American Water Works Company, Inc. · NYSE:AWK
American Water Works — Merger or Acquisition (October 2025)
16 slides from American Water Works's merger presentation, Oct 27, 2025
Slide 1: American Water & Essential Utilities Merger
American Water & Essential Utilities Merger Uniting Two of the Nation’s Premier Water Utilities to Deliver Improved Scale and Long-Term Value OCTOBER 27, 2025
Slide 2: Forward Looking Statements Disclosure
Forward Looking Statements Disclosure Cautionary Statement Regarding Forward-Looking Statements Certain statements included in this communication are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of
Slide 3: Today's Participants
Today’s Participants John Griffith David Bowler Cheryl Norton Christopher Franklin Daniel Schuller President & Chief Executive Vice Executive Vice Chairman & Chief Executive Vice President Executive Officer President & Chief President & Chief Executive Officer & Chief Financial Officer Financial Off
Slide 4: Agenda
Agenda Transaction Overview Strategic Rationale Combined Business Profile Growth Outlook Credit Profile Regulatory Approvals & Timeline Key Takeaways 4
Slide 5: Uniting the Two Leading U.S. Water and Wastewater Utilities
Uniting the Two Leading U.S. Water and Wastewater Utilities Deal Tax-Free, All-Stock Merger Leadership John Griffith, President & Chief Executive Officer Structure David Bowler, Executive Vice President & Chief $40B Market Cap1 Financial Officer $63B Enterprise Value1 Cheryl Norton, Executive Vice P
Slide 6: Shared Mission of Safely Delivering Reliable and Affordable Utility Services
Shared Mission of Safely Delivering Reliable AMERICAN WATER and Affordable Utility Services SERVING CUSTOMERS ACROSS 14 R E G U L A T E D S T A T E S U.S. CONNECTIONS 3.5M 1.9M2 IA PA OH NJ IL IN MD CA WV MO $22.1B $11.5B3 KY VA 2 0 2 4 A R AT E B A S E 1 TN NC GA TX HI W AT E R & W A S T E W AT E R
Slide 7: Combining Two Complementary Platforms to Expand Market Reach and Unlock Efficiencies, Best Practices
Combining Two Complementary Platforms to Expand Market Reach and Unlock Efficiencies, Best Practices Together, the businesses will continue to set the best-in-class standards for water quality, customer experience, and infrastructure replacement and renewal Best-in-Class Water Premier Partner-of-Cho
Slide 8: Compelling Long-Term Growth Outlook in Premier Asset Class
Compelling Long-Term Growth Outlook in Premier Asset Class AMERICAN WATER + ESSENTIAL Other Long-Term Targets and AMERICAN WATER 7% - 9% Long-Term EPS CAGR Target Drivers of Sustainable Shareholder Returns 7% - 9% RATE BASE GROWTH Long-Term EPS CAGR Target 8% - 9% (includes acquisitions) ~100% Regul
Slide 9: Highly Attractive Footprint with Scale and Scope for Growth
Highly Attractive Footprint with Scale and Scope for Growth Top 12 States by Combined 2024A Water & Wastewater Rate Base AMERICAN WATER + ESSENTIAL PA MO IL IN CA $34B 1 $41B 2 NJ 2024A Rate Base 2026E Rate Base $10.4B $5.3B $3.2B $3.0B $1.8B $1.2B $40B 3 Market Capitalization TX KY OH VA NC WV 5.4M
Slide 10: Diversified Regulated Portfolio Across 17 States
Diversified Regulated Portfolio Across 17 States Footprint by State1 COMBINED RATE BASE2 Water & Wastewater Total 4 Other 3 Other NC, 1% 2% NC 1% 2% VA, 2% VA 2% WA OH, 2% PA OH 2% PA KY, 2% 35% TX, 2% 43% TX, 2% KY, 2% WV, 3% WV, 3% NY CA, 4% $29.3B5 CA, 4% $33.6B6 IN IN, 5% 6% IL IA PA NJ NJ OH IL
Slide 11: Delivers Expansive Benefits to Key Stakeholders
Delivers Expansive Benefits to Key Stakeholders Continuing superior customer Increased career growth service at affordable rates opportunity for employees • Combined infrastructure and • Strengthens position as a top employer operational efficiencies of choice; Recognized on the Forbes • Maintain fo
Slide 12: Capital Investments to Drive Rate Base Growth
Capital Investments to Drive Rate Base Growth COMBINED RATE BASE 5-YEAR COMBINED CAPITAL INVESTMENT PLAN American Water American Water Essential Utilities Essential Utilities • The combined company’s 2024 – 2029E CAGR: 8% - 9% enhanced scale will support 31% $53 continued investment in critical infr
Slide 13: Delivering Top Quartile Total Shareholder Return
Delivering Top Quartile Total Shareholder Return Pro Forma EPS and Dividend Outlook Highly Durable, Low Risk Capital Investment Plan • Transaction EPS accretive in first year after transaction close • Decades of pipe replacement needed in aging water systems • Expect to maintain American Water’s 7%
Slide 14: Continuing Commitment to a Strong Balance Sheet & Credit Ratings
Continuing Commitment to a Strong Balance Sheet & Credit Ratings The combination creates a stronger, more resilient utility with improved credit quality, balanced capital structure, and stable cash flow to support long-term growth and reliable service Credit Strength and Benefits S&P / MOODY’S RATIN
Slide 15: Path to Close
Path to Close Approvals and Timeline Q4 2025 – Q1 2026 Q1 2026 Q3 2026 – Q1 2027 Q1 2027 File Regulatory Special Shareholder Obtain Regulatory Approvals Transaction Close Applications Meetings Approvals from state regulators include PA, Transaction expected to close by end of Required approvals incl
Slide 16: Key Takeaways
Key Takeaways Merger Unlocks Compelling Growth and Value Potential for Both Companies Results in a Leading U.S. Presents Inorganic & Organic Water & Wastewater Utility Growth Opportunities Solidifies position as a premier public water & Retains American Water’s 7% - 9% long- wastewater utility with
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