Investor Presentaiton
Affinity Water
Introduction
Affinity Water is seeking the removal of its Cayman Island incorporated financing company
We now believe that the time is opportune to remove Cayco and replace it with a UK incorporated company: this will
support our transparency objective, be in the interests of customers and wider stakeholders and, we believe, be viewed
as a positive step by Ofwat and HM Government
It is for these reasons that we are seeking removal of the Cayco via a consent process
On the 23rd August 2018, AW released an RNS indicating it was considering the substitution of Cayco with a special
purpose vehicle incorporated in the UK
We have subsequently engaged with a number of stakeholders including Ofwat, bank lenders and certain creditors of
private debt to discuss these intentions and have received positive feedback on our proposals
We have engaged with the Rating Agencies and as a precondition to the proposals they will be providing (or AW will
provide certification of such affirmations having consulted with the relevant Rating Agency) the Security Trustee
affirmations that the proposals will not affect current ratings
Our proposals are therefore expected to be credit neutral and potentially credit positive given the benefits the proposal
will generate with respect to our relationship with Ofwat and our reputation with customers
Additionally, the Proposals described in the Solicitation Memorandum have been considered by a special committee
(the "Special Committee") of The Investment Association at our request. The members of the Special Committee, who
hold in aggregate approximately 58.1 per cent. of the aggregate principal amount outstanding of the Class A Bonds
issued by the Current Programme Issuer (at their originally issued nominal amount) and approximately 36.8 per cent. of
the aggregate principal amount outstanding of the Bonds issued by the Existing Issuer (at their originally issued nominal
amount) have examined the Proposals. They have informed us they find the proposals acceptable and that, subject to
client and other approvals, they intend to vote in favour of the Proposals in respect of their holdings of Bonds
The Special Committee has advised the Affinity Water group that this recommendation relates only to the Proposals set
out in the Solicitation Memorandum and not to any future offers or proposals which we may make
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