Sasol Limited Integrated Report 2018

Chief Financial Officer's performance overview

In 2018, Sasol delivered a strong underlying cash flow performance, underpinned by higher sales volumes and much higher crude oil and product margins especially during the second half of the year. We continued to see strong demand for our chemical products, which contributed to this resilient cash earnings performance.

Oil prices improved to US$64 per barrel on average in 2018, compared to US$50 per barrel in the prior year, with prices forecast to trend between US$65 and US$75 per barrel in 2019. Oil markets remain exposed to shifts in geopolitical risks as well as supply and demand movements. This oil price range will position us very well to grow future earnings.

The higher oil price and stronger demand for product, particularly in the Performance Chemicals portfolio has resulted in higher chemical prices. Base chemicals dollar basket prices increased by 12% and the Performance Chemicals dollar basket price increased by 8% which positively impacted on our margins. Fuel and energy products prices increased broadly in line with higher dollar based oil prices.

During 2018, the rand/US dollar exchange rate averaged R12,85 compared to R13,61 for the prior year. The stronger average rand/US dollar exchange rate significantly impacted on the results of our Chemicals businesses as a significant portion of their business is exposed to foreign currency sales and capital expenditure. We do remain cautious with regards to the impact of a volatile rand/US dollar exchange rate on our business going forward. To mitigate against these risks, we are of the view that our hedging programme is a key component of our financial risk management framework to provide certainty as we manage peak gearing and ensure sufficient liquidity for the company. We intend to continue with a prudent hedging strategy following our peak gearing, to ensure effective balance sheet management and to protect cash flows needed to execute on our value based strategy. We are pleased that our hedging programme relating to oil and rand/US dollar cover for 2019 is now complete.

Key drivers impacting our results

Sasol’s integrated risk management process has enabled us to remain resilient in the volatile macroeconomic environment. We closely monitor the progress of our strategic objectives by considering and planning for various likely financial scenarios in determining whether the risk is within the limits of our risk tolerance and risk appetite as well as testing the robustness of our mitigation actions. In order to assess the impact of the operating environment on our business, it is important to understand those factors that affect the delivery of our results.

RISK		IMPACT ON VALUE CREATION		RESPONSE
CREDIT MARKET RISK AND ITS IMPACT ON OUR DEBT PROFILE		Despite the volatility in global markets, liquidity has remained available to quality borrowers. Market uncertainty has a more pronounced impact on the availability of liquidity.		We monitor our funding requirements continuously as part of our enterprise risk management activities to ensure that we maintain appropriate levels of liquidity to minimise any adverse impact on our investment rating.
VOLATILE MARKETS AND EXCHANGE RATES		A large portion of our turnover and capital investments are significantly impacted by the rand/US dollar exchange rate. This is also a significant variable in the basic fuel price (BFP). Our chemical products are mostly commodity products whose prices are based largely on global prices quoted in US dollars.		We hedge both our capital investments and foreign currency-denominated imports by way of forward exchange contracts For 2018 we entered into approximately 70% of our exposure which equated US$4 billion. We entered into zero-cost collars for approximately 70% of our exposure for 2019 which equates to US$4 billion. This hedging strategy enables us to better predict cash flows and thus manage our working capital and debt more effectively.
CRUDE OIL		Our Energy business is exposed to the volatility associated with the selling price of fuel. The BFP forms part of the final selling price which is regulated by the South African government. The key factors influencing the BFP include the crude oil price, rand/US dollar exchange rate and refining margins.		To protect the Group against adverse effects of short-term oil price volatility and rand/US dollar exchange rate fluctuations, we use a combination of forward exchange contracts and crude oil futures. For 2018 we entered into hedges for approximately 75% of our liquid fuel sales. We entered into hedges against the downside risk in the crude oil price covering approximately 80% of the group’s liquid fuel sales for 2019.
CHEMICAL PRICES		Our chemical products follow a typical demand cycle. Higher demand results in higher margins until new production capacity is introduced, at which point margins decrease. Over the longer term, most commodity chemical prices tend to track crude oil-based feedstock prices.		The approach for our commodity chemicals business is to have a diverse portfolio of assets and, wherever possible, to invest in the value chain from raw materials to final products. We expand our footprint in differentiated markets. This is aimed at ensuring resilience under a number of different oil price scenarios and industry cycles.
GAS PRICES		Natural gas is a key feedstock in our GTL projects. A higher gas price would reduce our profitability and earnings generation. In Mozambique some of our revenue is derived from the natural gas price. Lower gas prices would result in reduced cash flows and profitability.		In times of lower demand in Mozambique use available gas from Mozambique internally in our integrated value chain.
EXECUTING ON CAPITAL PROJECTS		One of the most significant challenges is capital excellence – delivery of projects within cost and schedule. Failure to achieve this negates our return on invested capital and could result in impairments.		Our capital allocation principles are used to guide how we systematically invest capital. We have taken actions to document the lessons learnt from past projects and will apply them in future projects. The Investment Committee reviews the robustness of assumptions and tracks milestones.
OUR COST BASE		The risk of inflationary increases in the countries in which we operate could place further pressure on our cost base. Generally, the rate of inflation in most major countries has been relatively low. The inflation rate for South Africa remains volatile and has moved from 6,5% over the past two years to 4,7% at 30 June 2018.		We maintain a strict focus on cost and are targeting an inflation rate of 6%. We are further evaluating opportunities to reduce cost through Continuous Improvement. We have several digitalisation initiatives aimed at increasing the effectiveness and efficiency of operations which will significantly contribute to our continuous improvement target of a 2% Return on Invested Capital (ROIC) uplift by 2022.

