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Sasol Limited Financial Results for the Year Ended 30 June 2011

September 12, 2011

JOHANNESBURG, Sept. 12, 2011 /PRNewswire/ — Driven by innovation, Sasol is an integrated energy and chemicals company that creates value through its proven alternative fuel technology and talented people to provide sustainable energy solutions to the world

  • Headline earnings per share increased by 27% to R33,85
  • Total dividend increased by 24% to R13,00 per share
  • Cash generated by operations increased by 41% to R38,6 billion
  • Project pipeline progressing well
  • Canadian shale gas acquisitions add significantly to long-term value growth
  • Sasol successfully pioneers first BEE listing on JSE

    SEGMENT REPORT
    for the year ended
            Turnover                           Operating profit
                              Business unit
            R million                       analysis               R million

                         30-                                  30-
     30-Jun-            Jun-                30-Jun-          Jun-
          10              11                     11            10

                              South African
                              energy
      95 538         106 860  cluster        19 947        17 808
       7 863           9 146 Mining           1 063           815
       5 371           5 445 Gas              2 578         2 479
      33 893          37 485 Synfuels        15 188        13 175
      48 411          54 784 Oil              1 180         1 364
           -               - Other              (62)          (25)
         ---             ---                    ---           ---

                              International
                              energy
       3 967           5 872  cluster         1 587           468
                              Synfuels
       2 282           3 715  International   1 205           131
                              Petroleum
       1 685           2 157  International     382           337
       -----           -----                    ---           ---

                              Chemical
      71 577          82 854  cluster         8 712         5 496
      14 321          17 082 Polymers         1 579           958
      15 765          17 280 Solvents         1 655         1 154
                              Olefins &
      25 283          31 715  Surfactants     4 161         2 492
                              Other
                              chemical
      16 208          16 777  businesses      1 317           892
      ------          ------                  -----           ---

                              Other
       5 420           6 043  businesses     ( 296)           165
       -----           ----- -----------      -----           ---
     176 502         201 629                 29 950        23 937
                                             ------        ------
                         (59  Intercompany
    (54 246)            193)  turnover
     122 256         142 436
     -------         -------

Overview

Chief executive, David Constable, says:

“We have continued to deliver on our strategy in the past financial year. Our focus on further improving the performance of our assets has delivered strong production, cost and margin benefits. We also made significant strides in pursuing responsible growth, both in South Africa, as well as abroad. We are particularly pleased with our acquisition of two shale gas assets in Canada and are making progress on this and other gas-to-liquids opportunities, based on our proprietary technology.”

Earnings attributable to shareholders for the year ended 30 June 2011 increased by 24% to R19,8 billion from R15,9 billion in the prior year, while headline earnings per share and earnings per share increased by 27% to R33,85 and by 24% to R32,97, respectively, over the same period.

Operating profit of R30 billion increased by 25% compared with the prior year, due to decisive actions taken by management around energy efficiency initiatives as well as our continued focus on cost containment and the benefits realised from our functional excellence programme and business improvement plans. In addition, operating profit was positively impacted by higher average crude oil prices (average dated Brent was US$96,48/barrel in 2011 compared with US$74,37/barrel in 2010) and higher chemical product prices. The benefits of the higher average crude oil and chemical product prices were partially offset by an 8% stronger average rand/US dollar exchange rate (R7,01/US$ in 2011 compared with R7,59/US$ in 2010). Overall, group production volumes improved marginally from the prior year, despite Sasol Synfuels’ major planned maintenance outage. Group cash fixed costs for the year were contained within inflation, excluding once-off charges and growth costs.

The operating profit in the current year was negatively impacted by once-off charges totalling R1 103 million (2010: R46 million credit). These once-off charges include competition related administrative penalties of R112 million, the Escravos gas-to-liquids (EGTL) partial impairment of R123 million and the share-based payment expense of R565 million resulting from the Ixia Coal BEE transaction, offset by the reversal of the remaining impairment related to Sasol Olefins and Surfactants (O&S) Italy of R491 million. The current year also includes a Sasol Inzalo BEE share-based payment expense of R830 million compared with R824 million in the prior year.

The increase in the effective tax rate from 29,9% to 31,3% resulted from the competition related administrative penalties and share-based payment expenses, both of which are not deductible for tax purposes.

Cash flow generated by operating activities was R38,6 billion compared with R27,3 billion in the prior year. This was mainly due to increased operating profits and reduced working capital, both as a result of price and volume effects. The group made good progress on growth projects as reflected in capital expenditure of R20,7 billion for the year in addition to the cash consideration of R3,8 billion related to the Canada shale gas asset acquisitions.

Chief financial officer, Christine Ramon says:

“Decisive management actions on operational efficiencies, cost control and business improvement plans have boosted the bottom line this year. Higher global commodity prices have supported the healthy margins delivered, particularly in our chemicals businesses, negating the impact of the strong rand. The global economy remains volatile and our strong cash flows continue to underpin the robustness of our businesses. Our strong balance sheet provides a buffer against volatility and positions the company well to fund growth opportunities, with the aim of enhancing long-term shareholder value.”

