sasol khanyisa public (rf) limited group · 31.12.2019 · sasol limited is a global integrated...

SASOLKHANYISAPUBLIC (RF) LIMITED GROUPInterim Financial Report for the six months ended 31 December 2019

Sasol Khanyisa Public (RF) Limited Group Interim Financial Report 31 December 2019 1Sasol Khanyisa Public (RF) Limited Group Interim Financial Report 31 December 2019B

As a proudly South African corporate citizen, we actively strive to create economic wealth opportunities for previously disadvantaged groups.

We firmly believe that Sasol Khanyisa is the vehicle from which we can make a concerted and sustainable contribution to redressing the injustices of the past.

The Interim Financial Report is available on our website, www.sasolkhanyisa.com, or on request from Link Market Services.

Our Commitment To South Africa’s Success

NAVIGATING YOUR REPORT

Message from the Chairman 21

Key terms you need to understand 52

Group structure 63

The Khanyisa story 84

SSA operations and value creation 125

Contact information IBC7

Interim financial results for the six months ended 31 December 2019 146

Sasol Khanyisa Public (RF) Limited Group Interim Financial Report 31 December 2019 3Sasol Khanyisa Public (RF) Limited Group Interim Financial Report 31 December 20192

MESSAGE FROM THE CHAIRMAN

On behalf of the Board, I present to you the Interim Report for the six months ended 31 December 2019 for Sasol Khanyisa Public (RF) Limited Group (Sasol Khanyisa).

Together with the Sasol Khanyisa Interim Results the Board felt it useful to provide you with pertinent information on Sasol South Africa Limited’s (SSA) Interim Results for the six months ended 31 December 2019.

Performance of SSASSA, the entity that houses the majority of the Sasol Group’s South African operations and includes the Chemicals and Synfuels’ Energy businesses, was impacted by, among other factors, the decrease in the rand per barrel price of Brent crude oil and lower chemical prices.

Chemicals

Base chemicals

Performance chemicals

736 US$/t

15%

1 570 US$/t

14%

Salient features of SSA for the six months ended 31 December 2019

R9,3 billionHY19

HY20

R6,2 billion

Lower commodity chemicals sales prices

Increased coal feedstock costs and R540 million carbon emissions cost

Brent crude oil

63 US$/bbl

12%

Lower crude oil prices

mainly due to:

Unfavourable average exchange rates

Exchange rate

14,70 R/IS$

4%

Earnings before interest and taxation (EBIT)Macroeconomic factors are factors that affect the wider population or world, rather than just a few people.

These factors are not within the control of a company or its directors.

The following macroeconomic factors influence the performance of SSA:

Did you know?

Capital expenditure Dividends

R7,8 billionFY19 interim

FY19 final

FY20 interim

R3,3 billionR2,2 billionR5 billion

Company value Turnover

R195 billion R46,3 billion(the Company valuation is performed once a year at 30 June)

Exchange rates COVID-19 Pandemic

Brent crude oil prices Commodity chemicals sales prices

Sasol Khanyisa Public (RF) Limited Group Interim Financial Report 31 December 20194

Shares A share is a unit of ownership in a company.

Shareholder A shareholder is somebody that owns shares in a company.

DividendsA dividend is a distribution of earnings by a company to its shareholders. The dividend per share is the part of the profit that is allocated to each share which is paid to shareholders.

Debt repayments

The process of paying off a loan over a period of time. A loan that is owed, is typically called debt for the party who has borrowed.

SOLBE1 shares Sasol BEE ordinary shares.

Company valueThis is the enterprise value of the entity which is the value of a company’s core business operations that is available to all shareholders (including debt, equity and cash).

Turnover Total amount of all sales invoices invoiced to clients for the period.

Capital expenditure

Money spent by a business to acquire and maintain fixed assets and intangible assets, such as land, buildings and equipment, patents etc.

EBIT Earnings before interest and taxation.

Fully vendor funded loan

The loan provided by the seller of the assets, in this case the SSA shares, that requires no money to be paid in by shareholders. This loan is not provided by an external bank.

