Right. Good morning, thanks, Chris.

Look, good morning, everybody, and thank you for joining Phil and I to talk through our FY26 results and details of the additional AMP8 growth submission and equity raise that we have launched this morning. I'm really keen to talk through our results and to share more about the exciting plans that we've submitted to Ofwat today.

As we move through the deck, you will hear three key messages. Number one: We've made a really great start to AMP8, and we are delivering on the things that matter most to our customers, our communities, and the environment.

We've delivered a strong set of financial results with a 7.5% asset growth, coupled with a 42% increase in underlying EPS. We're delivering improved environmental and operational performance, and our supply chain is mobilized, and our delivery pathways are well-established.

Number two: Our supportive regulatory backdrop and the new approach to incremental investment provides the opportunity for rolling submissions. This has enabled us to announce investment plans of £1.4 billion as part of Ofwat's 2026 re-opener process, representing the first phase of our incremental investment program.

With this investment, we're focused on providing the water infrastructure for thousands of new homes, powering data centers, enabling clean energy, and strengthening the resilience of our infrastructure. Due to this, we have added an additional circa £2.5 billion to our capex guidance, the balance of which is expected via future re-openers as we continue to invest further in the North West through the AMP.

Incremental capex is to be fully funded with an £800 million equity placement that we have launched this morning, of which £400 million is a cornerstone investment from Atlas with the Future Fund. Lastly, I'm pleased to announce our upgraded financial framework.

Our asset base is growing to £25 billion by 2030, equating to a compound growth rate of around 10%. This growth is fully funded, and we're now guiding to regulatory return of 10% to 11% across AMP8, which is an increase of 100 basis points.

Let's start with year one performance. Look, I'm not going to cover everything that's on this slide, but I'm really keen to pull out a few key highlights.

While the UK experienced a relatively dry year, the North West still saw average rainfall. Despite this, our spill performance improved despite that above-average rainfall, and with activations falling 23% and duration falling 27% versus the prior year.

The focus on pollution incidents remain, but importantly, we've recorded no category one pollutions, the most serious form of pollution. We've seen an 80% year-on-year improvement in our performance measures, and this year, we fixed more leaks than we've ever done before.

We replaced over 150 [thou-?] kilometers of mains, more than in the previous five years combined, supporting long-term leakage reduction and fewer supply interruptions.

Our in-year leakage performance is the best the North West has ever seen, but despite this progress, we do expect to miss our regulatory three-year rolling average target for FY26 because that reflects the impact of prior years and the time it then takes for the rolling methodology to capture this year's really good improvements. Our in-year ODI penalty of £35 million is in line with management expectations for the year one, and we're confident in delivering net rewards across the AMP8 period.

Delivering a high-quality service every time for customers is really important, and it's central to building trust. We've got a Trustpilot score of 4.5, which is excellent, and we remain above median and in reward position across all regulatory customer service measures.

With bills rising this year, we have focused on robust credit control, and our bad debt charge is in line with expectations at 1.8%. With the size and scale of our capital program, health and safety remains our top priority.

Our lost time injury rate has reduced by 30% during the year, reflecting strong, continuous improvement. Engaged, committed colleagues are central to our success, and we're really proud to report an outstanding 90% engagement score, well above global and UK high-performance benchmarks.

Our strong culture is also reflected in our Glassdoor rating of 4.6 out of 5. The strength of our brand as an employer is really critical to ensure that we retain and that we attract the very best talent we need to deliver our ambitious plans.

Lastly, on financial performance, we've delivered a 42% uplift on underlying EPS compared to the prior year, coming in at 107.1 pence. We're making real strides on our capex delivery, with spend in line with expectations of £1.5 billion.

We've delivered asset base growth of 7.5% and a regulatory return of 13%. Our balance sheet remains strong, with gearing at 60% and a final dividend of 35.78 pence per share.

Look, let's move on to the capital program. As we've transitioned into AMP8, we've made a great start managing the ramp-up in the capital investment.

