Strengthening for resilience

Why this is a Material Matter

  • By embracing agility, Sasol will remain robust and capable of navigating the complexities and challenges of the changing energy landscape. This will contribute to building a sustainable Sasol which is profitable and adaptable in the future.
  • As part of our strategic ambition to “strengthen our foundation”, we aim to enhance delivery and maximise free cash flow generation to strengthen the balance sheet. 

Help

  • Strengthen financial position to improve resilience and fund the Transition
  • Optimal and cost competitive feedstock deployment of existing feedstocks (coal and natural gas)
  • Monitoring cyber security risks and strengthening mitigation controls
  • Building trust and credibility with external stakeholders
  • Enhancing leadership across the more streamlined operating model
  • Improving production volumes and reducing costs to enhance value
  • Continuous human capital development
     

Hinder

  • Operational underperformance and delivery (performance measurement, cost management, operational costs)
  • Local infrastructure, utilities and logistics limitations negatively impacting feedstock availability, product dispatch, and customer centricity
  • Market volatility, geopolitical uncertainty, and disruption
  • Talent retention of critical skills
  • Declining free cash flow generation
  • Market pricing realisation and exchange rates volatility
     
Group strategic priority: Zero harm ambition | Strengthen our foundation business | Build an empowering culture | Progress grow and transform agenda
Impact of Material Matter Opportunities Mitigation actions Metrics
Short term
Medium term
Long term
  • Financial resilience
  • Operational stability ensuring optimum returns
  • Earnings
  • Sustainability
  • Reputation
  • Trust and credibility
     
  • Optimising the organisation for resilience
  • Deliver shared value and growth
  • Promote innovation
    Enhance our reputation
  • Grow value through improved customer value proposition
     
  • Attend to operational stability
  • Group financial market risk management policy, processes and frameworks (including hedging)
  • Enhance cyber resilience
  • Implement the Coal Quality Improvement Programme
  • Optimise capital allocation and asset reviewsImprove cost competitivenes
  • Maximise cash flow
  • Enhance the go-tomarket model to better align with evolving consumer demands
  • Reignite innovation
  • Coal quality challenges persisted; however, mitigation actions have been introduced to increase gasifier availability and restore production.
     
  • R10-15bn cost savings against inflation by FY28
  • Maintaining a working capital range on 15,5% – 16,5% of turnover
  • R15 – R20bn cumulative capital savings by FY28*
  • Maintaining strong liquidity
  • Net debt (excluding leases) sustainably below USD$3bn by FY28
  • Proactive risk management through extended hedging programme
     

Risk

Short term - Safety, Health and Environment
Short and medium term - People
Short and medium term - Stakeholder