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© Pennon Group plc 202 6 Strategic & Financial Update 7 October 2026
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© Pennon Group plc 202 6 2 Resetting direction to drive environmental and operational outcomes Strategic review completed Supported by comprehensive funding approach Unlocking next level of growth Executive summary
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© Pennon Group plc 202 6 Strategic review completed 3 Informed by extensive deep dives and operational analysis across the Group 1 80:20 joint venture with South Staffordshire; 2 The Group has a 30% interest in water2business, a joint venture with Wessex Water • Meeting colleagues across all office locations and hosting Q&A sessions • Site visits to meet front line staff to understand our ways of working and culture • Meeting the customer call centres, including our business retail services • Regular feedback sessions with our supply chain © Pennon Group plc 202 6
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© Pennon Group plc 202 6 Lack of performance culture Great capability requiring clear direction Devolved across company and inconsistent approach Outsourced model ineffective Largest area of opportunity TOTEX not clearly linked to performance Requires integration and innovation No link to regulatory water business Lines of accountability not clear CEO review – key findings 4 Leadership People Asset Management Asset delivery South West Price Review 2024 Technology Pennon Power Organisational design Hitting the ground running, building on our strengths and targeting areas of weakness through decisive action
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© Pennon Group plc 202 6 A new plan, supported by Cost Change reopeners 1 Comprises acquisitions and organic growth (including Green Recovery, accelerated investment and transition spend); 2 Nominal prices, based on Draft Determination from Ofwat on 2026 Cost Change process Nominal RCV growth (£m) 5 2026 £230m 2 Cost Change confirmed by Ofwat; focused on asset health, resilience and improving performance £170m additional Cost Change targeted over AMP8 providing additional growth targeting asset health and regional growth pressures c.£600m of targeted investment to improve performance and support transition to AMP9 Additional >6% RCV growth from new plan Significant growth step up from new operational plan and reopener opportunity
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© Pennon Group plc 202 6 Funding plan – summary Operational reset and unlocking the growth opportunity require additional funding 6 Creating a solid funding base to unlock the next high -growth phase out to the end of AMP8 – including 3 years of Cost Change reopener Necessary investment Operational review has identified three key areas of essential spend of £1.0bn Goal of delivering the reset operational plan and the high - growth Cost Change reopener opportunity Equity raise and rebased dividend £550m Rights Issue will deliver a comprehensive funding plan to the end of AMP8, including 3 years of Cost Change reopener Rebased the FY2026/27 dividend to ~£125m as part of the comprehensive funding package 1 3 2 4 “Business as usual” debt funding Reinvesting operating cash flow Proposed divestment of Pennon Power Additional RCV growth partially funded with debt in line with our conservative gearing policy Greater share of operating cash flow retained to invest into the business and enhance performance Self-help measure to retain focus on core water business Proceeds to be deployed to reduce Group debt
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© Pennon Group plc 202 6 Balanced funding package to support leverage and credit metrics A new funding plan to support operational turnaround Driving value through growth and transformation We are taking decisive action to strengthen performance, accelerate our recovery and unlock long -term value; underpinned by a balanced financing package Improved operational performance Driving sustained ODI and compliance improvement through stronger operational delivery, asset resilience and accountability Targeted additional growth Investing to improve performance, resilience and unlock the AMP8 growth opportunity A stronger, more resilient Pennon Delivering for our customers, communities and the environment, while supporting long-term value creation 7
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© Pennon Group plc 202 6 Highly confidential and price sensitive 8© Pennon Group plc 202 6© Pennon Group plc 202 6 An operational reset 8© Pennon Group plc 202 6
