How American Water Grows Earnings

AMERICAN WATER Why Invest in American Water? • • • • Clear, Transparent Story into the Future Decades of investment needed Line of sight to $8-$8.6 billion of 5 year capex Fragmented national water and wastewater landscape Capital-light MBBS leverage core competencies, increase customer experience, and generate cash • • Demonstrated Execution of Strategy Five year Total Shareholder Return (2013-2018) of 140% Long-term growth expected in top half of 7-10%* target EPS CAGR guidance through 2023 2018 adjusted EPS near 9% growth • "A" S&P credit rating reduces our cost of capital • • 23% improvement in O&M efficiency ratio since 2010 Focus on capital efficiency . • Low Risk, Regulated Water Utility Multi-decade infrastructure investment; with a fragmented market acquisitions adding to capital needs Hundreds of water projects per year reducing risk of large scale single projects • Multiple state regulatory jurisdictions reduce both weather and regulatory risks • Industry specific fair market value legislation • Water Quality legislation becoming a focus . Regulatory mechanisms support infrastructure investment • Predominantly Regulated risk profile representing 85% by 2023 Commitment to Shareholders Five year dividend growth (2013-2018) CAGR of 10% 2019-2023 Dividend Growth at high end of 7-10%* EPS growth CAGR A leading Environmental, Social Responsibility and Governance investment ESG • • Keeping employees safe and injury-free, and developing each person to his or her fullest potential Being a leader in environmental sustainability, caring for the planet, and leading the nation in outstanding water safety and quality Delivering the personalized customer service with empathy and care Making communities better because we're there; and being transparent, accessible and well-governed for our shareholders and investors Anchored off of 2017 Adjusted EPS (a non-GAAP measure) - See appendix for reconciliation 5

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