SASOL LIMITED - Sasol announces plan to respond to the low oil price environment

Sasol announces plan to respond to the low oil price environment

Sasol Limited
(Incorporated in the Republic of South Africa)
(Registration number 1979/003231/06)
Sasol Ordinary Share codes:     JSE: SOL       NYSE: SSL
Sasol Ordinary ISIN codes:      ZAE000006896 US8038663006
Sasol BEE Ordinary Share code: JSE: SOLBE1
Sasol BEE Ordinary ISIN code:   ZAE000151817
("Sasol" or "the Company")

Sasol announces plan to respond to the low oil price
environment

Sasol announces that it is formulating a comprehensive plan to
conserve cash in response to lower international oil prices.

While the detailed actions underpinning Sasol’s response plan
are being refined, certain decisive measures have already been
agreed to and are being implemented. These include identifying
opportunities for additional cash savings targeted over the
next 30 months. The focus areas are capital portfolio phasing
and reductions, capital restructuring, working capital
improvements, margin enhancement and further fixed cost
reductions. Cash flow improvements actioned in terms of the
response plan will be over and above the current target of at
least R4 billion in sustainable cost savings by 2016, which was
confirmed last year as part of Sasol’s business performance
enhancement programme.

As a result of the ongoing capital investment reprioritisation
exercise, Sasol has decided to delay the final investment
decision on its large-scale, gas-to-liquids (GTL) plant in
Louisiana. The timing of the decision will take into
consideration progress made with the execution of the Company’s
world-scale ethane cracker and derivatives complex, prevailing
market conditions and other strategic investment opportunities.

“Albeit at a much slower pace, we will continue to progress the
U.S. GTL facility. This will allow us to evaluate the
possibility of phasing in the project in the most pragmatic and
effective manner. North America and our home base in Southern
Africa remain strategic investment destinations for Sasol,”
said David Constable, President and Chief Executive Officer.

Sasol is proceeding with the construction of the ethane cracker
and derivatives complex in Louisiana. Given the robust project
economics, the Sasol team is confident that this facility is
the first step in developing the site near Lake Charles into an
integrated multi-asset, multi-business hub, which will enable
future growth for several decades to come.

In parallel, Sasol will also continue to advance its
investments in Southern Africa, including the mine replacement
programme and various gas and chemicals projects.

As the Sasol team finalises the details of its response plan,
an update on the actions being undertaken will be provided when
results are announced for the first half of the 2015 financial
year on 9 March 2015.

28 January 2015
Johannesburg

Sponsor: Deutsche Securities (SA) Proprietary Limited


Disclaimer - Forward-looking statements: Sasol may, in this document, make
certain statements that are not historical facts and relate to analyses and
other information which are based on forecasts of future results and
estimates of amounts not yet determinable. These statements may also relate
to our future prospects, developments and business strategies. Examples of
such forward-looking statements include, but are not limited to, statements
regarding exchange rate fluctuations, volume growth, increases in market
share, total shareholder return and cost reductions. Words such as
“believe”, “anticipate”, “expect”, “intend”, “seek”, “will”, “plan”,
“could”, “may”, “endeavour” and “project” and similar expressions are
intended to identify such forward-looking statements, but are not the
exclusive means of identifying such statements. By their very nature,
forward-looking statements involve inherent risks and uncertainties, both
general and specific, and there are risks that the predictions, forecasts,
projections and other forward-looking statements will not be achieved. If
one or more of these risks materialise, or should underlying assumptions
prove incorrect, our actual results may differ materially from those
anticipated. You should understand that a number of important factors could
cause actual results to differ materially from the plans, objectives,
expectations, estimates and intentions expressed in such forward-looking
statements. These factors are discussed more fully in our most recent annual
report under the Securities Exchange Act of 1934 on Form 20-F filed on 29
September 2014 and in other filings with the United States Securities and
Exchange Commission. The list of factors discussed therein is not
exhaustive; when relying on forward-looking statements to make investment
decisions, you should carefully consider both these factors and other
uncertainties and events. Forward-looking statements apply only as of the
date on which they are made, and we do not undertake any obligation to
update or revise any of them, whether as a result of new information, future
events or otherwise.

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