Overview of financial performance

Earnings attributable to shareholders for the year ended 30 June 2018 decreased by 57% to R8,7 billion from R20,4 billion in the prior year. The stronger average rand/US dollar exchange rate and the negative impact of remeasurement items, largely driven by the stronger longer-term rand exchange rate, resulted in a much lower profit and earnings per share for the year.

Our underlying cash flow performance was robust. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 10% when compared to the prior year. Core headline earnings per share (CHEPS) however decreased by 6% to R36,03 compared to the prior period and headline earnings per share decreased by 22% to R27,44. The difference between core headline earnings and EBITDA in the current year is largely due to depreciation of approximately R16 billion and employee share-based payment expenses of R1,5 billion due to the marked improvement of the Sasol share price at the end of the financial year. The share-based payment relating to our Khanyisa Broad- Based Black Economic Empowerment (B-BBEE) transaction of R3 billion is excluded from core headline earnings and EBITDA as it is considered to be a once-off and non-cash item.

The Sasol Limited Board (“the Board”) considers core headline earnings as an appropriate indicator of the sustainable operating performance of the Group.

Refer to inside back cover for definition of core headline earnings.

Earning before interest and tax – price volume variance analysis

Once-off items includes an impairment of R5,2 billion on our South African Chlor Vinyls cash generating unit, as a result of the continued and sustained strengthening of the exchange rate outlook and the resulting impact on Base Chemicals margins. The valuation of the Production Sharing Agreement (PSA) was impacted by weaker long-term macroeconomic assumptions and lower than expected oil volumes. This resulted in a partial impairment of R1,1 billion (US$94 million), we impaired our Canadian shale gas assets by R2,8 billion in the first half of the year due to a further decline in long-term gas prices and we scrapped our US GTL project amounting to R1,1 billion (US$83 million).

Sasol experienced some challenges with regards to our operational performance during the year, largely due to planned and unplanned production interruptions at SSO, Natref and Mining which impacted production and sales volumes across the value chain. Despite these interruptions, we delivered a stronger overall operational performance in the second half of the year. Our production run-rates during the fourth quarter of financial year 2018, on an annual average basis, supports our internal targeted run-rates.

