Rand Water | Integrated Annual Report 2025

BOARD REPORT

1. Introduction

The Board of Rand Water presents its audited consolidated annual financial statements for the financial year ended 30 June 2025. In the opinion of the Board, the statements fairly represent the financial position, financial performance, and cash flows for the financial year ended 30 June 2025 of Rand Water and its subsidiaries, in accordance with the International Financial Reporting Standards (IFRS) as adopted by the entity.

2. Nature of the business

Rand Water is a Water Board established in terms of the Water Services Act, No. 108 of 1997 (WSA) with a mandate of providing water services to other water service institutions within its service area. Rand Water is a schedule 3B public entity in terms of the Public Finance Management Act, No. 01 of 1999 (PFMA). Rand Water and its subsidiaries, comprising of Rand Water Services (RWS) and Rand Water Foundation (RWF), are together referred to as "the Group". Rand Water Rand Water is a bulk potable water supplier responsible for the abstraction and purification of raw water mainly from the Vaal River. The organisation further facilitates the pumping and distribution of the potable water to municipalities, mines, industries and other consumers in Gauteng, parts of Mpumalanga, Free State and North-West Provinces. In some instances, raw water is distributed to certain industries by agreement. To support its primary activities, the organisation also undertakes secondary activities aimed at augmenting its revenue streams. Rand Water Services (Pty) Ltd Rand Water Services (Pty) Ltd was established in 2000 in accordance with the Companies Act of 1973. RWS is a wholly owned subsidiary of Rand Water with a mandate to engage in commercial water services related operations nationally and continentally. Rand Water Services was formed to originally develop and pursue the commercial aspects of the Group's business in the water services industry. The Water Services Act, 108 of 1997 requires Rand Water to ring fence other business activities from the regulated water services. RWS was therefore formed in order to explore the avenues that could attract potential business partnerships and joint ventures, in the water industry, within private and public companies by developing water services solutions with a National and Pan-African focus. Embedded in the strategy of Rand Water Services is to be a Water Services Provider (WSP) of choice in the implementation of the utilities of the future model addressing challenges faced by non-performing municipalities. Rand Water Foundation NPC Rand Water Foundation is a non-profit company (NPC) incorporated to carry out services for the public benefit as required by item 1(1) of Schedule 1 of the Companies Act 71 of 2008 and is a wholly owned subsidiary of Rand Water. RWF was specifically established to execute the corporate social investment strategy of Rand Water and has been operational since 2003. To this end, RWF is registered as a public benefit organisation for purposes of tax exemption in terms of the Income Tax Act 58 of 1962.

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Rand Water | Integrated Annual Report 2025