Investor Presentaiton

Business Overview - Commercial Strategy Tideway's commercial strategy has been designed to minimise risk to investors - Minimise reliance on any single contractor - Maximise risk transfer to contractors where efficient Effective incentivisation aligned with Tideway's objectives Key contractual framework Main Works Contracts System Integrator Contract New Engineering Contract (NEC3) Option C Target Price with Activity Schedule contract Encourages cooperation between Tideway and its contractors, and proactive risk mitigation Used successfully for Crossrail, London Olympics and Lee Tunnel Transfers key risks to the contractors (design, consents, ground conditions) Pain/gain sharing mechanism shared on a 50/50 basis, subject to adjustments for compensation events and liability caps Delay damages provisions in place Joint and several liability and step-in rights Simple, low value contract ✓ NEC3 Option E Cost Reimbursable contract Alliance Agreement Overarching framework for collaborative working between the Main Works Contractors, the System Integrator Contractor, Thames Water and Tideway Alliance Incentive Framework will incentivise early and cost efficient delivery of the investment programme ✓ Savings and opportunities to reduce some costs identified in the Optimised Contractor Involvement phase Tideway has implemented a robust and proven contractual framework 8

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