Key sensitivities impacting our profitability

Sales volumes increased by 1% for our Performance Chemicals business spurred by robust market demand despite Eskom electricity supply interruptions. Base Chemicals reported a 1% decrease in sales volumes mainly due to production interruptions at SSO and a stock build for our high density polyethylene joint venture in the US. Excluding the impact of Eskom electricity supply interruptions, sales volumes increased by 1%. Liquid fuels sales volumes were down 2% due to lower volumes from SSO and Natref and a challenging South African retail liquid fuels market.

Turning to our cost performance, cash fixed costs were up 2% in real terms in the first half of the year mainly as a result of abovementioned planned and unplanned production interruptions. In the second half of the year, we increased our focus on improving our cost efficiency and managed to keep our normalised cash fixed costs (excluding growth and once-off items) for the year flat in real terms. We are of the view that our cost management processes remain robust to protect and improve our cost competitive position and still positions us in managing our cost base to within our inflation target, while ensuring that we maintain safe and sustainable operations.

Tax exposures which could impact our earnings

We have two significant tax disputes with South African Revenue Service (SARS) currently in respect of our crude oil procurement process for Sasol Oil (Pty) Ltd and Sasol Financing International Plc (SFI), our offshore treasury company. Both disputes are at different stages of the tax litigation process as Sasol does not, supported by expect advice, agree with the basis of these additional assessments. Further details of these disputes are provided in note 12 of our Annual Financial Statements

Managing cash and capital

Free cash flow generation is one of the most important drivers of sustaining and increasing shareholder value. Our free cash flow reduced from R11,3 billion in 2017 to R6,6 billion in 2018 mainly due to the significant capital expenditure in the year of R53,4 billion, of which R30,1 billion related to the LCCP.

Cash generated by operating activities

Cash generated by operating activities decreased 3% to R42,9 billion compared with R44,1 billion in the prior year. This is largely attributable to a R3,8 billion increase in working capital. Our trade receivables increased by R2,8 billion due to higher chemical sales prices and higher volumes in June 2018 which translated into cash in July 2018. Inventory increased by R3,4 billion mainly as a result of higher feedstock costs as a result of the increase in crude oil prices compared to the previous financial year. Inventory holding in days were slightly higher compared to the previous financial year.

Additions to non-current assets (including capital accruals) (R billion)

Capital investments

Over the past three years, we have made capital investments of R184 billion, of which R53,4 billion was invested in 2018. We focused our investment mainly in projects in South Africa, Mozambique and the United States, with some investments in Germany and China. In 2018, R34 billion related to growth capital, mainly the LCCP and R19 billion related to sustenance capital to ensure safe and reliable operations.

Our capital investment in South Africa was R18 billion in 2018, which is approximately 35% of the total capital investment for the year. Further details of additions to our non-current assets is provided in notes 17 and 18 of our Annual Financial Statements.

Cash utilisation

In 2018, the cash outflow of our capital investment programme exceeded the cash retained from operating activities by R27 billion.

Managing our funding plan, debt profile and credit rating

Cash utilisation (R billion)

Debt profile

Debt profile Our long-term capital expansion projects are financed by a combination of floating and fixed-rate long-term debt, as well as internally generated funds. We endeavour to match debt to the currency of the underlying revenue generation. Further details of how we manage our capital structure is included on page 20.

Net debt increased by R40 billion in 2018 to R96 billion mainly due to the funding of the LCCP and the higher valuation of US dollar debt funding at year end. Our debt was made up as follows:

	2018		2017		2016
Long-term debt	109 454		81 405		79 877
Short-term debt	1 946		2 625		138
Bank overdraft	89		123		136
Total debt	111 489		84 153		80 151
Less cash (excluding cash restricted for use)	15 148		27 643		49 985
Net debt/(cash)	96 341		56 510		30 166

We are actively reviewing our capital structure and funding plan to ensure that we maintain an optimum solvency and liquidity profile. The unwinding of the Inzalo transaction has been structured to ensure that our credit ratings are maintained at investment grade and with the least amount of dilution to our shareholders. The Board approved that Sasol repurchase the shares from Inzalo Public and settle the outstanding debt of R7,4 billion and a cash top-up for value realised of approximately R600 million in September 2018, assuming a share price of R500. This step will eliminate any shareholder dilution as a result of the unwind of the Sasol Inzalo B-BBEE structure.