Sasol Khanyisa Public (RF) Limited Group Interim Financial Report 31 December 2019 5

KEY TERMS YOU NEED TO UNDERSTAND

Khanyisa valueWith the release of every interim and financial year-end results, Sasol will publish the information in the table below to enable you to determine the value of your shareholding at that point in time.

31 December 2019Khanyisa net value

R’billion

Fair value of SSA Group after share issue to shareholders1 90,6Attributable to you 8,3Vendor funding2 (8,8)

Net value3 –

Rand

Sasol Khanyisa Public – approximate value per Sasol Khanyisa ordinary share –

1. Fair value of SSA Group as at 30 June 2019 is as per an independent valuation performed by Rand Merchant Bank. This valuation is performed annually. The next valuation will be performed at 30 June 2020.

2. This consists of the initial vendor funding from Sasol Limited of R8,3 billion and interest accrued to date of R1,0 billion. Repayments made to date amount to R492,9 million.

3. Net value is expected to accrue over the term of the transaction.

The fair value of the SSA Group is highly sensitive to macroeconomic assumptions such as international oil price, chemicals prices and exchange rate assumptions.

Dividends Fully vendor funded loan

Dividends Debt repaymentsReceived from SSA (Interim)

R459,5 million(R17,34 per share)

Paid to you (Interim)

R11,5 million(R0,34 per share after dividend withholding tax)

R448 million(R16,91 per share)

Outstanding balance

R8,8 billion

We, as directors of Sasol Khanyisa, are not able to influence the amount of dividends that Sasol Khanyisa receives from SSA.

Did you know?

Salient features of Sasol Khanyisa for the six months ended 31 December 2019


9,2% SSA

ordinary shares

100% ordinary shares

Sasol Khanyisa ordinary shares

Secunda Synfuels

Operations

Secunda Chemicals Operations

Sasolburg Operations

Satellite Operations

Gas and natural gas pipeline

100%

GROUP STRUCTURE

Sasol Khanyisa Public (RF)

Limited

Sasol South Africa Limited

Sasol Limited

Sasol Limited is a global integrated chemicals and energy company that is listed on the Johannesburg Stock Exchange. It is the parent company of Sasol South Africa Limited and it is the seller (“vendor”) that funded the sale of the SSA shares to the Sasol Khanyisa transaction. We refer to Sasol Limited as “Sasol Limited”, “Sasol” and/or “the Sasol Group” throughout the report.

Sasol

Sasol South Africa Limited (referred to as “SSA”) is a subsidiary of Sasol Limited and houses the majority of the Sasol Group’s South African operations.

Sasol South Africa

Sasol Khanyisa Fundco (RF) Limited (referred to as “Sasol Khanyisa Fundco”) is a subsidiary of Sasol Khanyisa Public (RF) Limited and holds shares in Sasol South Africa Limited on behalf of the Sasol Khanyisa Public (RF) Limited shareholders.

Sasol Khanyisa Public (RF) Limited (referred to as “Sasol Khanyisa Public”) is the entity in which YOU, as a shareholder, own shares.

Sasol Khanyisa Fundco

Sasol Khanyisa Public

Sasol Khanyisa Fundco (RF)

Limited

SSA operations and businesses

81,6% SSA ordinary shares


Dividends received by shareholders

Sasol launches its B-BBEE transaction – Sasol Khanyisa

THE KHANYISA STORY

Sasol South Africa

Pay dividends when there are free cash flows and surplus cash

Sasol Khanyisa Fundco

Sasol Khanyisa Public

Bought 26 503 642 ordinary shares in SSA

2,5%Dividends paid to

ordinary shareholders

Dividends used to pay back Sasol

(vendor funding)

97,5%

Sasol

Provided a loan of R8,3 billion (interest bearing)

JUNE2018

Shareholders were allocated Sasol Khanyisa ordinary shares

Holds 100% ordinary shares in Sasol Khanyisa Fundco

The loan balance of R8,8 billion consists of the initial vendor funding provided of R8,3 billion, interest accrued to date of R1,0 billion and repayments of R492, 9 million. To date means the period from inception until 31 December 2019.

