SASOL LIMITED - Audited Financial Results for the year ended 30 June 2018

Release Date: 20/08/2018 07:05
Code(s): SOL SOLBE1
 
Wrap Text
Audited Financial Results for the year ended 30 June 2018

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")

Audited Financial Results for the year ended 30 June 2018

Sasol creates sustainable
VALUE
for all stakeholders through a
FOCUS
on our strategy and having the
DISCIPLINE
in how we allocate capital

OUR PURPOSE

To create superior value for our customers, shareholders and other
stakeholders. Through our talented people, we use selected technologies
to safely and sustainably source, produce and market chemical and energy
products competitively.

OUR VISION

To be a leading integrated global chemical and energy company, proudly
rooted in our South African heritage, delivering superior value to our
stakeholders.

OUR VALUES

We ensure          We care for our    We value                 We deliver what
that safety,       people and         and promote              we promise to
health and         support their      diversity and            our customers,
environment is     development        inclusion                shareholders
a top priority                                                 and other
                                                               stakeholders
We act with        We comply          We take ownership
respect and        with all           and accountability
integrity at all   applicable legal   for our individual and
times              requirements       team performance

AUDITED FINANCIAL RESULTS
for the year ended 30 June 2018

Sasol is a global integrated chemicals and energy company. Through our
talented people, we use selected technologies to safely and sustainably
source, produce and market chemical and energy products competitively
to create superior value for our customers, shareholders and other
stakeholders.

SALIENT FEATURES

FINANCIAL PERFORMANCE

-   EBITDA up 10% to R52 billion
-   Core headline earnings per share down 6% to R36,03
-   Headline earnings per share down 22% to R27,44
-   Normalised cash fixed costs remained flat in real terms
-   Dividend per share* R12,90 (2,8xCHEPS)

* Our dividend policy is to pay dividends with a dividend cover on core headline earnings per share (CHEPS)

OPERATIONAL PERFORMANCE

-   Plant interruptions lowers Secunda Synfuels Operations volumes by 3%
-   Eurasian Operations volumes up 3%
-   ORYX GTL utilisation at 95%
-   Strong market demand drives 1% increase in Performance Chemicals sales volumes
-   Liquid fuels sales volumes down 2%, Base Chemicals volumes down 1% both impacted by Synfuels plant incidents

SOCIAL VALUE AND TRANSFORMATION

-   Invested R2 billion in skills and socio-economic development, up 25%
-   Implemented Sasol Khanyisa, our new Broad-Based Black Economic Empowerment ownership
    transaction to advance our transformation imperative

ADVANCING LCCP*

-   88% complete, tracking schedule and revised cost estimate of US$11,13 billion
-   Steam utility system commissioned earlier than planned

* Lake Charles Chemicals Project (LCCP)

SAFETY

Safety Recordable Case Rate (RCR), excluding illnesses,improved to 0,27, our lowest so far, regrettably four fatalities

Joint President and Chief Executive Officer, Bongani Nqwababa said:

Our resilient 2018 performance was underpinned by higher sales and production volumes, in the second half of the
year. This was enabled by our continued focus on factors within our control and higher global oil prices, resulting in
improved product prices and margins, notwithstanding continued exchange rate volatility. Overall, our operational
performance was satisfactory, however unplanned Eskom electricity supply interruptions and two internal outages
at Secunda Synfuels Operations, negatively impacted volumes. Enhancing our foundation businesses, a core aspect
of our value-based strategy, will be delivered through ensuring safe and sustainable operations, robust asset
management strategies, continuous improvement and digitalisation, underscored by disciplined capital allocation.

Joint President and Chief Executive Officer, Stephen Cornell said:

2019 will be a defining year for Sasol with the start-up of the LCCP, a catalyst for transforming our earnings profile(1).
Mozambique, our other key growth area, remains central to our gas strategy where we are stepping up efforts to
secure long-term gas feedstock, while delivering on our stakeholder commitments. Improving the flexibility of our
balance sheet, through increased cash flow and reduced gearing, and managing an optimal capital structure will be
a key focus ahead. We remain confident in delivering on our strategy, which will realise sustainable long-term value
for our stakeholders.

Financial results overview(2,4)

Sasol delivered a resilient set of results, underpinned by satisfactory sales and production volumes, delivering a flat
normalised real cash fixed cost base and benefitting from much higher crude oil and product margins in the second
half of the financial year. Our financial results were negatively impacted by several unplanned Eskom electricity
supply interruptions and two internal outages at our Secunda Synfuels (SSO) and Natref operations that resulted in
lower production volumes, as well as a 6% stronger average rand/US dollar exchange rate compared to the prior period.

Our underlying cash flow performance was robust. Earnings before interest, tax, depreciation and amortisation
(EBITDA(4)) increased by 10% when compared to the prior year. Core headline earnings(3) 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.