Striving for strategic and sustainable growth

In order to ensure that our strategic growth objectives are achieved and build on the solid foundation of our existing businesses, we will continue to focus on specific initiatives which will contribute to achieving and delivering on stakeholder value. All our businesses and functions will continue to operate sustainably underpinned by sound governance. This will be achieved through improving our operational excellence and delivering further value on our functional excellence initiatives, which were implemented two years ago. These initiatives will support our commitment to energy efficiency and our environmental projects. In addition, we will establish and roll-out our sales and marketing excellence initiative across the group to support our customer focus. We will continue to focus on improving our safety performance striving for zero harm to all our stakeholders. The aforementioned actions will enable us to pursue our growth drivers, including growing our upstream gas resources, accelerating our GTL developments and ramping up our new energy business. Our growth will be supported by our capital excellence programme, which aims to enhance long-term shareholder returns.

We have paid R25,4 billion direct and indirect taxes to the South African government. This makes Sasol one of the largest corporate taxpayers in South Africa, contributing significantly to the South African economy.

We contribute about 5% of South Africa’s gross domestic product (GDP), directly and indirectly. We employ approximately 34 000 people globally, of which 80% are in South Africa, and create about 200 000 additional indirect jobs.

During the year, the following noteworthy milestones were achieved:

  • In July 2010, we concluded an agreement with Gassnova SF, a Norwegian state-owned enterprise. This agreement allows us to participate in the European CO2 Technology Centre Mongstad, which is currently constructing a carbon capture facility in Norway. Construction is progressing and the facility is scheduled for start-up in the latter half of 2012.
  • Sasol New Energy has undertaken studies related to various clean energy and low-carbon electricity initiatives, including the generation of electricity from natural gas in both South Africa and Mozambique and the establishment of concentrated solar power facilities to produce electricity in South Africa.
  • In September 2010, we concluded the Ixia Coal transaction in line with Sasol Mining’s empowerment strategy and its commitment to comply with the objectives of the South African Mineral and Petroleum Resources Development Act and the Mining Charter. This transaction results in Ixia Coal Funding (Pty) Ltd, a subsidiary of Ixia Coal (Pty) Ltd, acquiring a 20% shareholding in Sasol Mining (Pty) Ltd for a purchase consideration of R1,8 billion.
  • The recordable case rate (RCR) for employees and service providers, including injuries and illnesses, improved to a record low of 0,42 at 30 June 2011 from 0,51 at 30 June 2010. However, we have experienced an increase in fatalities. Our revised safety improvement plan is currently being implemented to address this matter.
  • In February 2011, we listed the Sasol BEE ordinary shares on the BEE segment of the Johannesburg Stock Exchange. This pioneering trading facility provides many new Sasol shareholders access to a regulated market in line with our commitment to broad-based shareholder development.

Acquisitions and projects progressing

Projects and gas asset acquisitions in support of our GTL value proposition are advancing, supported by our strong cash flow generation and balance sheet, which provides a solid platform for growth:

  • Progress has been made in the following areas related to the advancement and acquisition of natural gas assets in support of leveraging GTL technology:

- In December 2010, Sasol acquired a 50% stake in the Farrell Creek shale gas assets of Talisman Energy Inc. (Talisman), a Canadian-based company, located in the Montney Basin, of British Columbia, Canada, for an amount of R7,1 billion. In March 2011, Sasol further acquired a 50% stake in Talisman’s Cypress A shale gas assets for an amount of R7,1 billion on similar terms. The acquired assets also include associated gas gathering systems and processing facilities.

- During 2011, Sasol Petroleum International (SPI) increased its exploration and appraisal activities in Mozambique, Australia and Papua New Guinea. Further explorations and evaluation activities in these areas is ongoing.

  • During 2011, Sasol New Energy obtained approval from the Sasol board to construct a 140 megawatt electricity generation plant in Sasolburg, South Africa. The plant will utilise natural gas as its feedstock.
  • During 2011, a pre-feasibility study into an integrated GTL and chemicals facility in the United States was concluded. After the successful completion of the pre-feasibility study, the Sasol board has approved that the project proceed to feasibility study phase.
  • During the year, we commenced with a feasibility study to determine the technical and commercial viability of a GTL plant in western Canada, following our recent shale gas acquisitions in the area.
  • The feasibility study for the Uzbekistan GTL plant has been completed. The decision to proceed to front end engineering and design (FEED) will be taken in the near term and is dependent upon certain commercial conditions.
  • Given the delay in the approval from the Chinese government for our CTL project in China, we are developing other investment strategies and growth opportunities, both in South Africa and abroad. We have reallocated planned project funding for the China CTL project and redeployed staff to other projects. We remain committed to growing our other businesses in China.
  • The pre-feasibility study in respect of our Indian coal-to-liquids (CTL) project has largely been concluded. As the last phase of the study, a drilling programme is being undertaken to verify the coal assumptions.
  • Sasol Mining is nearing completion of the Thubelisha shaft which will supply both the export market and sustain Sasol Synfuels’ production. The shaft is expected to be completed in 2012. Construction on the Impumelelo colliery remains on track for completion in 2014.
  • Construction on the wax production facility in Sasolburg, South Africa, continues to progress according to plan.

