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Sasol Limited - Changes To Segment Reporting

Release Date: 21/11/2014 14:30:00      Code(s): SOL SOLBE1     
Sasol Limited
(Incorporated in the Republic of South Africa)
Company registration number: 1979/003231/06

JSE
Sasol Ordinary shares:
Share code: SOL
ISIN: ZAE000006896

NYSE
Sasol Ordinary shares:
Share code: SSL

ISIN: US8038663006

Sasol BEE Ordinary shares
Share code: SOLBE1

ISIN: ZAE000151817

("Sasol" or "the Company")

Changes to segment reporting



Dear stakeholder,

One of the cornerstones of Sasol's past successes stemmed from our diverse businesses and activities being organised along
an integrated value chain. While our value chain remains integrated, over the past decade we established and drove independent
businesses within Sasol founded on a product-based operating model. Over time, organising our businesses in this manner resulted
in increased complexity, leading to slower decision-making, higher costs and greater time required for internal alignment and co-
ordination. To bring greater focus and increased simplicity to how Sasol is structured and managed, we have streamlined our corporate
structures and reorganised our businesses from a product-based operating model to one based on our value chain.

Our new operating model, and a simplified and consolidated legal structure, came into effect on 1 July 2014. The new operating model
aligns the components of Sasol - operating business units, regional operating hubs, strategic business units, and group functions
- according to a single value chain, focused on the production of liquid fuels, high-value chemicals and low-carbon electricity, as
outlined below:


 -   The Operating Business Units comprise our mining and upstream oil and gas activities, focusing mainly on securing feedstock
     supply;
 -   The Regional Operating Hubs include our operations in Southern Africa, United States and Eurasia, focusing on sustaining
     asset management and performance while delivering to plan and optimising the total cost of production;
 -   The Strategic Business Units focus on our commercial and enhanced customer interfaces within the energy and chemicals
     arenas, and on optimising business performance through marketing and sales excellence; and
 -   Our group functions deliver fit-for-purpose business support services and solutions.

To reflect our new operating model, our financial reporting has been updated and new reportable segments will accordingly be
restated and presented in the group financial statements for 2015. To keep our stakeholders informed, and to assist investors during
our transition, this document provides information on the restated segment disclosures for the financial years ended 30 June 2014
and 2013, and for the six months ended 31 December 2013. Additional supplementary information, which includes a segment
overview document, is available on our website at www.sasol.com. This information is preliminary and has not been audited or
reviewed by Sasol's auditors.

Paul Victor
Acting Chief Financial Officer
21 November 2014
Johannesburg

1.   Overview of new operating model
     Our previous operating model added both cost and complexity to the organisation. Complex structures, work processes,
     policies and procedures resulted in slower decision-making and reduced organisational effectiveness.

     Accordingly, we moved from our previous model that focused on product lines to a new integrated operating model which has
     been structured along our value chain.

     Our new group structure is presented below:


     Operating Business Units                Regional Operating Hubs                            Strategic Business Units
                                Southern Africa      International Operations    Energy Business          Chemicals Business
                                Operations
     Mining                     Secunda Synfuels     United States Operations    Southern Africa Energy   Base Chemicals
     Exploration and Production Secunda Chemicals    Eurasian Operations         International Energy     Performance Chemicals
     International              Sasolburg
                                Natref
                                Satellite Operations
                                                             Group Functions

2.   Overview of segmental reporting changes
     In terms of International Financial Reporting Standard (IFRS) 8, Operating Segments, segmental reporting should reflect
     how the business is managed and how the results are reported to the Chief Operating Decision Maker (CODM). The CODM
     for Sasol is the President and Chief Executive Officer. The seven reportable segments have been defined as follows:

     Operating Business Units (OBUs)
     1.   Mining - comprises our mining activities in South Africa. We mine approximately 40 million tons (Mt) of saleable coal per
          year, mostly for gasification feedstock and utility consumption at our complexes in Secunda and Sasolburg, in South
          Africa. We also export approximately 2,9 Mt of coal annually.

     2.   Exploration and Production International - manages our oil and natural gas exploration and production interests in West
          and Southern Africa, Canada and Australia. We pursue opportunities for the exploration, appraisal, development and
          production of hydrocarbon resources to supply feedstock to existing or potential future Sasol downstream plants and
          external customers.

