JSE: SOL - SOLBE1 - Reviewed Interim Financial Results for the Six Months ended 31 December 2017 - Part 2

Publication Date: 
Monday, February 26, 2018

- Part 2: For the preceding part double click <Origin Href="NewsSearchID">ID:nJseZ0001a

1 106 793 1 464
Finance costs paid (1 864) (1 587) (3 612)
Tax paid (4 070) (3 010) (6 352)
Cash available from operating activities 10 234 13 497 37 108
Dividends paid (4 836) (5 650) (8 628)
Cash retained from operating activities 5 398 7 847 28 480
Total additions to non-current assets (30 574) (29 806) (56 812)
Additions to non-current assets (27 734) (30 248) (60 343)
(Decrease)/increase in capital project related payables (2 840) 442 3 531
Additional cash contributions to equity accounted investments (76) (124) (444)
Proceeds on disposals and scrappings 8 125 788
Purchase of investments (57) – (96)
Other net cash flow from investing activities (37) 161 (113)
Cash used in investing activities (30 736) (29 644) (56 677)
Dividends paid to non-controlling shareholders in subsidiaries (373) (594) (989)
Proceeds from long-term debt 18 746 1 181 9 277
Repayment of long-term debt (3 151) (1 227) (2 364)
Proceeds from short-term debt 29 860 4 033
Repayment of short-term debt (2 636) (850) (1 410)
Cash generated/(used) by financing activities 12 615 (630) 8 547
Translation effects on cash and cash equivalents (256) (2 162) (3 207)
Decrease in cash and cash equivalents (12 979) (24 589) (22 857)
Cash and cash equivalents at the beginning of period 29 323 52 180 52 180
Reclassification to held for sale (17) (29) –
Cash and cash equivalents at the end of the period 16 327 27 562 29 323

Salient features
for the period ended
Half year Half year Full year
31 Dec 17 31 Dec 16 30 Jun 17
Selected ratios
Operating profit margin % 13,4 16,1 18,4
Finance costs cover times 7,0 9,1 9,2
Net borrowings to shareholders equity (gearing) % 38,7 25,0 26,7
Dividend cover - core headline earnings per share (1) times 3,6 3,2 2,8

Share statistics
Total shares in issue million 681,4 679,8 679,8
Sasol ordinary shares in issue million 653,0 651,4 651,4
Treasury shares (share repurchase programme) million 8,8 8,8 8,8
Weighted average number of shares million 611,5 610,7 610,7
Diluted weighted average number of shares million 613,8 610,9 612,4
Share price (closing) Rand 428,18 398,90 366,50
Market capitalisation - Sasol ordinary shares Rm 279 602 259 843 238 738
Market capitalisation - Sasol BEE ordinary shares Rm 1 107 826 866
Net asset value per share Rand 346,10 337,45 348,27
Dividend per share Rand 5,0 4,80 12,60
­ interim Rand 5,0 4,80 4,80
­ final Rand – – 7,80

1 With effect from 23 February 2018, the Board approved a change in dividend policy from HEPS to Core HEPS

Half year Half year Full year
31 Dec 17 31 Dec 16 30 Jun 17
Other financial information
Total debt (including bank overdraft) Rm 96 119 77 081 84 153
­ interest-bearing Rm 94 952 75 967 82 849
­ non-interest-bearing Rm 1 167 1 114 1 304
Finance expense capitalised Rm 1 634 1 315 2 764
Capital commitments (subsidiaries and joint operations)(1) Rm 69 813 111 829 90 736
­ authorised and contracted Rm 150 520 144 851 154 739
­ authorised, not yet contracted Rm 46 322 78 473 61 673
­ less expenditure to date Rm (127 029) (111 495) (125 676)
Capital commitments (equity accounted investments) Rm 717 552 584
­ authorised and contracted Rm 404 291 292
­ authorised, not yet contracted Rm 652 492 573
­ less expenditure to date Rm (339) (231) (281)
Guarantees (excluding treasury facilities)
­ maximum potential exposure Rm 75 528 92 670 81 896
­ related debt recognised on the balance sheet Rm 70 676 68 161 64 057
Effective tax rate % 31,6 28,4 28,3
Adjusted effective tax rate(2) % 26,4 29,2 26,5
Number of employees(3) number 31 000 30 300 30 900
Average crude oil price - dated Brent US$/barrel 56,74 47,68 49,77
Average rand/US$ exchange rate 1US$ = Rand 13,40 13,99 13,61
Closing rand/US$ exchange rate 1US$ = Rand 12,37 13,74 13,06

1 Excludes significant commitments under leases relating to the Air Separation Unit in Secunda, capitalised in January 2018. The
finance lease asset capitalised is approximately R5 billion.
2 Effective tax rate adjusted for equity accounted investments, remeasurement items and once-off items.
3 The total number of employees includes permanent and non-permanent employees and the groups share of employees within joint
operations, but excludes contractors and equity accounted investments employees.

