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

2. PROFILE Largest water utility in Africa
Bulk Water supply increased to 3457 Ml/d (3426 Ml/d: 2005)
Supplies 11 million people
Area of service km2
Additional km2 joint area of service with other Water Boards

3. AREA OF SUPPLY
Consumers million Area sq km Total Pipelines km Total Reservoirs - 54

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

5. PERFORMANCE HIGHLIGHTS
Revenue : R3 672 million
Net income : R 593 million
Net cash from operating activities : R712 million
Increase in sales volume (3457 Ml/d AADD)
Assets : R5,386 bn (R5,705 bn)
6.1%
19.7%
0.9%
0.9%
5,6%

6. PERFORMANCE HIGHLIGHTS
Staff employed (3049)
Corporate ISO 9001:2000 accredited
All plants ISO accredited
1,4%

7. PERFORMANCE HIGHLIGHTS
2006
2005
Customer Satisfaction Index
Training Spent as a % of payroll
Designated Groups at Management
BEE Spent
79%
81%
8,52%
8,2%
63,2%
60%
60,4%
46,8%

8. 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

9. SALES

10. CUSTOMER SALES PROFILE

11. GROSS PROFIT

12. RAND WATER PROFITABILITY
Net Finance Costs:

13. Annual Report 2005/6
RETURN ON TOTAL ASSETS

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

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

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

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

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

24. LOOKING INTO THE FUTURE…….
Key stakeholder groups:
Government
Customers
Partners
Programme of engagement:
Expectations
Delivery agenda
Meet developmental goals meaningfully

25. FUTURE DEVELOPMENT
Water Demand Management
Catchment management
Bulk sanitation
NEPAD Initiatives
Government engagement to assess expectations

26. Thank You