MHLATHUZE WATER BOARD

1. MHLATHUZE WATER BOARD

2. GRAPHICAL AREA OF SUPPLY

3. OVERVIEW OF THE WATER BOARD • Mhlathuze Water (MW) area of supply covers some 37,000km² stretching from uThukela River in the south and up to East Coast to Mozambique and Swaziland borders, around Vryheid and back to the uThukela River. • MW operational area covers 4 WSA’s in KZN: • uMkhanyakude District Municipality • Zululand District Municipality • uThungulu District Municipality • uMhlathuze Local Municipality • Supply Bulk Water and Sanitation services to Industries & Water Services Authorities in its area of operation

4. SHC 2014/2015

5. SHC 2014/2015 continue

6. SHC 2014/2015 continue

7. SHC 2014/2015 continue

8. Financial Performance 2014/2015 • Bulk water volumes increased by 21% mainly due to the increase in raw water volumes. (RBM and City of uMhlathuze (Esikhaleni) and the increase in potable water supply to the City of uMhlathuze for Richards Bay.

9. Financial Performance 2014/2015 • Although the tariffs for the all the schemes shows a downward trend for the past five years, revenue increased overall by 44% generated from better than expected bulk water volume sales. This resulted from the drought situation in KwaZulu Natal, whereby Mhlathuze Water was in a position to supply the City of uMhlathuze with water from the Mhlathuze River and Nsezi Water Treatment Plant.

10. Financial Performance 2014/2015 • Mhlathuze Water has maintained strong operating surpluses. Overall, the surplus for the year of R89,9 million (2014: R79,1m) reflects an increase of 14% from the previous year.

11. CAPITAL EXPENDITURE 2014/2015 • Capital expenditure increase by 9% from the previous year. The three major projects that contributed to the increase are: • Nsezi Balancing Reservoir (20ML) - R17 million • City of uMhlathuze Pump upgrade - R56 million • Re-route B-line to C-line - R12 million

12. Audit Opinion 2014/2015 • KPMG Inc. were appointed for the 2014/2015 financial year audit. • Annual financial statements were prepared in accordance with SA GAAP, the relevant provisions of Water Services Act in a manner required by PFMA. • MW received a Unqualified (Clean) Audit Opinion for the 2014/2015 year. • All internal controls were considered as relevant.

13. 1st Quarter 2015/2016 Performance on Key Strategic Objectives:

14. Performance on Key Strategic Objectives:

15. Performance on Key Strategic Objectives:

16. Performance on Key Strategic Objectives:

17. Performance on Key Strategic Objectives:

18. Performance on Key Strategic Objectives:

19. External Project-CAPEXJozini bulk supply Project budget summary Approved budget R2,074billion R980million - Bulk Only (DWS) R74million – Reticulation Only (COGTA) Non-approved Budget R1,02billion (Reticulation. Zone 6 - 12) Expenditure to date R752million Project Progress Bulk Pipelines, reservoirs and pump stations 74% Complete Reticulation (No more funding approved) 30% Complete Current financial year 2015/16 Budget: R290 million Expenditure: R142,7 million (End Sept 2015)

20. Hluhluwe Bulk Water Supply Project budget summary R96million Approved budget R96million - Bulk Only (DWS) Expenditure to date R160million(Actual cost of works) Additional R22million approved for the next Phase, but allocation not yet received from DWS. Project Progress – Phase 4 Bulk Pipelines, reservoirs and reticulation - 98% Complete

21. Dukuduku Resettlement - Water Supply Project budget summary R143million Approved budget R143million - Bulk Only (DWS) Expenditure to date R136million Project Progress Bulk Pipelines, reservoirs and pump stations 75% Complete Current financial year 2015/16 Budget: R15 million Expenditure: R10 million (End Sept 2015)

22. Hlabisa - Bulk Water Supply Project budget summary R205million Approved budget R205million - Bulk Only (DWS) Expenditure to date R197million Project Progress Bulk Pipelines, reservoirs and pump stations 98% Complete Current financial year 2015/16 Budget: R8 million Expenditure: R3 million (End Sept 2015)

24. Presentation to the DWS – 2015 first quarter report

25. Where do we derive our mandate Section 29 Magalies Water Strategy Section 30

26. Vision, Mission, Core Strategy, values

27. Water Services Authorities being served

28. Bulk Water Services Infrastructure

29. Where do we serve the Water Services Authorities

30. Map of Supply Area

31. Strategic Trajectory

32. Business Growth through capital expansions with area of supply coverage • Part A: Northern part of Rustenburg LM including RBA (PWS SOUTH) • Part B: Southern parts of Kgetlengrivier LM, with possible extensions to Groot Marico and Zeerust (PWS SOUTH) • Part C: Mankwe region of Moses Kotane LM (PWS NORTH) • Part D: Madikwe region of Moses Kotane LM (PWS NORTH) • Part E: North eastern Moses Kotane LM and part of Thabazimbi LM (PWS NORTH) • Part F: Moretele North, Madibeng North, Bela Bela, Modimolle, Mokgoopong, Dr JS Moroka (KLIPVOOR) • Part G: Brits, Hartbeespoort and southern parts of Madibeng LM (Mining Belt) • Part H: Supply to CoT via Klipdrift, Wallmannsthaal & Cullinan System F E D F F F D C A H G G B H G H B

33. Performance for the quarter

34. Performance for the quarter

35. Performance for the quarter

36. Performance for the quarter

37. Performance for the quarter

38. Performance for the quarter

39. Thank you