1. = © Cranleigh. Page 1 FUTURE DELIVERY MODEL OF WATER SERVICES

2. = © Cranleigh. Page 2 Enhanced Shared Services Water Activities Strategy & Planning Activities - Asset Planning - Growth Planning - Demand Mgmt - Development Engineering - AMPs - Compliance & Consenting - Statutory Planning - Resilience Planning Projects Activities - Project Delivery - Project Management - Renewals Operations Activities - Network Ops - Plant Ops - Maintenance & Planning - Laboratory -Trade waste Stakeholder Management Activities - Comms - Customer Services -Iwi Engagement -Water Education Corporate Services Activities: - Finance -IT -Procurement -HR -Heath & Safety -Risk Mgmt -Business Improvement -Sustainability Existing Shared Services Enhanced Shared Services

3. = © Cranleigh. Page 3 CCO Option

4. = © Cranleigh. Page 4 CCO Option Governance  Shareholder councils appoint representatives to a water CCO establishment committee  Committee will be responsible for: o Appointing the CCO directors and monitoring their performance o Approving the CCO Statement of Intent (formally endorsed by Councils) o Monitoring the CCO performance o Approving water tariffs  2 Committee Members per Council  Committee voting will be on the following basis: o Ordinary business – 1 member 1 vote o Major decisions – voting in proportion to shareholding with 75% majority required

5. = © Cranleigh. Page 5 Savings by Type – CCO (3 Councils Combined) Total Savings $468m (Years 1 - 28)

6. = © Cranleigh. Page 6 Savings by Recipient – CCO (3 Councils Combined)

7. = © Cranleigh. Page 7 Savings by Council – CCO Total Savings $107m (Years 1 - 10) Total Savings $468m (Years 1 - 28)

8. = © Cranleigh. Page 8 Indicative Waipa Savings Years 1-10 28 Years WAIPACCO ESS CCO ESS SUMMARY OF SAVINGSBasePositive BasePositive $m Opex5.49.03.7 38.553.612.1 Capex10.116.53.0 19.530.47.4 Debt Optimisation11.28.70.0 22.727.60.0 Total Savings26.734.26.1 80.8111.619.5

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11. = © Cranleigh. Page 11 Source: NZ Average Household Income June 2014, Statistics NZ

12. = © Cranleigh. Page 12 Status Quo cost calculated for customer using 250 m3 of drinking water p.a. including both fixed and volume metric charges. Does not include wastewater or stormwater charges.

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15. = © Cranleigh. Page 15 $200,000 p.a. raising with inflation

16. = © Cranleigh. Page 16 Council Impacts – Non Financial  Resourcing  Risks & Opportunities  Resource Consent  Planning

17. = © Cranleigh. Page 17