Investor Presentaiton

Disciplined Focus on Expenses 46.1% 41.0% Regulated O&M Efficiency Ratio** 39.1% 36.6% 35.6% 35.2% 34.3% 2024 O&M Efficiency Target of 31.3%* Adjusted O&M Expenses from 2010-LTM 2020 increased only 0.8% CAGR** 2010 2012 2014 2016 2018 LTM 6/30/2019 LTM 6/30/2020 AMERICAN WATER Added 281,000*** customer connections since 2010 A reconciliation to a most comparable forward-looking GAAP measure is not available without unreasonable effort ** 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. Also, 2010-2016 adjusted for TCJA *** Includes organic customer connections & closed dispositions and acquisitions 14

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