Our debt profile at 30 June analysed by currency was:

	2018		%		2017
Rand	19 044		17		20 922
US dollar	91 131		82		59 391
Euro	530		–		3 063
Other	784		1		777
	111 489		100		84 153

Due to the funding of the LCCP, more than 80% of our debt is now US dollar denominated. Given the significantly weaker closing exchange rate of R13,73 and the related translation loss of R4,8 billion arising on the valuation of the balance sheet at year-end, gearing increased to 43,2%, which is slightly below our internal ceiling and market guidance. Included in net debt is R6,1 billion of new finance leases mainly relating to Oxygen Train 17 in Secunda and rail storage facilities at the LCCP.

Net debt: EBITDA (times)

Looking forward, we expect a significant cash contribution from the LCCP and our balance sheet to deleverage by at least 2021. However, to fund our future growth ambitions, we aim to have a gearing ratio of at least 30%. This will mean having to source the appropriate funding mix at the most attractive rates in the market. We have implemented a dynamic funding plan which is based on our latest assumptions and capital requirements. We review the plan on an ongoing basis and report on it to the Audit Committee to ensure that we have sufficient liquidity and headroom on the balance sheet in the foreseeable future.

*	The Board has temporarily lifted our internal gearing ceiling to 44% until the end of the 2018 financial year. Net debt: EBITDA will be managed to below 2,0 times.

Solvency and liquidity

The Group meets its financing requirements through a mixture of cash generated from its operations and short- and long-term borrowings. We maintain adequate banking facilities and reserve borrowing capacities. Sasol is in compliance with all of the financial covenants of its loan agreements, none of which is expected to present a material restriction on funding or its investment policy in the near future. We believe that cash on hand and funds from operations, together with our existing borrowing facilities, will be sufficient to cover our working capital and debt service requirements in the year ahead.

Credit ratings

Our credit rating is influenced by some of our more significant risks. These include crude oil price volatility, movements in the sovereign credit rating of South Africa, our investments in developing countries and their particular associated economic risks, the potential for significant debt increase and the execution challenges associated with a number of our planned growth projects if they materialise simultaneously, as well as the risks arising from potential increases in capital costs associated with these projects. In January 2018, S&P Global Ratings affirmed Sasol’s credit rating at a BBB-/A-3 with a stable outlook. This is two notches above the South African sovereign credit rating and is at investment grade. Similarly Moody’s Investors Service (Moody’s) confirmed South Africa’s Baa3 changing the rating from negative to stable in March 2018, while affirming Sasol’s global scale long-term issuer ratings at Baa3, adjusting the outlook from negative to stable. Sasol’s national scale long-term rating was affirmed at Aaa.za. Moody’s has delinked Sasol from the South African sovereign rating by one notch.

Analysing our shareholding and returns to shareholders

Shareholding

Sasol’s shareholder base consists primarily of large institutional shareholders, with varying investment styles, concentrated in South Africa. With the LCCP coming on line, our international portfolio is becoming more significant. As a result, our aim is to achieve a broad correlation between the distribution of our shareholder base and the sources of cash-generation for the Sasol Group. This means that we will specifically target a larger number of US-based investors in future.

Total shareholder return

We return value to our shareholders by way of both dividends and share price appreciation. Total shareholder return (TSR) is a measure of the performance of the Group’s shares over time, and combines both share price appreciation and dividends paid to indicate the total return to a shareholder over the period. Sasol’s TSR for the five-year period ending 30 June 2018 was 40% in rand terms and 1% in US dollar terms.