Sasol's core headline earnings per share were impacted by the following notable once-off and period close items:

                                                                                                      2018          2017
                                                                                       % change   Rand per      Rand per
                                                                                   2018 vs 2017      share         share
Headline earnings per share                                                                (22)      27,44         35,15   
Translation impact of closing exchange rate                                               (106)     (0,09)          1,39   
Mark-to-market valuation of hedges                                                                    3,81        (0,42)   
Implementation of Khanyisa B-BBEE transaction                                                         4,82             -   
LCCP ramp-up depreciation                                                                             0,05             -   
Once-off Uzbekistan license fee                                                                          -        (0,59)   
Strike action at Mining and related costs                                                                -          1,45   
Provision for tax litigation matters                                                                     -          1,49   
Core headline earnings per share(3)                                                         (6)      36,03         38,47   

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. This resulted in earnings per share (EPS) decreasing by 57% to R14,26 compared to
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.

The closing exchange rate however weakened by 5% which negatively impacted gearing and the valuation of our
derivatives and foreign debtors and loans. Our hedging programme for the 2018 and 2019 financial years is
complete and positions Sasol well to steer through these periods of volatility. The average Brent crude oil price
moved 28% higher compared to the prior year, and, since December 2017, spot prices have moved closer to the
US$75/bbl mark which positively impacted our results. The rand per barrel oil price increased by approximately
20% to R818 per barrel compared to 2017, (refer to table below), and has subsequently increased by approximately
15% - 25% since the end of June 2018. The spot rand per barrel oil price is now ranging between R950 and R1 050
per barrel.

The movement in macroeconomic factors can be summarised as follows:

                                                                                                % change    2018    2017   
Rand/US dollar average exchange rate                                                                 (6)   12,85   13,61   
Rand/US dollar closing exchange rate                                                                   5   13,73   13,06   
Average dated Brent crude oil price (US dollar/barrel)                                                28   63,62   49,77   
Refining margins (US dollar/barrel)                                                                  (8)    9,32   10,09   
Average Henry Hub gas price (US dollar/million British thermal unit)                                 (2)    2,95    3,00  

(1) Forward looking statements are the responsibility of the directors and in accordance with standard practice, it is noted that this
    statement has not been reviewed and reported on by the company's auditors.
(2) All comparisons to the prior period refer to the year ended 30 June 2017. All numbers are quoted on a pre-tax basis, except for
    earnings attributable to shareholders and the Response Plan cash conservation measures.
(3) Core headline earnings are calculated by adjusting headline earnings with once-off items, period close adjustments and depreciation
    and amortisation of significant capital projects, exceeding R4 billion which have reached beneficial operation and are still ramping up
    and share-based payments on implementation of B-BBEE transactions. Period close adjustments in relation to the valuation of our
    derivatives at period end is to remove volatility from earnings as these instruments are valued using forward curves and other
    market factors at the reporting date and could vary from period to period. We believe core headline earnings are a useful measure of
    the group's sustainable operating performance. However, this is not a defined term under IFRS and may not be comparable with
    similarly titled measures reported by other companies. Core headline earnings constitutes pro-forma financial information in terms
    of the JSE Limited Listings Requirements and should be read in conjunction with the basis of preparation set out on page 19.
(4) EBITDA is calculated by adjusting earnings before interest and taxation for depreciation, amortisation, remeasurement items, share-
    based payments and unrealised gains and losses on our hedging activities. We believe EBITDA is a useful measure of the group's
    underlying cash flow performance. However, this is not a defined term under IFRS and may not be comparable with similarly titled
    measures reported by other companies.

Operational and cost performance

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.

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.

The highlights of our business performance are summarised below:

-   In the first half of the year, our mining operations were focused on ramping up production volumes post the
    labour strike in the prior year. However, in the period December 2017 to February 2018 we experienced three
    tragic work-related fatalities which significantly slowed us in ramping up our operational performance and
    resulted in lower than expected production volumes.

    We are committed to ensuring that our mining operations remain safe and have implemented a number of
    initiatives to restore our safety performance. Our Business Improvement Programme (BIP), aimed at increasing
    productivity and achieving cost efficiency was refocused post the stabilisation of our safety performance in
    March 2018 and to date we have seen some positive results. Our production run rate over the past quarter has
    improved by more than 20% compared to the previous quarter and is representative of a run rate to achieve
    40 million tons per year and match pre strike production rates.

-   Production volumes from SSO decreased by 3% to 7,6 million tons mainly as a result of unplanned Eskom supply
    interruptions (1%) and internal outages (2%) during the year. Notwithstanding, we continued to improve
    operational processes and plant efficiencies to realise better production yields. Our production run rates
    achieved during May and June 2018, supports full year production of approximately 7,8 million tons.

