On this page of StockholderLetter.com we present the 4/3/2023 shareholder letter from SJW GROUP — ticker symbol SJW. Reading current and past SJW letters to shareholders can bring important insights into the investment thesis.

 •  4/3/2023 Letter Continued (Full PDF)
 •  3/9/2023 SJW Stockholder Letter
 •  4/26/2024 SJW Stockholder Letter
 •  4/1/2025 SJW Stockholder Letter
 •  More "Miscellaneous" Category Stockholder Letters

SJW 4/3/2023 Shareholder/Stockholder Letter Transcript:

2022
Serving, Protecting, and Delivering
Quality Water and Reliable Service

Dear Stockholder,
As SJW Group navigated the global pandemic and its
ripple effects, two things became very clear: the resolve
of our 750-plus dedicated water professionals, and the
resilience of our water and wastewater systems. After
successfully navigating the myriad of unprecedented
health, economic, and social challenges the world has
faced since the start of the pandemic, I am proud to
report that 2022 has emerged as a year of renewal
and strength. Our talented team entered 2022 with a
refreshed energy and passion for our life-sustaining
mission to reliably deliver essential, high-quality water
to customers across the communities we serve. This
renewed commitment underlies the milestones we
achieved across our state operations.
    We built an award-winning resource center for
sustainable infrastructure     the Saco River Drinking
Water Resource Center in Biddeford, Maine. This $60
million resource center    lters and treats drinking
water for more than 32,000 people in southern Maine,
replacing a water treatment plant that went online
in 1884. This was the    rst project of its kind in New
England to be recognized with a prestigious Silver
Envision Award from the Institute for Sustainable
Infrastructure. More than 250 acres around the facility
are being protected as open space.
    We achieved a constructive General Rate Case
settlement agreement in California     with positive
results for both San Jose Water and our customers.
This agreement allows us to continue to invest
in our water system, aggressively promote water
conservation, and address weather-related water
supply mix issues that adversely impacted our
   nancial results in 2020 and 2021.
    We continued to experience accelerated growth in
Texas, where our operations serve three out of    ve of
the fastest-growing counties in the nation. In January
2023, our Texas operation, which has quadrupled in
size over the past 15 years, announced that it had
entered into an agreement to acquire a local operator
that would add more than 550 customers and a 50%
increase in the total available system-wide water
supply for current customer needs and future growth.
    In Connecticut, we were awarded a prestigious
construction safety award from the Connecticut
Construction Industries Association     for the 19th
consecutive year. An achievement that re   ects the
deep commitment of our leaders and employees
to make sure that at the end of the day our people
safely return to their family and friends.
In 2022, we also invested $219 million in drinking water
and wastewater infrastructure, knowing that thoughtful
and consistent capital expenditures are necessary
to ensure clean drinking water, reliable service, and
a healthy, natural environment. About two-thirds of
that investment has been or will be recovered through
forward-looking rate-making or distribution surcharge
mechanisms. Over the next    ve years, SJW Group is
planning to invest about $1.4 billion in drinking water and
wastewater infrastructure, pending regulatory approval.
We value the trust placed in us by our shareholders
and will continue to execute against our proven longterm growth strategy of investing in drinking water
and wastewater infrastructure, pursuing opportunistic
and accretive acquisitions, and fostering constructive
regulatory environments while seeking timely rate
recovery. Despite continuing headwinds in 2022, we
delivered a total of 13.4% return to shareholders, based
on the strength of a 10.9% year-over-year appreciation
in our stock price coupled with a 5.9% increase in our
annual cash dividend. In January 2023, our board raised
the annual dividend E   an additional 5.6%. We have now
raised our annual dividend for 55 consecutive years.
Continuing in the spirit of renewal, 2022 also marked
our reinforced commitment to serving as a leader across
environmental, social, and governance issues, as well as
an advocate for our employees, customers, and
communities. Some highlights from 2022 include:

    Our local utility operations received awards
for excellence in supplier diversity, being a top
workplace, and customer communications.
    We received nearly $10 million in state and
federal assistance to help customers in need, in
addition to the existing programs we provide
to ensure access and affordability for all in our
service areas.
    We continue to make steady progress toward
developing a meaningful measurement system
based on our goal of reducing greenhouse gas
(GHG) emissions by 50% by 2030 (compared
to 2019).
Our company   s roots in water service go back
more than 160 years. While the times and
technology have evolved, we are more than ever
an organization of dedicated people, passionate
about delivering life-sustaining, high-quality water
and exceptional service, while protecting the
environment, enhancing our communities, and
providing value and a fair return to shareholders.
Rick Knowlton retired as president of Maine
Water in June 2022 after a 29-year career. Wendy
Avila Walker retired as vice president of    nance,
assistant treasurer, and controller in March 2023
after a 17-year career at SJW Group. We thank
both Rick and Wendy for their leadership and
considerable contributions to our success.
It is with deep appreciation and respect that
SJW Group bids farewell to board member
Walter J. Bishop in April. He is retiring following
a decade of dedicated service to the company.
Walter has elevated the company   s commitment
to sustainable water supplies, environmental
stewardship, our growth in Texas, and served as
the    rst Chair of our Sustainability Committee. We
thank him for his service and leadership.
On behalf of the board and our leadership team,
we thank our employees, who are the reason for
the company   s achievements.
We look forward to another successful year in 2023.
I   d like to thank our recently retired leaders.
Sincerely,
Maureen Westbrook, one of our culture carriers,
retired at the end of December 2022 after a
distinguished 34-year career at the company.
Maureen   s contributions are many and her
groundbreaking career in the industry as president
of Connecticut Water Service since 2019     the
   rst woman to hold this role at Connecticut Water
    has paved the way for a more diverse and
inclusive workforce.
Eric W. Thornburg
Chair, President, and CEO, SJW Group

SJW GROUP
Large National Pure-Play Water/Wastewater Provider With Deep Local Expertise,
Committed to Sustainably Serving Our Communities
2022 at a Glance
O U R CO M PA N Y
160
~1.5M
757
years of history
people served
talented employees
across 4 states
Operations in
California, Connecticut,
Maine, and Texas
O U R C A P I TA L A N D C U S TO M E R S
$219M
63
$60M
infrastructure
investment
miles of pipeline
replaced/installed
SJWTX customer
growth
invested in MWC
resource center
4x over 16 years
OUR COMMITMENT TO ESG
50%
$62M
44%
$400,000
GHG reduction
by 2030
spent with
diverse suppliers
of board are
women
charitable
donations
OUR FINANCIAL HIGHLIGHTS
3
13.4%
10.9%
total shareholder
return
YOY stock price
appreciation
$2.43
5.9%
diluted earnings
per share
increase in
annual dividend

FINANCIAL HIGHLIGHTS
(in thouands, except share, per share, and Balance Sheet data)
2022
2021
2020
$620,698
$68,271
$73,828
$573,686
$52,388
$60,478
$564,526
$60,680
$61,515
$166,199
$130,040
$104,051
30,802
30,305
30,424
$2.44
$2.43
$1.44
30,181
29,601
29,736
$2.04
$2.03
$1.36
28,557
28,522
28,695
$2.16
$2.14
$1.28
$3,633
$1,492
$ 1 ,1 1 1
$218,784
$3,492
$1,493
$1,035
$233,933
$3,311
$1,288
$917
$195,323
Operating Results
Total operating revenues
Income from continuing operations
Net income
Cash Flow Data
Net cash provided by operating activities
Common Stock Data
Shares of common stock outstanding
Year-end
Weighted average     basic
Weighted average     diluted
Reported basic earnings per share
Reported diluted earnings per share
Dividends paid per share
Balance Sheet Data (in millions)
Total assets
Long-term debt, less current maturities
Total SJW Group stockholders    equity
Capital expenditures
Net Utility Plant
Dividends Declared
Capital Expenditures
Diluted Earnings Per Share
(in millions)
(in dollars)
(dollars in millions)
(in dollars)
$2,630
$2,497
$234
$2,335
$1.44
$1.36
$1.28
$2.43
$219
$2.03
$2.14
2021
2020
$195
2022
2021
2020
2022
2021
2020
2022
2021
2020
2022
Shenipsit Lake Reservoir, Tolland, CT
4



 4/3/2023 Letter Continued (Full PDF)