We've successfully recruited over 1,300 new colleagues to join United Utilities, whilst at the same time onboarding over 100 suppliers that's helped us deliver our ambitious AMP8 program. The scale-up of our activity, which you can see demonstrated here on the graph on the left-hand side, hasn't impacted the quality of our outputs.

Our effective and efficient delivery of the capital program has enabled us to achieve our year one regulatory outcomes, and our spend is in line with profile. As the pie chart shows on the right-hand side, AMP8 is scaling up, with projects progressing through the delivery cycle.

Our award-winning approach to standardization, Project Blueprint, is playing a really vital role in the key stages of project delivery. The methodology and focus is keeping us within cost and quality allowances while accelerating delivery for customers and our communities.

By standardizing these designs and bulk purchasing materials and embedding more efficient maintenance regimes, we're cutting cost and time across multiple projects. This approach allows us to identify repeatable solutions, streamline design, and secure critical components early.

Government policy and regulation is now underpinning a multi-decade of growth. The opportunities as we see with tightening environmental standards, a need for greater asset replacement, coupled with new housing and industrial growth targets focused here in the North West, a region that has some of the strongest growth of anywhere in the UK.

The recommendations from the Cunliffe review provide the conditions for a new direction for water, resetting regulation with a single integrated regulator, and the need for balanced risk and reward. Today, we submitted to Ofwat our proposals for additional investment to support growth in housing, the new green economy here in the North West, coupled with proactive asset replacement.

The new regulatory landscape I just outlined is evidenced by Ofwat's new approach to in-period adjustments. This new and much-welcomed change allows us to now address new and emerging requirements that have been established since our PR24 determination in a way that is more agile, enabling us to respond to national and regional growth requirements whilst also supporting a more sustained capital delivery profile, as demonstrated in the chart.

The additional capex that is proposed for AMP8 enables us to maintain and strengthen the supply chain and support economic growth as we transition into AMP9, and the delivery of a sizable future investment program that will be supported by this retained and deployed supply chain capacity. The £1.4 billion program submitted today sets out how we will deliver the vital infrastructure required for thousands of new homes across the North West region, unlock capacity for data center expansion, and facilitate decarbonization.

We've also outlined investment in our gated delivery schemes to drive improvements at Lake Windermere, as well as investments in our assets to strengthen the resilience and reliability of our networks, treatment works, and services. Beyond this, there are additional regulatory windows in 2027 and 2028, and to propose further investment to support asset health and regional growth, alongside other targeted areas specified in the AMP8 determination.

Taken together with the prospect of additional investment in the final years of the AMP, we expect this to lead to circa £1.2 billion incremental investment in AMP8. Subject to approvals, in total, this would deliver an additional £2.5 billion of capital investment on top of the current AMP8 program previously announced.

That supports a circa 10% compound growth in the asset base between 2025 and 2030. The growth will be facilitated by an equity placement of £800 million that has been launched today.

We expect to remain within our gearing target of 55% to 65% throughout AMP8. The visual shows the communicated timeline for decisions and also dates for future in-period submissions.

We expect a draft decision in August for the submission we have made today and the final decision during December. Our focus has been ensuring we have a high-quality submission that reflects the categories and investment areas that Ofwat has identified and expects to see.

We're really encouraged to see the changes to in-period adjustments that Ofwat has embraced and the signal that this sends about the changing landscape ahead. This will help us to deliver with pace and flexibility the infrastructure that's needed to support the rate of growth that we're seeing here in the North West.

I'm now going to hand over to Phil.

Thanks, Lou, and good morning, everyone. Now turning to the FY26 financial highlights.

At the headline level, underlying EPS was up 42% on the prior year, coming in at 107.1 pence. This was driven by rising tariffs, resulting in 20% revenue growth, partly offset by rising costs, which I'll come to in a moment.

We're making real strides on our capital program, and our capex stepped up around half a billion this year, with the same increment coming through to take us up to two the £2 billion mark for FY27. Lastly and importantly, our dividend continues to grow in line with inflation.

