#1Investor presentation Peter Simpson Chief Executive Officer, Anglian Water Steve Buck Chief Financial Officer, Anglian Water 18 June 2021 WINNER Utility Week AWARDS 2018 Utility of the Year RESPONSIBLE BUSINESS OF THE YEAR 2017 BUSINESS IN THE COMMUNITY تقال فاضل THE QUEEN'S AWARDS FOR ENTERPRISE: SUSTAINABLE DEVELOPMENT 2020 love every drop anglianwater#2Before we get started Disclaimer i For the purposes of the following disclaimer, references to this "document" shall mean this presentation pack and shall be deemed to include references to the related speeches made by or to be made by the presenters, any questions and answers in relation thereto and any other related verbal or written communications. Any forward-looking statements made in this document represent management's judgment as to what may occur in the future. However, the group's actual results for the current and future fiscal periods and corporate developments will depend on a number of economic, competitive and other factors including some which will be outside the control of the group. Such factors could cause the group's actual results for current and future periods to differ materially from those expressed in any forward-looking statements made in this document. Unless otherwise required by applicable law, accounting standard or regulation, we do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. Investor Presentation 2 love every drop anglianwater o#3Presentation overview Staying true to our environmental and social purpose Delivery not deflected by unprecedented challenges Investor Presentation 3 ef executive lovex every drop anglia water Long-term vision: keeping the future in focus 2021 Key financial and sustainability metrics love every drop anglianwater#4Staying true to our environmental and social purpose Staying true to our environmental and social purpose Investor Presentation 4 love every drop anglianwater#5Staying true to our environmental and social purpose True to our purpose in a year of challenge Strength of commitment to environmental and social prosperity maintained throughout challenges of Covid-19, extremes of weather and financial constraints ENTRANCE Investor Presentation 5 Delivering consistently through Covid-19 Managing unprecedented demand for water Coping with widespread long-lasting flooding Maintaining globally leading position on leakage love every drop anglianwater#6Staying true to our environmental and social purpose Safeguarding our environment and taking action on climate Relentless focus on environmental protection and enhancement in our region and delivering resilience to climate change and population growth Winner three Net Zero awards in 2020 and 2021 £300 million environmental investment accelerated Investor Presentation 6 Anglian Water's five-point plan for a green recovery love every drop anglianwater of Anglian Water's Climate Change Adaptation Report 2020 CDP DISCLOSURE INSIGHT ACTION A LIST 2020 CLIMATE WINNER First company in UK to publish Climate Change Adaptation Report 3* EPA status set to be regained CDP global A list status takes us to top 3% of 9,600 companies for response to climate change love every drop anglianwater. Zero Carbon Initiative of the ६ 2020 WINNER wib WATER INDUSTRY AWARDS 2021 WINNER NET ZERO CARBON INITIATIVE OF THE YEAR Anglian Water's renewables journey: Rolling out solar power and energy storage on the path to net zero Utility Week AWARDS 2020 Net Zero Award love every drop anglianwater#7Staying true to our environmental and social purpose Supporting colleagues and communities. Five-point community recovery plan and social contract highlight depth and strength of support for our people, our customers and the communities we serve, and set out our ongoing commitments The plan covers five key areas for community recovery: Maintaining affordability and supporting vulnerable customers 2 Being inclusive and improving social mobility Investing in our communities 4 Supporting health and wellbeing