U

NITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

Report on Form 6-K for August 21, 2017

Commission File Number 1-31615

Sasol Limited

50 Katherine Street

Sandton 2196

South Africa

(Name and address of registrant’s principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or
Form 40-F.

Form 20-F __X__ Form 40-F _____

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-
T Rule 101(b)(1): ____

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted
solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-
T Rule 101(b)(7): ____

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to
furnish a report or other document that the registrant foreign private issuer must furnish and make public
under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized
(the registrant’s “home country”), or under the rules of the home country exchange on which the
registrant’s securities are traded, as long as the report or other document is not a press release, is not
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event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also
thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of 1934.

Yes _____ No __X__

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule
12g3-2(b):
82-_______________.d

Enclosures: Audited Financial Results for the year ended 30 June 2017

SASOL LIMITED

Audited Financial Results

for the year ended 30 June 2017

ON A ROBUST FOUNDATION

Sasol Limited Audited Financial Results 2017

Sasol Limited Group

SALIENT FEATURES

Sales volumes

•

Base Chemicals up 3% and Performance

Chemicals up 2%

•

Liquid fuels sales volumes down 2%

Strong operational performance
across most of the value chain

•

Secunda Synfuels Operations volumes up 1%,

to a new record production level

•

Eurasian Operations volumes up 6%, highest

since 2015

Strong cost and cash performance

•

Cash fixed costs, in real terms, remained flat

for three consecutive years

•

Achieved R5,4 billion per annum of

sustainable savings from our Business
Performance Enhancement Programme,
a year earlier than planned

•

Delivered cumulative capital conservation and

cash savings from low oil Response Plan of
R69,4 billion

Delivering on our stakeholder
commitments

•

Invested R1,6 billion in skills and socio-

economic development

•

Over R7 billion spent on preferential

procurement from black-owned enterprises
in South Africa

Audited Financial Results

for the year ended 30 June 2017

Sasol is an international integrated chemicals and energy company. Through our talented people, we use
selected technologies to safely and sustainably source, produce and market chemical and energy products
competitively to create superior value for our customers, shareholders and other stakeholders.

Safety Recordable Case

Rate (RCR), excluding

illnesses, improved to

0,28

,

regrettably five

fatalities

Lake Charles

Chemicals Project

74%

complete, capital

expenditure to date

of US$7,5 billion

and tracking revised

estimate

Core headline

earnings up

6%

reflects sustainable

operations

Headline earnings per

share down 15% to

R35,15

;

earnings per share up

54% to R33,36 in line

with market consensus

Sasol Limited Audited Financial Results 2017

1

2017

2016

Contribution to group operating profit

(%)

2017

2016

Contribution to group turnover (%)

Segment report

for the year ended 30 June

Turnover

Operating profit/(loss)

R million

R million

2015

2016

2017

Segment analysis

2017

2016

2015

20 859

21 186

23 046

Operating Business Units

4 310

(6 975)

1 173

15 687

16 975

18 962

■

Mining

3 725

4 739

4 343

5 172

4 211

4 084

■

Exploration and
Production International

585

(11 714)

(3 170)

187 312

173 042

170 413

Strategic Business Units

26 843

29 831

45 448

75 800

64 341

64 772

■

Energy

11 218

14 069

22 526

39 728

35 067

35 755

■

Base Chemicals

5 625

4 486

10 208

71 784

73 634

69 886

■

Performance Chemicals

10 000

11 276

12 714

221

108

516

■

Group Functions

552

1 383

(72)

208 392

194 336

193 975

Group performance

31 705

24 239

46 549

(23 126)

(21 394)

(21 568)

Intersegmental turnover

185 266

172 942

172 407

External turnover

Sasol Limited Audited Financial Results 2017

2

Financial results overview

1,3

Sasol delivered a strong business performance across most of the value chain, with our Secunda Synfuels
Operations (SSO) reporting record volumes and our Eurasian Operations delivering their highest production
volumes since 2015. However, continued volatility in the macro-economic environment, particularly the
stronger rand and low oil price, has adversely impacted our financial performance.

Earnings attributable to shareholders for the year ended 30 June 2017 increased by 54% to R20,4 billion from
R13,2 billion in the prior year. Headline earnings per share (HEPS) decreased by 15% to R35,15 and earnings
per share (EPS) increased by 54% to R33,36 compared to the prior year. The prior year EPS was negatively
impacted by the R9,9 billion partial impairment of our Canadian shale gas assets.

Core headline earnings² increased by 6% (R2,29 per share) compared to the prior year. The Sasol Limited
Board (“the Board”) considers core headline earnings as an appropriate indicator of the sustainable operating
performance of the group, as it adjusts for period close and once-off items as noted below. 

Sasol’s headline earnings were impacted by the following notable once-off and period close items:

2017

2016

Headline earnings

R35,15

R41,40

Translation losses/(gains) (including foreign exchange contracts) arising
from a stronger closing rand/US dollar market exchange rate at 30 June
2017

R2,70

(R0,86)

Mark-to-market valuation of oil and foreign exchange derivatives using
forward curves and other market factors at 30 June 2017

(R1,73)

–

Provision/(reversal of provision) for tax litigation matters

R1,49

(R3,77)

Impact of prolonged labour actions at Mining in the first half of the year

R1,45

–

Core headline earnings

R39,06

R36,77

Included in remeasurement items is a partial impairment of our US Gas-to-Liquids (GTL) project amounting to
R1,7 billion (US$130 million) due to the uncertainty around the probability and timing of project execution and
the reversal of a partial impairment of the Lake Charles Chemicals Project (LCCP) amounting to R0,8 billion

Joint President and Chief Executive Officer, Bongani Nqwababa said:

Notwithstanding the volatile macro-economic environment in which we operate, Sasol delivered a resilient
performance. This is testament to the robust foundation we have in place to position Sasol for long-term
growth, since we are able to operate profitably and generate healthy free cash flows at oil prices of
US$40/bbl. Our sound business fundamentals are further reflected in our record production volumes and
earlier-than-anticipated realisation of the full Business Performance Enhancement Programme (BPEP)
savings target. Our heightened focus on macro-economic risk mitigations to protect and strengthen our
balance sheet and our ability to operate safe, reliable and sustainable operations positions us well for future
value-based growth.

Joint President and Chief Executive Officer, Stephen Cornell said:

Disciplined cost control, focused cash conservation and effective management of financial risks have enabled
us to continue delivering shareholder value and achieving a competitive market position. These factors,
integral to our DNA, attest to the underlying resilience of our business and our determination to provide
shareholders with a world-class investment. To drive future growth, we will sustain this robust foundation
through meticulous ongoing continuous improvements, while further enhancing our systems and capital
allocation process. As we refine our long-term strategy, our objective is to ensure we have sufficient flexibility
to deliver value-based growth under various scenarios. By identifying all opportunities that can contribute to
increased total shareholder returns, Sasol is driving an exciting new era of growth for our shareholders and
stakeholders. 

Sasol Limited Audited Financial Results 2017

3

(US$65 million), which resulted from lower spot discount rates and the extension of the useful life of the
project to 50 years.

