Rand Water | Integrated Annual Report 2025

INTEGRATED ANNUAL REPO

Consolidated Annual Financial Statements for the year ended 30 June 2025

g) Return on assets The set target was achieved driven by higher earnings combined with the efficient utilization of the asset base. The financial assets have also contributed significantly towards the achievement of the set target. h) Debtors days The set target was not achieved. Debtors days increased due to delayed payments from customers, including one of our biggest customers, which was subsequently recovered after year end, within the month of July 2025. Debt relief measures have been put in place to assist and support customers, where debt settlement agreements have been reached. Rand Water has tightened debt collection processes. Legal collection processes have been invoked against defaulting customers including the attachment of bank accounts where necessary. This has resulted in substantial recoveries of amounts owed to Rand Water shortly after year end. i) Repairs and maintenance as a percentage of budget The set target was achieved through intensified maintenance activities aimed at safeguarding infrastructure reliability and reducing unplanned breakdowns, including accelerated refurbishment projects, urgent corrective maintenance, and prioritisation of critical asset repairs. j) Staff remuneration as percentage of total operating expenditure The set target was achieved and staff remuneration remains within set parameters. Rand Water continues to monitor and operate within set parameters whilst ensuring that staff remuneration remains market related.

vii) B-BBEE expenditure and awards

h) Spend increased and increased new entrants awarded contracts in the financial year Rand Water exceeded its set target in line with continuing efforts.

i) Award of work to B-BBEE compliant entities through the tender systems The set target was exceeded due to close monitoring, demonstrating the entity's extensive effort over an extended period.

viii) Actual expenditure compared with budgeted expenditure

The set target was achieved with strict measures to control expenditure, with reprioritization for critical activities during the year.

ix) Capital expenditure programme

a) Overall project expenditure within R target The target was achieved due to the acceleration in the execution of infrastructure projects.

b) Overall project completion dates within targets The set target was not met. The challenges relate to resource management by service providers. Rand Water assisted the contractors by concluding cession agreements for subcontractors. The corrective action also entailed close monitoring of contractors.

x) Year-on-year growth in secondary (other activities)

The set target was exceeded. A comprehensive strategy to revive secondary and other activities was implemented.

xi) Municipalities/other customers with bulk supply agreements

Rand Water continues to achieve the set target supported by long-standing contracts with customers.

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Rand Water | Integrated Annual Report 2025