Acting ethically, both Social Contract Creating a sustainable 5 within Anglian Water and throughout our supply chain future for us all Investor Presentation 7 love every drop anglianwater e 3,000 colleagues attend half-day stand-down devoted to health, safety and wellbeing love every drop anglianwater Anglian Water's five-point plan for community recovery Our continued commitment to social prosperity Our education programme has engaged with over half a million people since it was established in 2007 (19,141 in 2020/2021) To support local communities in the battle against coronavirus, we launched our £1 million Positive Difference Fund in April 2020 and have helped an estimated 100,000 people WINNER THE QUEEN'S AWARDS FOR ENTERPRISE: SUSTAINABLE DEVELOPMENT 2020 In 2020 we were awarded the Queen's Award for Enterprise: Sustainable Development for a second time Utility Week AWARDS 2020 Employer of the Year love every drop anglianwater o#8Delivery not deflected by unprecedented challenges Delivery not deflected by unprecedented challenges Investor Presentation 8 love every drop anglianwater#9Delivery not deflected by unprecedented challenges Managing Covid-19 impacts The impact of Covid-19 on the business. has been complex and far-reaching, but all challenges have been met . Supporting customers 319,000 customers offered financial support through ExtraCare Priority Service Register sign ups increased by 112% to 175,000 customers through active promotion Investor Presentation 9 • • Financing our business Household consumption up 11%: £58m Non-household revenue down by 16%: £(35)m Household cash collection remains strong Largest ever investment programme on track and developer market rebound Keeping colleagues and supply chain safe and well ⚫ No employees furloughed • 3,000 colleagues transferred to home working • Operational working practices transformed • Half-day health, wellbeing and safety day attended by 3,000+ colleagues • Hundreds of Covid-safe workplaces created Purpose environmental a and social p through Sanitiser Here Maintaining resilience • 1.4 billion litres put into network in a single day only 8 times in 14 years - 7 of them in 2020 • Water quality maintained: ERI and CRI targets set to be hit* • Smaller water treatment and water recycling centres carrying extra weight due to shifting patterns of demand *Event Risk Index, Compliance Risk Index, provisional assessments pending issue of 2020 data from Drinking Water Inspectorate love every drop anglianwater#10Delivery not deflected by unprecedented challenges Projected £10 million reward on the back of continued excellent performance Anglian's long history of delivering the basics brilliantly continues in year 1 of AMP7. With a third more measures to deliver than AMP6, 81% of performance commitments are assessed to be on track Investor Presentation 10 Water, customer, protecting our environment and future sustainability ODIs all in net reward territory Best-ever results: still leading the industry on leakage with leakage down to record lows, beating regulatory target for 10th year running £3.0 million reward for early delivery of WINEP schemes: for progress on largest ever Water Industry National Environment Plan (WINEP) £6.0 million reward: top quartile flooding performance for strong performance on both internal and external flooding Support for vulnerable customers: target exceeded 319,000 helped vs 282,000 target £1 million reward for interruptions to supply: best-ever performance despite Covid pushing up usage £2.2 million reward for CMeX and DMeX combined £1 million reward for void property measure 20 per cent reduction in pollutions following significant investment love every drop anglianwater o#11Delivery not deflected by unprecedented challenges £448 million capex investment delivered in Y1 of our most ambitious ever five year programme Strong start made on delivering £3 billion of crucial investment to meet pressures of population growth and address challenges from