Vendor funding balance Repayments to date

R492,9 million

R8,8 billion

R7,4 million

R5,0 million

R11,5 million

28 cents

19 cents

43 cents

Dividends received by Sasol

Khanyisa Public

Dividends paid to YOU

(per share)

Loan balance and repayments – Our progress thus far

Interim (FY19)

Final (FY19)

Interim (FY20)


The Sasol Khanyisa transaction

The 10-year goal

THE KHANYISA STORY – Continued

The participants

On 1 June 2018, Sasol implemented its new Broad-Based Black Economic Empowerment (B-BBEE) ownership structure, known as the Sasol Khanyisa transaction. The Sasol Khanyisa transaction is made up of the Sasol Khanyisa Employee Share Ownership Plan Trust and Sasol Khanyisa Public. YOU are a shareholder of the Sasol Khanyisa Public portion of the Sasol Khanyisa transaction.

Sasol loaned R8,3 billion (interest bearing) to Sasol Khanyisa Fundco which enabled it to purchase 26 503 642 ordinary shares in SSA. The purchase of these ordinary shares meant that Sasol Khanyisa Public, as 100% shareholder of Sasol Khanyisa Fundco, could issue Sasol Khanyisa ordinary shares to YOU, its shareholder.

Sasol Inzalo Groups, Sasol Inzalo Public and electing SOLBE1 shareholders were invited to participate in the Sasol Khanyisa transaction. The participants are now shareholders of Sasol Khanyisa Public.

Sasol Khanyisa’s goal is to repay the loan within the 10-year period, however, this will depend on the performance of SSA and its ability to pay dividends. The better SSA performs, the quicker Sasol Khanyisa pays off its loan from Sasol. At the end of the 10-year period (or earlier if the debt is fully repaid), the net value in SSA shares will be exchanged for SOLBE1 shares on a fair value-for-value basis which will be distributed to shareholders. Any debt not yet repaid at the end of the 10-year period will be settled using the net value of the SSA shares and will reduce any distribution to shareholders.

Trickle dividend flow for Sasol Khanyisa Public shareholders

The loan was granted under the agreement that Sasol Khanyisa Fundco would repay the loan over a period of 10 years. The loan attracts an interest rate of 75% of the SA prime interest rate. The debt repayments on this loan (including interest) are to be paid off using a portion of the dividends that SSA pays out to Sasol Khanyisa Fundco. As dividends are declared by SSA, 97,5% of the dividends received by Sasol Khanyisa Fundco will be used for the debt repayments to Sasol. 2,5% of the dividends received will be distributed to the shareholders of Sasol Khanyisa Public – “trickle dividend”.

The terms of the agreement

JUNE2018

JUNE2028

As dividends are declared by SSA, 97,5% will be utilised to repay the debt and interest. 2,5% will be distributed to shareholders.


Secunda Synfuels Operations (SSO)SSO operates the world’s largest coal-to-liquids (CTL) facility which gasifies coal which is then converted through Sasol’s Fischer-Tropsch technology into fuel components, heating gas and chemicals.

Sasol Gas and Rompco*Sasol Gas purchases natural gas from Mozambique and sells to SSA operations in Secunda and Sasolburg as well as to the external market. The gas is transported to South Africa through the natural gas transmission pipeline owned by Rompco.

EnergyThe Energy business markets and sells all of SSA’s fuel, gas and electricity products as well as speciality gases.

Sasolburg Operations (SO)SO uses gas to produce a wide range of chemicals including waxes. SO also produces electricity and other utilities and provides support services to the rest of our Sasolburg sites.

Satellite Operations Satellite Operations comprises of a 3 000 kilometre network of natural and methane-rich Gas Pipelines, a Wax Blending Plant in Durban and the Ekandustria-based Explosives operations.

Secunda Chemicals Operations (SCO)SCO separates, extracts and processes chemicals from SSO into Explosives, Fertilisers, Plastics and Solvents.

Secunda

Sasolburg

SSA OPERATIONS & VALUE CREATION

Performance Chemicals (PC)PC markets SSA’s specialty chemicals globally. The business includes Advanced Materials and Wax.

Base Chemicals (BC)BC markets a broad portfolio of SSA’s commodity chemicals globally. The business includes Polymers, Solvents, Fertilisers and Explosives.

CAFFEINE FIXMethyl ethyl ketone, a Sasol product, is used to lessen the caffeine content in tea and coffee.

