How American Water Grows Earnings

"AMERICAN WATER Our Strategy Continues to Drive Growth 2019-2023 Plan 7-10%* EPS CAGR top half of range Market Based Businesses 1-2% Regulated Acquisitions 1-2% Regulated Investment CAPEX 5-7% Grow EPS long-term CAGR at top half of 7-10%* through 2023... One of the fastest growing utilities in the nation Invest $8.0-8.6 billion in capital investment... 2019 Capital Plan of $1.8 – $1.9 billion continued focus on customer affordability ... Rate growth CAGR of 7-8% through 2023 Continuing to improve O&M and Capital efficiency... through technology, supply chain, and cost management Grow dividends at high end of 7-10%* EPS range**... Top quartile utility dividend growth ... Payout ratio between 50-60% of earnings No equity needed under current plan... *Anchored off of 2017 Adjusted EPS (a non-GAAP measure) - See appendix for reconciliation **Subject to board approval 6

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