climate change 4 Shovel ready on Anglian Water's largest ever single capital investment Interconnected pipelines longer than any UK motorway to be delivered by 2025 through £400m region-wide SPA programme 520 schemes delivered vs Y1 WINEP target of 280 On track to outperform our five year commitment on the Water Industry National Environment Plan (WINEP) CE 000000089 320000154 164,406 smart meters installed and switched on On track to install 1.1 million smart meters by 2025 £37.9m network investment to advance best in class leakage position Huge optimisation programme underway and recruitment of hundreds of staff to reduce leakage by unprecedented 30 million litres a day by 2025 More than £90m of investment to facilitate growth Extending capacity, connecting new properties and creating headroom Ф At least 10% biodiversity net gain Commitment made on all capital programmes from 2021 Investor Presentation 11 love every drop anglianwater o#12Delivery not deflected by unprecedented challenges Maximising growth in Anglian Venture Holdings Non-regulated and commercial business activities delivering significant value for the Group, with EBITDA of £9.8m and cash generation of £14.6m £227m funding released by Homes England to deliver a brand-new state-of-the art water recycling centre for Cambridge and significant commercial land opportunity for AVH and AWS wib WATER INDUSTRY AWARDS 2021 WINNER WATER RETAILER OF THE YEAR Wave All wholesale bills paid in full, good cash collection and winning new business, despite impact of Covid-19 CELTIC ANGLIAN WATER CAW Biggest operations and maintenance operator in Ireland with strong development pipeline CELTIC WATER CAW TIDE awgproperty Alpheus Cambridge Relocation wave Investor Presentation 12 Cambridge 4 LLP love every drop anglianwater#13Long-term vision: keeping the future in focus Long-term vision: keeping the future in focus Investor Presentation 13 MORRIS love every drop anglianwater#14Long-term vision: keeping the future in focus CMA outcome lays groundwork for future resilience Outcome of redetermination process positive for customers, the environment and long-term resilience Outcome factors in growth: key driver for appeal and important precedent set Investor Presentation 14 Better balance of risk for owners and investors supports stronger credit profile LAMBERT REWARD RISK A regulatory settlement that facilitates investment ヘ for customers Clarity on regulatory issues and a better platform for AMP8 and beyond love every drop anglianwater#15CMA revenues £m Long-term vision: keeping the future in focus 7,000 Redetermination results in an additional £208m of revenue in AMP7 Revenue £m 1,400 Revenue phasing over AMP (2017-18 prices) CMA FD 1,300 1,200 1,100 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 6,500 6,000 96 156 50 (96) 96 5,500 5,916 5,708 5,000 4,500 4,000 Investor Presentation 15 WACC Redermination totex CMA FD Revenues FD Opex/Capex adj. Fast money Growth true-up mechanism improved by £40m Embedded debt underfunding reduced from £110m to £65m PAYG includes £156m of misallocation of opex by Ofwat that CMA has addressed Fast money: CMA has reversed the £96m adjustment to PAYG that Ofwat had made to solve AICR ratios due to lower WACC. Improved cost sharing mechanism: Improved from around 35/65 at the Ofwat FD, to 45/55 at the CMA FD. love every drop anglianwater#16Long-term vision: keeping the future in focus RCV £bn As the region grows, our business grows with it Housing growth in the region and significant infrastructure investment driving strong RCV growth c.20% increase in RCV in nominal prices c.4-8% increase in property numbers by the end of AMP7 10.0 9.5 RCV £bn (nominal prices) Midnight adjustment 9.5 9.3 8.9 9.0 8.4 8.5 8.2 8.0 7.9 8.0 7.5 Total properties (k) 5,300 5,200 5,100 5,000 4,900 7.0 6.5 4,800 4,845 4,700 6.0 Closing FY Opening FY 2019/20 2020/21 Closing FY 2020/21 Closing FY 2021/22 Closing FY 2022/23 Closing FY 2023/24 Closing FY 4,600 2024/25 FY 2014/15 FY 