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© Pennon Group plc 202 6 Operational reset will deliver improvement over the AMP Accelerate environmental performance, reducing pollution incidents and improving our natural environment Deliver a better service for customers, right first time, through simpler processes , digital enablement and improved engagement High performance culture with clear accountability to deliver on our ambitions Focus on asset health and reliability through disciplined investment, maintenance excellence and risk management Improving operational performance focusing on reliability, service and ODI targets Water Wastewater 9 Great people but lack of direction Unclear lines of accountability Performance culture reset Old systems and poor customer experience Opportunity to integrate across call centres Customer back logs linked to performance EPA 1* – weak performance WINEP delivery missed Pollution performance Asset Management devolved across company Asset Delivery model restructured Weak resilience and asset planning TOTEX not linked to performance targets Reliance on supply chain for operational delivery Missed opportunities for technology and innovation Driving sustained ODI and compliance improvement through stronger operational delivery, asset resilience and accountability Environmental programme Customer transformation Asset management and reliability People and culture Operational excellence Leading to additional investment and growth opportunity
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© Pennon Group plc 202 6 • Insourced water operational roles, asset delivery roles and reviewing longer term gains in wastewater • Investment reviewed and reprioritised against operational outcomes • Transformation programme launched across the asset base • Pollution Incident Reduction Plan in delivery with targeted enhancements planned • Integrated Control Centre and enhanced network monitoring underway • CEO / Chief Asset Officer / Chief People Officer in placeLeadership refreshed Operational control strengthened Insourcing critical roles Capital plan reprioritised Maintenance excellence launched Pollution recovery plan continuing A simpler, more accountable organisation, focused on delivery and performance Target operating model – actions already underway Immediate actions taken to strengthen accountability and accelerate operational recovery 10 Operational enabler
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© Pennon Group plc 202 6 • Enhanced operational and sensor data • Data driven control centre, planning and automated network management • Modernised Customer and Billing solution • Customer channels of choice to improve self-service • Greater integration of core technology across all company brands • Delivery of digital and AI tools across Pennon • Enhanced enterprise systems delivering better data quality and decision-making • Maintenance Excellence transformation programme • Integrating field service engineers to improve customer service and asset performance • Improved planning and scheduling of field force jobs Technology transformation Expected benefits Technology and innovation driving sustainable operational benefit over AMP8 and 9 11 Earlier intervention and improved operational performance Lower cost to serve and improved customer experience Simpler processes and lower ongoing operating cost Reduced asset failure and more effective capital allocation Lower operating cost and faster service delivery Investment area Key initiatives in this AMP Operational intelligence Real-time insight, better decisions Customer digital experience A simpler, more connected experience Integration and digitalisation One Pennon, greater efficiency Asset Health Data-led, resilient assets Field services Smarter, more efficient delivery Operational enabler
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© Pennon Group plc 202 6 People and culture – refreshed executive team • 25+ years UK water experience • Capital delivery, operations and transformation • Strong engineering background Keith Haslett – Chief Executive Officer • UK regulated utilities and water expertise • Finance, customer, digital and transformation experience • International and listed companies Laura Flowerdew – Chief Financial Officer • Extensive UK water experience • Asset management, system planning • Operational and capital delivery Ian Christie – Chief Asset Officer • 20+ years experience • Transformational change, organisation and operating model design • Enabling individuals and teams to thrive Hazel Hendley – Chief People Officer • Previously CEO of SES Water • UK utilities and service sector experience • Operations, transformation, customer service Ian Cain – Interim MD, Water Services • 25+ years UK water experience • Former Pennon Group General Counsel and Company Secretary (2018 –2022) • Enabling growth and resilience through risk management Simon Pugsley – General Counsel 12 Stronger accountability and performance -led culture People & culture