-   Our Eurasian Operations continued to improve on their operational performance and delivered a 3% increase in
    production volumes. This was largely due to stronger product demand and increased plant availability.

-   ORYX GTL delivered a strong production performance, with an average utilisation rate of 95% exceeding our
    market guidance of 92%.

-   Natref's production volumes were 9% lower due to planned shutdowns and an unexpected electricity supply
    interruption at the start of the financial period. The second half of the year however yielded much improved
    production rates despite a planned shutdown in quarter four. The increased volumes in the second half of 2018
    partially offsets the lower production volumes recorded in the first half of the year. The production run rate for
    quarter four was 600m�/h resulting in a full year run rate of 536m�/h. This compares to a run rate of 592m�/h in 2017.

A detailed production summary and key business performance metrics for the financial year for all our businesses is
available on our website, www.sasol.com.

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 above-mentioned 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.
Whilst we have reduced our cost base significantly through our Business Performance Enhancement Programme
(BPEP) and Response Plan (RP), we are continuing to evaluate further opportunities to reduce cost through our
Continuous Improvement (CI) programme. 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. Against this backdrop, we are targeting an inflation rate of
6% as a more sustainable increase for our cost base. We are well positioned to continue with this improved
operational and cost performance into the 2019 financial year.

Cash and capital performance

Cash generated by operating activities decreased slightly 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. In addition, due to the last day of the financial year being on a weekend, R1 billion was received from debtors
in the first three business days of 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.

Actual 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.

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. Loans raised during the year amounted to
R25 billion, mainly for the funding of our US growth project. Short-term debt increases relates to the Sasol Inzalo Public
transaction unwinding in September 2018. During the year, we increased our existing US$1,5 billion Revolving Credit
Facility to US$3,9 billion and extended the maturity to five years, with the inclusion of two further extension
options of one year each. In addition, our Domestic Medium Term Note Programme of R8 billion provides us with
access to the South African debt capital markets. The focus on our funding plan will now shift to ensuring that
longer-term debt instruments are put in place.

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.

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 Sasol 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 Sasol Limited
Board (the Board) approved that Sasol repurchase the shares from Inzalo Public Funding Limited (RF) 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 Sasol shareholder dilution as a result of the unwind of the Sasol Inzalo B-BBEE
structure.

We therefore expect our gearing to remain around peak levels of 40% - 44% in 2019 due to higher debt associated
with the Inzalo unwind. Accordingly, the Board approved that we manage the balance sheet to below our peak
internal gearing ceiling of 44% for the 2019 financial year.

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 sovereign rating at Baa3 changing the rating from negative to stable in
March 2018, while affirming Sasol's global scale long-term issuer rating 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.

Our dividend policy is to pay dividends with a dividend cover range based on CHEPS. 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 R7,90 per ordinary share and Sasol
BEE ordinary share (1,3% higher compared to the prior year). The dividend cover was 2,8 times at 30 June 2018
(30 June 2017: 2,8 times).

Update on hedging activities

As part of our enterprise risk management framework, we entered into a number of hedges to mitigate specific
financial market risks and provide protection of our balance sheet and operating cash flows against unforeseen
movements in oil prices, interest rates, currency movements, commodity and final product prices. A summary of
our group hedges are presented below:

                                                                                                Settled             Open
                                                                                              contracts        contracts  
                                                                                                   2018             2019   
Brent oil - put options                                                                                                    
Number of barrels hedged                                                             mm bbl       50,25            48,00   
Average Brent crude oil price floor, net of costs                                   US$/bbl       47,82            53,36   
Premiums paid                                                                         US$ m      125,00           131,00   
Rand/US dollar currency - zero-cost collar instruments                                                                     
US$ exposure hedged                                                                   US$bn        4,00             4,00   
Annual average floor                                                                  R/US$       13,46            13,14   
Annual average cap                                                                    R/US$       15,51            15,14   
Export coal - swaps                                                                                                        
Number of tons hedged                                                               mm tons        2,80             1,40   
Average coal swap price                                                             US$/ton       76,11            81,82   
Ethane gas - Swaps                                                                                                         
Number of barrels hedged                                                             mm bbl        2,30             3,50   
Average ethane gas swap price                                                     US$ c/gal       27,54            27,30   

Our hedging strategy has held us in good stead as we have managed to secure a floor of US$48/bbl for 2018 and
US$53/bbl for 2019 which protects our balance sheet against crude oil price volatility. On the exchange rate, we
have realised gains of R2,8 billion (cash flow) in 2018 which protected earnings and the balance sheet given the
average exchange rate of R12,85/US$1.

The current volatility in the crude oil price and exchange rate impacted the valuation of the open hedges at the end
of 2018. The unrealised losses include:

-   R0,3 billion loss on the rand/US dollar zero-cost collars;
-   R1,2 billion loss on Brent crude oil put options. The open instruments were valued against an average strike of
    US$56/bbl; and
-   R0,4 billion loss on export coal swaps.

