An Equity Perspective Paul Malan Global Markets 21 January 2004

Global Markets 2 Discussion Points 1UK Water Characteristics 2Financing of Growth 3UK Water in an International Context

Global Markets 3 1. UK Water Characteristics Asset Returns and Purchase Prices as a % of Asset Value Sources: Ofwat publications, brokers reports, press releases, company releases and estimates.

Global Markets 4 2. Financing of Growth Selected Parameters relating to UK Water Growth (£ billion) Sources: Ofwat publications, company reports press releases and estimates.

Global Markets 5 3. UK Water in an International Context Indicative Purchase Prices as a % of Asset Value Sources: Brokers reports, company releases, press releases and estimates.

Global Markets 6 Conclusion Tensions facing UK water suggest favourable outlook Ongoing support required for a range of sources of finance Attractive in an international context

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