MAKING A MEAL OF ITYou couldn’t start your day without your favourite cereal. Sasol helps by ensuring that the box is properly sealed with our hard wax.

SOFT AS A BABY’S SKINPetroleum jelly, a Sasol product, is widely used as an ingredient in skin lotions and cosmetics. It is effective in accelerating wound healing by keeping the injured area supple and forming a barrier which prevents the skin’s natural moisture from evaporating.

NAIL POLISH REMOVERSasol produces acetone which is the main solvent used in nail polish remover.

SHOE AND FLOOR POLISHVarious Sasol waxes are used in both shoe and floor polish.

CLEANING PRODUCTSSasol produces surfactants which are used in laundry detergents cleaning produces and personal care products.

IT’S IN THE FABRICCotton fibres are treated with wax from Sasol to allow for smooth running in weaving machines. Acrylic fibre, which is made from a combination of propylene and ammonia, is used to manufacture blankets, knitted garments and carpets.

SAY CHEESESasol produces the wax that is used as a coating to preserve fruit and it is also the main component of red cheese rind.

BABY NAPPIESThe soft lining in babies’ nappies are made from very fine fibres produced from polypropylene.

LIGHT UP YOUR LIFENot being able to see in the dark is not to be taken lightly. Sasol lights up our lives with liquefied petroleum gas (LPG) derived from the Sasol coal-and gas-to-liquids processes. LPGs are used for camp lights and stoves (propane) and lighters (butane). The candles that light up a romantic dinner are produced from Sasol wax.

* Republic of Mozambique Pipeline Investment Company (Pty) Ltd.

Sasol Khanyisa Public (RF) Limited Group Interim Financial Report 31 December 2019 15

An interim financial report provides you with insight into the performance of a company for a six-month period.

INTERIM FINANCIAL REPORT

INTERIM FINANCIAL REPORTfor the six months ended 31 December 2019

PageOverview 16

Statement of financial position 18

Statement of comprehensive income 18

Statement of change in equity 19

Statement of cash flows 20

Notes to the interim financial report 21

The interim financial results have not been audited or independently reviewed.



Nature of businessThe main business of the Group (Sasol Khanyisa Public (RF) Limited (“Sasol Khanyisa”) and its subsidiary Sasol Khanyisa Fundco (RF) Limited (“Fundco”)), is to hold shares in Sasol South Africa Limited (“SSA”), on behalf of the Sasol Khanyisa shareholders. The principal activities of the company remained unchanged during the period. SSA is a subsidiary of Sasol Limited and houses the majority of the Sasol Group’s South African operations.

Sasol Khanyisa has a beneficial interest of approximately 9,2% in SSA, which was funded wholly by Sasol Limited (vendor funding). As dividends are declared by SSA, 97,5% of these are utilised to repay the vendor funding and the related financing cost, calculated at 75% of prime rate. 2,5% of dividends will be distributed to participants as a trickle dividend. At the end of the 10 year transaction term, or earlier, if the vendor funding is repaid, the net value in SSA shares will be exchanged for SOLBE1 shares on a fair value-for-value basis which will be distributed to participants to the extent of any value created during the transaction term.

Financial overviewThe value of SSA was R90,6 billion at 30 June 2019 (30 June 2018; R89,8 billion). The beneficial interest of approximately 9,2% attributable to the shareholders of Sasol Khanyisa is R8,3 billion (30 June 2018; R8,3 billion) whilst the vendor funding balance at 31 December 2019 is R8,8 billion (31 December 2018; R8,6 billion; 30 June 2019; R8,7 billion), resulting in no net value created for shareholders of Sasol Khanyisa as at 31 December 2019. Net value is expected to accrue over the term of the transaction. The valuation of SSA will be updated at 30 June 2020. On 3 September 2019 a dividend of R202,2 million was received from SSA. Of this amount, R197,1 million was utilised to repay the vendor funding to Sasol Limited and R5,1 million was paid as a trickle dividend to the company’s shareholders.

DirectorsThe Directors in office during the period were:

Ms Z Monnakgotla (Chairman) Ms N ManyikaMr KH SetzinMs TLN BoikhutsoMr TR MadibaMr KM MakhethaMs K Njobe

Subsequent eventsOn 10 February 2020, SSA declared an interim dividend of R17,34 per SSA ordinary share of which 2,5% will be paid to Sasol Khanyisa Public shareholders as a trickle dividend and 97,5% utilised towards the repayment of the vendor funding to Sasol Limited.

