbers re-presented for comparative purposes. 2021 2020 Change (%) 1,808.0 1,859.3 -3% (161.8) (161.4) 0% (96.3) (96.5) 0% (89.4) (75.9) +18% (83.6) (78.9) +6% (82.2) (73.9) +11% (28.7) (23.7) +21% (28.0) (28.3) -1% (48.8) (45.4) +7% (618.8) (584.0) +6% (164.8) (143.0) +15% (422.3) (400.2) +6% (1,205.9) (1,127.2) +7% 602.1 732.1 -18% United Utilities • Credit Investor presentation • 95#96Profit before tax reconciliation Year ended 31 March £m Operating profit Investment income and finance expense Share of profits/(losses) of joint ventures Profit on disposal of joint ventures Reported profit before tax Re-presented As reported 2021 2020 2020 602.1 630.3 630.3 (78.5) (289.0) (289.0) (9.3) (38.1) (38.1) 36.7 551.0 303.2 303.2 Adjustments: Bioresources asset write down 82.6 82.6 COVID-19 56.2 56.2 Restructuring costs 11.8 Fair value (gains)/losses on debt and derivative instruments, excluding interest on derivatives and debt under fair value option (54.3) 92.8 Net fair value losses on debt and derivative instruments 76.3 Interest on swaps and debt under fair value option 16.5 Net pension interest income Capitalised borrowing costs Profit on disposal of Tallinn joint venture Underlying profit before tax Underlying measures reflect the adoption of new definitions for alternative performance measures (APMs) with prior year numbers re-presented for comparative purposes and also showing prior year as reported. (14.0) (40.6) (36.7) 460.0 534.8 492.0 United Utilities • Credit Investor presentation • 96#97Year ended 31 March £m Reported profit after tax Adjustments: Profit after tax reconciliation Re-presented As reported 2021 2020 2020 453.4 106.8 106.8 Bioresources asset write down COVID-19 Restructuring costs Fair value (gains)/losses on debt and derivative instruments, excluding interest on derivatives and debt under fair value option Net fair value losses on debt and derivative instruments Interest on swaps and debt under fair value option Net pension interest income Capitalised borrowing costs Profit on disposal of Tallinn joint venture Deferred tax adjustment Agreement of prior years' tax matters Tax in respect of adjustments to underlying profit before tax Underlying profit after tax Basic earnings per share (pence) Underlying earnings per share (pence) 82.6 82.6 56.2 56.2 11.8 (54.3) 92.8 76.3 16.5 (14.0) (40.6) (36.7) 18.4 157.5 157.5 (12.2) 2.2 (9.6) (11.3) 383.0 486.3 429.6 66.5 15.7 15.7 56.2 71.3 63.0 Underlying measures reflect the adoption of new definitions for alternative performance measures (APMs) with prior year numbers re-presented for comparative purposes and also showing prior year as reported. United Utilities • Credit Investor presentation . 97#98Finance expense Year ended 31 March £m Investment income Finance expense Less net fair value losses on debt and derivative instruments 2021 2020 25.0 24.0 (103.5) (313.0) (78.5) (289.0) (74.5) 76.3 Adjustments for interest on swaps and debt under fair value option 20.2 16.5 Adjustment for the allowance of expected credit losses on loans to joint ventures 5.0 Underlying net finance expense (132.8) (191.2) Adjustment for net pension interest income (17.5) (14.0) Adjustment for capitalised borrowing costs (30.4) (40.6) Effective net finance expense (180.7) (245.8) Average notional net debt Average effective interest rate Effective interest rate on index-linked debt Effective interest rate on other debt 7,315 7,136 2.5% 3.4% 2.4% 3.8% 2.5% 3.0% United Utilities • Credit Investor presentation • 98#99Finance expense: index-linked debt Year ended £m Interest on index-linked debt 2021 2020 (44.2) (50.4) RPI adjustment to index-linked debt principal - 3 month lag¹ CPI adjustment to index-linked debt principal - 3 month lag² (35.9) (72.7) (5.1) (6.1) RPI adjustment to index-linked debt principal - 8 month lag³ Finance expense on index-linked debt4 (12.9) (21.4) (98.1) (150.6) Interest on other debt (including fair value option debt and derivatives) Effective net finance expense (82.6) (95.2) (180.7) (245.8) 1 Affected by movement in RPI between January 2020 and January 2021 2 Affected by movement in CPI between January 2020 and January 2021 3 