     Strategic Business Units (SBUs)
     3.   Southern Africa Energy - comprises the sales and marketing of liquid fuels, natural gas and electricity. We market
          approximately 9 billion litres of liquid fuels annually, blended from fuel components produced by the Secunda Synfuels
          operations, crude oil refined at Natref, and external product purchases. We procure crude oil, refined through Sasol's
          interest in the Natref refinery and market more than 450 million standard cubic feet per day (mmscf/d) of natural and
          methane-rich gas. We also generate electricity which is then sold into the grid or consumed by our operations.

     4.   International Energy - develops, implements, and manages our international business ventures based on Sasol's
          proprietary gas-to-liquids (GTL) technology. Our focus is on securing opportunities to advance Sasol's GTL strategy.
          Sasol's investments in existing and future GTL ventures, including ORYX GTL in Qatar and Escravos GTL (EGTL) in
          Nigeria are components of this reportable segment.

     5.   Base Chemicals - comprises the sales and marketing of ethylene, propylene, polyethylene, polypropylene, polyvinyl
          chloride, chlor alkali chemicals, mining reagents, solvents (ketones and alcohols) and acrylates to domestic and
          international customers. Our chemical products are produced in various regional operating hubs depending on the
          geographical location. We also have joint venture monomer and polymer interests in Malaysia and marketing facilities in
          China. We also market other products such as fertilisers and mining explosive products.

     6.   Performance Chemicals - comprises the sales and marketing of surfactants, linear alkylbenzene, surfactant intermediates,
          n-paraffins, n-olefins, C6-C22 alcohols, co-monomers, ethylene and other organic intermediates to customers worldwide
          as well as specialty aluminas, silica aluminas and hydrotalcites. We also market other products such as waxes and
          phenolics. Our chemical products are produced in various regional operating hubs depending on the geographical location.

     Group Functions
     7.   Comprises our technology research and development activities, as well as our central treasury and financing activities.


Segmental reporting of the new operating model
The key changes from the previous reportable segments to the new reportable segments are depicted below:


            PREVIOUS SEGMENTAL REPORTING                                         NEW SEGMENTAL REPORTING

Previous reporting clusters      Previous reporting segments                                 New reporting segments

SA Energy                        Mining                            Operating BUs             Mining
                                 Gas                                                         Exploration and Production
                                 Synfuels                                                    International
                                 Oil
                                 Other

International Energy             Synfuels International            Strategic BUs             Southern Africa Energy
                                 Petroleum International                                     International Energy
                                                                                             Base Chemicals
Chemicals                        Polymers                                                    Performance Chemicals
                                 Solvents
                                 O&S
                                 Other Chemical
                                 Businesses

Other                            Other                             Other                     Group Functions

Going forward, we will no longer apply the clustering approach. Accordingly, we will report on reportable segments only.

Regional Operating Hubs (ROHs)
The ROHs, which include our operations in Southern Africa, North America and Eurasia, houses our current and future
operating capacity, and enable the functioning of these operations as integrated manufacturing sites with consolidated
functional support. They operate assets on behalf of the SBUs and are accountable for delivering against agreed safety, cost,
volume and specifications targets set by the SBUs, within the context of a group-wide plan. They are responsible for ensuring
plant efficiency and optimising the total cost of production.

In terms of IFRS 8, the ROHs do not meet the quantitative criteria for disclosure as separate reportable segments, since the
profit and loss accountability resides in the SBUs. The ROHs, where the responsibility for optimally operating the Sasol plants
resides, will be measured by key performance indicators only.

The costs in the ROHs are passed through the value chain to the SBUs. Fixed assets, including assets under construction and
liabilities (including rehabilitation provisions) which are separately identifiable, and directly linked to a SBU, are allocated to
specific SBUs. Other common assets and liabilities (which cannot be directly linked to a SBU) are split across the SBUs based
on product costing principles.

3.   Accounting policies
     The accounting policies of the group are not impacted by the change to the new operating model or the change in reportable
     segments. The group's latest accounting policies can be found in the Consolidated Annual Financial Statements for the year
     ended 30 June 2014 on www.sasol.com.

4.   Geographical segments
     The group operates predominantly in the following geographic areas and in evaluating our reportable segments, we have
     redefined our geographic segments as follows:

     - South Africa
     - Rest of Africa
       - Mozambique
       - Other areas in Africa
     - Europe
       - Germany
       - Rest of Europe
     - Americas
       - United States
       - Canada
       - Rest of Americas
     - Asia, Australasia and Middle East

     In future, our geographical segments will be based on the categories presented above.

5.   Simplified and consolidated legal structure
     To realise greater efficiencies along our integrated value chain, we have simplified and consolidated our legal structures to
     reduce statutory compliance for the separate financial statements, work processes and related costs. The new legal structure
     also enables us to operate the company as one integrated business, by producing and selling what maximises value for the
     whole Sasol group.

