United Utilities Group Plc · LSE:UU.
United Utilities — FY2025 Earnings Presentation
35 slides from United Utilities's earnings presentation, May 2025
Slide 1: Investor Presentation
Investor Presentation May 2025
Slide 2: PR24 Final Determination
PR24 » Final Determination | ~ Q United Water for the North West Utilities
Slide 3: £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 £5.7bn 6.0 and resilience 4.0 2.0 0.0 £1.6b
Slide 4: …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 22.0 AMP6 AMP7 AMP82 Tightening 3% 5% Environment Act environmental 20.0 2021 Legislative changes standards 18.0 PFAS, microp
Slide 5: 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 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 1. FY26 DPS as announced in May 2026 calculated using November 2024 CPIH at 3.5% United Utilities • Invest
Slide 6: Improved returns
Improved returns Base returns allowance uplift in AMP8 AMP7 WACC AMP8 (CPIH) Final Determination (Dec-19) (Sep-24) Gearing 60% 55% Risk-free Rate -1.39% 1.52% Equity Beta 0.71 0.59 – 0.65 Cost of Equity 4.19% 5.10% Cost of embedded debt 2.42% 2.77% Cost of new debt 0.53% 3.74% Benchmark index adjust
Slide 7: 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 70% AMP8 well progressed 65% Over £3bn raised in FY24 & FY25 60% Strong liquidity 55% Extending into 2027 50% FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
Slide 8: 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 9: FY25 Result
FY25 Result Q United Water for the North West Utilities
Slide 10: Result highlights
Result highlights Solid financial results Strong balance sheet Dividend Top quartile 80% performance EPS Growth of c.50% 60% gearing policy reaffirmed commitments 87% colleague Incentive performance 13 consecutive years CSO activations engagement ‘Green’ on serious 24% reduction in spills per Net OD
Slide 11: Financial highlights
Financial highlights Underlying operating profit1 Underlying EPS1 Returns £634m +22% 49.6p +49% RoRE2: 6.7% FY24: FY24: RoRE3: 6.1% £518m 33.3p Capital investment DPS Gearing £1,083m +47% 51.85p +4% 60% +1% FY24: FY24: FY24: £737m 49.78p 59% 1. Underlying profit measures are reconciled to reported p
Slide 12: Financial framework
Financial framework Aim to outperform RoRE1,2 by at least 100 bps Capital Investment3 c.£9 billion across FY26-30 Asset Base Growth3,4 7% CAGR Target ratings Moody's Baa1 Dividend Policy Growing in line with CPIH Standard & Poor's BBB+ Strong Balance Sheet5 Target 55 – 65% gearing Fitch BBB+ 1. Base
Slide 13: Best in sector spills improvement
Best in sector spills improvement Average spills per overflow Rainfall significantly 70 39% reduction higher than average in average spills per 60 overflow over AMP7 50 24% reduction in spills per overflow in 2024 40 30 20,000 fewer spills 20 compared to 2023 10 0 2020 2025 2030 31% reduction in spi
Slide 14: Serious pollutions
Serious pollutions Industry-leading performance on serious pollutions1 16 14 13 12 consecutive years ‘Green’ for serious pollutions 10 8 6 4 Drone squad Investment into 2 to monitor and detect power resilience pollutions 0 UK Water and Sewage company peers United Utilities 1. 5-year average. Environ
Slide 15: Wastewater Network performance
Wastewater Network performance Number of sewer collapses per 1,000km of sewers 25 36% reduction Industry leading 20 sewer sensor capability across AMP7 15 18% reduction in sewer blockages across AMP7 10 19% reduction 5 in internal sewer flooding across AMP7 0 FY20 FY25 FY30 Actuals Target as per the
Slide 16: Water performance
Water performance Reduction in water quality contacts 15,000 29% reduction in water quality contacts over AMP7 10,000 – lowest level of water quality complaints ever 5,000 0 FY20 FY25 Lowest level of leakage Increase in find and fix rates for leakage 70% increase in find and fix rates in 2024/25 800
Slide 17: Service performance
Service performance 3rd highest C-MeX reward across AMP7 4th highest Awarded the D-MeX and ServiceMark Br-MeX with Distinction by the Institute of in 2024/25 Customer Service United United Utilities Utilities • 2024/25 • Investor fullPresentation year results • 17
Slide 18: Affordability
Affordability Bad debt charge Bad debt 4.0% charge stable 3.5% at 1.5% in FY25 £525 million affordability support package in AMP8 3.0% 2.5% 2.0% Supported c.540,000 1.5% 414,000 households 1.0% customers on our Priority 0.5% through AMP7 Services Register 0.0% affordability schemes FY15 FY16 FY17 FY
Slide 19: People
People Outperforming external benchmarks Exceeding all external benchmarks with employee engagement of UK High 87% Performance Norm 91% of colleagues are 30,000 jobs UU proud to work supported through our Engagement score for United AMP8 programme Utilities 70% 75% 80% 85% 90% United United Utilitie
