Sasol Limited Integrated Report 2018

Driving value-based growth

2018 was a watershed year for Sasol, as we refined our strategy to drive sustainable value creation, sharpened our focus to leverage our core strengths, while embedding increased discipline in how we allocate capital. Our value-based strategy is premised on further enhancing our foundation businesses, leveraging our competitive strengths in specialty chemicals globally, Africa-focused Exploration and Production and growing retail fuels in Southern Africa, underpinned by a robust capital allocation framework. This sets us on a clear path for sustainable growth and accelerated returns benefiting shareholders and stakeholders. Effective stakeholder engagement and delivery of social value is fundamental to delivering our strategy and creating value for all stakeholders.

We are confident that we have a compelling investment case which is rooted in our identity as a chemical and energy company with diversification of earnings and geography and grounded by our aspirational culture. Investing in Sasol provides exposure to our robust foundation business, which leverages feedstock advantaged operations and integrated value chains to produce high value products at a low-oil cash break-even levels. This competitive position will be further enhanced by the Lake Charles Chemicals Projects (LCCP) cash contribution, streamlining the portfolio with our asset review process and delivering further value from our Continuous Improvement drive and digital ambitions.

OUR COMPELLING INVESTMENT CASE

CLEAR AND FOCUSED VALUE-BASED STRATEGY THAT WILL DELIVER SUSTAINABLE GROWTH TO SHAREHOLDERS

Balancing returns through growth and dividends

Focused strategic choices

Committed to a disciplined capital allocation framework

ENABLED BY:

DELIVERING VALUE THROUGH FACTORS WITHIN OUR CONTROL

Safe and sustainable operations

Cost optimisation Volume growth

Focused financial risk management

ENHANCING EXISTING PORTFOLIO

Increased EBITDA (LCCP) by $1,3 bn – by 2022 (real) Continuous Improvement drive towards 2% ROIC uplift by 2022 (off 2017 base) Asset review to improve business performance

ROBUST BUSINESS FOUNDATION

Low cost feedstock

Integrated and diversified value chain

Cash breakeven under $35/bbl

COMMITTED TO MINIMISE OUR ENVIRONMENTAL FOOTPRINT

Responding to climate change and energy efficiency challenges Driving sustainable air quality - already invested >R25 bn over past twelve years Promoting water stewardship

STRONG GOVERNANCE AND HIGH STANDARDS OF BUSINESS ETHICS AND INTEGRITY

Our Board’s diversity and skills are critical to sustain a competitive advantage

33%
women

80%
independent

33%
international

IMPROVING FLEXIBILITY OF BALANCE SHEET

Increased cash flow

Reduced gearing

Managing an optimal capital structure

Prudent Financial Risk management

DELIVERING INCREASED SOCIAL VALUE

Accelerate development of small transformed businesses

Making a meaningful socio-economic impact in countries and communities in which we operate

TRANSLATES TO:

Zero harm
Targets aligned with stakeholder value creation
Competitive dividend payout
Increased cash flow generation through the cycle
Strong stakeholder relationships
Increased delivery of social value