     The information presented in the Sasol Limited group's primary financial statements are based on the legal structure which
     complies with IFRS, JSE and SEC regulations as well as the Companies Act of South Africa. Our segmental reporting
     however reflects how the business is managed and may therefore not correlate directly to our legal structure.

6.   Supplementary information on the Sasol website
     For a more detailed understanding of the new operating model, we refer you to our non-statutory submissions contained on
     our website at www.sasol.com. These submissions include the following:

     - Segment overview document - This document provides further context for the changes to the new operating model and a
       summary of the integration and interface principles which we applied.

     - Business performance metrics - This document contains key metrics, volumes and statistics for the OBUs, ROHs and SBUs.
       This document replaces the business unit pages in the Analyst Book.

     - Summarised earnings model - Simplified earnings and asset valuation model which will assist analysts and investors in
       understanding the new operating model. This model is based on historical information only and contains no forward looking
       references or information.

7.     Investor Relations contacts
       For assistance in understanding or questions related to our new operating model, please contact us as follows:
       Web: investor.relations@sasol.com
       Tel: +27 11 441 3113
       Sponsor: Deutsche Securities (SA) Proprietary Limited

8.   Restated financial reporting data under the new operating model
     Our unaudited restated financial reporting segment data is presented below for the years ended 30 June 2014 and 30 June
     2013, and the half year ended 31 December 2013.

     The restatement of the financial reporting segment data did not have an impact on the primary financial statements of the
     Sasol Limited group. The elements of the primary financial statements include the statement of financial position, income
     statement, statement of changes in equity, statement of cash flows and statement of comprehensive income.

     As we continue to implement our new operating model, there may be further refinement to the data presented, however, we
     do not expect material changes to be made.

Group Segment Reporting
Segment analysis
for the year ended 30 June 2014


                                                                         Operating Business Units                   Strategic Business Units                     Other
                                                                                         Exploration
                                                                                                 and    Southern
                                                                                          Production      Africa   International         Base  Performance       Group        Total
                                                                              Mining   International      Energy          Energy    Chemicals    Chemicals   Functions   Operations
                                                                                  Rm              Rm          Rm              Rm           Rm           Rm          Rm           Rm
Turnover
  external                                                                     2 154           2 990      84 611              21       42 262       70 592          53      202 683
  intersegment                                                                11 980           2 218       1 420               -        2 778        2 982           -       21 378
Total turnover                                                                14 134           5 208      86 031              21       45 040       73 574          53      224 061


Operating profit/(loss) before remeasurement items and translation
gains/(losses)                                                                 2 463            (378)     28 692            (761)       7 802       12 074      (1 387)      48 505
Translation gains/(losses)                                                        (3)           (130)       (200)             21          255           27         828          798
Operating profit/(loss) before remeasurement items                             2 460            (508)     28 492            (740)       8 057       12 101        (559)      49 303
Share of profits of equity accounted joint ventures, net of tax before
remeasurement items                                                                -               -          14           3 709          100            -           -        3 823
Share of profits/(losses) of associates, net of tax                                -               -           8               -          350            1         (25)         334
Profit/(loss) from operations, joint ventures and associates before
remeasurement items                                                            2 460            (508)     28 514           2 969        8 507       12 102        (584)      53 460
Remeasurement items                                                               (7)         (5 472)        228            (288)      (1 765)        (254)        (84)      (7 642)
Profit/(loss) from operations, joint ventures and associates, after
remeasurement items                                                            2 453          (5 980)     28 742           2 681        6 742       11 848        (668)      45 818
Depreciation of property, plant and equipment                                  1 211           2 654       3 153              21        3 281        2 497         382       13 199
Amortisation of intangibles                                                        -              23          26               1           26           91         150          317
EBITDA                                                                         3 664          (3 303)     31 921           2 703       10 049       14 436        (136)      59 334


Statement of financial position
Property, plant and equipment                                                 10 578          10 496      28 492             886       33 466       25 124       2 407      111 449
Assets under construction                                                      6 380           7 888       9 320           1 709        8 945       16 088         990       51 320
Other intangible assets                                                            9              64         121               2          309          882         495        1 882
Other non-current assets* #                                                      527               -         775           7 365        2 938        1 685       1 322       14 612
Current assets*                                                                1 726           2 869      18 996             897       13 393       27 497      31 443       96 821
Total external assets                                                         19 220          21 317      57 704          10 859       59 051       71 276      36 657      276 084
Non-current liabilities*                                                       4 360           3 287       6 562             213        3 848        8 287      21 698       48 255
Current liabilities*                                                           2 402           1 486      11 473           2 137        4 008        8 722       7 669       37 897
Total external liabilities                                                     6 762           4 773      18 035           2 350        7 856       17 009      29 367       86 152
* Excludes tax and deferred tax.
# Excludes post-retirement benefit assets.


