e r 2 - Umgeni Water

| Financial Ratios ChapterGroup Financial Indicators and Ratios F08 F09 F10 F11 F11 F12 F13 F14 F15 F16Actual Actual Actual Budget ForecastC Financial Risks21 Current ratio (current assets divided by current liabilities) 1.375 0.990 2.418 1.915 2.635 2.717 2.872 2.612 2.436 2.222 Debt ratio (total debt divided by total assets) 0.568 0.485 0.352 0.350 0.314 0.280 0.279 0.245 0.207 0.17123 Gross Debt-equity ratio (total liabilities divided by total accumulated reserves) 2.033 1.279 0.727 0.647 0.556 0.448 0.430 0.357 0.284 0.22324 Net Debt-equity ratio (Net liabilities divided by total accumulated reserves) 1.112 0.480 0.153 0.341 0.120 0.114 0.116 0.109 0.079 0.08425 Weighted Average Cost of Capital (WACC) (Per AFS) 13.22% 12.63% 9.50% 9.78% 9.33% 9.42% 9.52% 9.69% 9.86% 10.02%26 Weighted Average Cost of Capital (WACC) (Finance costs/Gross borrowings) 13.03% 13.52% 15.18% 8.58% 8.41% 7.68% 7.13% 8.06% 8.44% 9.16%27 Financial Leverage (D/(D+E)) (Net of redemption assets) 0.616 0.449 0.418 0.391 0.355 0.308 0.300 0.263 0.221 0.182C Debt ManagementNet Debt28 Total Borrowings (as per Balance sheet) 2 078 336 1 978 903 1 517 448 1 637 886 1 400 167 1 353 041 1 487 828 1 394 212 1 262 160 1 124 19729 Total Investment (as per Balance sheet) 941 315 1 235 897 1 197 295 773 497 1 097 764 1 009 295 1 085 480 970 297 913 297 702 29730 Net Borrowings (Total Borrowings - Total Investment) 1 137 021 743 007 320 153 864 388 302 403 343 747 402 348 423 916 348 863 421 900D Business Credit Risk31 Interest Cover (EBIT/int paid) 1.855 2.400 2.387 3.960 3.239 4.315 3.778 3.958 5.631 6.47532 EBITDA interest coverage (EBITDA/int paid) 2.633 2.993 3.463 5.370 5.663 6.540 5.785 5.763 7.026 7.90333 Cash from operations/average total debt 0.406 0.377 0.558 0.416 0.519 0.537 0.474 0.514 0.640 0.75334 Return on average total capital 0.545 0.415 0.296 0.220 0.191 0.189 0.144 0.131 0.135 0.13235 EBITDA/Sales 0.554 0.542 0.488 0.467 0.393 0.364 0.357 0.353 0.381 0.38736 Funds flow net debt pay back (cash from op before WC adj/total int bearing debt) 0.382 0.404 0.545 0.461 0.539 0.573 0.476 0.523 0.644 0.759E Surplus Ratios37 Accounting Surplus (NP)/Fixed Assets (PPE) 0.170 0.213 0.201 0.132 0.139 0.144 0.110 0.101 0.111 0.10938 Return on turnover (NP)/Revenue 0.305 0.353 0.331 0.301 0.253 0.271 0.254 0.243 0.274 0.28739 EBITDA 714 070 809 629 797 662 754 265 667 110 678 886 612 791 646 981 747 369 813 06340 Net Debt/EBIDAR 1.592 0.918 0.401 1.146 0.453 0.506 0.656 0.654 0.466 0.518Umgeni Water Five-Year Business Plan | 2011/2012 to 2015/2016 Page 138