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© Pennon Group plc 202 6 Operational excellence Operational scorecard aligned throughout organisation – shared monthly Establish continual operational focus, with core expertise in- house 13 Re-establish core strategic expertise – modelling, programme delivery Focus on field force productivity linked to outcomes Insourcing critical roles – operational delivery supported by expert analytics Integrated, intelligent operational control room Focus on effective, prioritised planning and scheduling Centralised support functions – with customer -centric outcomes Commercial focus, ensuring supply chain delivery Operational excellence
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© Pennon Group plc 202 6 Bringing expertise in -house Linked with smart metering data and latest techniques Identifying leaks through data- led analysis and insight Driving targeted interventions In-sourcing our leakage teams Improved productivity For lower cost Delivering improved outcomes 14 Supported by data-led expertiseEffective, targeted teams Operational excellence Example
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© Pennon Group plc 202 6 Asset management and reliability A stronger, more integrated management function to drive delivery and long -term asset performance Asset planning Plan effectively for a resilient future Asset delivery Deliver efficiently and at pace Asset reliability Improve performance and resilience Strengthened and centralised management function New Chief Asset Officer and senior leadership 15 Strategic asset teams aligned AMP8 and PR29 planning Enhanced asset systems for improved data quality and automation New reliability leadership and capability Launching Maintenance Excellence across the asset base Improved asset data and maintenance platform, enhancing decision making New delivery leadership Insourcing of Programme / Project Managers Capital plan review and outcome reprioritisation Accelerating projects to deliver benefits earlier Asset management and reliability A stronger, simpler and more resilient Pennon Plan • Deliver • Maintain • Improve
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© Pennon Group plc 202 6 Driving operational and asset reliability Maintenance excellence – a new model 16 Defining, implementing and embedding a series of best- in-class ways of working to: • Improve asset availability and resilience • Make visible and manage asset-related risk • Aligned with developing our asset health data • Reduce asset failures • Extend asset life • Reduce Capex costs • Optimise Opex • Improve operational performance Benchmarking at scale using best- in-class expertise • Externally guided • Pennon owned Capability Time Internally -driven Group vision • Locally owned • Group sponsored • Co-created January 2027 External assessment complete Programme, Team & Governance formation April 2027 Formal Excellence plan launch Known position against best practice Areas of improvement converted to improvement plans Top down driven, aligned vision Implementing change Forming Executive Sponsorship Defining KPls & benefits Benefit tracking & realisation Asset management and reliability
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© Pennon Group plc 202 6 Environmental programme A robust plan… …delivering across our unique regions Delivering on our Pollution Incident Reduction Plan Targeted new investment to improve performance – sewer infiltration reduction Focus on treatment compliance and resilience With continued support for our innovative catchment management and biodiversity programmes Improving EPA metrics by end of AMP8 860 miles of coastline c.3,000 miles of river 54,600 km of pipe networks 157 bathing waters 653 wastewater treatment works 1,223 wastewater pumping stations Environmental programme 17
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© Pennon Group plc 202 6 Gravity sewer rehabilitation £60.7m of capital maintenance funding to enhance structural condition c.124km sewer rehabilitation targeted £1.5m of sewer condition surveys allowed – to inform scale of future investment 18 Reducing catchment flows into the sewers Targeting sewers with high density asset defects Benefits • Greater catchment resilience – supporting future growth • Storm overflow spills & duration • Compliance at our treatment works • Internal & external sewer flooding • Blockages & repeat incidents • Pollution risk Environmental programme Example