2019/20 ⚫RCV Investor Presentation 16 5,056 5,266 FY 2024/25 Forecast figures based on CMA redetermination love every drop anglianwater#17Long-term vision: keeping the future in focus Resource planning for the long term: making RAPID progress Collaborating with Ofwat through the Regulators' Alliance for Progressing Infrastructure Development (RAPID) to secure supplies for the long term: taking the holistic view on the supply-demand balance Nottinghamshire South Humber Bank Aquifer storage and recovery Desalination Water resource sharing Central Lincolnshire East Lincolnshire Water re-use Demand management through smart metering, behavioural change and network optimisation Investor Presentation 17 Accelerated delivery of two new multi-sector reservoirs through RAPID by 2040 RAPID Ruthamford Wist Ruthamford North Ruthamford Central South Lincolnshin Ruthamford South Bourne Winter storage reservoir North Tenland North Norfolk Coast Happisburgh South Conland Norfolk Rural North Norwich and the Broads Thetford Ely Newmarket teworth Chevoley Bury Haverhill Central Essa South Essex Norfolk Rural South East Suffolk love every drop anglianwater o#18Long-term vision: keeping the future in focus Looking ahead to net zero by 2030: always exploring 8 Multi-award-winning track record of carbon reduction, externally benchmarked for 10 years, sets us on strong path to tackle tough net zero challenge by continuing to push boundaries 222 Water UK Emissions reduction NET ZERO 2030 Renewables Routemap M M Offsetting RICARDO Achilles¬ 10+ Carbon Reduce Certified YEARS Investor Presentation 18 Powered by Toitu Envirocare PLATINUM WINNER Utility Week AWARDS 2020 Net Zero Award GHG reduction measures: avoid gross GHG emissions through operational practices, new technologies, in water and water recycling assets Renewable energy measures: self-generation of renewables for use on site or export, and purchase of green energy 2020/21 outcomes 61% reduction in capital carbon vs 2010 baseline Carbon Insets / Offsets Zero Carbo Initiative of the wib WATER INDUSTRY WARDS 2020 WINNER Wib W 2021 WINNER NET ZERO CARBON INITIATIVE OF THE YEAR Anglian Water's ranewables journey: Rolling out solar power and energy storage on the path to rot zare 5.1% reduction in operational carbon vs 2019/20 ODI baseline 134.4GWh renewable energy generated love every drop anglianwater#19Long-term vision: keeping the future in focus Driving reward through delivery: targeting £50m reward for AMP7 AMP7 delivery outperformance strategy to drive returns for investors and shareholders through positive outcomes for customers and environment Targeting rewards from water supply network ODIS including leakage, per capita consumption and low pressure Place-based approach will deliver capital efficiencies through 'dig once' approach to investment Investor Presentation 19 Boosting customer and developer experience and maximising opportunities from smart meters FLANNERY FLANNERY inflowmatix Deploying network optimisation and calming, driving digital advantage and advancing smart network initiatives love every drop anglianwater#20Long-term vision: keeping the future in focus A strong and resilient structure for a purpose-led company Delivering on the promises we made in 2018: setting ourselves up for long-term strength and delivery for customers and environment • • Creation of new financing structure marks conclusion of period of work to embed public interest in Anglian Water which began in 2018 Articles of Association change in 2019 set the agenda for others to follow New structure will reduce gearing in Anglian Water Services, enabling us to retain strong credit ratings and borrow at competitive rates to finance investments for the long-term benefit of our customers and our region The Board of Anglian Water, in conjunction with its pension fund-backed shareholders (First State Investments, Canada Pension Plan Investment Board, IFM Investors, Dalmore Capital and GLIL Infrastructure), is announcing a