The highlights of our operational performance can be summarised as follows:

○

SSO increased production volumes by 1% to a record 7,83 million tons;

○

Natref production volumes decreased by 5%. Planned plant shutdowns during the first half of the year
contributed to a 3% decrease in production volumes and unplanned downtime during May 2017 led to a
2% reduction in production volumes;

○

Our Eurasian Operations increased production volumes by 6% due to stronger product demand;

○

ORYX GTL achieved a utilisation rate of 95%, compared to 81% in the prior year, which is higher than
market guidance;

○

Our Performance Chemicals business reported a 2% increase in sales volumes, which is at the upper end
of our market guidance, mainly as a result of stronger demand and improved plant stability; 

○

Our Base Chemicals sales volumes increased by 3%, slightly below market guidance, due to extended
shutdowns at our Chlor Vinyls and Polypropylene plants and a fire at a third party warehouse; and

○

Liquid fuels sales volumes in our Energy Business decreased by 2% due to a greater portion of
production volumes from SSO being allocated to our higher margin yielding chemical businesses and
lower Natref production volumes. Excluding the effect of the Natref downtime and lower allocated
volumes from SSO, our liquid fuels sales volumes increased by 1%.

The decrease in the effective corporate tax rate from 36,6% to 28,3% was mainly as a result of the
R9,9 billion partial impairment of our Canadian shale gas assets in the prior year. The adjusted effective tax
rate, excluding equity accounted investments, remeasurements and once-off items, is 26,5% compared to
28,2% in the prior year.

We have seen some recovery in global oil and product prices as average Brent crude oil prices were 15%
higher compared to the prior year (average dated Brent was US$49,77/bbl for the year ended 30 June 2017
compared with US$43,37/bbl in the prior year). Despite softness in commodity chemical prices experienced
at the start of the financial year, we have seen a steady increase in demand and robust margins in certain key
markets. The average margin for our speciality chemicals business remains resilient, despite a margin squeeze
in our ammonia business as a result of oversupply in global markets.

Excluding the effect of our hedging programme, the average rand/US dollar market exchange rate
strengthened by 6% from R14,52 in 2016 to R13,61, and the closing rand/US dollar market exchange rate
strengthened by 11% from R14,71 to R13,06. This resulted in translation losses of R2,3 billion on the valuation
of the balance sheet compared to translation gains of R1,1 billion recognised in the prior year (including
foreign exchange contracts).

We continued to deliver a strong cost performance and managed to contain our cash fixed costs to
below inflation in nominal terms, despite the additional once-off costs incurred due to the Mining strike.
Through our continued focus on cost control and the commitment of our people, we achieved our Business
Performance Enhancement Programme (BPEP) sustainable savings exit run-rate target of R5,4 billion per
annum in 2017, a year earlier than previous market guidance. We have now closed out our BPEP programme,
having achieved the targeted sustainable savings. Going forward we are committed to further drive
continuous improvement to identify opportunities to sustainably drive down costs and deliver  improved
returns to our shareholders and stakeholders. 

Our comprehensive Response Plan (RP), to counter the effects of a low oil price by focusing on capital
conservation and cash savings, has continued to yield positive results in line with our 2017 targets, despite
margin contraction and the negative impact of a much stronger exchange rate. The RP realised capital
conservation and cash savings of R32,3 billion in 2017, bringing our total cumulative cash conservation to
R69,4 billion. The RP’s objective is to place the company in the best possible position to operate profitably
in a US$40/bbl oil price environment and to proactively manage the balance sheet and our liquidity. We have
increased our RP sustainable annual cash cost savings target from R2,5 billion to at least R3,0 billion by 2019,

Sasol Limited Audited Financial Results 2017

4

Sasol Limited Group
Overview

(continued)

in addition to the R5,4 billion sustainable savings from our BPEP. This takes our cumulative sustainable cost
savings to R8,4 billion. 

Actual capital expenditure, including accruals, amounted to R60,3 billion. This includes R36,8 billion
(US$2,7 billion) relating to the LCCP. Our actual capital expenditure for the full year is below previous market
guidance of R66 billion, largely due to the stronger exchange rate, re-phasing of the LCCP capital cash flow
and active management of the capital portfolio.

During the current financial year, Sasol entered into a number of hedges to mitigate specific financial risks
and provide protection against unforeseen movements in oil prices, interest rates, currency movements, and
commodity and final product prices. Approximately 50% of the crude oil exposure was hedged with crude oil
put options for 2017 and 2018 at a net price of ~US$48,15/bbl. A total net loss of R237 million (US$17 million)
was recognised during the period. To manage the exposure to the US dollar, approximately 70% of the
rand/US dollar exposure has been hedged with zero-cost collar instruments at a floor of ~R13,46 for 2018.
A net gain of R1 608 million (US$118 million) was recognised during the period. Should appropriate hedges
become available in the market at an acceptable cost, we will enter into additional hedges as mitigation
against these financial risks. 

Our net cash position decreased by 44%, from R52,2 billion in June 2016 to R29,3 billion as at 30 June 2017
mainly due to the funding of the LCCP and the effect of a stronger closing rand/US dollar exchange rate.
Loans raised during the year amounted to R13,3 billion, mainly for the funding of our growth projects. We
have sufficient liquidity in place to fund the LCCP and our business operations.

Cash generated by operating activities decreased by 19% to R44,1 billion compared with R54,7 billion in
the prior year. This is largely attributable to purchases of crude oil options of R1,3 billion (US$103 million),
increases in working capital as well as a stronger rand/US dollar exchange rate. Notwithstanding reduced
cash flows, our balance sheet has the capacity to lever up, as we continue to execute our growth plans and
return value to our shareholders. Accordingly, in support of our funding strategy, gearing increased to 27%,
which is better than our previous market guidance of 30% to 35%. This provides us with additional headroom
compared to our internal targets.

To manage the impact of price volatility and the lower oil price environment, the Board concluded that our
internal gearing ceiling will remain at 44% until the end of the 2018 financial year. The net debt-to-EBITDA
ratio is 1,13 times compared to 0,56 times in the prior year and is expected to remain below our target of
2,0 times. We actively manage our capital structure and funding plan to ensure that we maintain an optimum
solvency and liquidity profile. 

Our dividend policy is to pay dividends within a dividend cover range based on HEPS. Taking into account the
current volatile macro-economic environment, capital investment plans, our cash conservation initiative,
the current strength of our balance sheet, and the dividend cover range, the Board has declared a gross final
dividend of R7,80 per share. The dividend cover was 2,8 times at 30 June 2017 (30 June 2016: 2,8 times).

¹

All comparisons to the prior year refer to the year ended 30 June 2016. Except for earnings attributable to shareholders
and the RP cash conservation measures, all numbers are quoted on a pre-tax basis.

²

Core headline earnings are calculated by adjusting headline earnings with once-off items, period close adjustments
and depreciation and amortisation of significant capital projects, exceeding R4 billion which have reached beneficial
operation and are still ramping up and share-based payments on implementation of BBBEE transactions. Once-off
items relate to the impact of the prolonged labour actions at Mining as well as the Sasol Oil tax litigation matter. Period
close adjustments in relation to the valuation of our derivatives at period end is to remove volatility from earnings
as these instruments are valued using forward curves and other market factors at the reporting date and could vary
from period to period. We believe core headline earnings is a useful measure of the group’s sustainable operating
performance. However, this is not a defined term under IFRS and may not be comparable with similarly titled measures
reported by other companies.

