RAND WATER ANNUAL REPORT 2023

OUR VALUE CREATION MODEL Business Model OUR STRATEGY SUPPLY

INPUTS Finance Capital serves as a strategic asset and facilitator for Rand Water’s process of generating value across various dimensions: Natural Capital, Manufacturing Capital, Human Capital, Intellectual Capital, as well as Social and Relationship Capital. RAND WATER’S 6 CAPITALS INVESTMENTS 1. Finance Capital • Potable water tariff increase of 8.8% • R4.4bn Debt Raised. • A strong balance sheet to support business continuity and growth. • Working Capital Management. 2. Manufactured Capital • R0.743bn spent on augmentation of Infrastructure. • R0.678bn spent on renewal of infrastructure. 3. Natural Capital • R7.2bn spent on Water Resource. 4. Human Capital • R3.2bn spent on employees. • R114m spent in Training costs. 5. Intellectual Capital • R22.2m spent in establishing Rand Water Institute comprising of innovation, research and development, and knowledge management departments, amongst others. • Expertise in Human capital, information capital, brand awareness, and instructional/organisational processes. 6. Social & Relationships Capital • R26.5m spent on Stakeholder engagements, Roadshows, Communications and Advertising. • R84m spent on Rand Water Foundation Activities. • R72m spent on Social Enterprise Development.

We supply water to Gauteng, Mpumalanga, part of North West, part of Free State and part of Limpopo Provinces/ Area of Supplies Gauteng, Mpumalanga, part of North West, part of Free State and part of Limpopo Provinces

VISION To be of sustainable, universally competitive water and sanitation for Africa.

MISSION To consistently meet the

expectations of Rand Water customers, partners, and the government by strengthening the capacity to: • Attract, develop and retain leading edge skills in the water services. • Sustain a robust financial performance. • Develop and sustain globally competitive capabilities in core areas. • Enter into and sustain productive partnerships. • Develop, test and deploy cost effective technologies. STRATEGIC OBJECTIVES • Achieve Operational Integrity and Use Best Fit Technology. • Achieve a High-Performance Culture. • Positively Engage Stakeholder Base Achieve Growth. • Maintain Financial Health & Sustainability.

Capacity to Supply • Largest water utility in Africa existing for 120 years. • Bulk Water supplier mainly to municipalities. • Distribution network over 3 660km of large diameter pipeline. • Feeding 60 strategically located service reservoirs. • Supplied an average of 4 520 Mℓ/d and peak day demand of 5 199 Mℓ/d. Supply to Main Customers • 17 Municipalities • 27 Mines • 952 Industries and direct consumers.

KEY BUSINESS PROCESSES AND ACTIVITIES

Treatment

Abstraction

Pumping

Distribution

Strategic Asset Management

03

04

Encroachment over pipeline, servitudes and properties

Credit & Debt Management

Protection of critical RW Assets (NKP issues, Pipelines)

Infrastructure project

05

02

Sustainability of the supply of potable water

Availability, reliability and quality of electrical supply implementation, completion and integrity of new installation

10

for the 2022 /23 Financial Year

Top 10 Strategic Risks

Cost effective, and timeous procurement of quality goods and services for the sustainability of Rand Water

Alignment and compliance to regulatory frameworks and governance protocols

06

09

01

07

08

Climate change and its impact on future sustainability of the company

Viability and sustainability of RW growth and expansion initiatives

26