Rand Water | Integrated Annual Report 2025

INTEGRATED ANNUAL REPO

Consolidated Annual Financial Statements for the year ended 30 June 2025

NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS

42.Financial instruments (continued)

The Group manages its interest rate risk by maintaining an appropriate mix between fixed and floating interest rate borrowings and investments.

The interest rate profile of the Group’s interest bearing financial instruments is as follows:

Group

Rand Water

Figures in Rand thousands

2025

2024

2025

2024

Fixed rate instruments Financial assets

4 134 864 (2 575 147)

4 971 691 (2 567 672)

4 134 864 (2 575 147)

4 971 691

Financial liabilities

(2 567 672) 1 559 717 2 404 019 1 559 717 2 404 019

Variable rate instruments Financial assets

12 557 307 (586 102)

6 590 176 (585 898)

12 543 233 (586 102)

6 576 511

Financial liabilities

(585 898) 11 971 205 6 004 278 11 957 131 5 990 613

Fair value sensitivity analysis for fixed rate instruments

The Group does not account for any fixed rate financial assets and liabilities at fair value through profit or loss, therefore a change in interest rates at the reporting date would not affect income or loss.

Cash flow sensitivity analysis for variable rate instruments

The Group has used a sensitivity analysis technique that measures the estimated change to profit or loss of an instantaneous increase or decrease of 0.5% - 1.5% (50-150 basis points) in market interest rates, at the reporting date. The sensitivity analysis below reflects the interest rate impact on the finance income and finance cost at 30 June 2025. This analysis assumes that other variables remain constant. Group

Income/(Cost)

Equity

Increase of 1.5%

Increase of 0.5%

Decrease of 0.5%

Decrease of 1.5%

Increase of 1.5%

Increase of 0.5%

Decrease of 0.5%

Decrease of 1.5%

Figures in Rand thousands 30 June 2025 Financial assets Financial liabilities 30 June 2024 Financial assets Financial liabilities

188 360 (8 792)

62 787 (62 787) (188 360)

188 360

62 787 (62 787) (188 360)

(2 931) 8 792 179 568 59 856 (59 856) (179 568) 179 568 59 856 (59 856) (179 568) 2 931 8 792 (8 792) (2 931) 2 931

98 853 32 951 (32 951)

(98 853)

98 853 32 951 (32 951)

(98 853)

(8 798)

(2 933)

2 933

8 798 (8 798)

(2 933)

2 933

8 798

90 055 30 018 (30 018) (90 055)

90 055 30 018 (30 018) (90 055)

319

Rand Water | Integrated Annual Report 2025