³

All non-GAAP measures (such as normalised operating profit, core headline earnings, adjusted effective tax rate, etc.)
have not been audited and reported on by the company’s auditors.

4

Normalised operating profit is calculated by adjusting operating profit for translation effects relating to the closing
exchange rate, valuation of hedges, remeasurement items, the reversal of the provision relating to Escravos (EGTL) in
the prior year and the strike at Mining.

Sasol Limited Audited Financial Results 2017

5

Strong operational performance supported by sustained cost
improvements

1,3,4

Operating Business Units

Mining – uninterrupted supply to Secunda Synfuels Operations, however negatively impacted by
strike action

Operating profit decreased by 21% to R3,7 billion compared to the prior year, primarily due to the impact of
labour actions at our Secunda mining operations in the first half of the financial year. Notwithstanding the
impact of labour actions, we delivered our full supply commitment of coal volumes to the integrated Sasol
value chain through our own production and increased external coal purchases. SSO used additional gas
during the strike period to limit the amount of coal required. The labour action resulted in additional once-off
costs of R1 billion and external coal purchases of R0,4 billion to ensure continuous supply to SSO. The total
cost amounts to R1,4 billion. 

We are still ramping up our operations to achieve targeted production run-rates and flexibility in our
operations. A business improvement programme to improve productivity and cost efficiency is currently
underway. We expect to see our mines return to the targeted level of operational performance in the next
12 months. Due to the lower productivity, our normalised unit cost of production increased by 13% above
inflation to R270/ton compared to the prior year. Our business improvement programme is further aimed at
limiting these cost increases to inflation with a targeted unit cost of production between R260 – R270/ton
for 2018. 

Our export coal business benefited from higher global coal prices during the year; however a portion of the
volumes were sent to SSO during the strike period.

Exploration and Production International – returning to profitability with focused management of
the asset portfolio

Exploration and Production International (E&PI) recorded an operating profit of R585 million compared to
an operating loss of R1,8 billion (excluding the impact of the partial impairment of our Canadian shale gas
operations of R9,9 billion) in the prior year. This result was achieved through focused management of the
asset portfolio and strict cost control. Operating profit includes a translation gain of R337 million versus a
translation loss of R695 million in the prior year.

Operating profit from our Mozambican producing operations increased to R2,0 billion from R1,1 billion in the
prior year, mainly due to a 2% increase in gas production volumes and the net positive impact of foreign
currency translations. 

Our Gabon asset recorded an operating profit of R295 million compared to an operating loss of R994 million
in the prior year, mainly due to higher sales prices, the partial reversal of an impairment of R197 million
and lower depreciation charges. This was offset by an 18% decrease in production volumes resulting from the
deferral of drilling activities in line with our RP cash conservation initiatives.

Our Canadian shale gas asset in Montney generated a lower operating loss of R746 million, compared to an
operating loss of R1,1 billion (excluding the impact of a partial impairment of R9,9 billion) in the prior year.
Our Canadian gas production volumes increased by 6% compared to the prior year, mainly due to completion
activities on existing wells. There were no drilling rigs in operation during the year in line with our RP cash
conservation initiatives.

Sasol Limited Audited Financial Results 2017

6

Sasol Limited Group
Overview

(continued)

Strategic Business Units

Performance Chemicals – increased sales volumes, resilient margins

Operating profit of R10 billion increased by 2% on a normalised basis and decreased by 11% in absolute
terms compared to the prior year, mainly as a result of significantly lower margins on ammonia due to lower
market prices, the impact of a stronger rand and a partial impairment of R527 million (US$38,4 million)
relating to our US Phenolics cash generating unit. 

Sales volumes increased by 2% compared to the prior year mainly due to an increase of 2% in Organics
volumes. Our Fischer-Tropsch Wax facility in South Africa continues to ramp up and produced 92 thousand
tons (kt) of hard wax in 2017, which is in line with our forecast. These additional wax volumes were offset by
lower volumes from our European wax facility due to reduced demand.

The European organics products benefited from improved volumes and margins resulting from favourable
market conditions. Our US assets benefited from higher ethylene sales prices during the first half of the
financial year, but subsequently came under pressure as a result of reduced market prices. Cash fixed costs
remained below inflation for the year.

Base Chemicals – increased sales volumes, stronger rand adversely impacted profitability

Operating profit increased by 25% to R5,6 billion compared to the prior year and our operating margin
increased from 13% to 16%. 

Our normalised operating profit of R5,1 billion is at the mid-point of our previous market guidance, but is 13%
lower compared to the prior year. This is largely due to the stronger exchange rate, which negatively impacted
earnings by R2,5 billion in 2017.

Sales volumes increased by 3% mainly as a result of higher volumes from SSO and improved production
due to the commissioning of the C3 Expansion project in the prior year. The US dollar basket price of our
commodity chemicals improved by 6% compared to the prior year, but this was negated by the stronger
rand/US dollar exchange rate. Cash fixed costs, normalised for new business set-up costs and higher costs
resulting from the increased ratio of chemicals volumes from SSO, were contained well within inflation.

Energy – strong cost performance, margins remained robust

Operating profit, including equity accounted earnings, of R11,2 billion decreased by R2,9 billion or 20%
compared to the prior year. Normalised operating margins improved by 1% to 21% in 2017. 

Normalised operating profit increased by 5% mainly due to higher crude oil prices, solid production
performance of ORYX GTL, further positive contributions from our BPEP and RP initiatives, partially negated
by a 19% decrease in petrol differentials, stronger rand/US dollar exchange rates and lower liquid fuel sales
volumes. In nominal terms, our cash fixed costs increase was contained to less than 1%, well below inflation,
due to strict cost control and lower costs allocated from SSO.

Gas sales volumes were 2% lower compared to the prior year mainly due to lower market demand. Our share
of power produced at the Central Térmica de Ressano Garcia (CTRG) joint operation in Mozambique amounted
to 658 gigaWatt-hours of electricity, 1% higher than the prior year.

ORYX GTL delivered an excellent production performance with an average utilisation rate of 95%, while
maintaining a world class safety recordable case rate of zero. ORYX GTL contributed R839 million to operating
profit with volumes increasing by 16% compared to the prior year. In Nigeria, Escravos GTL resumed
operations after completion of the scheduled maintenance programme with both trains running as expected.
The plant is expected to ramp up towards design capacity during the year.