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© Pennon Group plc 202 6 Customer transformation Technology and digital initiatives to improve service, efficiency and operational delivery 19 Fusion A modern platform for our customers Empowered expertise Through better contact management Customer digital experience More choice, more insight, greater control Increased communications Informing customers of improvements in their area A simpler, more convenient experience for our customers • Modernised Customer and Billing solution • Step change in customer self -service and e -billing • Improved contact centre efficiency and reduced call volumes • Focus on training, knowledge and contact centre • Lower contact volumes from Fusion supporting improved conversations with customers • Focus on first time resolution through empowered customer teams • Step change in customer self -service and digital channels • Increase customer service efficiency through Fusion adaptation plus new AI opportunities • New AI-enabled tools using the Fusion platform • Introduction of Smart Metering data for customers and our teams • Community-led focus, to tell customers where improvements are being delivered • Digital first focus, providing timely and relevant data • Supporting customers to understand the impact on their local area Customer transformation
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© Pennon Group plc 202 6 Fusion: transforming customer service at scale One customer. One view. One platform. 20 Better for colleagues Better for customers Better for business One story • ‘Next best step’ • Confident decisions Simpler journeys • More choice • More control Earlier action • Stronger recovery • Lower risk Digital foundation for next generation of service – go-live Q3 FY27 More digital journeys, creating capacity for those needing additional support. One digital platform supports faster resolution, fewer hand-offs and increased productivity. Better information and earlier action strengthen financial performance. • Targeted 29% reduction in contact volumes • Simplify high volume journeys • Targeted 25% shift to digital channel • Increased support for priority service customers • 20% efficiency improvement enabled • Better customer data, supporting faster, more informed decisions • Increased productivity through digital self -service and automation • Faster billing • Earlier intervention through enhanced credit cycle • Improved recoverability • Lower operating costs Customer transformation
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© Pennon Group plc 202 6 Leadership Asset management & capital Insourcing & operating model Transformation & customer ODI & performance culture 30 September 2026 31 March 2027 30 September 2027 Building momentum to deliver change 21 Reprioritise capital plan Maintenance excellence – implement Maintenance excellence – assess Centralise performance reporting Business level scorecards Appoint Leakage leadership Actions complete • New leadership building momentum • CEO monthly updates with employees on performance • Leadership sessions to establish direction • Leakage strategy and delivery plan • Supply interruptions investment • Regular C-MeX performance sessions • Tracking Pollution Incident Reduction Plan Fusion Integrated Contact Centre Focus on first time resolution go-live Next steps • Integrated Control Room • Integrated Contact Centre • Cost Change enabling works Hazel Hendley Ian Christie Simon Pugsley Ian Cain Water Director appointed Customer Director appointed Leakage – insourcing of detection teams Tankering and jetting Integrated Control Room Consolidate commercial team Supply interruptions delivery plan
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© Pennon Group plc 202 6 Focusing on our operational delivery Improving performance (Illustrative ODI penalties £m)1 FY26 FY27 FY30 • £58m ODI penalty • ODIs remain broadly consistent with FY26 • Targeting at least 50% reduction in total penalty Water • Supply interruptions – driving reduction to achieve <8 minutes by 2030 • Focus on leakage – closing gap to target (rolling 3 year average) Wastewater • Changing EPA and pollution metrics creates uncertainty • Focus on continuous improvement • Targeting outperformance in sewer flooding Customer • Share learnings from Bristol • Benefit from Fusion and digital improvements • Right first time focus FY26A FY27E FY30E 221 Incurred not paid, in real prices
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© Pennon Group plc 202 6 £230m Cost Change – 2026 £170m Cost Change – remainder of AMP8 Asset health (Wastewater) Maintains and enhances wastewater assets £108m Asset health (Water) Maintains and enhances water assets £109m Growth (Wastewater) Supports sustainable growth and service delivery £13m Cyber Strengthens digital resilience and protects critical services – Cost Change allowances driving growth and performance £230m Ofwat Draft Determination supports1 £400m extra growth in RCV1 23 Additional investment supports priority operational outcomes, with regulatory recovery creating a near -term funding timing requirement Structured and disciplined asset management supporting targeted additional investment over AMP8 Cost Change 2026 regulatory update £230m Provisionally allowed at Draft Determination £217m Currently unconditional Representations Provided 24 September In-period revenue awarded, but deferred Discussions underway with Ofwat Final Determination Expected 15 December 1 Outturn prices and subject to Ofwat final determination confirmation £400m Total growth in RCV1