Climate change being addressed

Sasol agrees that climate change presents a risk to the world at large, to South Africa and to the local and international business community. We are committed to transitioning to a low carbon and climate resilient economy and are actively engaging with the South African government in its development of national policy. This policy is aimed at ensuring a coordinated, coherent, efficient and effective response to this challenge, without prejudicing the country’s growth and development goals and the competitiveness of key industries within the South African economy.

We are a significant contributor to the South African economy and play a key role in ensuring energy security for the country; however, we also recognise that we are a large emitter of greenhouse gases (GHG). We have made changes to how we operate our business in order to transition to a lower carbon economy. Through investments in energy efficiency and in finding and using natural gas from Mozambique, Sasol reduced annual GHG emissions levels by 10 million tonnes between 2004 and 2011, a reduction of 12%.

Performance from existing operations delivers results

South African energy cluster

Sasol Mining – higher coal prices

Operating profit of R1 628 million, excluding the once-off Ixia Coal transaction share-based payment expense of R565 million, doubled compared with the prior year. Higher US dollar export coal prices contributed to the increase in operating profit despite the impact of the Sasol Synfuels’ maintenance outage. This positive contribution, however, was partially offset by a stronger rand/US dollar exchange rate.

Sasol Gas – improved sales volumes

Operating profit increased by 4% to R2 578 million compared with the prior year mainly as a result of improved sales volumes, despite lower gas prices due to the stronger rand/US dollar exchange rate. The increase in operating profit was partially offset by start-up costs in respect of a new compressor in Mozambique, which supported the increased sales volumes.

Sasol Synfuels – major planned maintenance outage impacts production volumes

Sasol Synfuels’ operating profit increased by 15% to R15 188 million compared with the prior year. Production volumes were 4% lower than the prior year primarily due to the largest planned maintenance outage in Sasol Synfuels’ history. Operating profits were enhanced by higher average oil prices. The open cycle gas turbines were successfully commissioned during July 2010, making available an additional 200 megawatts of electricity generation capacity for the Sasol Synfuels operations, thereby significantly reducing the impact of above inflation electricity price increases on Sasol Synfuels’ unit cost. Sasol Synfuels’ cash fixed cost per unit increase was contained to 4%.

Sasol Oil – improved production

Operating profit decreased by 13% to R1 180 million compared with the prior year. Higher retail and commercial sales volumes were supported by increased production from the Natref refinery. Higher wholesale margins were, however, countered by the strong rand as well as weaker refining margins. Eight new retail convenience centres were opened during the year.

International energy cluster

Sasol Synfuels International (SSI) – Oryx GTL improved production

SSI’s operating profit increased significantly to R1 205 million from R131 million in the prior year. This was mainly due to increased production at the Oryx gas-to-liquids (GTL) plant in Qatar and higher product prices derived from crude oil prices, which were partially offset by a stronger rand/US dollar exchange rate. The Oryx GTL plant is producing well and achieved an 82% utilisation rate for the year.

Sasol Petroleum International (SPI) – higher oil and gas prices, improved volumes

Operating profit increased by 13% to R382 million compared with the prior year, mainly due to higher sales volumes resulting from increased production. The increase was further underpinned by higher oil and gas prices. Exploration expenditure was higher during the year. Work on the expansion of the onshore gas production facilities in Pande and Temane, Mozambique, to increase the current annual production capacity from 120 million gigajoules to 183 million gigajoules, is nearing completion. Production from our Canadian operation is ramping up.

Chemical cluster

Sasol Polymers – improved volume and prices

Sasol Polymers operating profit of R1 579 million increased by 65% compared with the prior year. Operating profit was positively impacted by increases in production volumes from our local and offshore operations. The increase in operating profit was softened by margin pressure in the international polymer industry and was partially offset by the stronger rand/US dollar exchange rate. Arya Sasol Polymer Company (ASPC) contributed positively with an average capacity utilisation of 80% for the year. Our local operation’s results included the negative impact of a once-off administrative penalty of R112 million paid to the South African Competition Commission (the Commission).

Sasol Solvents – higher product prices result in higher margins

Operating profit increased by 43% to R1 655 million compared with the prior year. The increase is mainly due to improved margins, resulting from higher prevailing product prices coupled with cost savings. The increased operating profit was, however, partially offset by reduced sales volumes due to scheduled outages at production facilities as well as the negative effect of the strong rand.

Sasol Olefins & Surfactants (Sasol O&S) – improved demand, margin expansion

Operating profit increased by 67% to R4 161 million compared with the prior year, mainly as a result of robust demand in most of the Sasol O&S markets as well as improved margins across the Sasol O&S product portfolio. The increase in operating profit from our foreign operations was partially offset by foreign currency translation effects. The 2011 financial year includes the reversal of the remainder of the impairment related to Sasol O&S Italy assets amounting to R491 million.

