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Investor Presentaiton

Funding Water Utilities Infrastructure Repair Water Utilities in North America >50,000 water utilities and >14,000 wastewater utilities in U.S. and Canada (1) Around 4,400 water utilities, or 9% of the total, serve >80% of the estimated population served (>260M) (1) Approximately 14% of the U.S. population served by privately owned water systems, including investor-owned utilities (IOU) (2) Distribution of Water Utilities in U.S. (1) Market Tier (by population served) # Water Utilities % of Total Utilities Estimated Population Served % of Population Served >100,000 448 0.9% 146.9M 46.8% 10,001 100,000 3,960 8.2% 114.4M 36.4% 3,300 10,000 4,940 10.2% 29.1M 9.3% <3,300 39,230 80.7% 23.4M 7.5% • Sources of Funding for U.S. Utilities For U.S. utilities, 96% of funding at state/local government level (3) Majority of utilities have service connection fees and/or capital recovery charges, with median fees of about $7,800, up 22% since 2016 (4) CPI for water and sewerage maintenance increased 4.6% for 12 months ended July 30, 2023, and has historically exceeded CPI for all items and other utilities including natural gas, electricity, and postage (5) U.S. municipal bond issuance declined to $391B in calendar 2022, after two years above $480B, which is down 5% y/y vs. the 10-year average (2012-2022) (6) U.S. Federal government provides incentives for water utility projects such as Drinking Water State Revolving Funds (DWSRF) and Water Infrastructure Finance and Innovation Act (WIFIA) administered by the Environmental Protection Agency (EPA) Infrastructure Investment and Jobs Act ("IIJA” or “Infrastructure Bill"), signed Nov. 15, 2021, includes $55B of new funding dedicated to water, wastewater and stormwater infrastructure (7) Represents highest level of federal spending in inflation-adjusted dollars since the mid-1970s $55B includes $15B for lead service line (LSL) replacements and $10B to help address emerging contaminants (i.e., PFAS) Existing state revolving funds (drinking water and clean water) are primary ways for funding to get allocated to projects Emphasis on directing funds towards small and disadvantaged communities either as grants or forgivable loans Increases domestic procurement requirements, known as “Build America, Buy America" (BABA), from 55% to 75% over 8-years (1) Bluefield Research Total Addressable Market for Water & Wastewater Utilities, June 2023. (2) Bluefield Research 2019, U.S. Private Water Utilities Report. (3) RAND Corporation 2017 Report titled "Not Everything is Broken." (4) American Water Works Association 2021 Water and Wastewater Rate Survey. (5) Bureau of Labor Statistics. (6) Securities Industry and Financial Markets Association (SIFMA) as of August 28, 2023. (7) Bluefield Research, May 2022, "The Infrastructure Investment and Jobs Act: Breaking Down the Water Funding." MUELLER 14
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