STAYING AHEAD OF THE CURVE PERFORMANCE REPORT 2018 Semenyih Water Treatment Plant WHERE ARE WE? As at December 2018, we are in the final phase of consolidating the fragmented water services companies in Selangor, Kuala Lumpur and Putrajaya. When we complete the acquisition of Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (SPLASH), Air Selangor will become the single holistic licensee to extract, treat and distribute water for all its customers in the aforementioned service areas. The other five water operators which Air Selangor had acquired were PNSB Water Sdn Bhd (formerly known as Puncak Niaga (M) Sdn Bhd) and Syarikat Bekalan Air Selangor Sdn Bhd (SYABAS) on 15 October 2015, Konsortium ABASS Sdn Bhd (ABASS) on 26 January 2016 and Konsortium Air Selangor Sdn Bhd (KASB) on 11 March 2016. Air Selangor is a special purpose vehicle (SPV) set-up by the Selangor state government to undertake the restructuring of the water industry in Selangor, and to consolidate the industry in order to provide the best possible water service experience to its customers. On 13 September 2019, following the completion of the acquisition of SPLASH on 24 April 2019, Air Selangor became the sole licensee to provide water services in Selangor, Kuala Lumpur and Putrajaya. OUR WATER CYCLE Air Selangor operates and maintains the entire water services value chain from the reservoirs to distribution of treated water to consumers in Selangor, Kuala Lumpur and Putrajaya. Everyday, 33 water treatment plants supply an average of 4,667 million liters of water to its 8.413 million* consumers. Dam River Balancing Reservoir Catchment Area Service Reservoir Regulated by LUAS Regulated by SPAN Operated by Air Selangor Water Treatment Plant Main Trunk Customers * Forecast by National Statistics Department Malaysia dated December 2018 3 | Air Selangor WHO WE SERVE Our 33 water treatment plants serve over 8.413 million consumers in Selangor, Putrajaya and Kuala Lumpur. The daily average water consumption per person in our service area is 224 litres. Hulu Selangor Sabak Bernam Hulu Langat Kuala Selangor Petaling Klang/Shah Alam Kuala Langat Gombak Federal Territory of Kuala Lumpur Area Selangor, Kuala Lumpur & Putrajaya Sepang Length of Pipes (km) 28,642 Account Holders Federal Territory 2,334,224 of Putrajaya Consumption (litre per capita per day) 224* *as at end 2018 Air Selangor | 4 OUR BOARD & SENIOR MANAGEMENT To be the best in what we Chairman do, we recognise that it • YAB Tuan Amirudin Bin Shari takes people to complete Board Members the equation. With a Board of • YB Dato’ Mohd Amin Bin Ahmad Ahya strong leadership and a • YB Dato’ Nor Azmie Bin Diron commited team of over Directors • YBhg Dato’ Teo Yen Hua 4,520 employees, we strive • Encik Suhaimi Bin Kamaralzaman towards providing the best customer experience to all. Chief Executive Officer Internal Director/ Audit Head of Operations Aris Fadzillah Zulkifli Suhaimi Kamaralzaman Head of Department Ir. Abas Abdullah Finance, Strategy & Business Planning Kevin Lee Head of Department Human Resources & Production Administration Raja Ahmad Hidzir Basar Ishak Raja Muhamad Head of Department Customer Head of Department Distribution Relationship & Communication Kelvin Siew Weng Hoe Abdul Raof Ahmad Head of Department Head of Department Planning Procurement & Capital Works Izuan Amir Ir. Ainul Azhar Mohamed Isa Mohd Jemoner Information Head of Department Head of Department Technology Customer Billing Services Ravindran Karupiah Head of Department Legal & Yusof Saroji Company Head of Department Secretarial Operational Zaheeda Mohamad Ariff Services Risk Head of Department Management Abdul Karim Endut Head of Department Water Quality Thavendran & Laboratory Loganathan Services Head of Department Zairi Zainuddin Head of Department *as at end 2018 5 | Air Selangor AWARDS & ACCOLADES We are delighted and proud of our numerous accomplishments over the years. These awards, recognition and accolades are a strong testament to our continuous pursuit of excellence. In 2018, we received numerous certification and awards for the following: National Occupational Silver Laboratory ISO 9001 (QMS) ISO 22301 (BCMS) Safety and Health Excellence Award Certification Certification Excellence Award 2018 All Water Treatment Plants Both Sungai Labu WTP and 2018 Sungai Semenyih WTP (WTP) with the exception Sungai Selangor Phase of Sg Sireh WTP received 2 WTP received the ISO We received The National laboratory bagged the ISO 9001 (Quality BCMS 22301 (Business Occupational Safety & the prestigious Silver Management System) Continuity Management Health Excellence Award Award after successfully certification. System) certification which awarded by the National maintaining the Institute provides a framework for Council of