Next, turning to the underlying profit bridge. Underlying operating profit was up £274 million, in line with expectations.

Underlying revenue increased by £431 million, reflecting the PR24 final determination. Consistent with the typical regulatory approach to setting prices, there's a big step-up in allowed revenues in the first year of the AMP, which, with increases in revenue allowances over subsequent years, expected to be lower.

This is partly offset by a £40 million adjustment relating to diversions activity to accommodate the now-aborted northern leg of HS2. As I mentioned earlier, operating costs were up year-on-year, primarily due to three factors: expenditure associated with the expansionary impact of the AMP totex program; inflationary pressures impacting the cost base, and specifically employee costs, rates, and regulatory fees; and the other costs, including both a step-up in contributions to Ofwat's Innovation Fund and the impact of dry weather last summer.

We continue to maintain financial discipline, with balance sheet gearing at 60%, benefiting from near-term inflation. Our capital investment program is progressing well, resulting in the RCV growing to £16.5 billion, a 7.5% increase year-on-year, with net debt at £9.9 billion at March 2026.

In the year, we raised around £1.5 billion in term funding, outperforming the Ofwat debt indexation mechanism by around 80 basis points and locking in sustained benefit across all five years of the AMP8 period. This funding, together with renewal of committed bank facilities, extends our liquidity profile to the second half of FY28.

In the first year of this new regulatory period, our regulatory return strengthened to 13%, supported by near-term inflation. Financing performance continues to be a robust underpin to our return on regulatory equity, or RORE, while we also benefit from both a gearing impact, given the notional company's gearing of 55%, and the higher level of near-term inflation when calculating the nominal regulatory return on the actual capital structure.

Now turning to look ahead, I'm pleased to set out here our near-term technical guidance. Underlying revenue next year is expected to be between £2.7 and £2.8 billion, with underlying operating costs increasing by around £100 million, in line with the regulatory allowance.

We continue to benefit from our disciplined and prudent energy hedging. Our hedging levels remain above policy minimums, reflecting proactive execution during the benign market conditions, which means we're fully hedged for summer '26 and over 90% hedged for winter '26-'27.

Depreciation will be up by £50 to £60 million, reflecting the continued asset base growth, while underlying finance expense will be lower, and underlying tax is expected to be negligible due to full expensing. As I've already mentioned, capex will step up again significantly to around £2 billion next year, resulting in asset base growth of around 10%.

ODIs are expected to improve markedly, resulting in a lower net penalty. We remain on track for a cumulative reward over the AMP.

Lastly, our total dividend for next year is expected to be 55.54 pence per share. Complementing our near-term technical guidance, we have our medium-term financial framework.

I'm pleased to be able to upgrade our financial framework today, reflecting both the revised outlook for capital investment and the associated £800 million capital raise also announced today. Key aspects of the upgrade for the AMP8 financial framework are: regulatory returns expected to be in the range of 10% to 11%, an increase of 100 basis points in the level of outperformance; AMP8 capital investment is now expected to be around £11.5 billion, an increase of £2.5 billion, and that results in an RCV annualized growth over AMP8 accelerating to around 10%, an increase of 3% in the compound annual growth rate.

Thanks, and I'll now pass back to Lou to take questions.

That's great. Thanks, Phil.

Look, the plans that we've outlined today see capital investment over AMP8 move to circa £11.5 billion, which in turn delivers a strong compound asset base growth of circa 10%. Our robust balance sheet will be supported by the £800 million equity placement that we've launched this morning, and this enables us to maintain our 55% to 65% target gearing range across the AMP, underpinning strong regulatory returns of 10% to 11%.

This is coupled with a progressive inflation-linked dividend. I want to just summarize before we go to questions.

We've made a really great start to the AMP. We've delivered a strong set of operational and financial results.

The £2.5 billion investment plan will enable the growth that is needed in our region. Finally, the plans that we've discussed this morning reflect the upgraded returns guidance that we've taken you through.