Sasol Limited Audited Financial Results 2017

7

Advancing projects to enable future growth

We are encouraged by the headway we are making in delivering on our project pipeline:

○

Growing our footprint in North America:

○

Overall construction on the LCCP continues on all fronts, with most engineering and procurement
activities nearing completion. At 30 June 2017, capital expenditure amounted to US$7,5 billion, and
the overall project completion was 74%. The total forecasted capital cost for the project remains
within the approved US$11 billion budget and project progress is tracking the approved schedule.
This budget includes a contingency which, measured against industry norms for this stage of
project completion, is considered sufficient to effectively complete the project to beneficial
operation (BO) within the approved budget. Various savings opportunities have been identified and
are continuously being implemented to mitigate project risks. Although unplanned event-driven
risks may still impact the execution and cost of the project, we are confident that the remaining
construction, procurement, execution and business readiness risks can be managed within the
budget. We continue to monitor the economics of the project against the backdrop of a challenging
macro-economic environment. We rely extensively on the views of independent market consultants
in formulating our views on our long-term assumptions. Their views differ significantly, from period
to period, which again is indicative of the volatility in the market. For these reasons, the internal rate
of return (IRR) for the LCCP, based on these different sets of price assumptions, varies between a
range of returns which is both higher and lower than our weighted average cost of capital (WACC). At
spot market prices, using the last quarter of 2017 as a reference, the IRR is between 8% to 8,5%. We
are of the view that limited structural changes have occurred to market fundamentals since February
2017, when we last published the expected long-term IRR of the project, hence, based on our
internal assessment, we are of the view that the IRR is in a range of 7% to 8% (Sasol WACC at 8% in
US$ terms) based on conservative ethane prices. The cracker, however, remains cost competitive and
is at the lower end of the cost curve for ethylene producers. We will continue to focus on factors that
we can control, which are progressing the cost and schedule of the project according to plan. The
updated economics, earnings profile, capital spend and sensitivities are detailed in the Analyst Book
available on our website, www.sasol.com.

○

Construction of our 50% joint venture high-density polyethylene plant with Ineos Olefins and
Polymers USA is essentially complete and we are in the commissioning phase with start-up on
track for quarter four in calendar year 2017. The plant will be the largest bi-modal high density
polyethylene (HDPE) manufacturing facility in the US (470kt per annum) and is expected to produce
some of the most cost competitive performance resins based on Innovene

TM

S technology. The

market conditions continue to be favourable with low feedstock cost and strong polyethylene
market demand.

○

Focusing on our asset base in Southern Africa:

○

Our strategic R14 billion mine replacement programme, which will ensure uninterrupted coal supply
to SSO in order to support Sasol’s strategy to operate its Southern African facilities until 2050, is
nearing completion. Phase 2 of the Impumelelo Colliery project commenced during the first half of
the 2016 calendar year and is on track to be completed within budget of R0,9 billion, late in the 2019
calendar year.

○

The development of the Production Sharing Agreement (PSA) licence area in Mozambique remains
on budget and schedule. We have successfully drilled and tested four oil wells and two gas wells, and
captured 3D seismic over parts of the PSA. Gas reserves look promising and in line with expectations.
We are now anticipating oil production between the mid to lower end of the range anticipated in
the Field Development Plan. The surface facilities design and oil field development plan are being
optimised in line with the lower volumes, and it is anticipated that substantial capital savings will be
realised.  

Sasol Limited Audited Financial Results 2017

8

Sasol Limited Group
Overview

(continued)

Maintaining our focus on sustainable value creation

We continued to deliver on our broader sustainability and community contributions during the year:

○

Safety remains a top priority for Sasol. Regrettably, we experienced the loss of five of our colleagues
during the year. Our thoughts remain with our colleagues’ families and friends. Our safety RCR for
employees and service providers, excluding illnesses, improved to 0,28 at 30 June 2017 (0,29 as at
30 June 2016). We retain our focus on safety and strive for zero harm.

○

During the year, we invested R1,6 billion in skills development and socio-economic development, which
includes our Ikusasa programme, bursaries, learnerships and artisan training programmes. The Ikusasa
programme focuses on education, health and wellbeing, infrastructure, and safety and security in the
Secunda and Sasolburg regions. In line with our commitment to support our fenceline communities, we
increased our investment in Secunda and Sasolburg by 54% to R128 million.

○

While we support the transition to a lower-carbon economy, we are concerned that the proposed carbon
tax in South Africa will diminish the country’s competitiveness. It also does not address the structural
issues that lie at the heart of the country’s carbon intensity. The proposed design of the carbon tax
creates substantial regulatory and investment uncertainty as there is insufficient clarity relating to the
phases of the tax, especially post 2020. This is exacerbated by the fact that the carbon tax is not aligned
with the carbon budget system which is currently in the trial phase of implementation. Sasol continues
to engage with the South African government on these policy issues.

○

To ensure our ongoing compliance with new air quality regulations in South Africa, Sasol applied for
certain postponements to manage our short-term challenges relating to the compliance timeframes.
We have received decisions on our initial postponement applications from the National Air Quality
Officer, which, while aligned with our requests, imposed stretched targets reflected in our atmospheric
emission licences. In some cases shorter postponements were granted and further applications have
been made to extend compliance timeframes in line with our committed environmental roadmaps.

○

We continue to measure our comprehensive climate change response in accordance with our key
performance indicators. Our total greenhouse gas (GHG) emissions for the financial year 30 June 2017
is 67,6 million tons compared to 69,3 million tons for the prior year. Our GHG emissions intensity
(measured in carbon dioxide equivalent per ton of production) is relatively constant at 3,66 due to lower
production resulting from planned shutdowns.  GHG targets in South Africa are being developed in
conjunction with the South African government’s process for setting carbon budgets.

○

The improvement in our utility Energy Intensity Index (EII) of 4,2% exceeded our internal target of 1%
improvement for the year for our operations in South Africa. Including our international operations, we
improved our EII by 1,67% from the previous financial year.

○

During the year, we paid R35,6 billion in direct and indirect taxes to the South African government.
Sasol remains one of the largest corporate taxpayers in South Africa, contributing significantly to the
country’s economy.

○

The revised Mining Charter was published on 15 June 2017. It is intended to ensure alignment between
the BBBEE Act and the Mining Charter and introduces a number of new requirements which may
have a significant impact on Sasol. Amongst others, it increases the Black Economic Empowerment
(BEE) ownership targets from 26% to 30% and requires an additional payment of 1% of the turnover
generated by new mining rights to its BEE shareholders. The Chamber of Mines applied to the High Court
for an urgent interdict to suspend the implementation of the revised Mining Charter until such a time
as an application for a judicial review of the revised Mining Charter has been dealt with. The Minister of
Mineral Resources announced on 12 July 2017 not to implement the revised Mining Charter pending the
completion of the litigation. Sasol is assessing the impact of the revised Mining Charter on its business.

Sasol Limited Audited Financial Results 2017

9

Business performance outlook* – strong production performance
and cost reductions to continue

The current economic climate continues to remain highly volatile and uncertain. While oil price and foreign
exchange movements are outside our control and may impact our results, our focus remains firmly
on managing factors within our control, including volume growth, security of feedstock supply, cost
optimisation, effective capital allocation, focused financial risk management and maintaining an investment
grade credit rating.