Affected by movement in RPI between July 2019 and July 2020 4 Adjusted to overlay the impact of inflation swaps United Utilities • Credit Investor presentation • 99#100At 31 March £m Derivative analysis 2021 2020 Derivatives hedging debt 402.7 596.4 Derivatives hedging interest rates (99.2) (120.6) Derivatives hedging commodity prices 6.5 (2.2) Total derivative assets and liabilities 310.0 473.6 • Derivatives hedging debt; hedge our non index-linked debt into sterling, floating interest rate debt. Typically these are designated in fair value hedge accounting relationships. Derivatives hedging interest rates; the majority fix our sterling interest rate exposure on a 10 year rolling average basis. For the AMP6 regulatory period, this was supplemented by fixing substantially all remaining floating exposure across the future regulatory period around the time of the price control determination. A portion of these derivatives instead fix future real interest rates through inflation-linked swaps. • Derivatives hedging commodity prices; fix a proportion of our future electricity prices in line with our policy. Derivatives hedging specific debt instruments are included within net debt to eliminate, to a certain extent, the fair value recognised in borrowings and thereby present a more representative net debt figure. • Further details of our group hedging strategy can be found in the Group financial statements. United Utilities • Credit Investor presentation • 100#101At £m Property, plant and equipment Retirement benefit surplus Other non-current assets Cash Other current assets Total derivative assets Total assets Gross borrowings Other non-current liabilities Other current liabilities Total derivative liabilities Total liabilities TOTAL NET ASSETS Share capital Share premium Retained earnings Other reserves SHAREHOLDERS' EQUITY NET DEBT¹ Statement of financial position 1 Reconciliation of net debt included on the following slide 31 Mar 2021 31 Mar 2020 Change (%) 11,799.0 11,510.9 +3% 689.0 754.1 -9% 267.9 332.9 -20% 744.1 528.1 +41% 254.4 300.2 -15% 424.7 617.9 -31% 14,179.1 14,044.1 +1% (8,451.8) (8,363.1) +1% (2,247.8) (2,223.8) +1% (333.8) (350.8) -5% (114.7) (144.3) -21% (11,148.1) (11,082.0) +1% 3,031.0 499.8 2.9 2,192.0 336.3 2,962.1 +2% 499.8 0% 2.9 0% 2,122.7 +3% 336.7 0% 3,031.0 2,962.1 +2% (7,305.8) (7,226.7) +1% United Utilities • Credit Investor presentation 101 •#102Reconciliation of net debt At £m Cash Total derivative assets Gross borrowings Total derivative liabilities Net debt on previous definition Exclude the fair value impact of: Interest rate derivatives fixing future nominal interest rates Inflation derivatives fixing future real interest rates Electricity derivatives fixing future electricity costs Net debt on new definition 31 Mar 2021 744.1 31 Mar 2020 528.1 424.7 (8,451.8) (114.7) (7,397.7) 617.9 (8,363.1) (144.3) (7,361.4) 84.6 120.6 13.8 11.9 (6.5) 2.2 (7,305.8) (7,226.7) United Utilities • Credit Investor presentation • 102#103As at £m Household debtors reconciliation Household net debtors Household accrued income Non household net debtors Other sundry net debtors Total net debtors (including related parties) Less related party debtors Less total accrued income Net debtors per UUW statutory accounts 31 March 31 March 2021 2020 77.6 77.5 69.4 54.6 28.6 37.9 48.1 31.3 223.7 201.3 (40.4) (52.7) (87.9) (72.1) 95.4 76.5 United Utilities • Credit Investor presentation • 103#104£529.7m, Other EIB loans £689.5m, GBP Fixed rate & RPI linked bonds swapped to CPI/CPIH. linked £321.0m, GBP CPI linked bonds £102.1m, GBP CPI. linked loans Financing and liquidity Gross debt = £8,451.8m £161.2m, Short term debt £239.1m, Other borrowings £964.0m, EIB and other. RPI linked loans £2,017.7m, GBP RPI linked bonds Headroom / prefunding = £806.2m £60.0m, Lease £373.6m, Yankee bonds (USD) £m Obligations £183.3m, Euro bonds (EUR) Cash and short-term deposits 744.1 £244.4m, HKD bonds (HKD) Medium-term committed bank facilities¹ 700.0 Short-term debt (161.2) Term debt maturing within one year (476.7) £2,566.2m, GBP bonds Total headroom / prefunding 806.2 1 Excludes £100m of facilities maturing