Significant Value Creation for Shareholders

  • $70 per share in cash delivers significant and certain value to CTWS shareholders; represents 33% premium to CTWS’ unaffected share price1
  • Financially compelling transaction expected to be immediately and increasingly accretive to SJW EPS
  • Provides compelling growth and investment opportunities at SJW with increased scale and diversity

 Benefits to Customers

  • Leverages best-in-class customer service across organization
  • Transaction seamless to customers with no change in customer rates as a result of the transaction
  • Enhance service by capitalizing on technology and sharing best practices, operational expertise and more extensive resources
  • Honoring ~$200M annual capital investments across combined operations (e.g. new surface water treatment facility in Biddeford, ME)

 Committed to Jobs and Our Communities

  • No transaction-related layoffs or significant changes in compensation or benefits planned
  • Employees to benefit from additional career development and geographic mobility opportunities
  • Dedicated team of locally-based employees and leadership retained at operating utilities
  • Ongoing community support and involvement

 Environmental Stewardship:
A Core Value

  • SJW and CTWS are both leaders in water conservation and protecting lands and water resources
  • Combined company committed to reducing environmental footprint and furthering sustainable business practices
  • Investment in infrastructure, which conserves water and energy resources, will remain a priority

STRONG MULTI-STATE PRESENCE WITH INCREASED SCALE, HIGH-QUALITY, WELL-RUN PURE-PLAY OPERATIONS AND CONSTRUCTIVE REGULATORY ENVIRONMENTS

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Combined Leadership

Eric W. Thornburg

Chairman, President and Chief Executive Officer

David C. Benoit

President, New England Region

Combined Company Snapshot

3rd largest

investor-owned water and wastewater utility in the U.S.

$2.6B

enterprise value

~700

dedicated employees

+1.5M

people served

$975M

fully underwritten bridge loan facility from J.P. Morgan

$450-550M

of equity, underscoring a conservative mix of debt and equity

~$200M

of annual capital investments across combined operations

Strong credit rating

Committed to “A”-category credit rating of at least “A-”

1 Based on CTWS unaffected closing stock price of $52.57 on March 14, 2018, the day prior to merger announcement.
2 Based on 2017 net income.