Other chemical businesses – improved sales volumes

Operating profit increased by 48% to R1 317 million compared with the prior year. Global sales volumes of the wax markets as well as the explosives and ammonia markets in Southern Africa improved on the back of increased demand. Lower fertiliser sales volumes were experienced due to the impacts associated with the required exit of retail sales. Improved margins underpinned higher operating profits which were partially offset by the stronger rand. Cost control and restructuring have remained a key focus area for our other chemical businesses.

Competition law compliance

We are continuously evaluating and enhancing our compliance programmes and controls in general, and our competition law compliance programme and controls in particular. As a consequence of these compliance programmes and controls, including monitoring and review activities, we have also adopted appropriate remedial and/or mitigating steps, where necessary or advisable, lodged leniency applications and made disclosures on material findings as and when appropriate. As reported previously, these compliance activities have already revealed, and the implementation of certain close-out actions arising there from, may still reveal competition law contraventions or potential contraventions in respect of which we have taken, or will take, appropriate remedial and/or mitigating steps including lodging leniency applications.

The Commission is conducting investigations into the South African piped gas, coal mining, petroleum, fertilisers and polymer industries. We continue to interact and co-operate with the Commission in respect of the subject matter of current leniency applications brought by Sasol, conditional leniency agreements concluded with the Commission, as well as in the areas that are subject to the Commission’s investigations. To the extent appropriate further announcements will be made in future.

Due to the uncertainty related to these matters, it is currently not possible to estimate contingent liabilities, if any, and accordingly no provision has been recognised at 30 June 2011.

Balance sheet remains strong

Balance sheet gearing at 30 June 2011 of 1,3% (30 June 2010: 1,0%) remained low as a result of improved cash flow generation. This low level of gearing is expected to be maintained in the short-term, but is likely to return to within our targeted range of 20% to 40% in the medium term as our large capital intensive growth programme and gas acquisition strategy gains momentum. At the annual general meeting of 26 November 2010, shareholders granted the Sasol directors authority to buy back up to 10% of Sasol’s issued share capital (excluding the preferred ordinary and Sasol BEE ordinary shares) for a further 12 months. No shares were repurchased during the current year.

Profit outlook* – uncertain macro environment, focus on improved operational performance and cost control

The past financial year has seen a global recovery from the economic crisis, although some economies are proceeding at a slower pace. Downside risks remain with high funding requirements of banks and sovereign states. However, product prices and the demand for chemical products have shown significant improvement. Crude oil prices remained volatile but have increased steadily as a result of the political turmoil in the Middle East and North Africa and disruptions to supply. These increased prices have assisted with offsetting the negative impact of the strong rand. The strengthening of the rand/US dollar exchange rate remains the single biggest external factor exerting pressure on our profitability.

We anticipate that Sasol Synfuels’ production volumes will improve to between 7,2 million tons (mt) and 7,3 mt in 2012 following the major planned maintenance outage which was undertaken in September 2010. Oryx GTL is expected to perform at its planned operating rate of 80% to 90% of design capacity and Arya is expected to improve as it ramps up to design capacity utilisation rate. We expect improved volumes from Mozambique and Canada. Our focus in the year ahead remains on factors within our control: volume growth, margin improvement and cost containment. These focus areas will be underpinned by our group-wide initiatives on operations excellence, functional excellence and capital excellence. We are also enhancing the extraction of value across our integrated operations through planning and optimisation and have introduced the sales and marketing excellence initiative. We remain on track to deliver on our expectations for an improved operational performance and to contain cost increases to within inflation. Given the continuing uncertain macro economic conditions and our assumptions in respect of improved crude oil and product prices, as well as the strong rand/US dollar exchange rate, it is difficult to be more precise in this outlook statement.

Management has recommended and the board has approved the final dividend taking into account the ongoing strength of our financial position and current capital investment plans, as well as the increased earnings. This approach is in line with our progressive dividend policy and our commitment to return value to shareholders.

* In accordance with standard practice, it is noted that this information has not been reviewed or reported on by the company’s auditors.

Acquisitions and disposals of businesses

In September 2010, we concluded the Ixia Coal transaction. This transaction results in Ixia Coal Funding (Pty) Ltd, a subsidiary of Ixia Coal (Pty) Ltd, acquiring a 20% shareholding in Sasol Mining (Pty) Ltd for a purchase consideration of R1,8 billion. The transaction resulted in a non-controlling interest of an effective 10,2% being recognised.

On 1 March 2011 and 10 June 2011, we concluded the acquisitions of the Farrell Creek and Cypress A shale gas assets, respectively, in Canada for a total purchase consideration of R14,2 billion. Of this consideration R3,8 billion was paid in cash, while the remaining purchase consideration will be settled through a capital carry mechanism.

