United Utilities : Downlad our 2023/24 Full Year Results Presentation

Full year results

Year ended 31 March 2024

Thursday 16 May 2024

Louise Beardmore

Chief Executive

Overview

Performing well

operationally and

financially

Financial strength and

flexibility

Submitted ambitious

plan for AMP8

Strong track record

of delivering for

stakeholders

Continue to support

customers through

affordability packages

Already delivering for

AMP8

United Utilities • 2023/24 full year results • 3

Timeline

2 October 2023

Business plan submission

	August	Early
	2025
	2024
	UUG dividend policy
	UU response to DD
	announcement
12 June	Ongoing	December	April
2024	dialogue	2024	2025
Draft	with	Final	Start of
determinations
determinations	regulators	AMP8

United Utilities • 2023/24 full year results • 4

Highlights from our October business plan

Environmental

investment -

seven-fold increase

Strong balance sheet

A3/A- credit rating

Improving water

quality for

1.4m customers

60%

reduction

in storm overflow activations

in the decade to 2030

c.£22

average real increase in household bills, each year (2022/23 prices)

Job creation -

plan supports 30,000 jobs

32%

reduction in internal sewer flooding

£525m

affordability support -

>1 in 6 customers

74%

customer acceptability

United Utilities • 2023/24 full year results • 5

Totex phasing and engineering solutions

Plan scope discussions ongoing with EA, Ofwat and Defra

		PR24 Totex (£bn, real)
£13.7bn	37%	13.7
totex plan	real RCV growth
(2022/23 prices)
6.5% real CAGR
	8.7% nominal CAGR

12.7

Adaptive Planning scenario

£12.7bn (real)

Business Plan Submission

Adaptive Planning Scenario

United Utilities • 2023/24 full year results • 6

Long-term investment drivers

AMP8 is the start of a 25yr growth programme

Environment Act

2021

Legislative changes

Tightening

environmental

standards

PFAS1, microplastics

Replacement

Renewing our infrastructure

25 Year

Plan

Resource adequacy

Investing in long-term resource management

Climate change

adaptation

Building resilience

Net Zero

Addressing

process emissions

1 Per- and polyfluoroalkyl substances

United Utilities • 2023/24 full year results • 7

Setting up for success

Where are we now?

AMP7 capital delivery on track

Delivered 100% of our Year 4 environmental deliverables

Where are we going?

AMP8 capital supply chain partners

(c.70), first contracts awarded

Accelerating c.£400m1 from AMP8 into

AMP7

1 c.£200m on our CSO programme as part of June 2023 Accelerated Infrastructure Delivery Project

and c.£200m of transitional investment	United Utilities • 2023/24 full year results • 8

Accelerated CSO investment

All Windermere

solutions in construction

this year

Issue identified and accelerated solution implemented in just

14 weeks

Cargo WwTW

Top spilling site in 2022:

343 spills

>90% reduction

in spills since

implementation of accelerated solution

United Utilities • 2023/24 full year results • 9

Improving our rivers

Impact on river health by attributable industry (%)

Plan to significantly reduce our impact

Urban and

transport

15%

Other 15%

52% Agriculture and

rural land

management

18%

Water industry

Notes:

1. Based on Environmental Agency data updated with United Utilities forecasts
2. Reasons for not achieving good ecological status (RNAGs) in the North West
3. Percentages reflect RNAGs that can be attributed specifically to sectors

18%

16%

14%

12%

10%

8%

6%

4%

2%

0%

Baseline

2025

2030

United Utilities • 2023/24 full year results • 10