Rand Water | Integrated Annual Report 2025

FINANCIAL RISK MANAGEMENT

Credit Risk Management

Liquid & Funding Risk Management

Addressing Municipal Debt Through: • Active Stakeholder Engagement • Reinforcing our debt collection strategies, including legal resourse mechanisms • Diverse collection strategies

• Operational and capital expenditure sustain through a robust liquidity and cash flow management • Future capital expenditure projects supported by approve borrowing limits and surplus funds • Maintaining Rand Water’s Credit Rating

Building a Resilient and Sustainable Balance Sheet

Asset & Liability Management

Managing risk emenating from IAS 19 Post-Retirement Medical Benefit and The Rehabilitation provision of the Panfontein Sludge Disposal sites through matching of related assets

Debt Equity Ratio 6,90% (2024: 7,85%)

Cash Generated From Operations R 5 780 million (2024: R3 563 million)

Committed Facilities Headroom R1 500 million (2024: R1 500 million)

Borrowing Limits Approved Gazette No. 50943 R11,533 million (1 July 2024-30 June 2028)

Group Total Liquidity 30 June 2025 (Rm)

10,000 8,000 6,000 4,000 2,000 - Rmil

Net cash (R’m)

4,481

9,048

1,500

18,191

5,945

12,209

3,327

2,818

2,629

Total Liquidity

2021

2022

2023

2024

Cash & Cash Equivalent balance

Term Deposit Investments

Bonds Investments

Committed Facilities

2025

Standard & Poor’s

Fitch

Outlook Foreign currency Local currency National scale rating

Stable BB BB zaAAA

Outlook National LT Issuer National ST

Stable AA+ F1+

Affirmed

Affirmed

98

Rand Water | Integrated Annual Report 2025