Changes of directors and company secretary

On 26 November 2010, Mr A Jain retired as a non-executive director of Sasol Limited. On 1 January 2011, Messrs BP Connellan and TA Wixley retired as non-executive directors of Sasol Limited. On 1 April 2011, Mr GA Lewin resigned as a non-executive director of Sasol Limited.

On 30 June 2011, Mr LPA Davies retired as an executive director and chief executive of Sasol Limited after 36 years of service to the company. The board wishes to thank Mr LPA Davies for his valuable contribution and the foundation laid for sustainable growth.

Mr DE Constable was appointed as an executive director and chief executive of Sasol Limited with effect from 1 July 2011.

The company secretary, Dr NL Joubert, resigned as company secretary and has been appointed as the country president of Sasol Canada. Mr VD Kahla was appointed as company secretary with effect from 14 March 2011.

Declaration of cash dividend number 64

A final cash dividend of South African R9,90 per ordinary share (2010: R7,70 per share) has been declared for the year ended 30 June 2011. The final cash dividend is payable on all ordinary shares (including the Sasol BEE ordinary shares), excluding the Sasol preferred ordinary shares.

    The salient dates for holders of ordinary shares are:
    Last day for trading to qualify for and
     participate in the final dividend (cum
     dividend)                                        Friday, 7 October 2011
    Trading ex dividend commences                     Monday, 10 October 2011
    Record date                                       Friday, 14 October 2011
    Dividend payment date                             Monday, 17 October 2011

    Holders of American Depositary Receipts*

    Ex dividend on New York Stock Exchange          Wednesday, 12 October 2011
    Record date                                     Friday, 14 October 2011
    Approximate date for currency conversion        Tuesday, 18 October 2011
    Approximate dividend payment date               Friday, 28 October 2011
    * All dates are approximate as the NYSE sets the record date after
    receipt of the dividend declaration.

On Monday, 17 October 2011, 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, 17 October 2011.

Share certificates may not be dematerialised or re-materialised between Monday, 10 October 2011 and Friday, 14 October 2011, both days inclusive.

On behalf of the board


    Mrs Hixonia Nyasulu Mr David Constable Mrs Christine Ramon
    Chairman            Chief executive    Chief financial officer
    Sasol Limited
    9 September 2011

    The preliminary financial statements are presented on a summarised
    consolidated basis.
    STATEMENT OF FINANCIAL POSITION
    at
                                                30-Jun-       30-Jun-
                                                     11            10
                                                     Rm            Rm
                                                    ---           ---

    ASSETS
    Property, plant and equipment                79 245        72 523
    Assets under construction                    29 752        21 018
    Goodwill                                        747           738
    Other intangible assets                       1 265         1 193
    Investments in associates                     3 071         3 573
    Post-retirement benefit assets                  792           789
    Deferred tax assets                           1 101         1 099
    Other long-term assets                        2 218         1 828
    ----------------------
    Non-current assets                          118 191       102 761
    ------------------                          -------       -------

    Assets held for sale                             54            16
    Inventories                                  18 512        16 472
    Trade and other receivables                  23 174        20 474
    Short-term financial assets                      22            50
    Cash restricted for use                       3 303         1 841
    Cash                                         14 716        14 870
    ----
    Current assets                               59 781        53 723
    --------------                               ------        ------
    Total assets                                177 972       156 484
    ------------                                -------       -------
    EQUITY AND LIABILITIES
    Shareholders' equity                        107 649        94 730
    Non-controlling interest                      2 691         2 512
    ------------------------
    Total equity                                110 340        97 242
    ------------                                -------        ------

    Long-term debt                               14 356        14 111
    Long-term financial liabilities                 103            75
    Long-term provisions                          8 233         7 013
    Post-retirement benefit obligations           4 896         4 495
    Long-term deferred income                       498           273
    Deferred tax liabilities                     12 272        10 406
    ------------------------
    Non-current liabilities                      40 358        36 373
    -----------------------                      ------        ------

    Liabilities in disposal groups held for
     sale                                             -             4
    Short-term debt                               1 602         1 542
    Short-term financial liabilities                136           357
    Other current liabilities                    25 327        20 847
    Bank overdraft                                  209           119
    --------------
    Current liabilities                          27 274        22 869
    -------------------                          ------        ------
    Total equity and liabilities                177 972       156 484
    ----------------------------                -------       -------

    INCOME STATEMENT
    for the year ended

                                                   30-Jun-11       30-Jun-10
                                                          Rm              Rm
                                                         ---             ---

     Turnover                                        142 436         122 256
     Cost of sales and services rendered            (90 467)        (79 183)
     -----------------------------------             -------         -------
     Gross profit                                     51 969          43 073
     Other operating income                            1 088             854
     Marketing and distribution expenditure          (6 796)         (6 496)
     Administrative expenditure                      (9 887)         (9 451)
     Other operating expenditure                     (6 424)         (4 043)
     ---------------------------                      ------          ------
      Competition related administrative
       penalties                                      ( 112)               -
      Effect of crude oil hedges                      ( 118)           ( 87)
      Share-based payment expenses                   (2 071)          ( 943)
      Effect of remeasurement items                   ( 426)              46
      Translation losses                             (1 016)         (1 007)
      Other expenditure                              (2 681)         (2 052)
    -------------------                               ------          ------

