Ranhill Utilities Berhad - AR2022

72 Sustainabi l i ty 03 Sect ion Ranhi ll Ut i l i t i es Berhad SUSTA INAB I L I TY STATEMENT ADDRESSING NON-REVENUE WATER CHALLENGES IN MALAYSIA While Johor state has the lowest NRW levels per km of pipeline in the whole of Malaysia, Ranhill through Ranhill SAJ and RWS continues to aggressively pursue NRW loss reduction towards achieving the target of 20.9% as set out in the 12th Malaysia Plan. Addressing NRW loss is imperative as the impact is profound on the entire water ecosystem. In FY2022, a total of 70,929 leaks were detected and rectified through intensified ALC activities by RWS. In addition, a total of 124,193 customer meters were replaced. Financial Impact Supply Impact Environmental Impact • Revenue loss • Increased operational expenditure costs • Necessitates increased abstraction from finite water supply • May require additional infrastructure i.e. raw water transfer and offriver storage facilities • Reduced reserve water margins, especially in water stressed areas • Increased maintainance required on WTPs • Increase energy consumption and emissions due to increased water abstraction to compensate for volumes lost due to NRW RANHILL’S EFFORTS IN ADDRESSING NRW NRW Level (%) 27.0 26.5 26.0 25.5 25.0 24.5 24.0 23.5 2017 25.0 2018 24.7 2019 24.9 2020 26.7 2021 25.1 2022 26.3

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