These losses are highly dependent on market factors and could change in 2019 depending on the actual oil price
realised and exchange rate performance. We have completed our hedging programme for 2019 and are considering
our hedging strategy for 2020 given the current oil price outlook and exchange rate volatility.

Continuous improvement and digitalisation

Our low oil price RP achieved cumulative cash savings of R85,3 billion since January 2015, exceeding our target
range of R65-75 billion. The RP has delivered sustainable annual cash fixed cost savings of R3,5 billion which is in
addition to the R5,4 billion sustainable cost savings from our BPEP. This brings our cumulative sustainable cost
savings to R8,9 billion. We have now formally closed the RP at the end of June 2018. This proactive initiative
enabled us to manage the balance sheet through periods of oil price volatility, while maintaining our investment
grade and ability to fund our growth projects.

To ensure that we remain relevant and competitive and to reap the benefits of a higher oil price, we have
introduced a CI programme. CI, building on the solid foundation established by the BPEP and the RP, is aimed at
ensuring our continued competitiveness at an oil price of $40/bbl, while enhancing our offering to markets across
all the industries in which we compete. Our medium-term target is to increase our Return on Invested Capital (ROIC)
for our foundation businesses by at least two percentage points by 2022 to 19%. This is off a 2017 actual base,
normalised for remeasurements and once-off items and excluding assets under construction. To date, we have
identified value enhancing opportunities to the value of 50% of the target, which positions us well towards
achieving our 2022 medium-term target.

Value adding digitalisation improvements, process simplification, selective core function repositioning and asset
performance reviews, are considered across all our businesses globally as key enablers to achieving our CI targets.

Our digitalisation objectives are centered around improving asset health management (predictive maintenance),
increasing the effectiveness and efficiency of operations (yield, energy, throughput, plan and schedule
achievement), advancing customer engagement, and extracting value from business process automation. Through
the effective use of data and digital technologies, we are positioning digitalisation to significantly contribute to our
continuous improvement target of a 2% ROIC uplift by 2022. We are making steady progress with our focused
asset review process. Several non-strategic assets have been identified for possible disposal or reduced
shareholding. During the past financial year we successfully disposed of our shareholding in our Base Chemical joint
ventures in Malaysia and several smaller investments. The disposal process for our Canadian shale assets has
commenced. Market updates will be made as sufficient progress is made without negatively impacting the disposal process.

Effective tax rate

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 share-based payment expense (R3 billion) with the implementation of Sasol Khanyisa. The adjusted
effective tax rate, excluding equity accounted investments, remeasurements and once-off items, is 27,3%
compared to 26,5% in the prior year.

Satisfactory operational performance, higher oil and product prices(1,3)

Operating Business Units

Mining - improving productivity, benefitting from higher global coal prices

Earnings before interest and tax (EBIT) increased by 41% to R5,2 billion compared to the prior period, mainly as a
result of the strike action in 2017. Earnings, excluding the strike cost and remeasurement items, increased by 4%
due to higher selling prices to SSO, an increase in export coal sales volumes and a 16% increase in export coal prices,
partially offset by additional external coal purchases of R865 million to restore the stockpile to two million tons. At
30 June 2018, our coal stockpiles were fully restored through own production and additional external coal
purchases. Based on our improved production run rate in the last quarter, we expect our external purchases from
Anglo Coal's Isibonelo Colliery to return to our targeted level of five million tons per year. External coal purchased to
supplement production ceased during July 2018.

Normalised unit cost of production increased by 5% to R284/ton compared to the prior year as a result of
productivity rates not reaching our planned internal targets. This is in line with previous market guidance.

Sasol Mining concluded a three-year wage agreement with all five of our participating trade unions in August 2017.

Exploration and Production International (E&PI) - strong operational delivery from Mozambique and
Gabon, partial impairment of PSA

EBIT adjusted for remeasurement items and the closing rate translation effect (normalised earnings*) amounted to
R270 million for the period.

Our Mozambican producing operations recorded an EBIT of R2 billion largely due to higher sales prices which was
partly negated by lower demand in the Mozambican gas market. The valuation of the 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 are currently reviewing the capital spend on the oil field development plan
following the results of the drilling campaign and an update to the PSA approved capital expenditure will be
communicated at the 2019 interim results. We expect lower capital expenditure as a result of the oil development
but the gas development still remains according to our estimates made at FID (Final Investment Decision).

Our Gabon asset recorded an EBIT of R537 million, 82% higher compared to the prior year largely due to higher
sales prices. This was partially offset by a 12% decrease in production volumes resulting from the natural decline of
the field.

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. The disposal process for these assets has commenced, however these assets have not yet
been classified as held-for-sale. Further announcements will be made once the process develops to an advanced stage.

