Update on annual financial statements for the year ended June 2017 UMGENI WATER Company code : BIUMWA Stock Codes: UG21: ZAG000075698 UG26: ZAG000133760 UPDATE ON ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 2017 Further to the announcement released by Umgeni Water on 1 February 2018 regarding the notice of availability of its annual financial statements for the year ended June 2017 (“AFS”) and confirmation that the audit report relating to the AFS is unqualified, shareholders are referred to the Report of the Auditor-General as well as note 32 of the AFS which refers to an emphasis of matter relating to a process of establishing a single water board in Kwa-Zulu Natal. This process has previously been announced on 15 November 2017. Shareholders are advised that the Auditor-General’s opinion has not been modified as a result of the emphasis of matter and that the accounting authority has no reason to believe that this process will negatively affect the going concern position of Umgeni Water during the 2017/2018 financial year, but that it will create growth opportunities for the merged entity. 14 February 2018 Enquiries: M Phillips at 033 3411054/1058 Email marsha.phillips@umgeni.co.za Debt Sponsor Nedbank Corporate and Investment Banking Date: 14/02/2018 02:52:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.