We expect an overall strong operational performance for 2018, with:

○

Base Chemicals US dollar product prices to recover during the year and our South African Base Chemicals
sales volumes to be between 3% to 5% higher than the prior year; in addition our US high-density
polyethylene plant will contribute an additional 80kt to 110kt during the second half of the year.
Normalised operating profit is estimated to be between R3 billion to R5 billion;

○

Performance Chemicals sales volumes, excluding merchant ethylene which will now be accounted
for in Base Chemicals, to be between 2% to 3% higher, with average margins for the business
remaining resilient;

○

Liquid fuels sales volumes to be marginally below 60 million barrels due to planned shutdowns at
Natref; 

○

Gas production volumes from the Petroleum Production Agreement to be between 114 bscf and 118 bscf;

○

Average utilisation rate at ORYX GTL in Qatar to exceed 90%;

○

Normalised cash fixed costs to remain in line with SA PPI;

○

Cumulative capital conservation and cash flow contribution from our RP to be close to the upper end of
our targeted range of R65 billion to R75 billion by the end of FY18;

○

Capital expenditure, including capital accruals, of R59 billion for 2018 and R37 billion for 2019 as we
progress with the execution of our growth plan and strategy. Capital estimates may change as a result
of exchange rate volatility and other factors;

○

Our balance sheet gearing up to a level of between 35% and 44%;

○

Rand/US dollar exchange rate to range between R13,00 and R14,50; and

○

Average Brent crude oil prices to remain between US$45/bbl and US$55/bbl.

*

The financial information contained in this business performance outlook is the responsibility of the directors and
in accordance with standard practice, it is noted that this information has not been audited and reported on by the
company’s auditors. 

Competition law compliance

The South African Competition Commission is conducting proceedings against various petroleum products
producers, including Sasol. The Competition Commission has finalised a market inquiry in the South African
LPG market and Sasol is in the process of implementing the Commission’s recommendations. We continue
to interact and co-operate with the South African Competition Commission in respect of the areas that are
subject to the Commission’s investigations. To the extent appropriate, further announcements will be made
in future.

Sasol Limited Audited Financial Results 2017

10

Sasol Limited Group
Overview

(continued)

Tax litigation and contingency

The South African Revenue Service (“SARS”) has issued revised assessments for Sasol Oil (Pty) Ltd
(“Sasol Oil”) relating to a dispute around its international crude oil procurement activities for the 2005
to 2012 tax years. These revisions could result in potential adjustments to the company’s taxable income
and an additional tax liability including interest and penalties of approximately R1,2 billion for the periods
2005 to 2014. Sasol Oil has co-operated fully with SARS during the course of the audit related to these
assessments. SARS' decisions to suspend the payment of this disputed tax for the periods 2005 to 2012
currently remain in force. The litigation process in the Tax Court, relating to the international crude oil
procurement activities for the 2005 to 2007 years of assessment was concluded and judgement was
delivered on 30 June 2017 in favour of SARS. As a result, a liability of R1,2 billion has been recognised in
the annual financial statements in respect of the 2005 to 2014 matters that remain the subject of the
ongoing litigation. Sasol Oil, in consultation with its tax and legal advisors, does not support the basis of the
judgement and issued a Notice of Intention to Appeal to the Supreme Court of Appeal on 31 July 2017. The Tax
Court granted Sasol Oil's application for leave to appeal to the Supreme Court of Appeal on 14 August 2017.  

SARS has notified Sasol Oil of its intention to place on hold the field audit relating to this issue for the 1999 to
2004 tax years pending the outcome of the litigation. As a result of the judgement handed down on 30 June
2017, a possible obligation may arise from the field audit, which is regarded as a contingent liability. 

In addition, there could be a potential tax exposure of R11,6 billion for the periods 2013 to 2014 on varying
tax principles relating to the aforementioned activities. Supported by its specialist tax and external legal
advisors, Sasol Oil disagrees with SARS' assessment for 2013 and 2014 periods. Accordingly, Sasol Oil
has submitted an objection to the revised assessments and requested suspension of payment. Sasol Oil and
SARS have come to a resolution with regards to the request for suspension of payment, resulting in SARS
suspending payment for the significant majority of the disputed tax.  Further based on the outcome of the
Tax Court judgement, a possible obligation may arise for the tax years subsequent to 2014, which could give
rise to a further contingent liability at 30 June 2017.

Change in directors  

Ms GMB Kennealy and Ms ME Nkeli were appointed as Non-executive Directors with effect from 1 March 2017.

Declaration of cash dividend number 76

A final gross cash dividend of South African 780 cents per ordinary share (30 June 2016 – 910 cents per
ordinary share) has been declared for the financial year ended 30 June 2017. The cash dividend is payable on
the ordinary shares and the Sasol BEE ordinary shares. The Board is satisfied that the liquidity and solvency
of the company, as well as capital remaining after payment of the dividend is sufficient to support the
current operations for the ensuing year. The dividend has been declared out of retained earnings (income
reserves). The South African dividend withholding tax rate is 20%. At the declaration date, there are 651 439
446 ordinary (including 8 809 886 treasury shares), 25 547 081 preferred ordinary and 2 838 565 Sasol BEE
ordinary shares in issue. The net dividend amount payable to shareholders who are not exempt from the
dividend withholding tax, is 624 cents per share, while the dividend amount payable to shareholders who are
exempt from dividend withholding tax is 780 cents per share.

Sasol Limited Audited Financial Results 2017

11

The salient dates for holders of ordinary shares and Sasol BEE ordinary shares are:

Declaration date

Monday, 2 1   August 2017

Last day for trading to qualify for and participate in the final dividend
(cum dividend)

Tuesday, 5   September 2017

Trading ex dividend commences

Wednesday, 6 September 2017

Record date

Friday, 8   September 2017

Dividend payment date (electronic and certificated register)

Monday, 11   September 2017

The salient dates for holders of our American Depository Receipts are¹

Ex dividend on New York Stock Exchange (NYSE)

Wednesday, 6 September 2017

Record date

Friday, 8 September 2017

Approximate date for currency conversion

Tuesday, 12 September 2017

Approximate dividend payment date

Thursday, 21 September 2017

1

  All dates are approximate as the NY SE sets the record date after receipt of the dividend declaration.

On Monday, 11 September 2017 , dividends due to certificated shareholders on the South African registry will
either be electronically transferred to shareholders’ bank accounts or, in the absence of suitable mandates,
dividend cheques will be posted to such shareholders. Shareholders who hold dematerialised shares will
have their accounts held by their CSDP or broker credited on Monday, 11 September 2017 .   Share certificates
may not be dematerialised or remateri alised between 6 September 2017 and 8 September 2017 , both
days inclusive.

On behalf of the Board

Mandla Gantsho

Bongani Nqwababa

Stephe n Cornell

Paul Victor

Chairman

Joint President and Chief
Executive Officer

Joint President and Chief
Executive Officer

Chief Financial Officer

Sasol Limited

18   August 2017

Sasol Limited Audited Financial Results 2017

12

Income statement

for the year ended 30 June

2015

2016

2017

2017

2016

2015

US$m*

US$m*

US$m*

Rm

Rm

Rm

16 181

11 911

12 668

Turnover

172 407

172 942

185 266

(7 002)

(4 912)

(5 249)

Materials, energy and
consumables used

(71 436)

(71 320)

(80 169)

(528)

(476)

(471)

Selling and distribution costs

(6 405)

(6 914)

(6 041)

(666)

(582)

(636)

Maintenance expenditure

(8 654)

(8 453)

(7 628)

(1 930)

(1 647)

(1 794)

Employee-related expenditure

(24 417)

(23 911)

(22 096)

(48)

(20)

(36)

Exploration expenditure and
feasibility costs

(491)

(282)

(554)