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© Pennon Group plc 202 6 Cost Change – securing further investment for AMP8 Nansledan New Town Boardmasters festival Fowey foreshore sewerNewquay growth scheme Unprecedented growth in area – Boardmasters festival, tourism, Duchy of Cornwall's development of 4,000 homes at Nansledan New Town £10 million 1 new funding to upscale wastewater treatment works Provides: • Greater capacity and process stability to manage seasonal and event driven peaks • Protection to sensitive coastal receiving waters Foreshore sewers located in challenging tidal environments; faster deterioration and costly to repair £11.7 million scheme in Fowey – recognition of unique challenge and high costs from tidal, access and corrosion challenges Provides: • Reduced pollution risk in highly sensitive environment • Reduced infiltration, freeing sewer capacity • Improved inspection and maintenance schemes Newquay is absolutely massive now. I mean, there's just houses as far as you could see. And if they're going to make more, they really do need investment because it's utterly unrecognisable already. South West Water customer view 24 1 Conditional on Ofwat approval
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© Pennon Group plc 202 6 Proposed divestment of Pennon Power Proposed divestment and reinvestment to support the balance sheet and operational resilience 25 1 Energise and divest four strategic sites – on track Expected benefits Proceeds to reduce Group debt Strengthen balance sheet and financial resilience Focus on core water business A more focused and resilient Pennon Opex savings ODI improvement (greenhouse gases) Operational resilience Net zero benefits Reinvestment Reinvest £25m in ‘behind the meter’ projects Proposed divestment Divest Pennon Power A stronger, simpler and more resilient Pennon Investing for customers, communities and the environment 1 Proposed divestment, subject to project completion and appropriate valuation
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© Pennon Group plc 202 6 Behind the Meter rollout 26 Brokenbury Floating solar Re-focus Pennon Power on behind the meter solar installations – low-cost, renewable electricity to operational sites Reduced non -commodity costs and Net Zero power provision Utilising vacant land, roof tops, reservoirs and adjacent third -party land opportunities Prioritising high energy operational sites Supporting delivery of Greenhouse Gas Performance regulatory commitment 2MW in construction on adjacent third- party land c.20% of site demand 1.2MW in development in Bristol c.30% of site demand £25m Capex 12-16MW Solar PV
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© Pennon Group plc 202 6 Highly confidential and price sensitive 27© Pennon Group plc 202 6© Pennon Group plc 202 6 Funding our plan 27© Pennon Group plc 202 6
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© Pennon Group plc 202 6 Updated Funding Plan 28 c.£1bn additional spend Increased operational investment and Cost Change capex funded with a sustainable mix of debt, equity and self -help measures … driving our updated funding planIncreased AMP8 funding requirement… 1 Based on forecasted outturn prices; 2 Group operating cashflows, net of interest and dividends Key changes • Cost Change and new investment driving additional RCV growth • Previously identified efficiencies to be reinvested to improve performance and support transition to AMP9 • Rebased dividend and updated cost of debt financing Key changes • Operating cashflow after impact of ODI performance • Increased debt funding supported by additional RCV growth – leverage policy unchanged • Sale of Pennon Power freeing up flexible Plc debt capacity • With the 2026 equity raise, Pennon is well funded for the rest of AMP8 £m, nominal 1 Base investment (net of efficiencies) Investment for performance Investment for compliance Cost Change 2026-2028 Investment for growth Investment for growth Equity funding 2025 Equity funding 2026 Debt funding Operating cashflows, net2
