Credit Investor Presentation

Regulated revenue Impact of inflation Short-term timing differences - for 2020/21 year end Dividends Regulatory capital value (RCV) Index-linked debt4 Price limits are based on the movement in CPIH³ inflation between November 2018 and November 2019 (i.e. 1.5%) Dividends are linked to the same inflation as regulated revenue in order to mirror the inflationary uplift in price limits Opening RCV is inflated by the movement in inflation between March 2020 and March 2021, 50% linked to RPI1 inflation and 50% linked to CPIH³ inflation Plus RCV additions (from totex) during the year, gives 31 March 2021 RCV (which is used for year-end gearing calculation) RPI 3 month lag: Adjustment to principal is based on the movement in RPI¹ inflation between January 2020 and January 2021 RPI 8 month lag: Adjustment to principal is based on the movement in RPI¹ inflation between July 2019 and July 2020 CPI 3 month lag: Adjustment to principal is based on the movement in CP12 inflation between January 2020 and January 2021 1 Retail Prices Index (RPI) 2 Consumer Price Index (CPI) 3 Consumer Price Index adjusted for Housing (CPIH) 4 Indexation of principal is calculated based on monthly movements in RPI / CPI United Utilities • Credit Investor presentation • 51

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