Half year Half year Full year
31 Dec 17 31 Dec 16 30 Jun 17
Rm Rm Rm
Reconciliation of headline earnings
Earnings attributable to owners of Sasol Limited 6 901 8 676 20 374
Effect of remeasurement items for subsidiaries and joint operations(1) 4 244 771 1 616
Impairment of property, plant and equipment 2 715 442 415
Impairment of assets under construction 50 191 1 942
Impairment of goodwill and other intangible assets – 102 120
Impairment of other assets 15 – –
Reversal of impairment (69) (29) (1 136)
Fair value write down - assets held for sale – – 64
(Profit)/loss on disposal of non-current assets (36) 4 (21)
Loss/(profit) on disposal of investment in businesses 83 (11) (51)
Scrapping of non-current assets 1 453 72 283
Write-off of unsuccessful exploration wells 36 – –
Realisation of foreign currency translation reserve (3) – –
Tax effects and non-controlling interests (339) (223) (539)
Effect of remeasurement items for equity accounted investments (1) 11 14
Headline earnings 10 805 9 235 21 465
Headline earnings adjustments per above
- Mining (7) – 6
- Exploration and Production International 2 835 152 (6)
- Energy 1 249 25 1 844
- Base Chemicals 148 74 (901)
- Performance Chemicals 1 520 663
- Group Functions 18 – 10
Remeasurement items 4 244 771 1 616
Headline earnings per share Rand 17,67 15,12 35,15
Diluted headline earnings per share Rand 17,60 15,12 35,05

1 Includes the impact of the partial impairment of our Canadian shale gas assets of R2,8 billion (CAD281 million) and the scrapping of
our US GTL project amounting to R1,1 billion (US$83 million).

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

Basis of preparation

The condensed consolidated interim financial statements for the six months ended 31 December 2017 have been
prepared in accordance with International Financial Reporting Standards, IAS 34, Interim Financial Reporting, the
SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements
as issued by the Financial Reporting Standards Council and the requirements of the Companies Act of South Africa,
2008, as amended, and the JSE Limited Listings Requirements.

The condensed consolidated interim financial statements do not include all the disclosures required for complete
annual financial statements prepared in accordance with IFRS as issued by the International Accounting Standards
Board. The condensed consolidated interim financial statements are prepared on a going-concern basis. The Board
is satisfied that the liquidity and solvency of the company is sufficient to support the current operations for the
next 12 months.

These condensed consolidated interim financial statements have been prepared in accordance with the historic
cost convention except that certain items, including derivative financial instruments, liabilities for cash-settled
share-based payment schemes, financial assets at fair value through profit or loss and available-for-sale financial
assets and liabilities, are stated at fair value.

The condensed consolidated interim financial statements are presented in South African Rand, which is Sasol
Limiteds functional and presentation currency.

The condensed consolidated interim financial statements appearing in this announcement are the responsibility of
the directors. The directors take full responsibility for the preparation of the condensed consolidated interim
financial statements. Paul Victor CA(SA), Chief Financial Officer, is responsible for this set of condensed
consolidated interim financial statements and has supervised the preparation thereof in conjunction with the
Senior Vice President: Financial Control Services, Brenda Baijnath CA(SA).

Accounting policies
The accounting policies applied in the preparation of these condensed consolidated interim 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.

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

Significant events and transactions since 30 June 2017
In accordance with IAS34, Interim Financial Reporting, we have included an explanation of events and transactions
which are significant to obtain an understanding of the changes in our financial position and performance since
30 June 2017.

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 31 December 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. 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.

IFRS 13 Carrying Fair
fair value value value
Instrument hierachy Rm Rm Valuation method Significant inputs
Listed long-term Level 1 12 344 12 568 Fair value Quoted market price for the
debt same or similar instruments
Derivative financial Level 2 3 511 3 511 Forward rate interpolator Foreign exchange rates,
assets and model, discounted market commodity prices, US$
liabilities expected cash flows, swap curve, as appropriate
numerical approximation,
as appropriate

For all other financial instruments, fair value approximates carrying value.

Independent review by the auditors

These condensed consolidated interim financial statements, including the segment report for the six
months ended 31 December 2017 have been reviewed by PricewaterhouseCoopers Inc., who
expressed an unmodified conclusion thereon. The individual auditor assigned to perform the review
is Mr PC Hough. A copy of the auditors unmodified review report on the condensed consolidated
interim financial statements is available for inspection at the companys registered office, together
with the condensed consolidated interim financial statements identified in the auditors report. The
auditors report does not necessarily report on all of the information contained in this
announcement of interim financial results. Shareholders are therefore advised that in order to
obtain a full understanding of the nature of the auditors engagement they should obtain a copy of
the auditors report together with the accompanying condensed consolidated interim financial
statements from the companys registered office.

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)^, Dr M Flöel (German)*, Ms GMB Kennealy*, Ms NNA Matyumza*, 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

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 Business Performance Enhancement
Programme and Response Plan and our business performance outlook. Words such as believe, anticipate,
expect, intend, seek, will, plan, could, may, endeavour, target, forecast, 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 28 August 2017 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.

Additional information on our business performance is included in the analyst book available on our website: <Origin Href="Link">www.sasol.com
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