Strategic Business Units

Performance Chemicals - increased sales volumes, robust market demand, adversely impacted by
stronger rand

Our sales volumes increased by 1% compared to the prior year despite Eskom electricity interruptions at SSO and
Hurricane Harvey. We continued to take advantage of the strong demand for our organics and inorganics products
and expanded our footprint in differentiated markets. The margins for our European and US specialty businesses
remained resilient, benefitting from robust demand and favourable market conditions. Production volumes from
our Eurasian Operations increased by 3% due to stronger demand and increased plant availability.

EBIT decreased by 7% to R8,2 billion compared to the prior year, mainly due to the stronger exchange rate, start-up
costs associated with our growth projects and production interruptions at SSO. Excluding growth costs associated
with our projects in the US and Brunsb�ttel, cash fixed costs were contained to 2,6% for the year, which is below
inflation target.

Base Chemicals - lower volumes, profitability adversely impacted by the stronger rand

Our business benefitted from higher chemical US dollar prices, which improved by 12% due to higher crude oil
prices and favourable conditions prevailing in certain of our Solvents markets. The market demand remained strong
for most of our products, however the impact of the stronger exchange rate offset this benefit in earnings.

Normalised earnings* decreased by 18% to R5,2 billion compared to the prior year mainly due to the stronger
exchange rate which negatively impacted earnings by R1,8 billion or 27%. Our cash fixed costs, normalised for
growth and once-off items increased by only 5,5%, which is below our inflation target. Remeasurement items
includes an impairment of R5,2 billion (R3,7 billion after tax) 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.

Sales volumes decreased by 1% mainly due to production interruptions at SSO. Improved efficiencies in our Ethylene 
and Propylene value chains have however partially negated the impact of production interruptions on sales volumes.

Our 50% joint venture HDPE plant with Ineos Olefins and Polymers USA achieved beneficial operation in November
2017. The plant ramped up production during quarter four and is performing to expectations. We have successfully
completed all guarantee runs and transitioned to bimodal production.

As part of the strategic review of our asset portfolio, we disposed of our 40% interest in the Petronas Chemicals
LDPE plant and our 12% share in Petronas Chemicals Olefins plant in March 2018 for R1,9 billion (US$163 million). We
are continuing to review our other assets and investments in the portfolio to further enhance performance and
improve the ROIC for the group.

Energy - margins improve, but volumes under pressure

Our normalised earnings* margin increased from 21% to 22% mainly as a result of a higher crude oil prices. This was
partially offset by lower liquid fuels volumes of R680 million (6%) and the stronger exchange rate of R1,9 billion
(17%).

Normalised earnings* increased by 12% to R15,1 billion when compared to the prior year. We continued to focus on
cost containment and identifying opportunities to further reduce our cost base. Normalised for the Power
Purchase Agreement with Eskom coming to an end in 2017, our cash fixed costs increased by only 1,9%, which is
well below inflation.

Natref's production volumes were 9% lower largely due to planned and unplanned production interruptions and an
Eskom electricity supply interruption at the start of the year. The first half of the year was challenging. However,
Natref delivered a strong performance during the last quarter of the year with an improved production run rate of
600m�/h despite a planned shutdown in quarter four. The increased volumes in the second half of the year partially
offsets the lower production volumes recorded in the first half of the year. We expect the positive production run
rate to continue in 2019.

ORYX GTL delivered a strong production performance with an average utilisation rate of 95%. ORYX GTL contributed
R1,2 billion to operating profit with volumes increasing by 1% compared to the prior year.

In Nigeria, Escravos GTL (EGTL), optimisation efforts to reduce costs and improve plant efficiency are progressing
well, with a marked improvement on average utilisation rates. This, together with a higher oil price outlook,
resulted in a reversal of impairment of our investment in EGTL of R254 million.

The challenging economic environment also impacted our gas sales volumes to the external market, resulting in a
reduction of 3% compared to the prior year. The available gas was, however, utilised internally in our integrated
value chain.

In line with our strategy to grow our South African retail presence and maximise margins, we opened 12 new Sasol
retail convenience centres (RCCs) and divested from 10 non-operating RCCs. We are continuing to accelerate the
growth of our retail network through organic growth and potential acquisitions. We are also improving our retail
offering to meet the changing trends of our customer base through embracing digitalisation. As part of our
commitment to transformation, we continued to focus on procurement, skills and enterprise development
initiatives and improved our B-BBEE score for Sasol Oil from a level 7 to a level 3 in the current year.

* Normalised earnings represent reported EBIT adjusted for remeasurement items and the closing rate translation effects based on
  information contained in the published Group consolidated annual financial statements for the year ended 30 June 2018.

