Rand Water | Integrated Annual Report 2025

FINANCIAL CAPITAL

Rand Water’s Financial Capital consists of equity, working capital, and debt funding sourced from investors.

R3.16 billion of debt through bond issuance

R12.2 billion cash and cash equivalents

R45.1 billion Capital and reserves

R4.6 billion Net Income

CREATING VALUE THROUGH FINANCIAL CAPITAL Rand Water delivers value to investors and stakeholders by effectively managing financial capital, comprising equity, trading, working capital, and debt. Our growing asset base is funded by reserves and borrowings. Tariffs are set to support operations, maintenance, and renewal, while infrastructure upgrades are financed through bond issuances. This enables reliable delivery of high-quality water via our 3,660 km pipeline network . EQUITY CAPITAL We strengthen financial resilience by reinvesting surpluses, growing retained earnings to R45.1 billion (2024: R40.3), and increasing net income to R4.64 billion (2024: R4.56) TRADING CAPITAL Short-term resources ensure daily operations run smoothly. Revenue rose by 5% to R22.9 billion (2024: R21.8), mainly due to a 4.9% tariff increase, while sales volume growth remained limited by maintenance, operational constraints, and demand management. WORKING CAPITAL Trade receivables have grown due to delayed municipal payments, but proactive revenue collection and stakeholder engagement help manage this exposure and ensure service continuity. DEBT CAPITAL Our funding position remains robust, with the gearing ratio improving to 6.9% (June 2024: 7.7%) and borrowings slightly reduced to R3,161 million (June 2024: R3,163)—well below the 50% Treasury threshold. Debt is managed prudently to balance infrastructure investment with financial sustainability.

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Rand Water | Integrated Annual Report 2025