Based summarizes milwaukee brewers on the ned yost indicates latest benchmarking exercise, carried out during the year, ourperformance is shown in one of three categories of what we consider to beeither lower quartile, upper quartile or median (representing 2nd and 3rdquartile) performance.In 2008/09 we improved year on year in 7 of our KPIs,maintained high standards in 9 and remained static in 4.We have madesignificant progress in the year but there is still more to do to achieve ouraim of upper quartile performance.We will continue to update our benchmarkson an annual basis to ensure that as companies in our sector or elsewhereredefine what upper quartile means, our objectives move with them. Lower Upper Description Basis Note Quartile Median Quartile Lost time incidents per 100,000 hrs worked 2009MAT 2 0.4320080.61 Employee motivation %2009QR3 83% 200877%Water quality (test failure rate) ppm2009MAT1,4 200.42008 240.1 Customer written complaints per 1,000 properties 2009MAT1,56.442008 10.90 First time call resolution for billing % 2009MAT 6 88% 200885%Unplanned interruptions > 6 hrs per 1,000 properties 2009MAT1,77.292008 21.86 Properties at risk of low pressure per 1,000 properties2009NPR8,91.2120080.46 First time job resolution %2009MAT 6 96% 200885%Non performance against Regulatory Obligations % 2009QR6 10% 200815%Capex (Gross) vs Final Determination % 2009ATD 105.0%20081.7% Capital process quality (no. of defects per £100k) 2009MAT 6 0.0020080.03 Debtor days2009 8,10 33.1200837.4 Opex vs Final Determination (UK GAAP) - £m 2009MAT 10 500.92008 480.9 Cost to serve per property - £ 2009MAT 11 236.53 2008 236.82Pollution incidents (cat 1, 2 & 3) per 1,000 properties2009MAT4,12 0.0820080.11 Sewer flooding incidents - other causes per 1,000 properties 2009MAT 1 0.1720080.21 Sewage Treatment Works - breach of consents %2009PPS1,80.0%20080.0% Security of supply 2009898 2008 95Net Energy Use - Kwh/Ml2009MAT 6 622 2008608Leakage Ml/d 2009MLE1,14 492 2008491Notes:All measures are for the period to 31 March 2009, except as stated. MAT = Moving Annual Total QR= Quarterly ReviewNPR = Number of properties on registerATD = AMP4 to datePPS = Percentage of population served MLE = Maximum Likelihood Estimate1.As reported in June Return to Ofwat.Performance figures are provisionalat this stage as the June Return will be submitted to Ofwat on 12 June 2009 2.Actual performance across all employees and agency staff.

3.Performance based on quarterly survey of 10% of permanent employees.4.Measure for calendar year to 31 December 2008.Measure now expressed as test failure rate (parts per million).2008 performance restatedaccordingly.5.Performance excludes properties billed by other water companies.6.Actual performance based on internal data.7.2008 performance excludes impact of Summer 2007 flooding.2008 performanceis 184.5 if impact of Summer 2007 flooding included.8.Measure as at 31 March 2009.9.2009 and 2008 performance includes impact of new pressure loggers installedin 2007/08.Excluding pressure loggers, 2009 performance is 0.005 (2008 0.06) as there has been a significant reduction in reactive identification 10 brew crew ball . Actual performance based on audited UK GAAP financial statements for the year ended 31 March 2009 and expressed in absolute terms 11 brewers jewelry . Actual performance based on audited regulatory accounts for the year ended 31 March 2009.12 prince fielder . These improvement plans are integrated into our 2009/10 plans, are the basis ofour future improvements in effective and efficient operation and form a majorpart of the Company's AMP5 Final Business Plan submitted to Ofwat in April2009.As mentioned above, we have accelerated our improvement plans and nowexpect to incur around £20 million of exceptional restructuring costs in 2009/10.This investment is planned to deliver around £5 million of additionaloperating cost savings in 2009/10 when compared to previous guidance dan plesac .