Advancing projects to enable future growth

We are making steady progress in delivering on our growth pipeline:

-   Growing our footprint in North America:

    -   We are progressing with LCCP in Lake Charles and indications are that the cost of the project will remain
        within the previous market guidance of US$11,13 billion. As at end June 2018, engineering, equipment
        fabrication and procurement were substantially complete and construction progress reached 68%
        completion. Overall the project is 88% complete with capital expenditure amounting to US$9,8 billion. The
        project remains on track to start up the first three manufacturing units in the second half of the 2018
        calendar year. A significant milestone was reached when we achieved first steam production in July 2018. The
        expected start-up date of the remainder of the manufacturing units remains in the second half of the 2019
        calendar year.

        We have updated the LCCP economics with the current view of long-term market assumptions obtained from
        independent market consultants. Due to the volatile market and differing views of where ethane will
        be sourced from, the assumptions from the market consultants differs significantly. In a scenario where
        ethane is sourced from the Gulf area, the internal rate of return (IRR) is 8,0% - 8,5% and assumes an ethane 
        price of between US$30-40 cents per gallon. The alternative view which assumes that ethane is sourced further away 
        from the Gulf yields an IRR of 5,2% - 5,7% as the ethane price is between US$60-65 cents per gallon. In both of these
        scenarios the oil price is assumed to be US$60-80/bbl and the EBITDA at steady state ranges between
        US$1,2 billion to US$1,3 billion. At spot prices, using the last quarter of 2018 as a reference, the IRR is 8,5% -
        8,9%. The spot WACC rate for the US at 30 June 2018 was 7,68%.

-   Focusing on our asset base in Africa:

    -   Our strategic R14 billion mine replacement programme, which will ensure uninterrupted coal supply to SSO in
        order to support Sasol's strategy to operate our Southern African facilities until 2050, is nearing completion.
        Phase two of the Impumelelo colliery project is on track to be completed within budget, late in the 2019
        calendar year. The Shondoni colliery underground infrastructure was completed during May 2018 and the
        colliery was officially inaugurated on 5 July 2018. The phases completed to date were within budget and schedule.

    -   In Mozambique, the PSA Phase 1 and Phase 2 drilling activities have been completed. In total, 11 wells were
        drilled comprising seven oil wells and four gas wells. The Inhassoro oil reservoirs have proved more complex
        than expected and, with the reduced expectation of recoverable oil volumes and uncertainty on the oil price,
        we are looking to maximise the use of existing processing facilities in the adjacent Petroleum Production
        Agreement (PPA) facilities. Phase 1 gas results confirm gas resources cover for Central Termica Temane (CTT),
        formerly Mozambique Gas-to-Power Project (MGtP). Phase 2 appraisal drilling results indicate gas volumes to
        be at the lower end of our initial estimates. Focused efforts are underway to assess the range of options and
        possibilities to sustainably secure and source gas feedstock.

    -   In continuing to execute our strategy, we have concluded a farm-in into the DE8 block in Gabon where we
        now hold 40% working interest of that block. An exploration well drilled during the year was unsuccessful
        and written off.

Maintaining our focus on safety and sustainable value creation

We continued to deliver on our broader sustainability and community contributions during the year:

-   Safety remains one of our top priorities and is a core value. However, we are deeply saddened to report that we
    had four work-related fatalities and six high severity injuries this year. An incident, which resulted in the tragic
    death of an employee, was investigated as a fatality and the harm was determined to have been self-inflicted.
    The main learnings from this investigation were taken on board and implemented. Our thoughts remain with the
    families of our employees who have lost their lives in Sasol's service this year.

    A senior executive safety workshop was conducted as a necessary intervention to evaluate industry best
    practices and strengthen the standardised approach to prevent fatalities and high severity injuries across the
    group. Four focus areas were identified which will form the basis of our safety programme for the next financial
    year. Our 12 month rolling Recordable Case Rate for employees and service providers, excluding illnesses,
    improved to 0,27, our lowest level ever recorded. We believe our focused programme will also improve our injury
    rate.

-   During the year, we invested R2 billion in skills development and socio-economic development, which includes
    our Ikusasa programme, bursaries, learnerships and artisan training programmes. The Ikusasa programme
    focuses on education, health and wellbeing, infrastructure, and safety and security in the Secunda and
    Sasolburg regions.

-   This year saw the publication of the draft Carbon Tax and Climate Change Bills, both of which are expected to be
    implemented during the course of 2019. Sasol is supportive of the "Just Transition" campaign where a holistic
    approach is taken to achieving a lower carbon economy. Sasol continues to constructively engage with
    government on both these critical pieces of legislation. Further, we are progressing transparency around our
    climate change management, aligned with international initiatives, such as the Task Force for Climate Related
    Financial Disclosure requirements. Ongoing engagements with key stakeholders inform the robustness of our
    journey.