series of financial and corporate initiatives to improve transparency, trust and customer confidence. Anglian Water will: Improve transparency and clarity of its financial structures It will significantly speed up the removal of its Cayman Islands subsidiary. It will repay an inter-company loan to simplify the presentation of its accounts (particularly around real dividends), aiming to complete this by the end of this Financial Year. Place public interest at the heart of the business It will work with Ofwat on proposals to ensure it can be held to account for acting in the public interest. Make an additional investment commitment to 2020 It will invest an extra £65m in resilience schemes not included in the company's original plan, by 2020. This will improve the region's ability to deal with drought and flooding and will be paid for through a reduction in dividends to shareholders. Reduce dividends and borrowings through to 2025 It will reduce dividends through to 2025, resulting in a significant reduction in the company's level of debt and gearing. Investor Presentation 20 Anglian Water announcement, March 2018 love every drop anglianwater#21Long-term vision: keeping the future in focus New financing structure Creates a sustainable and efficient capital structure Proposed MidCo Structure WBS Today Proposed Structure Osprey: 87.5% NR/ B1/BB- New HoldCo: 86% Unrated Class A & B: 82% I BBB/ Baa3/ BBB Equity injection New MidCo: 2 79% BBB- MIDCO £1,055m Class A: 72% A-/ A3/A- | AWS: <70% Class A/B A-/A3/A- Investor Presentation 21 I Regulatory ring-fence | | • 1 HOLDCO £560m of new • debt raised 3 £600m new debt raised AWS £1,055m of equity injection reducing gearing • • • The new financing structure is not reliant on any subsequent steps with any existing noteholders Committed new funds in place at MidCo and HoldCo Introduction of new HoldCo entities to raise debt at 'top level' Set up of a new ring fenced MidCo financing group MidCo able to raise financing across bank debt and investment grade capital markets instruments Equity injection to AWS to reduce leverage Commitment to no further Class B issuance at AWS and existing Class B bonds to be given option to convert to Class A. love every drop anglianwater o Confidential#222021 key financial and sustainability metrics 2021 key financial and sustainability metrics Investor Presentation 22 tef executive love every dropo anglia water love every drop anglianwater#232021 key financial and sustainability metrics Anglian Water key financials summary Delivering strong financials despite challenging environment Revenue £1,352m (2020: £1,420m) Underlying profit before tax¹ £142m (2020: £74m) Operating profit £392m (2020: £399m) Operating cash flow² £629m (2020: £644m) Strong credit ratings A-/A3/A- stable at AWS (2020: A-/A3/A; BBB/Baa1/BBB negative) Gearing 82% Senior AWS Gearing (2020: 82% post RCV 'midnight adjustment') 1 Shown before loss on derivatives of £23.2m (2020: loss of £30.4m). Investor Presentation 23 2 Shown on a CTA basis. Net cash inflow from operating activities after tax on a statutory account basis is £633.9m (2020: £645.7m). love every drop anglianwater o#242021 key financial and sustainability metrics Year ended 31 March 2021 £m Financials - revenue breakdown 1,440 - Covid impacting consumption behaviour Revenue £m 1,420 1,420 (71) 1,400 1,380 1,360 1,340 1,320 (14) 58 (34) (7) 1,352 1,300 March 2020 total Reduction in customer prices Reduction in grants and contributions Increase in household consumption Decrease in non-household consumption Other offsetting decreases March 2021 total Investor Presentation 24 1 Includes change in customer numbers and prior year accrual and billing adjustments. love every drop anglianwater#252021 key financial and sustainability metrics Financials - profit before tax 140 Profit before tax £m 120 100 80 60 40 40 20 20 74 (68) March 2020 Investor Presentation 25 total (5) (4) Decrease in Weather-related revenue incidents (hot summer and winter