     Operating profit                                 29 950          23 937
     Finance income                                      991           1 332
     Share of profits of associates (net of tax)         292             217
     Finance expenses                                (1 817)         (2 114)
     ----------------                                 ------          ------
     Profit before tax                                29 416          23 372
     Taxation                                        (9 196)         (6 985)

     Profit for the year                              20 220          16 387
     -------------------                              ------          ------

     Attributable to
     Owners of Sasol Limited                          19 794          15 941
     Non-controlling interest in subsidiaries            426             446
     ----------------------------------------            ---             ---
                                                      20 220          16 387
                                                      ------          ------

     Earnings per share                                 Rand            Rand
                                                        ----            ----
     Basic earnings per share                          32.97           26.68
     Diluted earnings per share (1)                    32.85           26.54
     ------------------------------                    -----           -----
    (1) Diluted earnings per share are calculated taking the Sasol Share
    Incentive Scheme and Sasol Inzalo share transaction into account.

    STATEMENT OF CASH FLOWS
    for the year ended
                                                       30-Jun-       30-Jun-
                                                            11            10
                                                           R m           R m
                                                           ---           ---

    Cash receipts from customers                         138 955       118 129
    Cash paid to suppliers and                              (100
     employees                                              316)      (90 791)
    --------------------------                             -----       -------
    Cash generated by operating
     activities                                           38 639        27 338
    Finance income received                              1 380         1 372
    Finance expenses paid                               ( 898)       (1 781)
    Tax
     paid                                              (6 691)       (6 040)
     Dividends
     paid                                              (6 614)       (5 360)
     ---------                                          ------        ------
    Cash retained from operating
     activities                                         25 816        15 529
    ----------------------------                        ------        ------

    Additions to non-current assets                   (20 665)      (16 108)
    Acquisition of interests in joint
     ventures                                          (3 823)             -
    Disposal of businesses                                  22             -
    Additional investments in
     associate                                           ( 91)       (1 248)
    Other net cash flows from
     investing activities                                   92           652
    -------------------------
    Cash utilised in investing
     activities                                       (24 465)      (16 704)
    --------------------------                         -------       -------

    Share capital issued                                   430           204
    Contributions from non-
     controlling shareholders                               27             9
    Dividends paid to non-
     controlling shareholders                           ( 419)        ( 318)
    Increase/(decrease) in long-
     term debt                                             545       (2 567)
    Decrease in short-term debt                         ( 295)         ( 29)
    ---------------------------                          -----          ----
    Cash effect of financing
     activities                                            288       (2 701)
    ------------------------                               ---        ------
    Translation effects on cash and
     cash equivalents of foreign
     operations                                         ( 421)        ( 124)
    -------------------------------                      -----         -----
    Increase /(decrease) in cash and
     cash equivalents                                    1 218       (4 000)
    Cash and cash equivalents at
     beginning of year                                  16 592        20 592
    ----------------------------
    Cash and cash equivalents at end
     of year                                            17 810        16 592
    --------------------------------                    ------        ------

    STATEMENT OF COMPREHENSIVE INCOME
    for the year ended
                                               30-Jun-       30-Jun-
                                                    11            10
                                                    Rm            Rm
                                                   ---           ---

    Profit for the year                         20 220        16 387
    Other comprehensive income
    Effect of translation of foreign
     operations                                (2 031)        ( 802)
    Effect of cash flow hedges                     111            13
    Investments available-for-sale                   -             4
    Tax on other comprehensive income            ( 23)             8
    ---------------------------------
    Other comprehensive income for the year
     net of tax                                (1 943)        ( 777)
    ---------------------------------------     ------         -----
    Total comprehensive income for the year     18 277        15 610
    ---------------------------------------     ------        ------
    Attributable to
    Owners of Sasol Limited                     17 849        15 171
    Non-controlling interests in
     subsidiaries                                  428           439
    ----------------------------
                                                18 277        15 610
                                                ------        ------

    STATEMENT OF CHANGES IN EQUITY
    for the year ended
                                                      30-Jun-       30-Jun-
                                                           11            10
                                                          R m           R m
                                                          ---           ---

    Opening balance                                    97 242        86 217
    Shares issued during year                             430           204
    Share-based payment expenses                        1 428           880
    Disposal of businesses                               ( 4)             -
    Change in shareholding of subsidiaries                  -             9
    Total comprehensive income for the year            18 277        15 610
    Dividends paid                                    (6 614)       (5 360)
    Dividends paid to non-controlling shareholders
     in subsidiaries                                   ( 419)        ( 318)
    ----------------------------------------------
    Closing balance                                   110 340        97 242
    ---------------                                   -------        ------