-   Our total greenhouse gas (GHG) emissions for all operations globally is slightly lower at 67,43 million tons for
    2018 when compared to 67,68 million tons in the prior year. Our GHG emissions intensity (measured in carbon
    dioxide equivalent per ton of production) is higher at 3,78 compared to 3,66 in 2017. This is due to lower
    production levels in Secunda as a result of production interruptions.

-   Sasol supports the objective of the National Environmental Management: Air Quality Act (NEMAQA) to
    contribute to an environment that is not harmful to human health or wellbeing. We regularly engage with the
    Department of Environmental Affairs on this to achieve a sustainable regulatory framework to support
    meaningful improvements in ambient air quality.

-   While most of Sasol's processes will be able to comply with new plant Minimum Emission Standards by 2025,
    there are selected activities that will not. For these specific cases, Sasol relies on applications for postponement
    of the applicable compliance timeframes as we continue to investigate technical solutions that will ensure
    compliance. In support, we are progressing the implementation of our committed air quality roadmaps.

-   The Sasol Group Energy Intensity index (EIi) improved from the 2015 baseline by 6,03% against our internal
    target of 3% (1% per year). Our South African Operation's EIi for 2018 is 6,62% and has essentially remained
    unchanged from the previous year mainly due to unplanned electricity supply outages resulting in frequent
    plant interruptions at our South African operations.

-   During the year, we paid R39,5 billion in direct and indirect taxes to the South African government. Sasol
    remains one of the largest corporate taxpayers in South Africa, contributing significantly to the country's
    economy.

-   During 2018, Sasol made good progress in terms of Preferential Procurement which resulted in actual spend
    with black owned suppliers increasing by R5,2 billion to R12,7 billion from the prior year.

-   Sasol is committed to sustainable transformation and Broad-Based Black Economic Empowerment (B-BBEE). In
    our recent B-BBEE verification, Sasol achieved a Level 6 contributor status representing a key milestone in our
    journey of achieving at least a Level 4 contributor status by 2020.

Unwinding of Inzalo B-BBEE transaction

As announced on 26 June 2018, Sasol settled the Sasol Inzalo Groups preference share debt of approximately
R4,6 billion in June 2018 by utilising existing cash to repurchase up to 9,5 million preferred ordinary shares from
Sasol Inzalo Groups Funding (Pty) Ltd (RF) at a 30 day, volume weighted average price (VWAP) of R475,03, and funded the 
residual shortfall on the third party debt of R59 million. The Sasol Inzalo Public Funding Limited (RF) debt becomes 
due in September 2018. The Board has approved that Sasol settle the Sasol Inzalo Public debt in the same manner as 
Sasol Inzalo Groups so as to limit dilution on our shareholders, while maintaining investment grade ratings by utilising 
existing cash or credit facilities to repurchase 16,1 million preferred ordinary shares from 
Sasol Inzalo Public Funding Limited (RF). Based on Sasol's current share price and the forecast debt balances, there could 
be residual value, after settlement of third party debt, which will be distributed to Sasol Inzalo Public Funding Limited (RF) 
ordinary shareholders.

Business performance outlook* - strong production performance and cost
reductions to continue

The current economic climate continues to remain highly volatile and uncertain. While oil price and foreign
exchange movements are outside our control and may impact our results, our focus remains firmly on managing
factors within our control, including volume growth, cost optimisation, effective capital allocation, focused financial
risk management and maintaining an investment grade credit rating.

We expect an overall strong operational performance for 2019, with:

-   SSO volumes of between 7,6 to 7,7 million tons impacted by a planned full shutdown in 2019;

-   Liquid fuels sales of approximately 57 to 58 million barrels due to a planned full shutdown at SSO;

-   Base Chemicals sales volumes, excluding US produced products, to be 2%-3% higher than the prior year, with
    US dollar product pricing expected to follow Brent crude oil prices. Our US HDPE plant will contribute for the full
    year, while LCCP is expected to start contributing during the second half of the year.

-   Performance Chemicals sales volumes to be 2%-4% higher, excluding the LCCP;

-   Gas production volumes from the Petroleum Production Agreement in Mozambique to be between 114 bscf to
    118 bscf;

-   We expect to achieve an average utilisation rate of 95% at ORYX GTL in Qatar;

-   Normalised cash fixed costs to remain in line within our inflation assumption of 6%;

-   Capital expenditure, including capital accruals, of R38 billion for 2019 and R30 billion for 2020 as we progress
    with the execution of our growth plan and strategy. Capital estimates may change as a result of exchange rate
    volatility and other factors;

-   Our balance sheet gearing to range between 40%-44%;

-   Rand/US dollar exchange rate to range between R12,50 and R13,50; and

-   Average Brent crude oil prices to remain between US$65/bbl and US$75/bbl.

* The financial information contained in this business performance outlook is the responsibility of the directors and in accordance 
  with standard practice, it is noted that this information has not been audited and reported on by the company's auditors.

