Trading Update for the period 1 Oct to 31 Dec 2015

Severn Trent Plc

Trading Update for the period 1 October to 31 December 2015

Severn Trent, one of the leading water and waste water companies in the UK, today announces trading for the 9 months to 31 December 2015.

Guidance for the net reward from ODIs for this financial year is increased to £15million. Other than that, Severn Trent confirms that it continues to perform in line with expectations and there has been no material change to the technical guidance for the full year.

Liv Garfield, Chief Executive, said: "Our customers are at the heart of all we do and we continue to invest in operational improvements to build a better business for our customers, colleagues and shareholders. I am delighted to see all this hard work is translating into a net ODI benefit, at this stage, of £15million for the full year. Having locked in the savings set out in our Final Determination we are working hard to identify further efficiencies, while continuously improving our services, and will provide a further update with our results in May. There remains much to do, but this year is shaping up to be a great start to the current regulatory period."

Severn Trent Plc will announce its Preliminary Results for the period ending 31 March 2016 on 24 May 2016.

Cautionary statement regarding Forward Looking Statements

This document contains statements that are, or may be deemed to be, 'forward-looking statements' with respect to Severn Trent's financial condition, results of operations and business and certain of Severn Trent's plans and objectives with respect to these items.

Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as 'anticipates', 'aims', 'due', 'could', 'may', 'will', 'would', 'should', 'expects', 'believes', 'intends', 'plans', 'projects', 'potential', 'reasonably possible', 'targets', 'goal' or 'estimates' and, in each case, their negative or other variations or comparable terminology. Any forward-looking statements in this document are based on Severn Trent's current expectations and, by their very nature, forward-looking statements are inherently unpredictable, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that may or may not occur in the future.

Forward-looking statements are not guarantees of future performance and no assurances can be given that the forward-looking statements in this document will be realised. There are a number of factors, many of which are beyond Severn Trent's control that could cause actual results, performance and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to: the Principal Risks disclosed in our latest Annual Report (which have not been updated since); changes in the economies and markets in which the group operates; changes in the regulatory and competition frameworks in which the group operates; the impact of legal or other proceedings against or which affect the group; and changes in interest and exchange rates.

All written or verbal forward-looking statements, made in this document or made subsequently, which are attributable to Severn Trent or any other member of the group or persons acting on their behalf are expressly qualified in their entirety by the factors referred to above. Subject to compliance with applicable laws and regulations, Severn Trent does not intend to update these forward-looking statements and does not undertake any obligation to do so.

Nothing in this document should be regarded as a profits forecast.

This document is not an offer to sell, exchange or transfer any securities of Severn Trent Plc or any of its subsidiaries and is not soliciting an offer to purchase, exchange or transfer such securities in any jurisdiction. Securities may not be offered, sold or transferred in the United States absent registration or an applicable exemption from the registration requirements of the US Securities Act of 1933 (as amended).