Rand Water | Integrated Annual Report 2025

HOW WE CREATE VALUE RAND WATER VALUE CREATION MODEL

BUSINESS MODEL

INPUTS

Finance Capital serves as a strategic catalyst to facilitate value creation across Rand Water’s processes generating value in: Natural Capital, Manufactured Capital, Human Capital, Intellectual Capital, and Social and Relationship Capital.

OUR STRATEGY

SUPPLY

RAND WATER SIX (6) CAPITALS

1. Finance Capital • Potable water tariff increase of 4.9% • A strong balance sheet to support business continuity and growth • Working Capital Management 2. Manufactured Capital • R1.22bn spent on augmentation of Infrastructure • R0.74bn spent on renewal of infrastructure 3. Natural Capital • R7.6bn spent on Water Resource 4. Human Capital • R3.9 bn spent on employees • R155m spent in Training costs 5. Intellectual Capital • R39.5m spent in running Rand Water Institute which is mandated to conduct innovation, research and development, and knowledge management amongst others. • Expertise in Human capital, information capital, brand awareness, and instructional/ organisational processes 6. Social and Relationships Capital • R88.3m spent in Stakeholder engagements, Roadshows, Communications, Advertising • R85.2m spent on Rand Water Foundation Activities • R88.8m spent on Socio- Economic Development ( SED) • R4.8m spent for Enterprise Development

We supply water to Gauteng, parts of Mpumalanga, North West and Free State Provinces.

VISION

Be a provider of sustainable, universally competitive water and sanitation

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

CAPACITY TO SUPPLY

• Largest water utility in Africa existing for 122 years • Bulk Water supplier mainly to municipalities • Distribution network over 3 660 km of large diameter pipeline • Feeding 60 strategically located service reservoirs • Supplied an average of 4 574 Mℓ/d , • Average Annual Peak sales of 5161 Mℓ/d with Highest capacity peak daily demand of 5199Mℓ/d

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

SUPPLIES TO MAIN CUSTOMERS

17 Municipalities • 27 Mines • 2 Railways 952 Industries and direct consumers

Deteriorating availability, reliability, and quality of electricity

Cyberattacks

1

6

Encroachment over pipeline, servitudes and properties Increasing credit risk exposure resulting from non-paying customers

Unpredictable weather patterns and extreme events

2

7

8

White Collar Crime

3

Delays in infrastructure project implementation and completion

Threat to critical Rand Water assets

TOP TEN RISKS

4

9

The unsustainability of the supply of potable water

Employee health and wellness

5

10

24

Rand Water | Integrated Annual Report 2025