flooding) £m 36 Net Covid-19 impact on operating costs Continuous improvement 16 Other opex movements 17 Year ended 31 March 2021 76 16 142 Reduction in depreciation Net finance costs March 2021 total love every drop anglianwater o#262021 key financial and sustainability metrics Annual Interest Cost Financials - interest performance Net finance costs down as impact of low inflation and cost-effective new debt raised Interest and net debt 3.0 400 6,600 2.8 350 6,500 2.6 300 6,400 2.4 137 250 130 115 75 6,300 49 200 6,200 150 Net Debt Coupon % do 2.2 2.0 6,100 1.8 100 206 206 199 211 1.6 201 6,000 50 1.4 5,900 1.2 5,800 16/17 17/18 18/19 19/20 20/21 1.0 Apr 20 Interest (excluding indexation) Indexation charge Net Debt Debt accretion cost £49m Investor Presentation 26 57% Y-O-Y Year ended 31 March 2021 iBoxx Anglian new debt performance May 20 Anglian Average New Jun 20 Debt, 1.71% Jul 20 Aug 20 Sep 20 Spot A & BBB IBOXX Oct 20 Nov 20 Dec 20 Jan 21 Feb 21 YTD A & BBB IBOXX Average Effective interest rate 4.1% Average 2.16% Mar 21 Anglian Average 125bps Y-O-Y love every drop anglianwater#272021 key financial and sustainability metrics Cash £m 4 E Financials - sources and uses of cash £m 1,400 1,200 1,000 800 600 1,047 400 200 243 (1,004) 629 (218) (204) (206) Year ended 31 March 2021 Strong cash generation despite challenging environment 286 March 2020 CTA cash New debt raised Debt repayments¹ Operating cash flows including tax Capital maintenance expenditure Capital enhancement expenditure Net interest March 2021 CTA cash Investor Presentation 27 1 Includes £2.7m of non-CTA debt repayments relating to property and other lease repayments. love every drop anglianwater#282021 key financial and sustainability metrics Year ended 31 March 2021 Debt composition Balanced debt composition ensures natural hedge to RCV and revenues Net debt¹ £6,512m RCV £7,943m £218m of additional debt received² to fund £422m of additional CapEx Billions 6 00 AWS & Osprey Debt Mix 6 £7.9bn, RCV 87.5%, Osprey Gearing ம RCV reflects AMP7 capital 82%, AWS Gearing investment and is adjusted each year in line with inflation 4 Investor Presentation 28 Gearing 82% AWS Senior Gearing - 82.0% AWS Class A gearing - 72.0% Osprey Gearing - 87.5% 3 N 54%, Index Linked ¹Net debt as defined under the Anglian Water Common Terms Agreement (CTA) 2£218m debt amounts received in the period includes £65 of debt raised in 2018 and excludes £75m of debt raised but not received until April-21. Amount excludes £25m related to RCF draw downs. love every drop anglianwater#292021 key financial and sustainability metrics Delivering sustainable finance for AMP7 Sustainability embedded in financing strategy £1bn+ sustainable finance raised since 2017 Target • Vast majority of capital funding to be raised as • "Use of Proceeds bonds" through sustainable finance transactions under our AMP7 framework Now set up to raise SLB's to help finance our journey to Net Zero in 2030 Sustainability KPI links within debt facilities at AWS, Osprey and Aigrette in new structure Investor Presentation 29 Measure March 2021 March 2020 Capital carbon % reduction on 2010 baseline 61% 61% Water quality Water quality contacts per 1,000 customers 1.121 1.09 Water consumption Three-year average 138 134 litres per capita per day Water leakage Three-year average 191 194 megalitres per day Pollution incidents Incidents per 10,000km 28 35 55 of sewer Supporting vulnerable customers % of customers on priority register 8.5%2 2.9% The Green Bond Principles The Social Bond Principles 1 subject to DWI review 2 subject to change pending audit love every drop anglianwater#302021 key financial and sustainability metrics Interest Coverage (x) 3.5 Financial covenants Interest cover ratios Interest cover ratios marginally reduced year on year as a result of working Gearing capital timings 100% Interest cover covenants 3.0 2.7 2.6 2.6 2.4 2.5 95% 90% 3.1 3.1 3.0 1.9 1.9 2.0 1.9 1.8 1.7 1.6 1.5 Gearing (%) 89% 85% 85% 85% .83% 80% 80% 