More importantly, it also sees our asset base growing to circa £25 billion by 2030. I'd really like to thank you for your time this morning, and recognize that you've jumped on a call quite quickly.

More than anything, really keen to get to questions, and Phil and I are keen to hear anything that you'd like to ask. Thank you.

Thank you, Chris, and thank you, team, for taking my questions and congrats on getting the strategic update out. My question is: You're raising today even though the re-openers have yet to be approved by Ofwat.

We have to get the draft and final determinations later in the year. What gives you the confidence that this additional spend you're requesting will be approved?

Is there an automatic element that was embedded in the FDs or have you had conversations with the regulator? The one small add-on I'll add to that is, can you talk about your engagement with the supply chain in terms of actually delivering on this capex?

I'll keep those questions. Thank you.

Thanks. Thanks, Pavan.

Look, I think there were sort of three elements to that question. I suppose let's start first with with why now.

I think what's really clear is we can see what's ahead. We've been able to see the ambitious growth rates that have been put here for the North West: the additional housing, the new towns, as we look forward, we can see that runway.

More importantly, given the size of the 2026 re-opener that we've put forward today, as well as the fact that Ofwat have now set out that annualized process, which is moving much more consistently with what you're used to seeing from an energy and an Ofgem perspective, we can see that future runway ahead. The call that they've put forward for asset replacement and supporting additional growth across the region.

Those things combined mean that we've now got full visibility of what that future runway looks like. In terms of the regulatory process, look, as I've said, there are sort of three opportunities, if you like: '26, '27, and '28.

What we thought was really important was providing visibility to the market about what that future runway and that pathway looks like, and being in a position where we were fully funded to ensure that as we put those submissions in, they could actually be delivered. We're really clear that the drivers of the investment that we are putting forward are absolutely aligned with the government strategy.

What we are seeing is a rapid rate of growth here in the North West. Manchester is growing at a rate that is much greater than what we're seeing in the rest of the UK, but significantly across Europe.

I've got a huge amount of defense spending that's going to be happening here in the North West with BAE, for example, and the submarine program that's been announced in Barrow. There's a number of strategic programs that are going on here in the North West that have been announced that this growth is also underpinning.

I also think what's really important is the point about the supply chain, and I think you saw it in one of the slides. What we're actually doing here is strengthening the supply chain.

We've been really pleased, Pavan, with the start that we've made to year one. We've moved from a supply chain model that saw us have two key suppliers and a sort of sub-model that sat underneath that to 100 suppliers now working and embedded across the supply chain.

The submission that we've put in today goes in as well with support from the supply chain, and also support from local politicians, Andy Burnham, the team at GMCA, for example, in terms of underpinning the growth. I think what's really important is remembering that this work that we're putting forward is predominantly civil-driven as opposed to component-driven in terms of some of the infrastructure growth that you're seeing elsewhere.

We're seeing that capacity in the supply chain. It's enabled.

It's here. It's working with us already in the North West.

More importantly, we're committed to make sure that it is actually maintained as we go through that AMP, because we know AMP9 is going to be a big plan, and we want to make sure that that supply chain is strengthened and continues to grow as we move from one one AMP period to the next.

Hi there. It's Dominic Nash here from Barclays, and thank you for your presentation.

Two questions from me. Firstly, clearly, you're putting in this £2.5 billion of extra sort of totex.

Could you give us some color as to the impact on bills, and how you think you're going to be profiling the bills and the revenues for this extra spend? Secondly, I think you've given a new RORE update for AMP8.

Could you give us a little bit more color as to sort of the breakdown of the components within the RORE components as to where we think the outperformance is going to come from? Thank you.

Brilliant. Morning, Dom, and thanks for those questions.

I'll pick up impact on bill, and then I'll hand over to Phil to pick up on RORE. In terms of the impact on the bill, the sort of package and the sort of cumulative impact, if you like, of the £2.5 billion that we talked about is circa a £10 on customer bills.

I think what is very clear is that obviously this is investment that's happening now, and what we've announced this morning is 4,000 additional jobs. That's an addition to the 30,000 that the AMP8 plan is already supporting.