The performance of the share price was influenced by a combination of factors such as market sentiment, the volatile rand/US dollar exchange rate due to political uncertainty and global impacts. The steady increase of the crude oil price and the LCCP coming online increased the market interest in Sasol which further contributed to the share price performance.

To maximise TSR, the Group has put measures in place to:

• refine our strategy setting a clear path to deliver sustainable value-based growth;
• define a disciplined capital allocation framework for improving shareholder returns;
• improve project execution by implementing lessons learnt from previous projects;
• actively manage the balance sheet to address external volatility;
• focus on Continuous Improvement to address the structural shift in the energy landscape by improving the efficiency of our operations; and
• work with government and other stakeholders to manage the impact of regulations on Sasol’s South African business.

Dividends

Our dividend policy is to pay dividends within a dividend cover range based on Core HEPS. Taking into account the impact of the current volatile macroeconomic environment, capital investment plans, the current gearing range of 43,2%, and the dividend cover range, the Board has declared a gross final dividend of R12,90 per ordinary share and Sasol BEE ordinary share. The dividend cover was 2,8 times at 30 June 2018. The dividend demonstrates our commitment to return value to shareholders through dividend payments.

Appreciation

I would like to thank my colleagues on the Board and the Group Executive Committee for their support and leadership during this challenging year. I also wish to express my appreciation for the dedication and hard work of our finance teams across the group. Finally, I would like to thank our shareholders for their interest and investment in Sasol.

Paul Victor

Chief Financial Officer

27 August 2018

Financial statement analysis

at 30 June

	2018 Rm		2017 Rm	2016 Rm
ASSETS
Commentary ADDITIONS TO ASSETS Capital expenditure, including accruals, amounted to R53,4 billion. This includes R30,1 billion (US$2,3 billion) relating to the LCCP. The capital spending rate is aligned to our internal targets and with previous market guidance provided. IMPAIRMENT OF ASSETS Included in remeasurement items is a partial impairment of R5,2 billion on our South African Chlor Vinyls cash generating unit, an impairment on our Canadian shale gas assets of R2,8 billion, a partial impairment of R1,1 billion (US$94 million) on the Production Sharing Agreement (PSA) in Mozambique and scrapping of our US GTL project amounting to R1,1 billion (US$83 million). Property, plant and equipment	167 457		158 773	155 054
Commentary ADDITIONS TO ASSETS Capital expenditure, including accruals, amounted to R53,4 billion. This includes R30,1 billion (US$2,3 billion) relating to the LCCP. The capital spending rate is aligned to our internal targets and with previous market guidance provided. IMPAIRMENT OF ASSETS Included in remeasurement items is a partial impairment of R5,2 billion on our South African Chlor Vinyls cash generating unit, an impairment on our Canadian shale gas assets of R2,8 billion, a partial impairment of R1,1 billion (US$94 million) on the Production Sharing Agreement (PSA) in Mozambique and scrapping of our US GTL project amounting to R1,1 billion (US$83 million). Assets under construction	165 361		130 734	104 011
Goodwill and other intangible assets	2 687		2 361	2 680
Equity accounted investments	10 991		11 813	13 118
Post-retirement benefit assets	1 498		622	614
Deferred tax assets	4 096		3 082	3 389
Other long-term assets	5 888		3 600	3 715
Non-current assets	357 978		310 985	282 581
Assets in disposal groups held for sale	113		216	1 064
Other short-term assets	85		–	–
WORKING CAPITAL A R3,8 billion increase in working capital. Our trade receivables increased by R2,8 billion due to higher chemical sales prices and higher volumes in June 2018 which translated into cash in July 2018. Inventory increased by R3,4 billion mainly as a result of higher feedstock costs as a result of the increase in crude oil prices compared to the previous financial year. Inventories	29 364		25 374	23 798
Trade and other receivables	33 031		30 179	30 913
WORKING CAPITAL A R3,8 billion increase in working capital. Our trade receivables increased by R2,8 billion due to higher chemical sales prices and higher volumes in June 2018 which translated into cash in July 2018. Inventory increased by R3,4 billion mainly as a result of higher feedstock costs as a result of the increase in crude oil prices compared to the previous financial year. Short-term financial assets	1 536		2 739	42
Cash restricted for use	1 980		1 803	2 331
Cash and cash equivalents	15 148		27 643	49 985
Current assets	81 257		87 954	108 133
Total assets	439 235		398 939	390 714
EQUITY AND LIABILITIES
EQUITY Shareholders’ equity benefited from earnings in the year net of dividends. Shareholders’ equity	222 985		211 711	206 997
Non-controlling interests	5 623		5 523	5 421
Total equity	228 608		217 234	212 418
DEBT Due to the funding of the LCCP, more than 80% of our debt is now US dollar denominated. Included in net debt is R6,1 billion of new finance leases relating to the Oxygen Train 17 in Secunda and rail storage in the US. Long-term debt	96 691		74 312	78 015
Long-term provisions	15 160		16 648	18 810
Post-retirement benefit obligations	11 900		11 069	12 703
Long-term deferred income	879		910	631
Long-term financial liabilities	133		733	2 844
Deferred tax liabilities	25 908		25 860	23 691
Non-current liabilities	150 671		129 532	136 694
Liabilities in disposal groups held for sale	36		–	–
Short-term debt	14 709		9 718	2 000
Short-term financial liabilities	1 926		740	855
Other current liabilities	43 196		41 592	38 611
Bank overdraft	89		123	136
Current liabilities	59 956		52 173	41 602
Total equity and liabilities	439 235		398 939	390 714