79% 75% 72% 70% 1.5 1.6 1.6 1.6 68% 1.5 65% 68% 1.4 1.4 1.0 1.2 60% 0.5 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 AWS Conformed Senior PMICR (1.1x) AWS Conformed Class A PMICR (1.3x) OAL Senior ICR (2.0x) Investor Presentation 30 *Net debt as defined under the Anglian Water Common Terms Agreement (CTA) 55% Year ended 31 March 2021 Gearing increase as a result of opening AMP midnight RCV adjustment (similar to prior AMP) Gearing covenants AMP6 86% 87.5% 82% 82% 72% 72% AMP7 50% FY 13/14 FY 14/15 FY 15/16 FY 17/18 FY 18/19 FY 19/20 FY 20/21 AWS Senior RAR (85%) AWS Class A RAR (75%) OAL Senior RAR (93%) love every drop anglianwater#31Summary Investor Presentation 31 A resilient business with customers and sustainability at the heart of what we do Purpose at the heart of all our activity and planning New financing structure to ensure a resilient and strong business for the years ahead 46 AVH businesses driving additional revenue streams Final outcome of CMA process has resulted in positive revenue uplift in years 3-5 and set important long-term precedents. до Focus on sustainability, with key commitments to drive net zero carbon by 2030 Strong delivery in the face of a challenging environment from Covid-19 and financial constraints WINNER WINNER ԵՂԱ LEADING UTILITIES OF THE WORLD AWARDS 2020 Employer of the Year AWARDS 2020 wib 2020 Het Zero WINNER THE QUEEN'S AWARDS SUSTAINAFLE DEVELOPMENT шль Utility Weeld RISING STAR OF THE YEAR AWARDS WOMAN OF THE YEAR SUPPLY Anglian Water IMDS EXCELLENCE wib And Water Angin Water WINNER NET ZERO CARBON INITIATIVE OF THE YEAR WINNER ALLIANCING AND PARTNERSHIP INITIATIVE OF THE YEAR Anglies Water and Dearre itsmeitasry remelt dectes device love every drop anglianwater#32Any questions? love every drop anglianwater#33Appendices love every drop anglianwater#34Anglian Water liquidity Substantial £1.3bn of total liquidity to manage unexpected events CASH RESERVES £237 MILLION WORKING CAPITAL AND CAPEX FACILITY £600 MILLION Investor Presentation 34 PRE-FUNDED CAPEX £24 MILLION PRE-FUNDED DEBT REPAYMENT £25 MILLION AWS ISSUER OPERATING & MAINTENANCE LIQUIDITY FACILITY (10% ANNUAL OPEX & CAPITAL MAINTENANCE) £121 MILLION DEBT SERVICE RESERVE LIQUIDITY FACILITY (12 MONTHS INTEREST) £279 MILLION Year ended 31 March 2021 TOTAL CASH AND INVESTMENTS £286 MILLION TOTAL FACILITIES TOTAL DRAWN TOTAL UNDRAWN FACILITIES £1,000 MILLION £ 25 MILLION £ 975 MILLION love every drop anglianwater#35Investor Presentation 35 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027 2027/2028 2028/2029 2029/2030 £m 2030/2031 2031/2032 2032/2033 2033/2034 2034/2035 2035/2036 2036/2037 2037/2038 2038/2039 2039/2040 2040/2041 2041/2042 2042/2043 2043/2044 Fixed Debt FRN I-L Debt JPY PP 2044/2045 2045/2046 800 2046/2047 2047/2048 2048/2049 2049/2050 Lease USPPS Osprey Debt maturity profile as at 31 March 2021 900 2050/2051 2051/2052 2052/2053 2053/2054 2054/2055 2055/2056 2056/2057 2057/2058 ■Facility 2058/2059 2059/2060 2060/2061 2061/2062 2062/2063 2063/2064 2064/2065 2065/2066 2066/2067 2067/2068 anglianwater o love every drop#36Derivatives Derivatives mark to Market Valuation Swap Type Interest Rate Swap Cross Currency Interest Rate Swap RPI Swap CPI Swap Energy Derivatives LEBA³ Power Swaps Investor Presentation 36 1 Mark-to-Market valuations include accrued interest to valuation date. 2 Notional value for Energy Derivatives represents locked in purchase price for power. 