This is an increase in bills, but it's for growth today for a bill impact that will materialize somewhat later on. I think it's also important to note that obviously we've got strong financial support out there.

Our bad debt charge is absolutely in line with management expectations and what we were expecting to see. More than anything else, we've got a robust package of support that's there for customers as they may need it, and United Utilities is recognized as doing so.

We've had lots of conversations about what that bill impact is, but that's materializing a little bit later on, but for the growth that's happening now and underpins both the government and the regional growth strategy. Phil, on RORE?

Morning, Dom. On RORE, when we set out our AMP8 guidance initially when we accepted the FD, we said the 100 basis points of outperformance was coming across a number of different areas: financing, ODIs, PCDs, and totex.

We were very clear that the substantial underpin to that was financing outperformance. As we move forward through this first year of the AMP, we've had more visibility of things.

Things have settled down. In the context of the financing outperformance, we've talked a bit more about that today in the context of continuing to outperform in terms of the new debt that we've issued.

There we've outperformed by 80 basis points in year one against the Ofwat debt indexation model. That's locking in more outperformance both in year one and through the rest of the five years of the AMP, but supporting the overall position.

Then obviously, you'll have seen me talking through the bridge in terms of the current year performance. Obviously that position is leveraged because, as sort of the way the regulatory model works is the focus is on real returns, and so the higher inflation environment is also leveraging the financing outperformance as well.

That's flow-through into the numbers. As we look forward through the five years of the AMP, we're now sort of confident of revising our guidance to at least 200 basis points of outperformance.

Hello, thanks for taking my question. Firstly on how I mean my understanding is the filing has to be with Ofwat tomorrow.

How much have you actually asked for relative to the I think £1.4 billion capex? Have you risked the amount that you've asked for and said, look, Ofwat will will not give us is unlikely to give us all of that?

Secondly, in-period adjustments. When we we spoke, Phil, if I recall correctly, you did did mention that you would do some work with consumers to see if you can recover some of the returns and the amortization of that within this review.

Within that £1.4 billion capex, or in addition to that, how how much fast money is there to to help support the balance sheet? Those are my two questions.

Thank you.

I'll take the first question first. The 1.4 is the totality of the submission that's gone in today.

There are sort of a number of key elements of that. £400 million is the sort of asset classes that Ofwat have specifically asked to see.

That's where they've invited submissions based on certain types of asset types. Then the rest is around supporting housing growth and industrial growth here in the North West, which is sort of underpinned by really strong sort of growth and planning activities that are already here and underway in the North West.

As we also said, there's some elements in there as well that are also around our gated submission that we've been in very detailed conversations with Ofwat about. I'll hand over to Phil to pick up on the in-period adjustments.

Morning, Mark. In terms of in-period adjustments, sort of as the revenue is subject to sort of effectively further discussions with Ofwat.

As you've sort of highlighted, that's also subject to customer engagement, which is the normal process that you go through. We are expecting and planning to have revenue coming back into the back end of the AMP.

We're not particularly looking to accelerate fast money, as you sort of outline. Effectively the investment is slow-money capex going into the RCV.

Clearly, there will be returns and other sort of contributions coming back through revenues, but we're not accelerating beyond the normal rate of depreciation fast cash, effectively.

Basically, what you're saying is that you've asked for £1.4 billion. You expect 100% of what you've filed for because you've spoken to Ofwat or you see it as such a sure thing.

There's not really much in terms of in-period adjustments at the back end.

I think what we're saying, Mark, is that we've guided to £2.5 billion worth of capex. We see that across '26, '27, and '28 submissions.

Those submissions will go in. As there are always discussions backwards and forwards with Ofwat, but based on that forward trajectory of what we can see, the fact that they've now put forward annualized processes for investment, particularly around asset replacement and with the growth that we see over the totality of the period of the remainder of AMP8, we're guiding to a central point of an additional £2.5 billion capex.

That will be over those three submissions, and that's the entirety of what we see for AMP8.