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© Pennon Group plc 202 6 Revised Funding Plan to underpin operational reset and growth 29 Key pillars of our approach Equity • £550m equity raise to support increased investment and refreshed plans • Providing at least 40% growth in RCV over AMP8 Debt & gearing • Group leverage policy and targets retained • Targets Water Business gearing within 55 -65% through AMP8 • Group gearing expected to be a few percentage points higher than the water business – unlikely to exceed c.70% • Flexible and diversified debt portfolio, with increased use of index -linked debt • Maintain investment grade credit rating Portfolio • Plan to sell Pennon Power (subject to completion of projects and valuation) • Reinvestment of efficiencies to support operational turnaround • Continued focus on cost discipline and value creation Dividend • Reduction in total Group dividend by £13m – adjusted DPS reduced by approximately 30% • Rebased DPS then targeted to grow in line with CPIH to 2030 • Maintains a progressive and sustainable dividend policy, aligned with earnings, cash generation and credit metrics Shadow RCV (£m) 0 1,000 2,000 3,000 4, 000 5,000 6,000 7,00 0 8,000 9,000 FY26 FY27 FY28 FY29 FY30 SW W SE S 7% CAGR Nominal RCV growth (£m)
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© Pennon Group plc 202 6 Rebased dividend Progressive dividend policy Supports investment, resilience & shareholder returns FY27 DPS c.18p FY27 total dividend c.£125m c.10% reduction from FY25/26 dividend to c.£125m • Adjusted DPS rebased by c.30%1 • Creates a sustainable dividend base, aligned with the refreshed plan and the proposed c.£550m Rights Issue Growth from the rebased level linked to CPIH • We expect to grow the dividend in line with long -term CPIH inflation, consistent with the regulated water sector and Pennon’s long- term approach Investing for the future Funds critical investment to improve asset health, resilience and environmental outcomes Maintaining financial resilience Supports a strong balance sheet and investment grade credit metrics Delivering for shareholders Provides a sustainable and progressive dividend aligned with additional investment for growth and long -term value creation Dividend approach A rebased, progressive dividend policy that balances investment, resilience and shareholder returns 301 Adjusted for bonus element of Rights Issue;; 2 Subject to board review, assessment and declaration 2
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© Pennon Group plc 202 6 Rights Issue 31 Terms and timetable • Total gross proceeds of c.£550m • 7 new ordinary shares for every 15 existing ordinary shares • Issue price of 250p per share, representing a 35.5% discount to the theoretical ex-rights price1 • Fully underwritten equity raise 1 The theoretical ex-rights price (TERP) is calculated for illustrative purposes only,based on the closing share price on 6 October 2026, being the last Business Day before announcement of the terms of the Rights Issue 27 October Results of Rights Issue 7 October Rights Issue announcement and IOC published 12 October Start of rights trading and shares marked ex-rights 26 October Last day for acceptance of rights
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© Pennon Group plc 202 6 2025/26 2026/27 guidance Underlying EBITDA Water Group Revenue £1,022m +£50-70m Allowed revenues Costs £511m +2-5% Inflationary increases Non-regulated business Revenue £269m +10-15% Tariff and new contract wins Costs £261m +10-15% Wholesale cost pass through Total Group Underlying EBITDA £519m +5-10% Other Group Depreciation £194m +5-10% Driven by ongoing investment programmeFinancing costs (net) £191m +10-15% Capital expenditure £644m £670- 720m Non-underlying items Costs associated with EA prosecutions and legal costs – c.£13m Impairment of investment in desalination project – c.£33m Transformation and technology costs £9 -12m Financial outlook 32
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© Pennon Group plc 202 6 Financing our growth plan A comprehensive funding plan to improve customer and environmental outcomes c.£550m equity raise supports investment, maintains financial resilience and an investment grade credit profile c.10% reduction in total dividend, with adjusted DPS of c .18p1 expected in FY27 Well positioned to unlock compelling growth opportunity ahead 331 Subject to board review, assessment and declaration
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© Pennon Group plc 202 6 Balanced funding package to support leverage and credit metrics A new funding plan to support operational turnaround Summary Improved operational performance Driving sustained ODI and compliance improvement through stronger operational delivery, asset resilience and accountability Targeted additional growth Investing to improve performance, resilience and unlock the AMP8 growth opportunity A stronger, more resilient Pennon Delivering for our customers, communities and the environment, while supporting long-term value creation 34
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© Pennon Group plc 202 6 Highly confidential and price sensitive 35© Pennon Group plc 202 6 © Pennon Group plc 202 6 Appendix 35