3 LEBA = London Energy Brokers Association. Year ended 31 March 2021 Notional £m MTM £m¹ 1 2,506.6 (185.9) 846.2 101.2 565.9 (568.2) 816.2 (188.1) 4,734.9 (841.0) Notional £m² 33.5 2 MTM £m 9.0 love every drop anglianwater#37Existing consolidated capital structure Anglian Water Group Limited Consolidated Debt at OAL Net Debt/ RAV 87.5% Osprey Acquisitions Limited AWOF Bond Debt £450m - £240m 4% March 2026 Credit Ratings B1/BB- - £210m 5% April 2023 AWG Parent Co Ltd (formerly AWG PIC) AWG Group Limited Consolidated Debt at AWS Class A Debt/RAV Class B Debt Net Debt/ RAV Dividend Lock-up¹ Default Net Debt 72.0% £6,003.4m Credit Ratings A-/A3/A- £794.2m BBB/Baa3/BBB+ 82.0% 85.0% 95.0% £6,511.8m Anglian Water Services Holdings Limited Anglian Water Services UK Parent Co Limited Anglian Water Services Limited Anglian Water Services Financing Plc Osprey Holdco Limited Year ended 31 March 2021 Osprey Holdco Limited Shareholder Eurobond Yield Anglian Water (Osprey) Financing plc Anglian Venture Holdings Ltd £462m 5.5% Investor Presentation 37 1 Senior RAR Trigger Event is 90%, with Dividend lock up at 85% love every drop anglianwater#38AW reconciliation of CTA operating cash flow Year ended 31 March 2021 Operating cash flow - statutory accounts basis Tax paid Commissions on debt facilities not drawn Return on developer deposits in year Other Net cash inflow from operating activities - CTA basis Investor Presentation 38 ¹Primarily relates to issue costs on new debt 2021 £m 2020 £m 659.3 686.0 (25.4) (40.3) (2.2) (2.9) 4.4 (2.9) (2.8) 628.8 644.4 love every drop anglianwater#39AW reconciliation of CTA net debt Year ended 31 March 2021 2021 £m 2020 £m 1 Net debt - statutory accounting basis 6,649.8 6,677.2 Unpresented cheques and lodgements Capitalised issue costs IFRS 16 Leases 2 IFRS 9 adjustments Net debt - CTA basis ¹ 1 Investor Presentation 39 0.1 22.3 31.7 (29.0) (30.8) (131.3) (218.5) 6,511.8 6,459.7 1The CTA net debt continues to be on old UK GAAP basis, while statutory net debt is on an IFRS basis, excluding derivatives 2Property and other leases love every drop anglianwater o#40AW reconciliation of CTA underlying profit before tax Profit before tax on an underlying basis Finance costs - fair value losses on financial derivatives Profit before tax as reported on a statutory basis Investor Presentation 40 Year ended 31 March 2021 2021 £m 2020 £m 142.2 74.0 (23.2) (30.4) 119.0 43.6 love every drop anglianwater#41Summary of new loans and repayments 2021 Year ended 31 March 2021 2020 £m £m New Debt raised £65 million 0.835% index-linked bond 2040 £50 million 1.760% fixed rate bond 2035 New Debt raised 65.0 £65 million 2.87% fixed rate 2029 65.0 50.0 JPY 7 billion 0.855% fixed rate 2039 50.9 JPY 7 billion 0.85% fixed rate bond 2040 50.4 EDC £100 million 1.588% fixed rate 2028 100.0 JP £26.1m 0.010% index-linked term facility 2035 26.1 RCF £550 million 550.0 BPPT £26.1m 0.010% index-linked term facility 2035 RCF £550 million 26.1 RCF £100 million bilaterals 50.0 25.0 242.6 815.9 Non cash debt raised New IFRS 16 lease agreements in year Total debt raised Non cash debt raised 1.2 IFRS 16 lease agreements on transistion New IFRS 16 lease agreements in year 33.4 7.8 243.8 Total debt raised 857.1 Debt repaid Debt repaid £150 million 4.125% index-linked bond 2020 (263.7) JPY 5 billion 3.22% fixed rate bond 2019/2038 (25.1) EIB £75 million 0.53% index-linked term facility 2027 EIB £75 million 0.79% index-linked term facility 2027 EIB £150 million 0% index-linked term facility 2028 EIB £65 million 0.41% index-linked term facility 2029 EIB £125 million 0.1% index-linked term facility 2029 (9.2) (9.2) (17.9) (7.6) (14.4) EIB £50 million 1.626% index-linked term facility 2019 EIB £50 million 1.3% index-linked term facility 2020 EIB £75 million 0.53% index-linked term facility 2027 EIB £75 million 0.79% index-linked term facility 2027 EIB £150 million 0% index-linked term facility 2028 (67.9) (67.2) (9.1) (9.1) (17.7) EIB £60 million 0.01% index-linked term facility 2030 (6.8) RCF £550 million (550.0) RCF £100 million bilaterals (50.0) EIB £65 million 0.41% index-linked term facility 2029 EIB £125 million 0.1% index-linked term facility 2029 Capital element of finance lease rental payments (7.5) (7.1) (6.7) Repayment of accretion on derivatives (63.5) Capital element of finance lease rental payments (7.0) (999.3) Settlement of IFRS 16 leases Investor Presentation 41 Total debt repaid (4.1) Settlement of IFRS 16 leases (1,003.4) Total debt repaid (217.4) (4.6) (222.0) love every drop anglianwater