Income statement

for the year ended 30 June

	2018 Rm		2017 Rm	2016 Rm
Commentary TURNOVER Total turnover up by 5%. Mining's, Energy's, Base and Performance Chemicals turnover were up by 17%, 8%, 5% and 4% respectively. TURNOVER	181 461		172 407	172 942
Materials, energy and consumables used	(76 606)		(71 436)	(71 320)
Selling and distribution costs	(7 060)		(6 405)	(6 914)
Maintenance expenditure	(9 163)		(8 654)	(8 453)
EMPLOYEE-RELATED EXPENDITURE Excluding the impact of the share-based payment, our employee costs increased by 7% compared to 2017. Mainly due to normal salary increase and 370 employees were employed by the organisation mainly in the US and the in-sourcing and the conversion of hired employees to permanent employees. Employee-related expenditure	(27 468)		(24 417)	(23 911)
Exploration expenditure and feasibility costs	(352)		(491)	(282)
Depreciation and amortisation	(16 425)		(16 204)	(16 367)
Other expenses and income	(15 316)		(12 550)	(9 073)
Translation (losses)/gains	(11)		(1 201)	150
Other operating expenses and income	(15 305)		(11 349)	(9 223)
Equity accounted profits, net of tax	1 443		1 071	509
Operating profit before remeasurement items and Sasol Khanyisa share-based payment	30 514		33 321	37 131
REMEASUREMENT ITEMS Most significant remeasurement items include as a partial impairment of R5,2 billion on our South African Chlor Vinyls cash generating unit, an impairment on our Canadian shale gas assets of R2,8 billion, a partial impairment of R1,1 billion (US$94 million) on the Production Sharing Agreement (PSA) and scrapping of our US GTL project amounting to R1,1 billion (US$83 million). Remeasurement items	(9 901)		(1 616)	(12 892)
Sasol Khanyisa shared-based payment	(2 866)		–	–
Earning before interest and tax (EBIT)	17 747		31 705	24 239
Finance income	1 716		1 568	1 819
Finance costs	(3 759)		(3 265)	(2 340)
Earning before tax	15 704		30 008	23 718
TAXATION Our effective corporate tax rate increased from 28,3% to 35,4% largely as a result of impairments relating to our shale gas assets in Canada (R2,8 billion) and the Production Sharing Agreement (PSA) in Mozambique (R1,1 billion) as well as the sharebased payment expense (R3 billion) with the implementation of Sasol Khanyisa. Taxation	(5 558)		(8 495)	(8 691)
EARNINGS ATTRIBUTABLE TO SHAREHOLDERS Earnings attributable to shareholders for the year ended 30 June 2018 decreased by 57% to R8,7 billion from R20,4 billion in the prior year. The stronger average rand/US dollar exchange rate and the negative impact of remeasurement items, largely driven by the stronger longer-term rand exchange rate, resulted in a much lower profit and earnings per share for the financial year. Earnings for the year	10 146		21 513	15 027
Attributable to
Owners of Sasol Limited	8 729		20 374	13 225
Non-controlling interests in subsidiaries	1 417		1 139	1 802
	10 146		21 513	15 027