    Comprising
    Share capital                                      27 659        27 229
    Share repurchase programme                        (2 641)       (2 641)
    Sasol Inzalo share transaction                   (22 054)      (22 054)
    Retained earnings                                  98 590        85 463
    Share-based payment reserve                         8 024         6 713
    Foreign currency translation reserve              (1 895)           137
    Investment fair value reserve                           5             5
    Cash flow hedge accounting reserve                  ( 39)        ( 122)
    ----------------------------------                   ----         -----
    Shareholders' equity                              107 649        94 730
    Non-controlling interest in subsidiaries            2 691         2 512
    ----------------------------------------
    Total equity                                      110 340        97 242
    ------------                                      -------        ------

    SALIENT FEATURES
    for the year ended
                                                    30-Jun-   30-Jun-
                                                         11        10
                                                   --------  --------

    Selected ratios

    Return on equity                             %     19.6      17.9
    Return on total assets                       %     18.7      16.9
    Operating margin                             %     21.0      19.6
    Finance expense cover                    times     34.8      14.3
    Dividend cover                           times      2.5       2.5

    Share statistics

    Total shares in issue                  million    671.0     667.7
    Treasury shares (share repurchase
     programme)                            million      8.8       8.8
    Weighted average number of shares      million    600.4     597.6
    Diluted weighted average number of
     shares                                million    614.5     615.5
    Share price (closing)                     Rand   355.98    274.60
    Market capitalisation -Sasol
     ordinary shares                            Rm  238,863   183,350
    Market capitalisation -Sasol BEE
     ordinary shares                            Rm      742         -
    Net asset value per share                 Rand   179.68    159.00
    Dividend per share                        Rand    13.00     10.50
                                                      -----
      - interim                               Rand     3.10      2.80
      - final                                 Rand     9.90      7.70
                                                       ----      ----

    Other financial information

    Total debt (including bank
     overdraft)
      - interest bearing                        Rm   15,522    15,047
      - non-interest bearing                    Rm      645       725

    Finance expense capitalised                 Rm       43        58

    Capital commitments                         Rm   48,321    46,497
     - authorised and contracted                Rm   41,367    31,553
     - authorised, not yet contracted           Rm   33,458    35,769
     - less expenditure to date                 Rm (26,504)  (20,825)
                                                    -------   -------

    Guarantees and contingent
     liabilities
    - total amount                              Rm   31,378    19,120
    -liability included in the
     statement of financial position            Rm   11,328    10,288

    Significant items in operating
     profit
     - employee costs                           Rm   18,756    17,546
     - depreciation and amortisation of
      non-current assets                        Rm    7,400     6,712
     - share-based payment expenses             Rm    2,071       943
        Sasol share incentive schemes           Rm      676       119
        Sasol Inzalo share transaction          Rm      830       824
        Ixia Coal transaction                   Rm      565         -
                                                        ---       ---

    Directors' remuneration                     Rm       58        59
    Share options granted to directors
     -cumulative                               000      780       914
    Share appreciation rights with no
     performance targets granted               000      215       215
    to directors - cumulative
    Share appreciation rights with
     performance targets                       000      370        43
    granted to directors - cumulative
    Medium-term incentive rights
     granted to directors - cumulative         000       82        10
    Sasol Inzalo share rights granted
     to directors -cumulative                  000       50        50

    Effective tax rate (1)                       %     31.3      29.9
    Number of employees                     number   33,708    33,054

    Average crude oil price -dated
     Brent                              US$/barrel    96.48     74.37
                                            1US$ =
    Average rand / US$ exchange rate          Rand     7.01      7.59
                                            1US$ =
    Closing rand / US$ exchange rate          Rand     6.77      7.67

    (1) Increase in effective tax rate
     as a result of competition related
     fines
    and share-based payment expenses
     which are not deductible for tax.

    Reconciliation of headline earnings                  Rm        Rm

    Profit for the year attributable to
     owners of Sasol Limited                         19,794    15,941
      Effect of remeasurement items                     426       (46)
        Impairment of assets                            171       110
        Reversal of impairment                         (516)     (365)
        (Profit) /loss on disposal of
         business                                        (9)        5
        Profit on disposal of associate                  (6)       (7)
        Profit on disposal of assets                    (14)       (3)
        Scrapping of non-current assets                 359       156
        Write off of unsuccessful
         exploration wells                              441        58
                                                        ---       ---
      Tax effects and non-controlling
       interests                                        106       (19)
    Headline earnings                                20,326    15,876
                                                     ------    ------

    Remeasurement items per above
    Mining                                                3         1
    Gas                                                   6         -
    Synfuels                                            197        58
    Oil                                                  17        10
    Synfuels International                              126         4
    Petroleum International                             442       108
    Polymers                                             46        14
    Solvents                                             63        58
    Olefins & Surfactants                              (500)     (344)
    Other chemical businesses                           (11)       21
      Nitro                                              (1)       26
      Wax                                                (3)       (5)
      Infrachem                                          (8)       (1)
      Merisol                                             1         1
                                                        ---       ---
    Other businesses                                     37        24
    Remeasurement items                                 426       (46)
                                                        ---       ---

    Headline earnings per share               Rand    33.85     26.57
    Diluted headline earnings per share       Rand    33.72     26.44
    The reader is referred to the definitions contained in the 2010 Sasol
    Limited annual financial statements.

