uMNGENI-uTHUKELA WATER - uMngeni Water - Notice of Availability of Annual Report

uMngeni Water - Notice of Availability of Annual Report

uMngeni-uThukela Water
Registration number: 1997/007707/07
JSE Alpha code: BIUMWA
("uMngeni Water" or "the group")

NOTICE OF AVAILABILITY OF ANNUAL REPORT

UMngeni Water hereby notifies its debt investors that it has publicly released its Annual Report for the
year ended 30 June 2025 ("Annual Report"), incorporating the annual financial statements for the year
ended 30 June 2025 ("AFS") and the auditor's report prepared by the Auditor-General of South Africa
("AGSA") ("Auditor's Report") which is unqualified.

The Annual Report, incorporating the AFS and the Auditor's Report, are available on the uMngeni Water
website at https://www.umngeni-uthukela.co.za/ and for inspection at uMngeni Water's registered office
at 310 Burger Street, Pietermaritzburg, 3201, South Africa.

Restatements

The AFS contain restatements for the prior year ended 30 June 2024 ("prior period") due to prior period
errors relating to:

    •   incorrectly disclosed purchases on behalf of the National Department in terms of an agency
        agreement, as a related party transaction;
    •   interest charged to customers included in the credit losses calculation for a reduction in interest
        income amounting to R105.9 million; and
    •   cash generated from operations (Increase in accounts payables) incorrectly included
        movement in capital expenditure which also impacted additions to PPE under the cash used in
        investing activities.


Full details of the restatements are set out in note 35 to the AFS.

Emphasis of matter and previously reported material irregularities

The Auditor's Report contains an emphasis of matter relating to material impairments in note 20 to the
consolidated and separate financial statements, material impairments of R640.70 million (2023-24:
R534.95 million) were raised by uMngeni-uThukela Water for the year under review on trade and other
receivables due to debtors not being able to settle outstanding amounts.

In addition, the AGSA reported on the following previously identified material irregularities which are
still in progress of being resolved:

    •   payments for consultancy services not received;
    •   invalid payments for security services; and
    •   standing time costs incurred due to ineffective controls over payments to suppliers.

A further material irregularity in respect of a variation order approved has been resolved.

Full details of the aforementioned have been included in the Auditor's Report.

30 January 2025

Debt Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited

Date: 30-01-2026 01:40:00
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