1. Stakeholder Annual Report Presentation 2005/6 Themba Nkabinde Chief Executive

2. TSHWANE
BETHAL
CARLETONVILLE
JOHANNESBURG
VEREENIGING
SASOLBURG
WINTER VELD
RUSTENBURG
BRITS
HEILBRON
Service Area
Consumers million Area sq km Total Pipelines km Total Reservoirs - 54

3. EXTENDED AREA OF SUPPLY
Pipeline from Mamelodi to Western Highveld
Cost: R112m RW: R42m
DWAF R70m
Issue: Shared infrastructure but separate authorities
Consumers million Area sq km Total Pipelines km Total Reservoirs - 54

4. CUSTOMER SALES PROFILE

5. SIGNIFICANT EVENTS New Minister & DG Rand Water Services
Management restructuring
Meredale incident
Redemption of R860m debt

6. Increase in sales volume to 3457 Ml/d AADD Revenue : R3 672 million
FINANCIAL PERFORMANCE HIGHLIGHTS
Increase in sales volume to 3457 Ml/d AADD
Revenue : R3 672 million
Net income : R 593 million
Net cash from operating activities : R712 million
Assets : R5,386 bn
0.9%
6.1%
19.7%
0.9%
5,6%

7. SALES

8. RAND WATER PROFITABILITY
Net Finance Costs:

9. Annual Report 2005/6
RETURN ON TOTAL ASSETS

10. PERFORMANCE HIGHLIGHTS
KPI
Unit
2003
2004
2005
2006
Profit Margin %
9,7
12.04
14.29
16.12
Return on Equity
12.3
14.1
15.5
15.7
Interest Cover
2.8
3.7
5.2
8.4
Return on Assets
8.9
10.0
10.8
12.5
Credit Rating (CA Ratings) AA
Asset T/O Ratio
1.3
1.2
Current Ratio/Quick Ratio
1.5
1.8
0.9
1.4

11. CURRENT INFRASTRUCTURE PROJECTS
Brakfontein / Hartebeespoort (50 km) pipeline for R310 million. The EIA approved but subject to appeal
Projects done in partnership with other stakeholders:
Western Highveld Region Project for R112 million of which R42 million is from Rand Water and the rest from DWAF

12. FUTURE CAPITAL INVESTMENTS
A total of R2,9 billion capital investment is
planned over the next 5 years:
57% - Augmentation schemes
43% - Renovations and upgrades
Of the total, 80% is on distribution network

13. FUTURE INFRASTRUCTURE PROJECTS
Vlakfontein Mamelodi Pipeline - R370 million
Weltevreden Resevoir – R60 million
BG3 Pipeline – R180 million
Zwartkopjes-Forest Hill System – R140 million

14. ORGANISATIONAL TRANSFORMATION
General
Management
Executive
Female Empowerment
23%
28%
50%
ACI Empowerment
83%
63%
Commercial Equity Spend – 60% ,1%
Training Spend % of payroll

15. ORGANISATIONAL TRANSFORMATION
Learnerships 20 PWD (LG&W SETA)
PWD % of total staff
Talent Development 86 bursaries awarded at Tertiary Institutions. Sponsored two professorial chairs
Apprenticeship 13 apprentices of which 85% are female
HIV/Aids Program 1.56% of staff tested positive and are on an “Aid for Aids Program”

16. EMPLOYEE PRODUCTIVITY RATIOS
2003
2004
2005
2006
No. of Employees
3 108
3 097
3 049
3 006
Ml sold
1,216,343
1,252,828
1,259,927
1,279,939
Ml per employee
391
404
413
425
Revenue
R’000
2,884,405
3,258,055
3,460,099
3,672,119

17. Corporate ISO 9001:2000 quality accredited
OTHER PERFORMANCE HIGHLIGHTS
Corporate ISO 9001:2000 quality accredited
All plants ISO 14001:2004 environmentally accredited
All Plants OHSAS safety accredited
ISO accredited laboratory

18. CORPORATE SOCIAL RESPONSIBILITY
Categories
2006
2005
2004
Externally funded projects R R R
Spend on local suppliers R R
N/A
Spend on Local Labour R R
Female Employed
54%
49.7%
Jobs created
1 389
1 459
648

19. Alien Plant Removal - Water Conservation
CORPORATE SOCIAL RESPONSIBILITY
Water and Sanitation
Project
Area
Value
Gender M F
Total Staff
Winterveldt Pipe Reinforce
Winterveldt Areas
R5.3m
60%
40% 10
Winterveldt Sanitation
Winterveldt (Ward 9,24)
R5.5m
64.8%
35.2%
105
R10.8m
115
Alien Plant Removal - Water Conservation
Project
Area
Value
Gender M F
Total Staff
Alien Plant Removal
Mogale City
R1.3m
54%
46% 52
Elandsfontein
R1.5m
53%
47% 60
Kestell & Fouriesburg
Bethlehem Eastern FS
R2.0m
59%
41% 61
Caledon & Jordaan
R6.3m
130
Qwa Qwa Alien Removal
Qwa Qwa Eastern FS
R2.5m
48%
52%
298
R13.6m
601

20. CORPORATE SOCIAL RESPONSIBILITY
Domestic Leaks Repairs - Water Conservation
Project
Area
Value
Gender M F
Total Staff
Emfuleni Leaks Repairs
Emfuleni (Ironsude)
R1.9m
29%
71% 35
Tshwane Leaks Phase 2
Mamelodi
R1.5m
62%
38% 45
R3.4m 80
Wetland Rehabilitation - Water Conservation
Project
Area
Value
Gender M F
Total Staff
Blesbokspruit
Nigel / Springs
R1,0m
31%
69% 54
Siluma View
Thokoza
R370
46%
54% 26
R1.37m 80

21. RAND WATER SERVICES (Pty) Ltd
Ghana involvement
Pipeline Integrity Management
(C&K Joint Venture)
Infrastructure Development Fund

22. Current Challenges
Attract, develop & retain leading edge skills in water services
Improve internal performance management
Engage meaningfully with government on service delivery
Catchment management
Delivery on water & sanitation targets
NEPAD Initiatives
Engage customers on full suite of water services
Bulk sanitation
Demand management

23. LOOKING INTO THE FUTURE…….
Vision: Industry leader and partner of choice in sustainable water services in Africa by

24. Thank You