RAND WATER ANNUAL REPORT 2023

Consolidated Annual Financial Statements for the year ended 30 June 2023

Board Report

variance (8)

Achieved ‑7%

operating expenditure B-BBEE Spend as a >= 15% & <= 24% Achieved 18.3% (6.j) Achieved 15% (6.j) percentage of total expenditure >= 85% Achieved 117.9% (7.a) Achieved 115.1% (7.a) >= 85% Achieved 100% (7.b) Achieved 93.5% (7.b)

Outcome/ Impact Key performance indicator Target 2022 Performance result 2023 Performance result Improved viability Current ratio >=2 & <=3 Achieved 3.50 (6.a) Achieved 2.60 (6.a)

>= 5.0% Achieved 6.4% (6.c) Achieved 6.7% (6.c)

Debtors days <= 70 days Not achieved 77 days (6.h) Not achieved 109 days (6.h) Repairs and maintenance >= 95% Achieved 115.8% (6.i) Achieved 107% (6.i)

>= 1.0% Achieved 12.1% (6.e) Achieved 54.4% (6.e)

Gross income margin (primary activities) >=29% Not achieved 30.1% (6.b) Achieved 30.8% (6.b)

>= 19% Achieved 21.6% (6.d) Achieved 19.8% (6.d)

Debt equity 0,13 – 0,35 Achieved 0.14 (6.f) Not achieved 0.12 (6.f)

Return on assets >= 8% Not achieved 8.4% (6.g) Not achieved 7.3% (6.g)

Financial reports <>15% Achieved ‑0.5% variance (8)

Gross income margin

(secondary activities)

Net income margin

(primary activities)

Net income margin

(secondary activities)

as a percentage of budget Staff remuneration as a percentage of total

Award of work to B-BBEE

compliant entities through the tender systems

and sustainability

Spend increased

and increased new

entrants awarded contracts in the financial year

Actual expenditure compared

with budgeted expenditure

Strategic

objective

Maintain

financial health

& sustainability

Positively

engage

stakeholder base

Maintain

financial health

& sustainability

Performance objective

Improve key

financial ratios*

Increase B-BBEE expenditure relative to

operational projects

Manage costs within the

approved budget

13. Corporate business plan and shareholders compact (Continued) 13.1. Performance information for the year based on Rand Water’s (the entity) performance in line with the Shareholder Compact.

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