Occupational Kimia Malaysia Laboratory The certification assures the WTPs to plan, establish, Safety & Health under the Excellence Award for 10 customers that constant implement, operate, water industry sector. The consecutive years. improvement is being monitor, review, maintain Gombak region bagged undertaken to ensure The award certifies and continually improve the award. delivery of better Semenyih WTP Laboratory a Business Continuity performance. as the first WTP laboratory Management System. in the country to receive the award having fulfilled all legislative requirements in the field of health, safety and the environment. ISO 17025 (Laboratory ISO 14001 (EMS) Overall Champion Fire Accreditation) Certification Emergency Response Certification Team Competition, Sungai Selangor Phase 2 Sungai Selangor Phase 2 WTP received the ISO 14001 Putrajaya Level 2018 WTP Laboratory acquired ISO 18001 (OHSAS) (Environmental Management The Southern Region ISO 17025 (Laboratory Certification System) certification in emerged champion at the Accreditation) certification line with our ambition to Sungai Selangor Phase 2 Fire Emergency Response having put in place minimise adverse effects WTP received the OHSAS Team Competition, Putrajaya standards and processes to the environment be it 18001 Occupational Health Level 2018 Competition, for calibration and testing. changes to the air, water, or and Safety Management organised by the land. This certification is proof Certification which provides Putrajaya Fire and Rescue that our laboratory is a framework to identify, The certification is testament Department. technically proficient and control and decrease that compliance to able to produce precise the risks associated with regulations, policies and and accurate test and health and safety within the environmentally oriented calibration. workplace. requirements are met. Air Selangor | 6 PERFORMANCE DASHBOARD 2018 This annual Performance Report outlines our key operations, achievements and initiatives in 2018. One of our key focus areas was to reduce our yearly average 99.83% overall water quality non-revenue water (NRW) and we have compliance achieved to reduce it from 31.52% in 2017 to 30.51% by end of 2018. Our focus on leak detection, leak repairs, replacement of aged pipes as well as management of water pressure and monitoring of district metering zones helped in reducing NRW. In 2018, we invested RM441.90 million for capital works projects such as pipe replacement, construction and upgrading of water treatment plants and the distribution systems to improve services and supply capacities. We also opened up our channels of communication with our customers via RM441.90 million short messaging service (SMS) to deliver in capital works investment personalised announcements on water status. We will continue to deliver the best possible experience to our customers as we strive towards becoming the leading operator in the region. 30.51% yearly average non-revenue 13.5 cases water (NRW) rate per 100km burst pipe incidents 115.44km of aged pipes identified for pipe replacement programme 120,488 Air Selangor mobile app downloads 7 | Air Selangor CEO’s REFLECTION Working Towards a Sustainable Future As the sole water services provider in the philosophy and is connected directly to state of Selangor, the Federal Territories of individual performance - hence, creating a Kuala Lumpur and Putrajaya, Air Selangor high-performance culture. understands the crucial role it plays in The harmonised rewards structure we providing continuous supply to our 8.413 believe, will eventually satisfy the performers million consumers. whilst motivate the under-performers by STRATEGIC PLANS STREAMLINED reflecting clarity in all portfolio breadth as To meet the growing demand for water and well as ensuring sustainable internal equity. to ensure sustainable water resources and E-BILLING HITCHES supply for all, we formulated 7 Strategic The year also saw us facing some challenges in delivering our strategic priorities for Planning & Initiatives (SPIs) that comprised with rising customer complaints over billing long term resilience. In view of that, we targets in 8 Key Result Areas (KRAs) to issues. We heard our customers out who have outlined our risk management move us forward. These SPIs and KRAs are complained of not receiving their bills framework encompassing strategic, part of our draft 30-year business plan while many other voiced their grouses on operational, compliance and financial risks which we had submitted to our regulator, switching to e-bill. This came by from the to continuously assess our operational the National Water Services Commission roll-out of our new Customer Information challenges. (SPAN). This plan will be finalised after the System (CRIS)