Basis of preparation and accounting policies

The preliminary summarised consolidated financial results for the year ended 30 June 2011 have been prepared in compliance with the Listings Requirements of the JSE Limited, International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (in particular International Accounting Standard 34 Interim Financial Reporting), the AC500 Standards as issued by the Accounting Practices Board or its successor and the requirements of the South African Companies Act, 2008, as amended.

The accounting policies applied in the presentation of the preliminary summarised consolidated financial results are consistent with those applied for the year ended 30 June 2010, except as follows:

Sasol Limited has early adopted the following standards, which did not have a significant impact on the financial results:

  • IAS 1 (Amendment), Presentation of Financial Statements: Severe Hyperinflation.
  • IAS 1 (Amendment), Presentation of Financial Statements: Presentation of Items of Other Comprehensive Income.
  • IAS 12 (Amendment), Taxation: Deferred Tax – Recovery of Underlying Assets.
  • IFRS 7, Financial Instruments: Disclosures – Transfer of Financial Assets.
  • IFRS 13, Fair Value Measurement.
  • Various Improvements to IFRSs.

Sasol has adopted IFRS 2 (Amendment), Share-based Payment: Group Cash-settled Share-based Payment Transactions and Various Improvements to IFRSs: IAS 27, Consolidated and Separate Financial Statements, effective 1 January 2010 and 1 July 2010, respectively, which did not have a significant impact on the financial results.

These preliminary summarised consolidated financial results 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 and available-for-sale financial assets, are stated at fair value.

The preliminary summarised consolidated financial results are presented in rand, which is Sasol Limited’s functional and presentation currency.

Ms Christine Ramon, chief financial officer is responsible for this set of financial results and has supervised the preparation thereof in conjunction with the executive: group finance, Mr Freddie Meyer and the general manager: group statutory reporting, Ms Samantha Barnfather.

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.

Significant changes in contingent liabilities since 30 June 2010

On 12 August 2010, the Commission announced that it had referred its complaints of excessive pricing of polypropylene and propylene in the domestic South African market against Sasol Chemical Industries Limited (SCI) and of price fixing in respect of polypropylene against SCI and Safripol to the Competition Tribunal for adjudication. On 14 December 2010, Sasol Polymers, a division of SCI, concluded a settlement agreement with the Commission in relation to its existing propylene supply agreement with Safripol and agreed to pay a penalty of R112 million. This penalty has been paid and no further provisions have been recognised at 30 June 2011 with regards to this matter.

Independent audit by the auditors

The preliminary summarised consolidated statement of financial position at 30 June 2011 and the related preliminary summarised consolidated income statement, statements of comprehensive income, changes in equity and cash flows for the year then ended were audited by KPMG Inc. The individual auditor assigned to perform the audit is Mr CH Basson. Their unmodified audit report is available for inspection at the registered office of the company.

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 and cost reductions. Words such as “believe”, “anticipate”, “expect”, “intend”, “seek”, “will”, “plan”, “could”, “may”, “endeavour” 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 under the Securities Exchange Act of 1934 on Form 20-F filed on 28 September 2010 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”.

Sasol Investor Relations
Tel.: +27 (0)11 441 3321 / 3745 / 3008
e-mail: investor.relations@sasol.com

Comprehensive additional information is available on our website:

www.sasol.com

Registered office: Sasol Limited, 1 Sturdee Avenue, Rosebank, Johannesburg 2196. PO Box 5486, Johannesburg 2000, South Africa

Share registrars: Computershare Investor Services (Pty) Ltd, 70 Marshall Street, Johannesburg 2001, PO Box 61051, Marshalltown 2107, South Africa Tel: +27 11 370-7700 Fax: +27 11 370-5271/2

Sponsor: Deutsche Securities (SA) (Pty) Ltd

Directors (non-executive): Ms TH Nyasulu (Chairman), Mr C Beggs*, Mr HG Dijkgraaf (Dutch)*, Dr MSV Gantsho*, Ms IN Mkhize*, Mr MJN Njeke*, Prof JE Schrempp (German)^

(executive): Mr DE Constable (Chief executive), Ms KC Ramon (Chief financial officer), Ms VN Fakude

*Independent ^Lead independent director

Company secretary: Mr VD Kahla

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


                        JSE                    NYSE
    Sasol Ordinary
     shares
    Share code:         SOL                    SSL
    ISIN code:          ZAE000006896           US8038663006
    Sasol BEE Ordinary
     shares
    Share code:         SOLBE1
    ISIN code:          ZAE000151817

American depositary 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, USA

SOURCE Sasol Limited


Source: PR Newswire