Cash flow information
Cash flow from operations                                                      3 921           2 659      31 839            (572)      13 021       14 933       1 791       67 592
Capital expenditure (additions to non-current assets)                          5 837           4 564       7 189           1 757        7 940       10 358       1 134       38 779


Capital commitments
Property, plant and equipment (subsidiaries and joint operations)              7 532           6 639      10 607           8 234       10 271       15 272         503       59 058
Property, plant and equipment (equity accounted joint ventures)                    -               -          14             733           17            -           -          764


Number of employees^                                                           8 435             527       5 058             161        6 220        6 112       6 887       33 400
^ Includes permanent and non-permanent employees.

Group Segment Reporting
Segment analysis
for the year ended 30 June 2013


                                                                         Operating Business Units                   Strategic Business Units                     Other
                                                                                         Exploration
                                                                                                 and    Southern
                                                                                          Production      Africa   International         Base  Performance       Group        Total
                                                                              Mining   International      Energy          Energy    Chemicals    Chemicals   Functions   Operations
                                                                                  Rm              Rm          Rm              Rm           Rm           Rm          Rm           Rm
Turnover
  external                                                                     1 833           2 177      71 266              76       41 174       53 352           13      169 891
  intersegment                                                                10 491           1 457         610               -        2 463        2 063            -       17 084
Total turnover                                                                12 324           3 634      71 876              76       43 637       55 415           13      186 975


Operating profit/(loss) before remeasurement items and translation
gains/(losses)                                                                 2 216          (1 192)     25 805          (1 255)       4 284        8 589          389       38 836
Translation gains/(losses)                                                         5            (266)       (187)             35          964          159        2 182        2 892
Operating profit/(loss) before remeasurement items                             2 221          (1 458)     25 618          (1 220)       5 248        8 748        2 571       41 728
Share of profits of equity accounted joint ventures, net of tax before
remeasurement items                                                                -               -         117           2 577        2 285           42            -        5 021
Share of profits/(losses) of associates, net of tax                                -               -           3               -          517            -          (16)         504
Profit/(loss) from operations, joint ventures and associates before
remeasurement items                                                            2 221          (1 458)     25 738           1 357        8 050        8 790        2 555       47 253
Remeasurement items                                                               (7)           (428)       (122)              -       (3 904)      (1 835)        (112)      (6 408)
Profit/(loss) from operations, joint ventures and associates, after
remeasurement items                                                            2 214          (1 886)     25 616           1 357        4 146        6 955        2 443       40 845
Depreciation of property, plant and equipment                                    999           2 511       2 584              18        2 776        1 689          335       10 912
Amortisation of intangibles                                                        -              12          26               -           26           41          104          209
EBITDA                                                                         3 213             637      28 226           1 375        6 948        8 685        2 882       51 966


Statement of financial position
Property, plant and equipment                                                  8 816          11 642      26 692             405       33 786       17 443        2 205      100 989
Assets under construction                                                      3 315           9 114       6 804             316        7 686       11 586        1 044       39 865
Other intangible assets                                                            7              59          59               -          136          674          483        1 418
Other non-current assets* #                                                      484               1         785           8 429        3 248        1 375          784       15 106
Current assets*                                                                1 400           4 191      17 666           1 619       18 032       18 551       24 423       85 882
Total external assets                                                         14 022          25 007      52 006          10 769       62 888       49 629       28 939      243 260
Non-current liabilities*                                                       1 863           2 802       6 695             264        3 954        7 109       20 019       42 706
Current liabilities*                                                           1 902           1 580       9 138           2 007        4 601        8 663        5 701       33 592
Total external liabilities                                                     3 765           4 382      15 833           2 271        8 555       15 772       25 720       76 298
* Excludes tax and deferred tax.
# Excludes post-retirement benefit assets.


Cash flow information
Cash flow from operations                                                      3 386           1 742      27 445            (700)       8 263       10 444        4 604       55 184
Capital expenditure (additions to non-current assets)                          3 482           4 064       7 513             446        6 156        7 885          868       30 414


Capital commitments
Property, plant and equipment (subsidiaries and joint operations)              9 751           5 353      14 129           6 494       12 279       17 322          733       66 061
Property, plant and equipment (equity accounted joint ventures)                    -               -          18             532           67            -            -          617


Number of employees^                                                           8 140             487       5 075             179        6 727        5 918        7 220       33 746
^ Includes permanent and non-permanent employees.