Subsequent to 31 December 2019, there has been a significant decline in oil prices as a result of market volatility, which is expected to impact the profitability of the underlying business in which the company holds its investment. This outlook has further been disrupted by the outbreak of the COVID-19 (coronavirus) pandemic, which is impacting business operations world-wide. The full extent to which COVID-19 will impact the operational and financial performance of the underlying business in which the company holds its investment will depend on future developments which are highly uncertain and cannot be predicted.

Dividend declaration An interim gross cash dividend of R0,43 (representing 2,5% of the R17,34 dividend received) per ordinary share has been declared for the six months ended 31 December 2019. The cash dividend is payable on the ordinary shares. The Board of Directors (Board) is satisfied that the liquidity and solvency of the company, as well as cash remaining after payment of the dividend, is sufficient to support the current operations for the ensuing year. The South African dividend withholding tax rate is 20%. At the declaration date, there are 26 503 642 ordinary shares in issue. The net dividend amount payable to shareholders who are not exempt from the dividend withholding tax is R0,34 per share, while the dividend amount payable to shareholders who are exempt from dividend withholding tax is R0,43 per share.

An interim gross cash dividend of R16,91 (representing 97,5% of the R17,34 dividend received) per share, will be utilised towards the settlement of the vendor funding.

The salient dates for shareholders are:

Declaration date Monday, 23 March 2020

Record date Friday, 3 April 2020

Dividend payment date Monday, 6 April 2020

On Monday, 6 April 2020, dividends due to certificated shareholders on the South African registry will be electronically transferred to shareholders’ bank accounts. Shareholders who hold dematerialised shares will have their accounts held by their Central Securities Depository Participant or broker credited on Monday, 6 April 2020. Share certificates may not be dematerialised or rematerialised between 1 April 2020 and 3 April 2020 both days inclusive.

On behalf of the Board

Zanele Monnakgotla Nonkululeko ManyikaChairman Chairman of the Audit Committee

Sasol Khanyisa Public (RF) Limited

23 March 2020

OVERVIEW

SPECIMEN SIGNATURE FOR SASOL KHANYISA PUBLIC ANNUAL REPORT, 30 JUNE 2016

Chairman of the Board

SPECIMEN SIGNATURE FOR SASOL KHANYISA PUBLIC ANNUAL REPORT, 30 JUNE 2018

Chairman of the Audit Committee : Ms N Manyika


STATEMENT OF CHANGES IN EQUITYfor the period ended

Group

Share capital

Retainedearnings

Totalshare-

holders' equity

R'000 R'000 R'000

Balance at 31 December 2018 10 – 10Total comprehensive income for the period – 7 582 7 582Dividends paid – (7 421) (7 421)

Balance at 30 June 2019 10 161 171Total comprehensive income for the period – 5 434 5 434Dividends paid – (5 036) (5 036)

Balance at 31 December 2019 10 559 569

Company

Share capital

Retainedearnings

Totalshare-

holders' equity

R'000 R'000 R'000

Balance at 31 December 2018 10 – 10Total comprehensive income for the period – 7 582 7 582Dividends paid – (7 421) (7 421)

Balance at 30 June 2019 10 161 171Total comprehensive income for the period – 5 070 5 070Dividends paid – (5 036) (5 036)

Balance at 31 December 2019 10 195 205

STATEMENT OF FINANCIAL POSITIONat

STATEMENT OF COMPREHENSIVE INCOMEfor the period ended

Group Company

Half year31 Dec 19

Half year31 Dec 18

AuditedFull year

30 June 19Half year31 Dec 19

Half year31 Dec 18

AuditedFull year

30 June 19R'000 R'000 R'000 R'000 R'000 R'000

Other expenses* – – – – – –

Profit from operations – – – – – –Finance income** 5 503 – 7 582 5 077 – 7 582

Profit before tax 5 503 – 7 582 5 077 – 7 582Taxation (69) – – (7) – –Profit and total comprehensive income for the period 5 434 – 7 582 5 070 – 7 582

* All reasonable administration costs of the company are invoiced to and funded by Sasol South Africa Limited (SSA) but only up to the end of the Sasol Khanyisa Empowerment period (2028 or earlier).

