Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 152

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 152
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 |     | Implied Exchange 
 Ratio (1)        |                 |     | Implied Pro Forma   
 Essential Ownership 
 Percentage (1)      |               |
| Selected Publicly Traded Companies Analysis – 2026E Net Income |     |                  | 0.225x - 0.339x |     |                     | 24.6% - 33.0% |
| Selected Publicly Traded Companies Analysis – 2027E Net Income |     |                  | 0.227x -0.338x  |     |                     | 24.8% - 32.9% |

| (1) | The high end of the range of the implied exchange ratios and the implied pro forma Essential ownership                                                                                                                                                    
 percentages represents the high end of the implied share price range or implied equity value range of Essential versus the low end of the implied share price range or implied equity value range of American Water, respectively. The low end of the     
 range of the implied exchange ratios and the implied pro forma Essential ownership percentages represents the low end of the implied share price range or implied equity value range of Essential versus the high end of the implied share price range or 
 implied equity value range of American Water, respectively.                                                                                                                                                                                               |

Moelis compared (i) the range of the implied exchange ratios above to the exchange ratio of 0.305x in the merger and (ii) the range of the implied pro forma Essential ownership percentages above to the pro forma Essential ownership percentage of 30.7% (assuming an exchange ratio of 0.305x in the merger). Other Information Moelis also noted for the Essential board certain additional factors that were not considered part of Moelis’ financial analysis with respect to its opinion but were referenced for informational purposes only, including, among other things: Selected Publicly Traded Companies Analysis—TEV/EBITDA Multiples Moelis also performed a selected publicly traded companies analysis of each of Essential and American Water based on TEV/EBITDA trading multiples. Financial data for the selected publicly traded companies were based on public filings and other publicly available information available as of October 23, 2025. In performing a selected publicly traded companies analysis of each of Essential and American Water, Moelis reviewed and analyzed, among other things, TEV/EBITDA multiples of each of the selected publicly traded companies based on Wall Street research analyst consensus EBITDA estimates for the calendar year ending December 31, 2026 (