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© Pennon Group plc 202 6 29.3p 25.1 p c.18p c.18.6p Illustrative impact on historical financials 36 Impact on reported FY 202 5/26 per share figures • Total dividend for FY 2026/27 to be rebased to c.£125m on a DPS basis to reflect the Rights Issue • Rights Issue creates c.220 million new shares, with rebased DPS moving c.30% lower than the bonus adjusted FY 2025/26 DPS +CPIH + Combined impact on Dividend Per Share FY 2025/26 DPS Bonus adjusted 1 FY 2025/26 DPS Impact of new shares Dividend rebasing Rebased FY 2026/27 DPS2 Indicative FY 2027/28 DPS3 FY 2025/26 DPS Bonus adjusted 1 FY 2025/26 DPS 28.3p 24.3 p 29.3p 25.1 p 1 Adjusted for the bonus element of the Rights Issue, as required by IAS 33; 2 Subject to board review, assessment and declaration; 3 Illustrative only, assumes CPIH of 2.75% FY 2025/26 EPS Bonus adjusted 1 FY 2025/26 EPS (20%) (10%)
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© Pennon Group plc 202 6 Full Year 2025/26 EPS restatement 37 Metric Value Key Calculation FY26 weighted average number of shares 472m A - Shares outstanding pre Rights Issue 472m B - Share price 452p C - Market cap £2,133m D B x C Rights ratio 7 for 15 E - Shares issued from Rights Issue 220.3m F B x E Subscription price 250p G - Amount raised (gross proceeds) £551m H F x G Market cap post Rights Issue £2,684m I D + H TERP 388p J I / (B + F) Bonus factor 1.17 K C / J FY26 WAV (restated for bonus element) c.550m L A x K FY26 adjusted earnings £134m M - FY26 underlying EPS (adjusted for bonus shares) 24.3p N M / L • Reported FY26 adjusted EPS of 28.3p • IFRS standard IAS33 requires adjustment for the bonus element of the Rights Issue • Subscription price of 250p represents a discount of 35.5% to the theoretical ex-rights price Notes Bonus element methodology
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© Pennon Group plc 202 6 Disclaimer NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, INTO, WITHIN OR FROM THE UNITED STATES, NEW ZEALAND, CHINA, SINGAPORE, HONG KONG, SOUTH AFRICA, JAPAN, THE UNITED ARAB EMIRATES AND ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION. For the purposes of the following disclaimers, references to this “document” shall mean this presentation pack and shall be deemed to include references to the related speeches made by or to be made by the presenters, any questions and answers in relation thereto and any other related verbal or written communications. This document contains certain “forward-looking statements” with respect to Pennon Group’s financial condition, results of operations and business and certain of Pennon Group’s plans and objectives with respect to these matters which may constitute “forward-looking statements”. Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as “anticipate”, “aim”, “believe”, “continue”, “could”, “due”, “estimate“, “expect”, “forecast”, “goal”, “intend”, “probably”, “may”, “plan”, “project”, “seek”, “should”, “target”, “will”, “negative” and related and similar expressions, as well as statements in the future tense. By their very nature forward-looking statements are inherently unpredictable, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance and no assurance can be given that the forward- looking statements in this document will be realised. Various known and unknown risks, uncertainties and other factors could lead to substantial differences between the actual future results, financial situation, development or performance of the Group and the estimates and historical results given herein. There are a number of factors that could cause actual results, performance or achievements of Pennon Group to differ materially from any outcomes or results expressed or implied by such forward looking statements and include all risks described in the Pennon Group Annual Report published in June 2026; changes in the economics and markets in which the Group operates, changes in the regulatory and competition frameworks in which the Group operates, the impact of legal proceedings against or which affect the Group; and changes in interest and exchange rates. Forward looking statements should therefore be construed in light of such risks, uncertainties and other factors and undue reliance should not be placed on them. Nothing in this document should be construed as a profit forecast. All written or verbal forward-looking statements, made in this document or made subsequently, which are attributable to Pennon Group or any other member of the Pennon Group or persons acting on their behalf are expressly qualified in their entirety by the factors referred to above. Pennon Group may or may not update these forward-looking statements. This document is not an offer to sell, exchange or transfer any securities of Pennon Group or any of its subsidiaries and is not