(1 185)

(1 127)

(1 190)

Depreciation and amortisation

(16 204)

(16 367)

(13 567)

(866)

(625)

(922)

Other expenses and income

(12 550)

(9 073)

(9 912)

(84)

10

(88)

Translation (losses)/gains

**

(1 201)

150

(959)

(782)

(635)

(834)

Other operating expenses and
income

(11 349)

(9 223)

(8 953)

(70)

(888)

(119)

Remeasurement items

(1 616)

(12 892)

(807)

179

35

79

Equity accounted profits net of tax

1 071

509

2 057

4 065

1 669

2 330

Operating profit

31 705

24 239

46 549

112

125

115

Finance income

1 568

1 819

1 274

(195)

(161)

(240)

Finance costs

(3 265)

(2 340)

(2 230)

3 982

1 633

2 205

Profit before tax

30 008

23 718

45 593

(1 260)

(598)

(624)

Taxation

(8 495)

(8 691)

(14 431)

2 722

1 035

1 581

Profit for the year

21 513

15 027

31 162

Attributable to

2 595

911

1 497

Owners of Sasol Limited

20 374

13 225

29 716

127

124

84

Non-controlling interests in
subsidiaries

1 139

1 802

1 446

2 722

1 035

1 581  

21 513

15 027

31 162

US$

US$

US$

Earnings per share

Rand

Rand

Rand

4,25

1,49

2,45

Basic earnings per share

33,36

21,66

48,71

4,25

1,49

2,44

Diluted earnings per share

33,27

21,66

48,70

*   Supplementary non-IFRS information. US dollar convenience translation, converted at average exchange rate of

R13,61/US$1 (30 June 2016 – R14,52/US$1; 30 June 2015 – R11,45/US$1).

**   A loss of R1 107 million (30 June 2016 – R920 million gain; 30 June 2015 – R156 million loss) arising from foreign exchange

contracts (FECs) has been reclassified from translation (losses)/gains, to other operating expenses and income, in
accordance with the recognition of other derivative gains and losses.

The summarised financial statements are presented on a consolidated basis.

Sasol Limited Audited Financial Results 2017

13

Statement of comprehensive income

for the year ended 30 June

2017

2016

2015

Rm

Rm

Rm

Profit for the year

21 513

15 027

31 162

Other comprehensive income, net of tax

Items that can be subsequently reclassified to the
income statement

(8 931)

13 253

3 604

Effect of translation of foreign operations

(10 074)

15 112

3 590

Effect of cash flow hedges

1 821

(2 855)

–

Fair value of investments available for sale

11

(7)

16

Tax on items that can be subsequently reclassified to
the income statement

(689)

1 003

(2)

Items that cannot be subsequently reclassified to
the income statement

743

(546)

(593)

Remeasurements on post-retirement benefit
obligations

1 114

(877)

(847)

Tax on items that cannot be subsequently reclassified
to the income statement

(371)

331

254

Total comprehensive income for the year

13 325

27 734

34 173

Attributable to

Owners of Sasol Limited

12 234

25 890

32 727

Non-controlling interests in subsidiaries

1 091

1 844

1 446

13 325

27 734

34 173

Sasol Limited Audited Financial Results 2017

14

Statement of financial position

at 30 June

2016

2017

2017

2016

US$m*

US$m*

Rm

Rm

Assets

10 541

12 157

Property, plant and equipment

158 773

155 054

7 071

10 010

Assets under construction

130 734

104 011

182

181

Goodwill and other intangible assets

2 361

2 680

892

904

Equity accounted investments

11 813

13 118

42

48

Post-retirement benefit assets

622

614

230

236

Deferred tax assets

3 082

3 389

252

276

Other long-term assets

3 600

3 715

19 210

23 812

Non-current assets

310 985

282 581

72

17

Assets in disposal groups held for sale

216

1 064

1 618

1 943

Inventories

25 374

23 798

2 102

2 310

Trade and other receivables

30 179

30 913

3

210

Short-term financial assets

2 739

42

158

138

Cash restricted for use

1 803

2 331

3 398

2 117

Cash

27 643

49 985

7 351

6 735

Current assets

87 954

108 133

26 561

30 547

Total assets

398 939

390 714

Equity and liabilities

14 072

16 211

Shareholders’ equity

211 711

206 997

368

423

Non-controlling interests

5 523

5 421

14 440

16 634

Total equity

217 234

212 418

5 303

5 690

Long-term debt

74 312

78 015

1 279

1 275

Long-term provisions

16 648

18 810

864

847

Post-retirement benefit obligations

11 069

12 703

43

70

Long-term deferred income

910

631

193

56

Long-term financial liabilities

733

2 844

1 611

1 980

Deferred tax liabilities

25 860

23 691

9 293

9 918

Non-current liabilities

129 532

136 694

136

744

Short-term debt

9 718

2 000

58

57

Short-term financial liabilities

740

855

2 625

3 185

Other current liabilities

41 592

38 611

9

9

Bank overdraft

123

136

2 828

3 995

Current liabilities

52 173

41 602

26 561

30 547

Total equity and liabilities

398 939

390 714

* Supplementary non-IFRS information. US dollar convenience translation, converted at closing rate of R13,06/US$1

(30 June 2016 – R14,71/US$1).

Sasol Limited Audited Financial Results 2017

15

Statement of changes in equity

for the year ended 30 June

2017

2016

2015

Rm

Rm

Rm

Balance at beginning of year

212 418

196 483

174 769

Shares issued on implementation of share options

–

54

144

Share-based payment expense

463

123

501

Long-term incentive scheme converted to equity
settled

645

–

–

Total comprehensive income for the year

13 325

27 734

34 173

Dividends paid to shareholders

(8 628)

(10 680)

(12 739)

Dividends paid to non-controlling interests in
subsidiaries

(989)

(1 296)

(365)

Balance at end of year

217 234

212 418

196 483

Comprising

Share capital

29 282

29 282

29 228

Share repurchase programme

(2 641)

(2 641)

(2 641)

Retained earnings

176 714

164 917

161 078

Share-based payment reserve

(12 525)

(13 582)

(12 403)

Foreign currency translation reserve

23 285

33 316

18 289

Remeasurements on post-retirement benefits

(1 790)

(2 533)

(1 976)

Investment fair value reserve

33

26

42

Cash flow hedge accounting reserve

(647)

(1 788)

(7)

Shareholders’ equity

211 711

206 997

191 610

Non-controlling interests

5 523

5 421

4 873

Total equity

217 234

212 418

196 483

Sasol Limited Audited Financial Results 2017

16

Statement of cash flows

for the year ended 30 June

2017

2016

2015

Rm

Rm

Rm

Cash receipts from customers

172 061

175 994

186 839

Cash paid to suppliers and employees

(127 992)

(121 321)

(125 056)

Cash generated by operating activities

44 069

54 673

61 783

Dividends received from equity accounted
investments

1 539

887

2 812

Finance income received

1 464

1 633

1 234

Finance costs paid

(3 612)

(3 249)

(2 097)

Tax paid

(6 352)

(9 329)

(10 057)

Dividends paid

(8 628)

(10 680)

(12 739)

Cash retained from operating activities

28 480

33 935

40 936

Total additions to non-current assets

(56 812)

