United Utilities Group Plc · LSE:UU.
United Utilities — Investor Presentation (January 2025)
17 slides from United Utilities's investor presentation, Jan 29, 2025
Slide 1: PR24 Final Determination
PR24 Final Determination... @ United Utilities
Slide 2: Louise Beardmore, Chief Executive
Louise Beardmore Chief Executive
Slide 3: Agenda
Agenda 1 Final Determination update 2 Financial framework 3 Setting ourselves up for success United Utilities • Investor Presentation • 3
Slide 4: Improvements on all key areas of representation
Improvements on all 5 key areas of representation c.£13bn1 totex programme Totex increased by £2.4bn from draft Successfully represented for schemes to be Gated schemes moved out of gated mechanism Over 40% of targets improved3, increased risk ODIs protections and OAM2 representations accepted Impro
Slide 5: £2.4bn uplift in totex…
£2.4bn uplift in totex… Totex (real, 2022/23 FYA prices) Enhancement Key investmentsexpenditure (real) £bn Base Enhancement £0.3bn £0.2bn 14.0 Future Other 12.0 £0.3bn generations Water 10.0 quality £2.4bn 8.0 uplift £2.4bn £1.0bn Storm Resources overflows 6.0 and resilience £5.7bn 4.0 2.0 0.0 £1.6b
Slide 6: …driving uplift in asset base growth
…driving uplift in asset base growth Growth supported by regulatory and Annual growth of c.7% underpinned1 environmental drivers Nominal RCV (£bn) Historic data Forecast data AMP6 AMP7 AMP83 Tightening 22.0 3% 4-5% Environment Act environmental 2021 20.0 Legislative changes standards PFAS, microplas
Slide 7: Phil Aspin, Chief Financial Officer
Phil Aspin Chief Financial Officer
Slide 8: AMP8 financial framework
AMP8 financial framework Capital investment1 c.£8.5 billion across FY26-30 Asset base growth1,2 7% CAGR Target ratings Moody's Dividend policy Growing in line with CPIH Baa1 Standard & Poor's Strong balance sheet3,4 Target 55 – 65% gearing BBB+ Fitch BBB+ 1. Nominal, based on OBR long-run CPIH forec
Slide 9: Stable long-term funding policies
Stable long-term funding policies Strong balance sheet Established RCV gearing target range of 55-65%2 60% RCV gearing1 65% 60% AMP8 funding underway 55% Over £2.6bn raised in FY24 & FY25 50% 45% Strong liquidity 40% FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Extendin
Slide 10: Dividend growing in line with CPIH inflation
Dividend growing in line with CPIH inflation Progressive inflation-linked dividend DPS (pence) 50 40 30 20 10 - 1 2 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 1. FY25 DPS as announced in November 2024 2. FY26 DPS calculated using November 2024 CPIH at 3.5% United
Slide 11: James Bullock, Regulation and Compliance Director
James Bullock Regulation and Compliance Director
Slide 12: AMP8 outcomes package
AMP8 outcomes package Enhanced calibration of ODIs1 91% of targets have Over 40% of targets improved 2 16 changes to incentive rates downside risk protections3 2 bespoke 22 common performance 2 company specific targets performance commitments agreed commitments Improvements to ODIs1 Company specific
Slide 13: Consistent top quartile delivery
Consistent top quartile delivery Strong track record of outperformance Performance commitments achieved (%)1 90% UUW WaSC average Performance commitments 80% 70% Consistently achieved c.80% 60% 50% 40% Customer experience 30% 20% Performed well 10% across all measures 0% 2020/21 2021/22 2022/23 2023
Slide 14: Maintaining affordable bills
Maintaining affordable bills Real 2029/30 bill (£) 680 660 640 620 600 580 560 540 520 500 WaSC 1 WaSC 2 UUW WaSC 3 WaSC 4 WaSC 5 WaSC 6 WaSC 7 WaSC 8 Third lowest bill in England at the end of AMP8 £525m sector leading affordability package 1 in 6 households supported with their bill by 2030 United
Slide 15: Summary
Summary Final Determination No recourse to equity 7% growth underpinned Accepted Capex more than Dividend growing in line Well positioned to doubled vs AMP7 with inflation deliver United Utilities • Investor Presentation • 15
Slide 16: Capital Markets Day 19th June 2025
Capital Markets Day 19th June 2025 Jane Simpson James Bullock Mike Gauterin Louise Beardmore Phil Aspin Matt Hemmings Adrienne McFarland Commercial, Engineering Regulation and Compliance Customer and Technology Chief Executive Chief Financial Officer Chief Operating Officer People Director and Capit
Slide 17: Cautionary statement
Cautionary statement This presentation contains certain forward-looking statements with respect to the operations, performance and financial condition of the group. By their nature, these statements involve uncertainty since future events and circumstances can cause results and developments to diffe
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