Mark, just to add, I think in terms of the revenue coming back, there will be a modest revenue, but we're not accelerating lots of fast cash, which I think was the gist of your question. This is effectively capex and slow cash money, but the normal depreciation and the return rates, et cetera, will be flowing back into revenues, and that will be potentially a three-figure number.

We need to have those discussions with Ofwat as we step through the process.

I think it's also worth sort of just reflecting on the fact that these re-openers are going to act like a a mini price review. The submission that we've made today is exactly what you'd expect to see in terms of, from AMP8 from an AMP8 perspective, the level of assurance, the level of submission that's gone in.

Again, we'll get an interim determination view on that in the summer, opportunity for further conversations in December. We've already got racked and stacked what's going in for 2027 and have started some of that early engagement with Ofwat.

From a a regulatory process, that will be this will be conversations backwards and forwards, but what we can see is that forward trajectory, and based on the demand that we're seeing here in the North West and how that underpins the strategic growth, the defense program, the submarine program in terms of Barrow, the new town that's been announced in Manchester, et cetera, that's where this is the new news and the and the additional growth coupled with the asset replacement re-opener process as we move forward.

Thank you.

Good morning, and thank you for the presentation. Is it fair to say a bulk of the increase we're seeing in the return side is coming from higher inflation?

What inflation assumptions are you assuming over this period or at least maybe how they've changed, we can kind of factor that in? Then the second one is on ODI performance.

The start's been a little bit more disappointing than maybe the beginning of the AMP. Could you maybe just revisit the picture of getting to a positive territory by the end of the AMP?

Certainly. Do you want to pick up inflation assumptions and I'll pick up ODIs, Phil?

Great. Morning, Ajay.

As I said, the 200 basis points is significantly underpinned by financing outperformance. Yes, it's coming from financing outperformance.

As I said, that breaks down into two components. On a nominal basis, we are outperforming the Ofwat debt indexation model as I said by around 80 basis points.

That's a very significant level of outperformance from debt issuance on a nominal basis, nothing to do with inflation. When we step into the inflation part, because we're regulated with a real cost of debt, any high levels of inflation do play through and leverage that position further.

There's a combination effect going on there. In terms of the inflation assumptions in our plan, we're assuming a 3% average inflation over the sort of AMP8 period.

Obviously, that's higher at the front end, reflecting the higher near-term inflation in year one and the expectations for higher inflation in year two, given the sort of recent events in the world. That reverts quite quickly back to the Bank of England sort of target levels in the back end of the AMP period.

Ajay, in relation to your question on ODIs, we've always been quite clear that we see a negative start in terms of the AMP period, and that will build to an overall positive position over the AMP. In relation to those measures, they are taking time to build.

As I say, with leakage, we had a cracking year one, but actually I've got a rolling average from the previous two years that needs to roll through. Those ODI returns are out exactly where we thought they'd be, and over the period of the AMP contribute a positive performance as part of the overall returns guidance that we've provided.

Hi, thank you, and congrats on the update. Maybe just, Phil, a quick clarification question for you.

As I see you in consensus right now for 2030, the net income is about £800 million. Bringing together all the pieces, the higher RCV, the outperformance, but then the profiling of the revenue, could you give us a sense of sort of what does the new plan means in terms of potential upgrade to the 2030 sort of numbers that we see on consensus?

Or is the earnings benefit more in AMP9? I just want to maybe just bring it all together to get your views on that.

Maybe sort of separate question from the transaction today. Could you just remind us where we are in the sort of the reform process now and your latest expectations on the transition plan, etc.?

Thank you.

Do you want to pick up the first bit, and I can then pick up the transition plan?

Good morning, Ahmed. I'll take the first question.

I guess as you know with a regulatory model, the way the regulatory model works is that as I sort of discussed when I was stepping through the revenue bridge, there's a very big step-up typically in the first year of the AMP, and then a sort of modest progression of revenue going through the AMP period. That's typically how the regulators have profiled revenues.

You're right. There's always a lag in terms of a regulatory model of revenue coming through.

