Ranhill Utilities Berhad - SR2022

ENVIRONMENTAL AWARENESS & PRESERVAT ION Sect ion 06 35 SUSTAINAB I L I TY Report 2022 ADDRESSING NON-REVENUE WATER CHALLENGES IN MALAYSIA While Johor state has the lowest NRW levels 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. Johor remains the state with the lowest NRW loss rates at 20.9 m3/km of pipe/day in FY2022. NRW loss is primarily caused by leaky pipes, faulty water meters and water theft. Leaky pipes in particular, if left unchecked would see an increase in the Natural Rate of Rise (“NRR”) over time that will ultimately cause higher NRW loss. This was the case in Johor in FY2022, where necessary NRW management works could not be undertaken at the intended level due to budgetary issues as well as delay in approvals by regulatory authorities. Addressing NRW loss is imperative as the impact is profound on the entire water ecosystem. Financial Impact Supply Impact Environment Impact • Revenue loss • Increased operation expenditure costs • Necessitates increased abstraction from finite water supply • May require additional infrastructure i.e. raw water transfer and off river storage facilities • Reduced reserve water margins, especially in water stressed areas • Increased maintainance required on WTPs • Increased energy consumption and emissions due to increased water abstraction to compensate for volumes lost due to NRW RANHILL’S EFFORTS IN ADDRESSING NRW 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. 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 ENV I RONMENTAL Awareness & PRESERVAT ION

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