** Mainly includes the trickle dividend received from SSA, amounting to R5,1 million (31 December 2018: Rnil; 30 June 2019: R7,6 million)

Group Company

Half year31 Dec 19

Half year31 Dec 18

AuditedFull year

30 June 19Half year31 Dec 19

Half year31 Dec 18

AuditedFull year

30 June 19Note R'000 R'000 R'000 R'000 R'000 R'000

AssetsNon-current assetsLong-term financial assets 1 – – – – – –Investment in subsidiary* – – –

Current assetsOther receivables 48 – 4 35 2 7Bank 2 455 11 652 2 042 8 556

Total assets 2 503 11 656 2 077 10 563

Equity and liabilitiesShareholders' equity 569 10 171 205 10 171Current liabilitiesOther payables 1 934 1 485 1 872 – 392

Total equity and liabilities 2 503 11 656 2 077 10 563

* Nominal amount less than R1 000.


STATEMENT OF CASH FLOWSfor the period ended

NOTES TO THE INTERIM FINANCIAL REPORT

Group Company

Half year 31 Dec 19

Half year 31 Dec 18

AuditedFull year

30 June 19Half year 31 Dec 19

Half year 31 Dec 18

AuditedFull year

30 June 19R'000 R'000 R'000 R'000 R'000 R'000

Movement in other payables and receivables 1 405 1 388 1 452 (2) 387Finance income received* 202 646 – 303 297 5 077 – 7 580Dividends paid (5 036) – (7 421) (5 036) – (7 421)Tax paid (69) – – (7) – –

Cash retained from operating activities 198 946 1 296 264 1 486 (2) 546

Repayment of preference share debt** (197 143) – (295 622) – – –

Cash utilised in financing activities (197 143) – (295 622) – – –

Increase in cash and cash equivalents 1 803 1 642 1 486 (2) 546Cash and cash equivalents at the beginning of period 652 10 10 556 10 10

Cash and cash equivalents at the end of the period 2 455 11 652 2 042 8 556

* Mainly includes the trickle dividend received from Sasol South Africa Limited. ** Refer to Note 1 for further details on the repayment of the preference share debt.

1 Long-term financial assetsSasol Khanyisa Public indirectly owns 26 503 642 ordinary shares (9,2%) in the issued share capital of Sasol South Africa Limited (SSA).

SSA is a subsidiary of Sasol Limited and houses the majority of the Sasol Group’s South African operations.

The acquisition of the Sasol Khanyisa Shares in SSA was funded by way of preference share funding of R8,3 billion (vendor funding) from Sasol Limited. The vendor funding attracts interest at 75% of the SA prime interest rate and will be repaid during the 10 year empowerment period or earlier.

As dividends are declared by SSA, 97,5% of these are utilised to repay the vendor funding and related financing cost, calculated at 75% of prime rate. 2,5% of dividends are distributed to Sasol Khanyisa Public ordinary shareholders as a trickle dividend. At the end of the 10 year transaction term, or earlier, if the vendor funding is repaid, the net value in SSA shares will be exchanged for SOLBE1 shares on a fair value for-value basis which will be distributed to shareholders. Any vendor funding not yet settled by the end of the transaction term will be settled using the net value of the SSA shares, and will reduce any distribution made to participants.

Since any ultimate value created for shareholders will be granted in the form of SOLBE1 shares, the accounting for this transaction is similar to an option over Sasol BEE ordinary shares granted for no consideration.

On 3 September 2019 a total dividend of R202,2 million was received from SSA. Of this amount, R197,1 million was utilised to repay the vendor funding and R5,1 million was paid as a dividend to the Sasol Khanyisa Public shareholders.

31 Dec 19R’000

30 June 19R’000

Total dividends received from SSA 202 198 303 297Dividend paid to Sasol Limited 97,5% 197 143 295 622Dividend paid to Sasol Khanyisa Public shareholders* 2,5% 5 055 7 421

* The dividends paid reflected in the statement of changes in equity reflect the minimum payout requirements.

