Results of Rights Issue

Pennon Group plc (the "Company") announces that the 13 for 20 Rights Issue of 185,928,002 New Ordinary Shares at 264 pence per New Ordinary Share announced on 29 January 2025 has closed for acceptances. The Company received valid acceptances in respect of 172,143,766 New Ordinary Shares, representing approximately 92.586 per cent. of the total number of New Ordinary Shares to be issued pursuant to the fully underwritten Rights Issue.

It is expected that the New Ordinary Shares will commence trading, fully paid, on the London Stock Exchange plc's main market for listed securities at 8:00 a.m. today.

It is expected that the New Ordinary Shares in uncertificated form will be credited to CREST accounts as soon as possible after 8:00 a.m. today, that definitive share certificates in respect of the New Ordinary Shares held in certificated form will be despatched no later than 4 March 2025, and that the online accounts for Shareholders who hold their New Ordinary Shares through the WaterShare+ Nominee and the Corporate Sponsored Nominee will be credited no later than 4 March 2025.

In accordance with their obligations as underwriters in respect of the Rights Issue as set out in the prospectus dated 29 January 2025 (the "Prospectus"), Barclays Bank PLC and Morgan Stanley & Co. International plc (together, the "Underwriters") will use reasonable endeavours to procure subscribers for the remaining 13,729,631 New Ordinary Shares not taken up by Qualifying Shareholders at the Rights Issue Price, failing which the Underwriters have agreed to subscribe themselves (in the agreed proportions), on a several basis, for any remaining New Ordinary Shares at the Rights Issue Price.

In addition to the New Ordinary Shares not taken up at the Rights Issue Price, the Underwriters will also place 54,605 New Ordinary Shares resulting from the aggregation of fractional entitlements of New Ordinary Shares following the Right Issue. Holdings of Existing Ordinary Shares in certificated and uncertificated form, holdings of Existing Ordinary Shares through the Corporate Sponsored Nominee and holdings of Existing Ordinary Shares through the WaterShare+ Nominee, are each to be treated as separate holdings for the purpose of calculating entitlements under the Rights Issue.

The net proceeds from the placing of such New Ordinary Shares (after the deduction of the Rights Issue Price of 264 pence per New Ordinary Share and the expenses of procuring subscribers, including any applicable brokerage fees and commissions and amounts in respect of related irrecoverable VAT) will be paid (without interest) to those Shareholders whose rights have lapsed in accordance with the terms of the Rights Issue, pro rata to their lapsed provisional allotments, save that individual amounts of less than £5.00 will not be paid to such persons but will be paid to the Company and will become part of the WaterShare+ Proceeds.

Unless the context requires otherwise, capitalised terms used but not otherwise defined in this announcement shall have the meanings set out in the Prospectus, which is available on the Company's website at: www.pennon-group.co.uk/investor-information.

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INFORMATION TO DISTRIBUTORS