2019 Investor Day

AMERICAN WATER 46.1% 41.0% 39.1% Disciplined Focus on Expenses Regulated O&M Efficiency Ratio* 36.6% 35.6% 35.0% 2018 9/30/2019 LTM Adjusted O&M Expenses* ($ in millions) »))) 2024 Target 31.3%** 2010 2012 2014 2016 2010 2012 2014 2016 2018 9/30/2019 LTM $966 $980 $943 $948 $1,015 $1,016 2010-2019 LTM 0.6% CAGR * Non-GAAP Measure - See appendix for reconciliation. O&M Efficiency Ratio = Adjusted Regulated O&M Expenses (O&M Expenses is most comparable GAAP measure) / Adjusted Regulated Operating Revenues (Operating Revenues is most comparable GAAP measure). This calculation assumes purchased water revenues approximate purchased water expenses and 2010-2016 adjusted for TCJA ** A reconciliation to a most comparable forward-looking GAAP measure is not available without unreasonable effort *** Includes organic customer connections While adding ≈450,000*** customer connections 28

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