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Investor Presentaiton

Aging Infrastructure Increasing Water Main Breaks • • Aging of Pipe Infrastructure Average age of water pipes has increased to 45 years in 2020 from 25 years in 1970 (1) 2.2 million miles of underground pipes for drinking water with 240,000 water main breaks per year (2,3) Up to 30% of treated water is lost or unaccounted for in the water system (5) Growing number of states requiring water loss audits (6) Average age of pipe infrastructure, by region (7) 5% 17% 43% 35% 17% 16% 35% 32% 17% 20% 32% 32% 6% 22% 38% System Age, Years <30 31 to 60 61 to 100 >100 Water Main Break Rates Increasing (4) According to a study by Steven Folkman at Utah State University that surveyed nearly 200,000 miles of water pipelines in more than 300 municipalities in the U.S. and Canada, serving more than 14% of the two countries' total population: - Between 2012 and 2018, overall water main break rates increased by 27%, to 14 from 11 breaks/100 miles/year More concerning is that breakage rates of cast iron and asbestos cement pipe which make up 41% of the installed water mains in the U.S. and Canada - have increased by more than 40% over those six years 82% of cast iron pipes are more than 50 years old and experiencing a 46% increase in break rates Smaller utilities have two times more main breaks than large utilities Nationwide, one mile of installed water main serves 308 people The average age of failing water mains is approximately 50 years Over 16% of North America's underground water infrastructure is past its design service life 34% (1) Bluefield Research 2019, Water Industry 4.0 Focus Report. (2) U.S. Environmental Protection Agency, "Drinking Water Infrastructure Needs Survey and Assessment, Sixth Report to Congress," March 2018. (3) EPA Aging Water Infrastructure Research Program. (4) "Water Main Break Rates in the USA and Canada: A Comprehensive Study," March 2018, Steven Folkman at Utah State University, https://digitalcommons.usu.edu/cgi/viewcontent.cgi?article=1173&context=mae_facpub. (5) Navigant Research. (6) National Resource Defense Council.. (7) Bluefield Research, February 2022, "U.S. Water & Sewer Pipe Network Infrastructure: Market Trends and Forecasts, 2022 - 2030." MUELLER 13
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