(70 497)

(42 645)

Additions to non-current assets

(60 343)

(73 748)

(45 106)

Increase in capital project related payables

3 531

3 251

2 461

Additional cash contributions to equity accounted
investments

(444)

(548)

(588)

Proceeds on disposals and scrappings

788

569

1 210

Other net cash flow from investing activities

(209)

(558)

(62)

Cash used in investing activities

(56 677)

(71 034)

(42 085)

Share capital issued on implementation of share
options

–

54

144

Dividends paid to non-controlling shareholders in
subsidiaries

(989)

(1 296)

(365)

Proceeds from long-term debt

9 277

34 008

14 543

Repayments of long-term debt

(2 364)

(3 120)

(1 663)

Proceeds from short-term debt

4 033

2 901

2 686

Repayments of short-term debt

(1 410)

(3 369)

(2 280)

Cash generated by financing activities

8 547

29 178

13 065

Translation effects on cash and cash equivalents

(3 207)

7 069

3 095

(Decrease)/increase in cash and cash equivalents

(22 857)

(852)

15 011

Cash and cash equivalents at beginning of year

52 180

53 032

38 021

Cash and cash equivalents at end of year

29 323

52 180

53 032

Sasol Limited Audited Financial Results 2017

17

Salient features

for the year ended 30 June

2017

2016

2015

Selected ratios

Return on equity

%

9,7

6,6

16,4

Finance costs cover

times

9,2

8,0

22,8

Net borrowings to shareholders’ equity
(gearing)

%

26,7

14,6

(2,8)

Dividend cover – Headline earnings per
share

times

2,8

2,8

2,7

Share statistics

Total shares in issue

million

679,8

679,8

679,5

Sasol ordinary shares in issue

million

651,4

651,4

651,1

Treasury shares (share repurchase
programme)

million

8,8

8,8

8,8

Weighted average number of shares

million

610,7

610,7

610,1

Diluted weighted average number of
shares

million

612,4

610,7

610,2

Share price (closing)

Rand

366,50

397,17

450,00

Market capitalisation – Sasol ordinary
shares

Rm

238 738

258 717

292 995

Market capitalisation – Sasol BEE
ordinary shares

Rm

866

892

994

Net asset value per share

Rand

348,27

340,51

315,36

Dividend per share

Rand

12,60

14,80

18,50

– interim

Rand

4,80

5,70

7,00

– final

Rand

7,80

9,10

11,50

Other financial information

Total debt (including bank overdraft)

Rm

84 153

80 151

42 919

– interest bearing

Rm

82 849

79 175

42 187

– non-interest bearing

Rm

1 304

976

732

Finance expense capitalised

Rm

2 764

2 253

1 118

Capital commitments (subsidiaries and
joint operations)

Rm

90 736

137 286

116 236

– authorised and contracted for

Rm

154 739

143 380

109 448

– authorised but not yet contracted for

Rm

61 673

95 590

66 266

– less expenditure to the end of year

Rm

(125 676)

(101 684)

(59 478)

Sasol Limited Audited Financial Results 2017

18

Sasol Limited Group
Salient features

(continued)

2017

2016

2015

Capital commitments (equity
accounted investments)

Rm

584

608

648

– authorised and contracted for

Rm

292

175

716

– authorised but not yet contracted for

Rm

573

756

691

– less expenditure to the end of year

Rm

(281)

(323)

(759)

Significant items in operating profit

Directors' remuneration, excluding
long-term incentives

Rm

77

71

91

Share appreciation rights with
performance targets granted to
directors – cumulative

3

000

147

518

535

Long-term incentive rights granted to
directors – cumulative

3

000

303

290

195

Sasol Inzalo share rights granted to
directors – cumulative

3

000

20

25

25

Effective tax rate

%

28,3

36,6

31,7

Adjusted effective tax rate

1

%

26,5

28,2

33,0

Number of employees

2

number

30 900

30 100

30 919

Average crude oil price – dated Brent

US$/barrel

49,77

43,37

73,46

Average rand/US$ exchange rate

1US$ = Rand

13,61

14,52

11,45

Closing rand/US$ exchange rate

1US$ = Rand

13,06

14,71

12,17

1

Effective tax rate adjusted for equity accounted investments, remeasurement items and once-off items.

2   The total number of employees includes permanent and non-permanent employees and the group’s share of

employees within joint operations, but excludes contractors and equity accounted investments’ employees.

3   Ms VN Fakude resigned as director with effect from 31 December 2016, long-term incentive rights, share appreciation

rights and Inzalo share rights attributable to her are retained, subject to appropriate service penalties, with unchanged
vesting periods.

Sasol Limited Audited Financial Results 2017

19

2017

2016

2015

Rm

Rm

Rm

Reconciliation of headline earnings

Earnings attributable to owners of Sasol
Limited

20 374

13 225

29 716

Effect of remeasurement items for
subsidiaries and joint operations

1 616

12 892

807

Impairment of property, plant and
equipment

415

8 424

294

Impairment of assets under construction

1 942

3 586

2 555

Impairment of goodwill and other
intangible assets

120

310

3

Impairment of other assets

–

–

1

Reversal of impairment

(1 136)

–

(2 036)

Fair value write down – assets held for sale

64

–

–

Profit on disposal of non-current assets

(21)

(389)

(93)

(Profit)/loss on disposal of investments in
businesses

(51)

226

410

Scrapping of non-current assets

283

1 099

549

Write-off of unsuccessful exploration wells

–

(3)

–

Realisation of foreign currency translation
reserve

–

(361)

(876)

Tax effects and non-controlling interests

(539)

(846)

(165)

Effect of remeasurement items for equity
accounted investments

14

13

(1)

Headline earnings

21 465

25 284

30 357

Headline earnings adjustments per
above

■

Mining

6

31

31

■

Exploration and Production International

(6)

9 963

3 126

■

Energy

1 844

1 267

(104)

■

Base Chemicals

(901)

1 723

93

■

Performance Chemicals

663

55

(1 804)

■

Group Functions

10

(147)

(535)

Remeasurement items

1 616

12 892

807

Headline earnings per share

Rand

35,15

41,40

49,76

Diluted headline earnings per share

Rand

35,05

41,40

49,75

The reader is referred to the definitions contained in the 2017 Sasol Limited financial statements.

Sasol Limited Audited Financial Results 2017

20

Basis of preparation 

The summarised consolidated financial statements are prepared in accordance with the JSE Limited's
(JSE) Listings Requirements for summary financial statements, and the requirements of the Companies
Act applicable to summary financial statements. The JSE requires summary financial statements to be
prepared in accordance with the framework concepts and the measurement and recognition requirements
of International Financial Reporting Standards as issued by the International Accounting Standards Board
(IFRS), the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial
Pronouncements as issued by the Financial Reporting Standards Council and to also, as a minimum, contain
the information required by IAS 34, Interim Financial Reporting.