within one year. United Utilities • Credit Investor presentation • 104#105United Utilities Group PLC United Utilities PLC Baal stable; BBB- stable; A- stable? Debt structure Yankees: ⚫ $400m in 28s Other debt: • Short-term loans £100m United Utilities Water Limited A3 stable; BBB+ stable; A- stable Ring-fenced and regulated by Ofwat United Utilities Water Finance PLC Guaranteed by United Utilities Water Ltd Euro MTNs: • £375m in 22s • £300m in 27s £50m in 32s¹ £200m in 35s £100m in 35s¹ £35m in 37s¹ Euro MTNs: • £450m in 25s £25m in 25s¹ • HK$320m in 26s HK$739m in 26s • €52m in 27s • HK$830m in 27s £20m in 28s¹ • £300m in 29s² £35m in 30s¹ €30m in 30s £70m in 39s¹ £100m in 40s¹ £50m in 41s¹ £100m in 42s¹ £20m in 43s¹ • £50m in 46s¹ £425m in 31s4 • €30m in 31s • HK$600m in 31s US$35m in 31s £38m in 31s³ £20m in 31s² • €28m in 32s • €26m in 32s €30m in 33s £350m in 33s5 £27m in 36s3 £50m in 49s¹ £510m in 56s¹ ⚫ £150m in 57s¹ £29m in 36s3 •£20m in 36s2 £60m in 37s² • £250m in 38s £125m in 40s² £300m in 42s • £32m in 48s² •£33m in 57s² Other debt: ⚫ EIB RPI-linked loans £517m¹ Other RPI-linked loans £300m¹ CPI-linked loans £100m² • Other EIB loans £530m •Short-term loans £51m ¥10bn dual currency loan • Other sterling loans £126m 1 RPI linked finance 2 CPI linked finance / fixed rate finance subsequently swapped to CPI linked 3 RPI linked finance subsequently swapped to CPI linked 4 £100m and £75m fixed rate tranches of this bond have been swapped to CPI linked 5 Two £50m fixed rate tranches of this bond have been swapped to CPI/CPIH linked 6 United Utilities Water Finance PLC (UUWF) is a financing subsidiary of United Utilities Water Limited (UUW) established to issue new listed debt on behalf of UUW. Notes issued by UUWF are unconditionally and irrevocably guaranteed by UUW and are rated in line with UUW's credit ratings 7 Senior unsecured debt ratings published by Moody's; Standard & Poor's; Fitch respectively United Utilities . Credit Investor presentation • 105#1063,000 2,000 £m 1,000 Term debt maturity profile Average term to maturity of approximately 18 years 0 To 31 Mar 2025 2025-30 2030-35 2035-40 2040-45 2045-50 2050-55 2055-60 Years 1 Future repayments of index-linked debt include RPI/CPI/CPIH market derived forecasts out to 2025, subsequently transitioning to an average annual RPI rate of 3% and an average annual CPI/CPIH rate of 2% United Utilities • Credit Investor presentation • 106#107£m 800 700 600 500 400 300 200 100 AMP7 maturity profile To 31 Mar 2022 To 31 Mar 2023 To 31 Mar 2024 To 31 Mar 2025 EIB Other Notes Future repayments of RPI linked debt include market derived forecasts out to 2025 Light green areas represent EIB debt maturing whereas dark green areas represent other debt maturing. United Utilities • Credit Investor presentation • 107#108այ EIB funding maturity profile 600.00 EIB funding maturity profile 500.00 400.00 300.00 200.00 100.00 To 31 Mar 2025 2025-30 2030-35 2035-40 Notes Future repayments of EIB RPI linked debt include market derived forecasts out to 2025, subsequently transitioning to an average annual RPI rate of 3% United Utilities . Credit Investor presentation • 108#109United Utilities Water for the North West til gnid 20 Cautionary statement This presentation contains certain forward-looking statements with respect to the operations, performance and financial condition of the group. By their nature, these statements involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. The forward-looking statements reflect knowledge and information available at the date of preparation of this presentation and the company undertakes no obligation to update these forward- looking statements. Nothing in this presentation should be construed as a profit forecast. Certain regulatory performance data contained in this presentation is subject to regulatory audit. This announcement contains inside information, disclosed in accordance with the Market Abuse Regulation which came into effect on 3 July 2016 and for UK Regulatory purposes the person responsible for making the announcement is Simon Gardiner, Company Secretary. United Utilities Credit Investor presentation