Group Segment Reporting
Segment analysis
for the six months ended 31 December 2013


                                                                         Operating Business Units                   Strategic Business Units                      Other
                                                                                         Exploration
                                                                                                 and    Southern
                                                                                          Production      Africa   International         Base  Performance        Group        Total
                                                                              Mining   International      Energy          Energy    Chemicals    Chemicals    Functions   Operations
                                                                                  Rm              Rm          Rm              Rm           Rm           Rm          Rm            Rm
Turnover
  external                                                                     1 103           1 482      41 412              20       21 017       33 234           -        98 268
  intersegment                                                                 5 875             926         724               -        1 337        1 497           -        10 359
Total turnover                                                                 6 978           2 408      42 136              20       22 354       34 731           -       108 627


Operating profit/(loss) before remeasurement items and translation
gains/(losses)                                                                 1 344            (551)     14 627            (499)       4 207        4 597         331        24 056
Translation gains/(losses)                                                         2            (108)       (119)             33          244           91         912         1 055
Operating profit/(loss) before remeasurement items                             1 346            (659)     14 508            (466)       4 451        4 688       1 243        25 111
Share of profits of equity accounted joint ventures, net of tax before
remeasurement items                                                                -               -           3           1 898           96            -           -         1 997
Share of profits/(losses) of associates, net of tax                                -               -           2               -          164            1         (11)          156
Profit/(loss) from operations, joint ventures and associates before
remeasurement items                                                            1 346            (659)     14 513           1 432         4 711       4 689       1 232        27 264
Remeasurement items                                                                5          (5 478)        429               -          (604)        (75)         (7)       (5 730)
Profit/(loss) from operations, joint ventures and associates, after
remeasurement items                                                            1 351          (6 137)     14 942           1 432         4 107       4 614       1 225        21 534
Depreciation of property, plant and equipment                                    561           1 628       1 498              10         1 544       1 120         173         6 534
Amortisation of intangibles                                                        -              10          14               -            12          44          69           149
EBITDA                                                                         1 912          (4 499)     16 454           1 442         5 663       5 778       1 467        28 217


Statement of financial position
Property, plant and equipment                                                  9 380          10 412      27 236             890        32 540      21 734       2 132       104 324
Assets under construction                                                      4 831           6 826       8 816           1 103         8 268      15 949         944        46 737
Other intangible assets                                                            7              66          95               3            83         816         481         1 551
Other non-current assets* #                                                      495               -         794           8 240         2 802       1 489       1 115        14 935
Current assets*                                                                1 306           2 843      19 509           1 908        15 240      21 780      23 408        85 994
Total external assets                                                         16 019          20 147      56 450          12 144        58 933      61 768      28 080       253 541
Non-current liabilities*                                                       2 121           2 825       6 703             133         3 446       7 647      20 736        43 611
Current liabilities*                                                           1 685           1 564      10 602           2 351         4 617       7 725       4 135        32 679
Total external liabilities                                                     3 806           4 389      17 305           2 484         8 063      15 372      24 871        76 290
* Excludes tax and deferred tax.
# Excludes post-retirement benefit assets.


Cash flow information
Capital expenditure (additions to non-current assets)                          2 345           2 925       4 089           1 162         4 051       5 115         209        19 896


Capital commitments
Property, plant and equipment (subsidiaries and joint operations)              9 178           6 265      10 734           8 056         9 144      15 755         665        59 797
Property, plant and equipment (equity accounted joint ventures)                    -               -          19             876            58           -           -           953


Number of employees^                                                           8 279             483       5 008             160         6 478       6 157       7 196        33 761
^ Includes permanent and non-permanent employees.


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

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

Directors (non-executive): Dr MSV Gantsho* (Chairman), Mr C Beggs*, Mr HG Dijkgraaf (Dutch)*, Ms IN Mkhize*, Mr ZM Mkhize*,
Mr MJN Njeke*, Mr B Nqwababa*, Mr PJ Robertson (British and American)*, Prof JE Schrempp (German)^, Mr S Westwell (British)*
(executive): Mr DE Constable (President and Chief Executive Officer) (Canadian), Mr P Victor (Acting 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
Income tax reference number: 9520/018/60/8

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

21 November 2014
Johannesburg

JSE sponsor: Deutsche Securities (SA) Proprietary Limited



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