Pennon Group PLC — Proxy Solicitation & Information Statement 2016

Jul 22, 2016

THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION

IF YOU WISH TO TAKE YOUR DIVIDENDS IN CASH OR YOU HAVE A STANDING SCRIP DIVIDEND MANDATE IN PLACE OR YOU HOLD YOUR ORDINARY SHARES IN UNCERTIFICATED FORM (IN CREST), YOU SHOULD NOT COMPLETE OR RETURN THIS FORM.

If you are in any doubt about the action you should take with this document, you should immediately seek your own financial advice from your stockbroker, bank manager, solicitor, accountant or other independent financial adviser authorised pursuant to the Financial Services and Markets Act 2000. If you have sold some or all of your shares prior to 7 July 2016, you should contact your stockbroker or agent without delay for advice as to how to proceed.

Name and address

PENNON
GROUP PLC
(Registered in England No: 2366640)
Registered Office:-
Peninsula House,
Rydon Lane, Exeter,
Devon EX2 7HR

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SCRIP DIVIDEND ALTERNATIVE FORM OF MANDATE

This form must be completed in BLACK INK in BLOCK CAPITALS.

If you are not entering information in any of the boxes below please leave them blank and do not cross them through.

To Pennon Group Plc ("the Company") and Capita Asset Services

I/We the undersigned confirm that I/we have read and understood the Pennon Group Plc scrip dividend alternative booklet and that I/we wish to participate in the scrip dividend alternative in respect of all of my/our holding of ordinary shares of the Company.

By signing this form I/we elect to receive an allotment of new shares, credited as fully paid, in respect of the final dividend for the financial year ended 31 March 2016 of 23.12 pence, and for any future dividends for which a scrip dividend is offered, for all of my/our holding on the terms of the letter from the Chairman dated 22 July 2016, the scrip dividend alternative booklet and the constitutional documents of the Company.

Step 1

Please sign and date here. All registered holders must sign to confirm this instruction.

D D / M M / Y Y Y

Signature 1

Signature 2 (if applicable)

Signature 3 (if applicable)

Signature 4 (if applicable)

Step 2

If signing as a Power of Attorney or other authority put X in box and print your full name here.

In the case of a corporation, this form must be executed under its common seal, or be signed by a duly authorised official, whose capacity should be stated in accordance with Section 44 of the Companies Act 2006.

Step 3

To be valid for the final dividend for the year ended 31 March 2016 payable on 2 September 2016, please return this form once completed to Capita Asset Services to arrive no later than 5.00 pm on 15 August 2016. If it is received after this date, you will receive the full cash dividend on your holding but this form will be valid for future dividends until cancelled or revoked.

The Company's scrip dividend alternative booklet, detailing the terms and conditions of the Company's scrip dividend alternative, may be viewed and downloaded from the Company's website: www.pennon-group.co.uk and is also available on request from the Company's Registrar, Capita Asset Services. This form of mandate may also be viewed and downloaded from the Company's website.

If you have any questions about how to complete this form, or wish to receive a printed copy of the terms and conditions of the Company's scrip dividend alternative, please contact Capita Asset Services who are open between 8.30 am and 5.30 pm Monday to Friday (except public holidays):

• Telephone: 0371 664 9234 from within the UK or +44 371 664 9234 from outside the UK. Calls are charged at the standard geographic rate and will vary by provider. Calls from outside the UK will be charged at the applicable international rate. Lines are open 8.30am - 5.30pm Monday to Friday excluding public holidays in England and Wales. Calls may be recorded and randomly monitored for security and training purposes.
• Address: Capita Asset Services, Corporate Actions, The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU.
• Email: pennon@capita.co.uk