Investor Presentaiton

Strong Financial Support from the Government K-water has historical track record of receiving regular financial support from the Government in forms of capital injection, subsidies and Government agency. Financial Support from the Government (KRW bn) 1,200 1,000 909 1,000 836 849 802 771 800 643 619 561 536 600 417 400 200 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 ■Capital Injection 31 14 89 10 121 109 118 179 496 416 377 ■ Subsidies 7 3 1 246 291 302 305 305 ■ Gov't Agency Total 380 518 554 515 424 499 378 516 352 203 184 417 536 643 771 836 909 802 1,000 849 619 561 Support Type ⚫ Capital Injection: Businesses that involve production of public goods that the Government invests in (i.e., construction of waterworks, Kyung-In Canal project) Includes financing costs and repayment of a portion of the principal amount associated with the Four River Restoration Project from 2016 and onwards Subsidies: National projects funded by the state (i.e., financing cost of the Four River Restoration Project) → Subsidies for financing costs of the Four River Project until 2015 Government Agency: Projects implemented by an entity on behalf of the state, funded with national treasury (i.e., dam construction, expansion of dam capacity) Source: Company information, As of December 31, 2018. 12 K water

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