soliciting an offer to purchase, exchange or transfer such securities in any jurisdiction. Without prejudice to the above, whilst Pennon Group accepts liability to the extent required by the UK Listing Rules, UK MAR and the FCA Disclosure Guidance and Transparency Rules for any information contained within this document which the Company makes publicly available as required by such Rules: a) neither Pennon Group nor any other member of Pennon Group or persons acting on their behalf shall otherwise have any liability whatsoever for loss howsoever arising, directly or indirectly, from use of the information contained within this document; b) neither Pennon Group nor any other member of Pennon Group or persons acting on their behalf makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained within this document; and c) no reliance may be placed upon the information contained within this document to the extent that such information is subsequently updated by or on behalf of Pennon Group. Past performance of securities of Pennon Group cannot be relied upon as a guide to the future performance of any securities of Pennon Group. 38
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© Pennon Group plc 202 6 Disclaimer 39 This document is being provided to you solely for your information purposes, speaking as of the date hereof, and is subject to correction, update and change in its entirety, and no reliance may be placed on it for any purpose. This document is not for release, publication or distribution, directly or indirectly, in whole or in part, in or into the United States of America, its territories or possessions, any state of the United States or the District of Columbia (collectively, the "United States"), New Zealand, China, Singapore, Hong Kong, South Africa, Japan, the United Arab Emirates or any other jurisdiction where it is unlawful to distribute this document. This document is for informational purposes only and is not an offer of securities for sale in the United States. This document is not for use in the United States (other than in presentations to a limited number of "qualified institutional buyers" as defined in Rule 144A under the US Securities Act of 1933, as amended (the "US Securities Act"), and may not be retransmitted, published, released or otherwise redistributed in or into the United States by any recipient hereof. The securities referred to herein have not been and will not be registered under the US Securities Act or under the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold, directly or indirectly, in or into the United States absent registration except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the US Securities Act and in accordance with any applicable securities laws of any state or other jurisdiction of the United States. There will be no public offering of the securities referred to herein in the United States. This document is only addressed to, and directed at, persons in: (a) member states of the European Economic Area who are “qualified investors” within the meaning of Article 2(e) of the Prospectus Regulation (EU) 2017/1129; or (b) the United Kingdom who are “qualified investors” within the meaning of paragraph 15 of Schedule 1 to The Public Offers and Admissions to Trading Regulations 2024 and (i) who have professional experience in matters relating to investments who fall within the definition of “investment professional” in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”), (ii) who are high net worth companies, unincorporated associations and partnerships and trustees of high value trusts as described in Article 49(2) of the Order, or (iii) other persons to whom it may otherwise lawfully be communicated (all such persons together being referred to as “relevant persons”). Any investment or investment activity to which this communication relates is available only to and will only be engaged in with such person. This communication must not be acted on or relied on by persons who are not relevant persons. This document does not constitute a prospectus (or a prospectus equivalent document or an exempted document) and investors should not subscribe for, purchase, otherwise acquire, sell or otherwise dispose of any securities referred to in this document except on the basis of information in the offering circular to be published by the Company in due course in connection with the Rights Issue (the “Offering Circular”). Copies of the Offering Circular will, following publication, be available at https://www.pennon-group.co.uk/investor- information. Neither this document nor any part of it should form the basis of or be relied on in connection with or act as an inducement to enter into any contract or commitment whatsoever. Nothing in this document should be interpreted as a term or condition of the rights issue.