The summarised consolidated financial statements do not include all the disclosure required for complete
annual financial statements prepared in accordance with IFRS as issued by the International Accounting
Standards Board. These summarised consolidated financial statements have been prepared in accordance
with the historic cost convention except that certain items, including derivative instruments, liabilities
for cash-settled share-based payment schemes, financial assets at fair value through profit or loss and
available-for-sale financial assets, are stated at fair value. The summarised consolidated financial statements
are presented in South African rand, which is Sasol Limited’s functional and presentation currency. The
accounting policies applied in the preparation of these summarised consolidated financial statements are in
terms of IFRS and are consistent with those applied in the consolidated annual financial statements for the
year ended 30 June 2017. The summarised consolidated financial statements appearing in this announcement
are the responsibility of the directors. The directors take full responsibility for the preparation of the
summarised consolidated financial statements. Paul Victor CA(SA), Chief Financial Officer, is responsible for
this set of summarised consolidated financial statements and has supervised the preparation thereof in
conjunction with the Senior Vice President: Financial Control Services, Brenda Baijnath CA(SA).

Related party transactions

The group, in the ordinary course of business, entered into various sale and purchase transactions on an
arm’s length basis at market rates with related parties.

Financial instruments

Fair value

Fair value is determined using valuation techniques as outlined unless the instrument is listed in an active
market. Where possible, inputs are based on quoted prices and other market determined variables.

Fair value hierarchy

The table below represents significant financial instruments measured at fair value at reporting date, or
for which fair value is disclosed at 30 June 2017. The US dollar bond, the interest rate swap, the crude oil
put options, the zero-cost foreign exchange collars and the coal swaps were considered to be significant
financial instruments for the group based on the amounts recognised in the statement of financial position
and the fact that these instruments are traded in an active market. The calculation of fair value requires
various inputs into the valuation methodologies used. The source of the inputs used affects the reliability and
accuracy of the valuations. Financial instruments have been classified into the hierarchical levels in line with
IFRS 13.

Level 1

Quoted prices in active markets for identical assets or liabilities.

Level 2 Inputs other than quoted prices that are observable for the asset or liability (directly or indirectly).

Level 3 Inputs for the asset or liability that are unobservable.

Sasol Limited Audited Financial Results 2017

21

IFRS 13 fair

Carrying

value

Fair value

Valuation  

Instrument

value hierarchy

Rm

Rm

method

Significant inputs

Listed long-term
debt

Level 1

13 014

13 365

Fair value

Quoted market price
for the same or
similar instruments

Derivative financial
assets and
liabilities 

Level 2

1 271

1 271

Forward rate
interpolator
model,
discounted
expected cash
flows, numerical
approximation,
as appropriate 

Foreign exchange
rates, market
commodity prices,
US$ swap curve, as
appropriate

Sasol Limited Audited Financial Results 2017

22

Sasol Limited Group

Independent audit by the auditors:

These summarised consolidated financial statements, including the segment report for the year ended 30 June 2017, have been audited by PricewaterhouseCoopers Inc., who expressed an unmodified opinion thereon. The individual auditor assigned to perform the audit is Mr PC Hough. The auditor also expressed an unmodified opinion on the annual financial statements from which these summarised consolidated financial statements were derived. A copy of the auditor's report on the summarised consolidated financial statements and of the auditor's report on the annual consolidated financial statements are available for inspection at the company's registered office, together with the financial statements identified in the respective auditor's reports. The auditor's report does not necessarily report on all of the information contained in this announcement of financial results. Shareholders are therefore advised that in order to obtain a full understanding of the nature of the auditor's engagement they should obtain a copy of the auditor's report together with the accompanying summarised consolidated financial statements from the company's registered office.

Sasol Limited Audited Financial Results 2017

24

Sasol Limited Group

Registered office: Sasol Place, 50 Katherine Street, Sandton, Johannesburg 2090
PO Box 5486, Johannesburg 2000, South Africa

Share registrars: Computershare Investor Services (Pty) Ltd, 15 Biermann Avenue, Rosebank 2196
PO Box 61051, Marshalltown 2107, South Africa, Tel: +27 11 370 5000 Fax: +27 11 688 5248

JSE Sponsor: Deutsche Securities (SA) Proprietary Limited

Directors (Non-executive): Dr MSV Gantsho* (Chairman), Mr C Beggs*, Mr MJ Cuambe (Mozambican)*,
Mr HG Dijkgraaf (Dutch)^, Ms GMB Kennealy*, Ms NNA Matyumza*, Ms IN Mkhize*, Mr ZM Mkhize*,
Mr MJN Njeke*, Ms ME Nkeli*, Mr PJ Robertson (British and American)*, Mr S Westwell (British)*

Directors (Executive): Mr SR Cornell (Joint President and Chief Executive Officer) (American),
Mr B Nqwababa (Joint President and Chief Executive Officer), Mr P Victor (Chief Financial Officer)

*Independent ^Lead independent director

Company Secretary: Mr VD Kahla

Company registration number: 1979/003231/06, incorporated in the Republic of South Africa

Income tax reference number: 9520/018/60/8

JSE

NYSE

Ordinary shares

Share code:

SOL

SSL

ISIN:

ZAE000006896

US8038663006

Sasol BEE Ordinary shares

Share code:

SOLBE1

ISIN:

ZAE000151817

American depository receipts (ADR) program:

Cusip number 803866300

ADR to ordinary share 1:1

Depositary: The Bank of New York Mellon, 22nd Floor, 101 Barclay Street, New York, NY 10286,
United States of America

Disclaimer – Forward-looking statements: Sasol may, in this document, make certain statements that are not
historical facts and relate to analyses and other information which are based on forecasts of future results and
estimates of amounts not yet determinable. These statements may also relate to our future prospects, developments
and business strategies. Examples of such forward-looking statements include, but are not limited to, statements
regarding exchange rate fluctuations, volume growth, increases in market share, total shareholder return, executing
our growth projects (including LCCP) oil and gas reserves and cost reductions, including in connection with our BPEP,
RP and our business performance outlook. Words such as “believe”, “anticipate”, “expect”, “intend", “seek”, “will”, “plan”,
“could”, “may”, “endeavour”, “target”, “forecast” and “project” and similar expressions are intended to identify such
forward-looking statements, but are not the exclusive means of identifying such statements. By their very nature,
forward-looking statements involve inherent risks and uncertainties, both general and specific, and there are risks that
the predictions, forecasts, projections and other forward-looking statements will not be achieved. If one or more of these
risks materialise, or should underlying assumptions prove incorrect, our actual results may differ materially from those
anticipated. You should understand that a number of important factors could cause actual results to differ materially
from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These
factors are discussed more fully in our most recent annual report on Form 20-F filed on 27 September 2016 and in other
filings with the United States Securities and Exchange Commission. The list of factors discussed therein is not exhaustive;
when relying on forward-looking statements to make investment decisions, you should carefully consider both these
factors and other uncertainties and events. Forward-looking statements apply only as of the date on which they are
made, and we do not undertake any obligation to update or revise any of them, whether as a result of new information,
future events or otherwise.

Please note: A billion is defined as one thousand million. All references to years refer to the financial year ended 30 June.
Any reference to a calendar year is prefaced by the word “calendar”.

Comprehensive additional information is available on our website: www.sasol.com 

www.sasol.com

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant, Sasol Limited, has
duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date:

August 21, 2017

By:

/s/ V D Kahla

Name:

Vuyo Dominic Kahla

Title:

Company

Secretary