Trading Statement

Severn Trent Plc

Trading Update for the period 1 April to 19 July 2016

Severn Trent, one of the leading water and waste water companies in the UK, today announces a trading update for the period to 19 July 2016.

Severn Trent continues to focus on enhancing its customer service, operational and financial performance and is making good progress with its plans to deliver targeted efficiency savings in the second year of the AMP6(1) regulatory period.

Progress continues with the Water Plus joint venture (JV) with United Utilities. The deal completed on 1 June following Competition and Markets Authority approval on 3 May. For the full-year 2016/17, the results for the Group will therefore include two months of discontinued operations for non-household retail operations, and ten months of the Group's 50% share of the JV.

Elsewhere for the Group, there has been no material change to current year business performance or outlook since the full-year 2015/16 results on 24 May 2016. The Board considers that the Group will deliver trading performance consistent with its expectations and prior guidance.

Severn Trent Plc will announce its half-year 2016/17 results for the period ending 30 September 2016 on 24 November 2016.

Notes

1. AMP6 = Asset Management Plan 6, which is the regulatory period for 2015 to 2020