![background image](https://capedge.com/proxy/6-K/0001205613-17-000100/sasol001n.gif)
Form 40-F.
T Rule 101(b)(1): ____
solely to provide an attached annual report to security holders.
T Rule 101(b)(7): ____
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
required to be and has not been distributed to the registrant’s security holders, and, if discussing a material
event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of 1934.
12g3-2(b):
82-_______________.d
![background image](https://capedge.com/proxy/6-K/0001205613-17-000100/sasol001n.gif)
![background image](https://capedge.com/proxy/6-K/0001205613-17-000100/sasol001n.gif)
across most of the value chain
Performance Enhancement Programme,
a year earlier than planned
R69,4 billion
commitments
in South Africa
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.
![background image](https://capedge.com/proxy/6-K/0001205613-17-000100/sasol001n.gif)
Production International
![background image](https://capedge.com/proxy/6-K/0001205613-17-000100/sasol001n.gif)
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.
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.
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.
from a stronger closing rand/US dollar market exchange rate at 30 June
2017
forward curves and other market factors at 30 June 2017
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
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.
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.
![background image](https://capedge.com/proxy/6-K/0001205613-17-000100/sasol001n.gif)
project to 50 years.
contributed to a 3% decrease in production volumes and unplanned downtime during May 2017 led to a
2% reduction in production volumes;
market guidance;
of our market guidance, mainly as a result of stronger demand and improved plant stability;
shutdowns at our Chlor Vinyls and Polypropylene plants and a fire at a third party warehouse; and
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%.
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.
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.
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).
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.
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,
![background image](https://capedge.com/proxy/6-K/0001205613-17-000100/sasol001n.gif)
Overview
savings to R8,4 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.
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.
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.
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.
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.
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).
and the RP cash conservation measures, all numbers are quoted on a pre-tax basis.
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.
have not been audited and reported on by the company’s auditors.
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.
![background image](https://capedge.com/proxy/6-K/0001205613-17-000100/sasol001n.gif)
improvements
strike action
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.
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.
volumes were sent to SSO during the strike period.
the asset portfolio
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.
prior year, mainly due to a 2% increase in gas production volumes and the net positive impact of foreign
currency translations.
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.
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.
![background image](https://capedge.com/proxy/6-K/0001205613-17-000100/sasol009n.gif)
Overview
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.
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.
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.
increased from 13% to 16%.
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.
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.
compared to the prior year. Normalised operating margins improved by 1% to 21% in 2017.
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.
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.
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.
![background image](https://capedge.com/proxy/6-K/0001205613-17-000100/sasol009n.gif)
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.
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
market demand.
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.
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.
![background image](https://capedge.com/proxy/6-K/0001205613-17-000100/sasol009n.gif)
Overview
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.
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.
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.
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.
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.
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.
Sasol remains one of the largest corporate taxpayers in South Africa, contributing significantly to the
country’s economy.
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.
![background image](https://capedge.com/proxy/6-K/0001205613-17-000100/sasol009n.gif)
and cost reductions to continue
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.
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;
for in Base Chemicals, to be between 2% to 3% higher, with average margins for the business
remaining resilient;
Natref;
our targeted range of R65 billion to R75 billion by the end of FY18;
progress with the execution of our growth plan and strategy. Capital estimates may change as a result
of exchange rate volatility and other factors;
in accordance with standard practice, it is noted that this information has not been audited and reported on by the
company’s auditors.
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.
![background image](https://capedge.com/proxy/6-K/0001205613-17-000100/sasol009n.gif)
Overview
(“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.
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.
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.
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.
![background image](https://capedge.com/proxy/6-K/0001205613-17-000100/sasol009n.gif)
(cum dividend)
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.
Executive Officer
Executive Officer
![background image](https://capedge.com/proxy/6-K/0001205613-17-000100/sasol009n.gif)
consumables used
feasibility costs
income
subsidiaries
accordance with the recognition of other derivative gains and losses.
![background image](https://capedge.com/proxy/6-K/0001205613-17-000100/sasol009n.gif)
income statement
the income statement
the income statement
obligations
to the income statement
![background image](https://capedge.com/proxy/6-K/0001205613-17-000100/sasol009n.gif)
![background image](https://capedge.com/proxy/6-K/0001205613-17-000100/sasol009n.gif)
settled
subsidiaries
![background image](https://capedge.com/proxy/6-K/0001205613-17-000100/sasol019n.gif)
investments
investments
options
subsidiaries
![background image](https://capedge.com/proxy/6-K/0001205613-17-000100/sasol019n.gif)
(gearing)
share
programme)
shares
shares
ordinary shares
joint operations)
![background image](https://capedge.com/proxy/6-K/0001205613-17-000100/sasol019n.gif)
Salient features
accounted investments)
long-term incentives
performance targets granted to
directors – cumulative
directors – cumulative
directors – cumulative
vesting periods.
![background image](https://capedge.com/proxy/6-K/0001205613-17-000100/sasol019n.gif)
Limited
subsidiaries and joint operations
equipment
intangible assets
businesses
reserve
accounted investments
above
![background image](https://capedge.com/proxy/6-K/0001205613-17-000100/sasol019n.gif)
(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.
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).
arm’s length basis at market rates with related parties.
market. Where possible, inputs are based on quoted prices and other market determined variables.
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.
![background image](https://capedge.com/proxy/6-K/0001205613-17-000100/sasol019n.gif)
debt
for the same or
similar instruments
assets and
liabilities
interpolator
model,
discounted
expected cash
flows, numerical
approximation,
as appropriate
rates, market
commodity prices,
US$ swap curve, as
appropriate
![background image](https://capedge.com/proxy/6-K/0001205613-17-000100/sasol019n.gif)
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.
![background image](https://capedge.com/proxy/6-K/0001205613-17-000100/sasol019n.gif)
PO Box 5486, Johannesburg 2000, South Africa
PO Box 61051, Marshalltown 2107, South Africa, Tel: +27 11 370 5000 Fax: +27 11 688 5248
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)*
Mr B Nqwababa (Joint President and Chief Executive Officer), Mr P Victor (Chief Financial Officer)
United States of America
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.
Any reference to a calendar year is prefaced by the word “calendar”.
![background image](https://capedge.com/proxy/6-K/0001205613-17-000100/sasol019n.gif)
![background image](https://capedge.com/proxy/6-K/0001205613-17-000100/sasol019n.gif)
duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.