Vendorfundingbalance

Portion of SSA fair

valueNet value created

Sasol Khanyisa Transaction R’000 R’000 R’000

31 Dec 2019 8 787 025 8 329 000 -

31 Dec 2018 8 622 922 8 259 668 -

30 June 2019 8 654 670 8 329 000 -

1 Consists of initial vendor funding provided of R8,3 billion and interest accrued to date of R1,0 billion (31 Dec 2018: R371,5 million; 30 June 2019: R698,8 million). During the financial period R 197,1 million (31 Dec 2018: Rnil; 30 June 2019: R295,6 million) of the vendor funding was repaid.

2 Represents 9,2% of the fair value of Sasol South Africa Limited (SSA) at 30 June 2019 of R90,6 billion (30 June 2018: R89,8 billion). The fair value of SSA will be updated at 30 June 2020.

3 No net value (i.e. the notional vendor funding exceeds the company’s portion of the fair value of SSA) created for shareholders of Sasol Khanyisa Public as at 31 December 2019, however net value is expected to accrue over the term of the transaction.

The fair value of the option in SOLBE1 shares is R1,8 billion (30 June 2018: R1,8 billion) as at 30 June 2019, based on a weighted average fair value of R69,39 (30 June 2018: R66,48) and 26 503 642 Sasol Khanyisa shares. This was derived using the Monte Carlo option pricing model which is reflective of the underlying characteristics of each part of the transaction. The fair value of the option will be updated at 30 June 2020.


MANAGING YOUR INVESTMENT

Please contact Link Market Services if you have any queries regarding your Sasol Khanyisa InvestmentLink Market Services was appointed by Sasol Khanyisa to act as its Transfer Secretaries.

Link Market Services manages all matters relating to your shares and personal details.

Link Market Services has a dedicated Call Centre with agents who will be able to assist shareholders.

Updating your personal and banking details

Keeping your personal and contact details updated is important.

Sasol Khanyisa can only communicate with you, if they have your up-to-date information. In the event of dividends being distributed, Link Market Services needs your up-to-date bank account details.

If any of your personal details need to be updated, please advise Link Market Services.

Whether face-to-face or via their electronic channels, you can contact Link Market Services as follows:

WHAT HAPPENS IF YOU DIE?If you die, your shares will be transferred to your heir(s) who must be a Black person or Black controlled entity as defined in the B-BBEE Codes.

In the event of your death, the Executor of your Estate must inform Link Market Services of your death.

Link Market Services will need the following documents:

• Death certificate• Executor appointment letter and ID copy• Executor’s Service Bill not older than

3 months• Power of Attorney if applicable• Estate Late Bank details not older than

3 months• Additional documentation may be required

from time to time

STAYING INFORMEDFor regular updates about Sasol Khanyisa, visit website: www.sasolkhanyisa.com

Shareholders are advised that the walk-in-centre will be closed for the duration of the Nationwide lockdown period.

13th Floor19 Ameshoff StreetBraamfontein, Johannesburg

Via the Call Centre:

0800 800 010 (South African calls)+27(0)11 035 0100 (International calls)

e-mail:

[email protected]

PLEASE NOTELink Market Services will accept documents sent electronically to [email protected]. Documents sent through post or courier must be original certified copies while documents delivered to the Link Market Service offices can be original documents or original certified copies.

Notes


Notes CONTACT INFORMATION

Registered office:Sasol Place50 Katherine Street Sandton Johannesburg 2196

Private Bag X10014Sandton 2146 South Africa

Transfer Secretaries:Link Market Services South Africa (Pty) Ltd13th Floor, 19 Ameshoff StreetBraamfontein, JohannesburgSouth Africa

PO Box 4844Johannesburg 2000 South AfricaTelephone: +27 11 035 0100

Information helpline:0800 800 010

Email:[email protected]

Directors (non-executive):Ms Z Monnakgotla (Chairman) Ms TLB BoikhutsoMr TR MadibaMr KM Makhetha Ms N Manyika Ms K NjobeMr KH Setzin

Company secretary:Sasol South Africa Limited

Company registration number:2017/663901/06, incorporated in the Republic of South Africa

Income tax reference number:9033786253

www.sasolkhanyisa.com