The real accretion to EPS here will fall into effectively AMP9. As I've sort of talked earlier, we are going to be talking to Ofwat around revenue adjustments in-AMP period as well.

The back end of the AMP there will be sort of revenue coming back into the numbers as well, but the sort of material components of the step-up and the value will flow really into the AMP9 period. That's fine.

Perfect. All right.

Your question, Ahmed, about where are we up to with reform and the regulatory agenda. You may or may not have seen yesterday that the government announced Dame Julia Black, who is essentially going to lead a lot of the transition activity and the transition to a new regulator, and I think that's a real positive step and something that we really welcome.

Obviously, we've got the King's Speech in the next two weeks, which again underlines a number of the elements of the water bill more broadly. We are starting to see movement.

I also think that Ofwat communicating the processes in terms of in-year submissions is also a really great signal of the transition that's starting to be made to the new regulator. That announcement only happened yesterday with Dame Julia Black's appointment, but there's a lot of work going on now to enable this transition, and we look forward to seeing what's outlined in the King's Speech in a couple of weeks' time.

Thank you.

Morning, two from me, please. Just following up, I guess, on the re-openers.

It sounds like you're pretty confident in the submissions, but if there were to be a haircut on the number that you ultimately got there, should we still think about it as a £2.5 billion total capex? Would it be a case of bringing capex forward from AMP9?

I know you've spoken in the past about that AMP9 capex plan being very large, interested to get your thoughts there. Then, just on the gearing, Phil, I'd just be interested in where we land now, and I know you've talked about the 55% to 65% range, but what's the sort of expectation on the moving parts there and the phasing upwards?

Thank you.

Great, thanks, Alex. I'll take the point around the capex and Phil from a gearing perspective.

Look, I think what we're really clear about is that we've got these three openers: '26, '27, '28. There will be movement in scope across those dates.

We're already starting to build what's in 2027. Some things may move around according to planning timelines and things like that, but that's that sort of central view of what we can see, also coupled with the asset replacement that Ofwat are calling for.

In relation to the point about transitional investment, it's a really great point, Alex, because we've been really clear. If you remember at AMP8, I talked about the fact that we needed an adaptive plan, that there were things that we'd push from eight AMP8 into AMP9, circa a £1 billion worth of investment, for example, on the Manchester Ship Canal.

As well as the '26, '27, and '28 re-openers, we also have the opportunity around transitional investment as we move into what is going to be a sizable AMP9 program. All of those combined is what's added or what's led to us upgrading our capex guidance to a central point position of an additional £2.5 billion for the AMP period.

Phil?

Hi, Alex. Picking up the gearing points.

Today we're at 60% gearing, and that position is sort of benefiting effectively from the near-term inflation position what we've had in the last 12 months. When we've looked forward in terms of the equity raise and the £2.5 billion of additional capex we expect to see, you'll note that we're raising less than 40% of the additional amount we're expecting to raise.

Post the raise, we'll fall to the lower half of our range, and we'll see that trend back up through the range. We are using the balance sheet capacity that we've benefited from the sort of near-term inflation, the current-year outturn.

The expectation of higher inflation in the next sort of 6 to 12 months will support some aspects of the program and leave us with a degree of headroom as we get to the end of the AMP period.

Great. Good morning, and congrats from me also.

I just had one question. Obviously, the RCV growth in AMP8 is going to be very strong now, but how should we think about how that transitions into AMP9?

Is the prospect that you could be looking at 10% RCV growth per annum for the next decade? Is that feasible, or do we see things kind of slow down a bit in AMP9, at least in percentage terms?

Thank you.

Morning, James, and look, thanks for the question. We've always been very clear that AMP9 is a sizable program, and we can see here what we need to deliver as part of the Environment Act requirements that are coming through.

We can also see how additional requirements are stacked with what's coming through from the Drinking Water Inspectorate, etc., and that's before we get to anything that's additive around things like PFAS or forever chemicals. The amount that we need to do in AMP9, we were always quite clear was significant.

