2019 Investor Day

AMERICAN WATER Our Compelling Story 2020-2024 Plan 7-10%* EPS CAGR range Market Based Businesses 1-2% Regulated Acquisitions 1-2% Regulated Investment CAPEX 5-7% *Anchored off of 2018 Adjusted EPS (a non-GAAP measure) Grow EPS long-term CAGR of 7-10%*... ... One of the fastest growing utilities in the nation Grow dividends at high end of 7-10%* EPS range... *** Top quartile utility dividend growth Payout ratio between 50-60% of earnings Maintain our predominantly regulated risk profile... ... Market based businesses represent 12% of EPS in 2024 " Invest over $20 billion in capital over the next 10 years... To ensure water quality and infrastructure growth Top leader in the utility sector... ... Combined EPS + dividend growth delivers superior total shareholder return 45

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