Trading Statement

Pennon Group announces the following trading update for the year ending 31 March 2025 ahead of announcing the full year results on 3 June 2025.

Key highlights

• Financial performance for the full year 2024/25 remains in line with management expectations

o As anticipated,

§ EBITDA broadly flat H1 to H2 2024/25, with lower customer demand and inflationary cost pressures, offset by our reshaping and restructuring programme

§ Capital expenditure comparable with the H1 2024/25 run rate, reflects transitional expenditure and finalisation of K7.

• Non-underlying costs for our reshaping and transformation programmes and the finalisation of costs relating to the Brixham water supply incident of c.£36m.
• Continuing to deliver against our four priorities:

o Over £1bn of investment programmes for K8 (2025-2030) underway

o Strong water resources position at over 90% with industry leading water quality expected

o One of only five companies in the industry to reduce storm overflow releases year on year, with bathing beach releases during the bathing season down by 21% since 2020

o Targeted to retain EPA[1] 2* status for 2024/25

o New package of c.£200m customer affordability support unlocked from 2025/26.

• Following announced acceptance of Ofwat's Final Determination for South West Water and Sutton and East Surrey Water, well placed for funding record investment programme having raised c.£1.3bn in 2024/25 via rights issue, public bonds, private placements and other opportunities.