This investment will deliver improved services, such as stronger network resilience and reductions in sewer flooding; provide environmental improvements through improving sewage treatment; and ensure that environmental and drinking water quality improvements achieved in the past two decades are maintained brewers sausage race . ? An assumed cost of capital of 5.0% real, post tax, consistent with maintaining an appropriate credit rating to allow the company to raise the funds it requires to finance future investment at a reasonable rate anddeliver an appropriate return to equity investors.The component parts of the assumed cost of capital are; real post tax cost of equity of 7.7% (AMP47.7%), real post tax cost of debt of 3.3% (AMP4 3.0%) and 60% gearing (AMP455%).We are engaged with Ofwat in reviewing the plan.We believe it to be a highquality, holistic and balanced plan that has customers at its heart, issupported by all the key stakeholders and will enable a fair and appropriatereturn for our investors baseball managers . Severn Trent ServicesSevern Trent Services is one of the world's leading suppliers of water andwaste water treatment solutions.The global market for water and waste wateris substantial and growing at around 4% per year.Although growth has slowedsince last year in the face of the global economic downturn, the fundamentaldrivers - water scarcity, higher regulatory requirements, population growth andclimate change - remain strong autographed bats . These three main areas of the business are targetted to deliver against threekey financial criteria; continued revenue growth, profit growth and anappropriate return on invested capital prince fielder autographed baseball .

In February 2009 we announced the sale of the meters business, which completedafter receiving Office of Fair Trading approval on 8 May 2009 brewers sausage . On 13 May 2009, consistent with our strategic aim of geographic expansion ofour products and services into selected markets, we completed the acquisitionof PS Aplicor S.A., a small distribution operation in Spain.This businesscurrently has an annual turnover of around ?10 million signed baseball . Group Financial PerformanceIn this Preliminary Results announcement: PBIT is profit from continuingoperations before interest and tax; underlying PBIT also excludes exceptionalitems as set out in note 3 ned yost . Group turnover from continuing operations was £1,642.2 million (£1,552.4million), an increase of 5.8% over last year brewers jewelry . The growth in turnover was mainlydue to the price increases in Severn Trent Water, offset by the impact of lowerconsumption across our measured commercial income base, which reduced year onyear revenues by around £20 million. Underlying Group PBIT increased by 0.1% to £469.9 million (£469.5 million). Beyond the net increase in turnover, the main factors affecting underlying PBITwere increased energy and commodity costs and an increase in infrastructurerenewals expenditure and depreciation in Severn Trent Water and increasedcontribution to underlying PBIT of £4 million from Severn Trent Services.

There were net exceptional costs of £18.9 million (£68.8 million).Groupstatutory PBIT was £451.0 million (£400.7 million) brewers sausages . As described in our preliminary results published in June 2008, Severn TrentRetail and Utility Services (previously reported in Severn Trent Water) is nowreported within Severn Trent Services.All comparatives have been restated toreflect this change (see note 2) prince fielder . Severn Trent WaterTurnover in Severn Trent Water increased by 4.7% in 2008/09, to £1,324.9million.Sales prices increased by 5.07% (including inflation) from 1 April2008, with the previously noted decline in commercial consumption reducingrevenues by around £20 million dan plesac . The rapid rise in the first half year and then fall in retail price inflation(RPI) has presented a number of challenges.At Severn Trent Water, whichoperates under an RPI model as regulated by Ofwat, we faced rising costs in thefirst half year which we worked hard to contain, while seeking to obtain valuefrom the falling rates in the latter half.In a business such as Severn TrentWater where lead times on procured items, particularly on the capitalinvestment programme, are longer this challenge has been difficult . Underlying PBIT was flat on the previous year at £456.0 million.Beyond theincrease in turnover, a number of factors impacted underlying PBIT,principally; an increase in infrastructure renewals expenditure of £18.9million, an increase in energy and commodity costs of £12.5 million, anincrease in the bad debt charge of £6.6 million, increase in depreciationcharges of £11.5 million and an increase of £4.8 million, net of efficiencysavings, across the balance of our cost base. During the financial year, Severn Trent Water invested £635.3 million (gross,UK GAAP) in fixed assets and maintaining and improving its infrastructurenetwork.Included in this total was net infrastructure renewals expenditure of£130 million. Adjusting for minor timing differences and modifications to the AMP4 capitalprogramme (notified to Ofwat through the change control process) we continue tobe in line to achieve this programme with capital expenditure, net of grants,contributions and other income (UK GAAP) of around £2.6 billion.