Slide 20: ESG performance
ESG performance Environment • 39% reduction in spills since 2020 - with almost 20,000 fewer spills in 2024 than 2023 E • Environmental Performance Assessment Serious Pollutions– ‘Green’ every year since records began in 2011 • Peatland restoration – completed more than 3,000 hectares, surpassing our
Slide 21: Underlying operating profit
Underlying operating profit 22% increase in underlying operating profit +10% £m Revenue: £2,145m • Regulatory adjustments: £186m 800 700 (37) (31) 196 (12) 634 +6% 600 Underlying opex: £1,511m • Asset base growth: £37m 500 518 • Inflationary increases: £31m 400 • Investing in performance: £8m 300 20
Slide 22: Interest, tax and earnings
Interest, tax and earnings Underlying net finance Underlying tax Underlying profit after expense tax FY25: £284m FY25: £nil FY25: £338m FY24: £293m FY24: £7m credit FY24: £227m Inflation charge on index-linked ‘Full expensing’ to continue to Underlying EPS of 49.6p instruments of £162m (FY24: provid
Slide 23: Financial strength
Financial strength RCV1 (£bn) RCV gearing2 Responsible financing 15.4 60% Fully funded pension 14.7 FY24: 59% Not subject to unfunded costs FY24 FY25 Funding raised Liquidity Net debt (£bn) c.£1.8bn £2.8bn 9.3 AMP8 funding well progressed Sufficient liquidity into 2027 8.8 1. Includes the full expec
Slide 24: Technical guidance 2025/26
Technical guidance 2025/26 FY25 y-o-y Revenue is expected to increase to between £2.5 billion and Revenue £2,145m £2.6 billion in 2025/26 in line with the final determination, adjusted for inflation. Underlying operating costs are expected to decrease, with higher costs associated with inflation and
Slide 25: Supporting materials
Supporting materials Q United Water for the North West Utilities
Slide 26: Cunliffe review
Cunliffe review More consistent long-term direction Simplify legislative framework Revisions to the model of regulation Attracting stable, long-term investment Prioritising resilience United Utilities • Investor Presentation • 26
Slide 27: Infrastructure delivery and economic growth
Infrastructure delivery and economic growth Driving growth in our region: 120 delivery partners already in contract for AMP 8 Working with locally-based suppliers Supporting 30,000 jobs across UU and the supply chain Our plan will contribute £35 billion of economic value United Utilities • Investor
Slide 28: Tackling spills
Tackling spills Making improvements at over 1,100 sites: Creating additional storage capacity for storm water collection Enlarging wastewater treatment works with modular units to reduce spills Removing groundwater and surface water from entering the sewerage pipes Creating nature based solutions to
Slide 29: Emerging trends
Emerging trends Treating ‘forever chemicals’ in tap water DWI PFAS Guidance (ng/l) 120 DWI now require Tier 3 Immediate treatment companies to 100 >100 ng/l monitor for 47 Tier 2 Sampling named PFAS 80 <100 ng/l 60 Proposals to 40 complete two PFAS schemes 20 Tier 1 Monitoring at a cost of c.£50m <1
Slide 30: Improving our rivers
Improving our rivers Impact on river health by attributable industry (%) Plan to significantly reduce our impact Urban and 18% transport 16% 15% 14% 12% 15% 10% Other 52% Agriculture and 8% rural land 6% management 4% 18% 2% 0% Baseline 2025 2030 Water industry Notes: 1. Based on Environmental Agenc
Slide 31: Internal Sewer Flooding
Internal Sewer Flooding The impact of exceptionally severe weather on the number of sewer flooding incidents can be clearly seen in UUW's historical record, with large spikes observed in a short time frame. United Utilities • Investor Presentation • 31
Slide 32: Green Energy
Green Energy ap Q United Water for the North West Utilities
Slide 33: Greener future
Greener future Adjacent opportunity to core water business Strong track record of delivery England’s largest corporate land owner Generation Capacity1 (MW) 120 56,000 Ha 140 sites 100 of land identified for development 80 Strategic focus on Our future business 60 resilience plan will drive up our 40
Slide 34: Greener future
Greener future Clean energy strategy Our clean energy strategy… Gross clean energy additions1 ̴150MW Targeting By end of decade 50% 150MW development plan self-generation by 2030 222 by 2030 Combination of Behind the solar and meter batteries and 72 grid connected 2022 2030 …funds recycled from sale
Slide 35: 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
United Utilities Group — FY2025 Earnings Presentation on 6ix