Per share information	Rand		Rand	Rand
Basic earnings per share	14,26		33,36	21,66
Diluted earnings per share	14,18		33,27	21,66

Statement of cash flows

for the year ended 30 June

		2018 Rm		2017 Rm	2016 Rm
Cash receipts from customers		178 672		172 061	175 994
Cash paid to suppliers and employees		(135 795)		(127 992)	(121 321)
Cash generated by operating activities		42 877		44 069	54 673
Dividends received from equity accounted investments		1 702		1 539	887
Finance income received		1 565		1 464	1 633
Finance costs paid		(4 797)		(3 612)	(3 249)
Tax paid		(7 041)		(6 352)	(9 329)
Cash available from operating activities		34 306		37 108	44 615
Dividends paid		(7 952)		(8 628)	(10 680)
Cash retained from operating activities		26 354		28 480	33 935
Total additions to non-current assets		(55 891)		(56 812)	(70 497)
Commentary ADDITIONS TO NON-CURRENT ASSETS Capital expenditure, including accruals, amounted to R53,4 billion. This includes R30,1 billion (US$2,4 billion) relating to the LCCP. Additions to non-current assets		(53 384)		(60 343)	(73 748)
(Decrease)/increase in capital project-related payables		(2 507)		3 531	3 251
Additional cash contributions to equity-accounted investments		(164)		(444)	(548)
Proceeds on disposals and scrappings		2 280		788	569
Purchase of investments		(124)		(96)	(223)
Other net cash flow from investing activities		(80)		(113)	(335)
(Increase)/decrease in long-term receivables		(194)		(141)	(506)
Cash used in investing activities		(53 979)		(56 677)	(71 034)
Share capital issued on implementation of share options		–		–	54
Dividends paid to non-controlling
shareholders in subsidiaries		(725)		(989)	(1 296)
PROCEEDS FROM LONG-TERM DEBT Loans raised during the year amounted to R26,9 billion, mainly for the funding of our US growth project. Proceeds from long-term debt		24 961		9 277	34 008
PROCEEDS FROM LONG-TERM DEBT Loans raised during the year amounted to R26,9 billion, mainly for the funding of our US growth project. Repayments of long-term debt		(9 199)		(2 364)	(3 120)
PROCEEDS FROM LONG-TERM DEBT Loans raised during the year amounted to R26,9 billion, mainly for the funding of our US growth project. Proceeds from short-term debt		1 957		4 033	2 901
PROCEEDS FROM LONG-TERM DEBT Loans raised during the year amounted to R26,9 billion, mainly for the funding of our US growth project. Repayments of short-term debt		(2 607)		(1 410)	(3 369)
Cash generated by financing activities		14 387		8 547	29 178
Translation effects on cash and cash equivalents		954		(3 207)	7 069
(Decrease)/increase in cash and cash equivalents		(12 284)		(22 857)	(852)
Cash and cash equivalents at beginning of year		29 323		52 180	53 032
CASH AND CASH EQUIVALENTS Our net cash position decreased by 42%, from R29,3 billion in the prior period to R17 billion as at 30 June 2018 due to the funding of the LCCP and investments to fund growth projects. Cash and cash equivalents at end of year		17 039		29 323	52 180