I think as we move through and we start to provide a greater visibility and clarity of that, you will get a sense of the shape and the scale. I think that's the other reason as well why we're taking the opportunity to provide that forward guidance looking forward in terms of the end of AMP8, is because what we're also doing is shoring up that supply chain.

I don't want to be in a position where we've worked so hard to mobilize that supply chain, we've got that commitment, that as we literally start to go into AMP9, it starts to come down the other side only for us to gear back up again. That makes no sense.

It makes no sense for what we need to deliver in AMP9. It makes no sense in terms of the regional economy, because actually you're going to be managing job losses only to then sort of 12 months later turn around and say, "Well, actually, we now need you all back again."

It makes no sense. It starts to smooth out what currently is looking like a traditional curve and provide that smooth trajectory as we move from AMP8 to AMP9.

We can see what's sat there right here right now based on legislation alone, and it's a significant program that we need to deliver.

Perfect. Thank you.

Thank you very much, and sorry, you either see me or hear me today, cuz tech is not on my side. For the question, you can you can hear me.

It's it's another question, please, on the the re-opener quantum, but it's slightly different to the ones you've had so far. We obviously knew the re-opener opportunity was there as part of the PR24 process since business plan submissions back in 2023.

You did have that very intentional step-down in the later two years the last two years of the AMP. As you've talked about, the LTDS showed that massive step-up in AMP9.

I'm just curious, if we isolate the £1.4 billion of the re-opener, had you always intended to spend this much as part of that process, or has that increased recently? Were you sitting there one day going, "Oh, we're talking about a larger [unclear] than we had initially expected"?

Thank you.

Hi. Morning, Sarah.

Look, I think what is really coming through is a lot of new news. I think it's remembering that when that AMP8 plan went in, it was back in 2023.

The current government weren't even in position. If we think about the additional housing that's been announced, the 1.5 million homes, I've got new towns that have been announced here in the North West.

The shipbuilding program, there's a huge amount. HyNet has been designated as one of the government's strategic programs and that pipeline running from Ellesmere Port.

There's a huge amount of regional growth that's been enabled that essentially is new news. We'd always been very open and talked about how we manage that transition from AMP8 to AMP9.

It's those things combined. I also think that Ofwat being very clear that they'd left a number of sort of hooks, if you like, for additional opportunities in the price review process, particularly around certain elements and also regional elements.

For us, they'd left Windermere if we wanted to go back and to do anything, which we're obviously putting forward here. Also, I think the moving to this annualized process and welcoming re-openers in relation not just to the additional growth items, but in relation to asset replacement is a real step forward.

I think a recognition of how Ofwat are moving and transitioning post-Cunliffe's recommendations. Again, I think that's something we've pushed for, and something we're therefore really, really keen to embrace as well.

Thank you.

Let's see the answer. Good morning.

Just as said, very quick one. How do you assess the risks that the regulatory framework may evolve in the way where your financial performance will be eliminated or kind of will go down, meaning, for instance, the regulator will move to a framework where cost of that will be a pass-through or more company-specific, as we are seeing in other countries?

Thank you.

Morning, Bartek. Look, I'll let Phil specifically answer that question, but I think what is important is that post-Cunliffe, there was a very clear direction that this needed to be a sector that was clearly had a strong investment profile, and there is a recognition that everything that we need to do, not just in AMP8, but AMP9 and AMP10 and beyond, there needs to be the returns that accompany that.

I've not heard anything that moves away in any way, shape, or form from strengthening that narrative. Phil?

Yeah. It's sort of hard to comment definitively, but I guess I'd probably make the observation that incentive-based regulation, it's really important to maintain incentives on companies to deliver and perform.

You can see lots of potential dangers of just having a direct pass-through mechanism in terms of cost of debt. I think we'll have to see how things evolve, but I'm not really seeing anyone talking about that as a proposal, effectively.

Great. Thanks, Bartek.

Brilliant. Thanks ever so much for joining us.

Have a good morning.

Thank you.