Competition law compliance

In 2012, the South African Competition Commission referred allegations of price-fixing and market division against
various petroleum products producers, including Sasol to the Competition Tribunal. Sasol and the other companies
involved settled the matter with the Competition Commission on a no fine and no admission of guilt basis and
provided undertakings regarding future exchange of information within the industry. The application for
confirmation of the settlement agreement was heard before the Competition Tribunal on 7 February 2018. On 3 May
2018, the Competition Tribunal approved the settlement agreement. This effectively closed the investigations with
no penalty imposed on Sasol.

Tax litigation and contingency

As previously reported, the South African Revenue Service (SARS) issued revised assessments for Sasol Oil (Pty) Ltd
(Sasol Oil) relating to a dispute around our international crude oil procurement activities for the 2005 to 2012 tax
years. Sasol Oil has co-operated fully with SARS during the course of the audit related to these assessments.

The litigation process in the Tax Court, relating to the international crude oil procurement activities for the 2005 to
2007 years of assessment, was concluded and judgement was delivered on 30 June 2017 in favour of SARS. As a
result, a liability of R1,3 billion has been recognised in the prior year financial statements in respect of the 2005 to
2014 matters that remain the subject of the ongoing litigation. Sasol Oil, in consultation with its tax and legal
advisors, does not support the basis of the judgement and filed an appeal with the Supreme Court of Appeal (SCA).
The SCA hearing will take place on 21 August 2018, and it is anticipated that the judgement will likely be delivered
within a few months thereafter.

SARS has notified Sasol Oil of its intention to place on hold the field audit relating to this issue for the 1999 to 2004
tax years pending the outcome of the litigation. As a result of the judgement handed down on 30 June 2017, a
possible obligation may arise from the field audit, which is regarded as a contingent liability.

In addition, there could be a potential tax exposure of R12,6 billion for the periods 2013 to 2014 on varying tax
principles relating to the aforementioned activities, which remains the subject of an appeal. Supported by specialist
tax and legal advisors, Sasol Oil disagrees with SARS' additional assessments for the 2013 and 2014 periods and has
filed an appeal in the Tax Court, which has been suspended, pending the decision of the SCA. A possible obligation
may arise for the tax years subsequent to 2014, which could give rise to a future contingent liability also depending
to a degree on the outcome of the SCA hearing. SARS' decision to suspend the payment of this disputed tax for the
periods 2005 to 2014 currently remains in force.

In 2010, SARS commenced with a request for information in respect of Sasol Financing International Plc (SFI). This
matter progressed to an audit over the years and has now culminated in SARS issuing a final audit letter on
16 February 2018. Consequently, assessments were issued in respect of the 2002 to 2012 tax years. SARS argues
that the place of effective management of SFI, an offshore treasury function, was South Africa. This approach could
result in potential tax exposure of R3,1 billion (including interest and penalties as at 30 June 2018). SFI has co-
operated fully with SARS during the course of the audit related to these assessments. SFI, in consultation with its
tax and legal advisors, does not support the basis of these additional assessments for all the years. Accordingly, SFI
lodged objections and will submit appeals (as the case may be) to the assessments as the legal process unfolds.
SARS' decision to suspend the payment of this disputed tax for the periods 2002 to 2012 currently remains in force.
Sasol is committed to compliance with tax laws and any disputes with tax authorities on the interpretation of tax
laws and regulations will be addressed in a transparent and constructive manner.

Change in directors

Ms MBN Dube was appointed as an independent director with effect from 1 April 2018 and Mr HG Dijkgraaf retired
as an independent director on 30 April 2018. Mr MJN Njeke was appointed as the lead independent director with
effect from 30 April 2018.

Declaration of cash dividend number 78

A final gross cash dividend of South African 790 cents per share (30 June 2017 - 780 cents per ordinary share) has
been declared for the year ended 30 June 2018. The cash dividend is payable on the ordinary shares and the Sasol
BEE ordinary shares. The Board is satisfied that the liquidity and solvency of the company, as well as capital adequacy
remaining after payment of the dividend is sufficient to support the current operations for the ensuing year. The
dividend has been declared out of retained earnings (income reserves). The South African dividend withholding tax
rate is 20%. At the declaration date, there are 623 081 550 ordinary, 16 085 199 preferred ordinary and 6 394 179
Sasol BEE ordinary shares in issue. The net dividend amount payable to shareholders who are not exempt from the
dividend withholding tax, is 632 cents per share, while the dividend amount payable to shareholders who are
exempt from dividend withholding tax is 790 cents per share.

The salient dates for holders of ordinary shares and Sasol BEE ordinary shares are:

Declaration date                                                                                  Monday, 20 August 2018
Last day for trading to qualify for and participate in the final dividend
(cum dividend)                                                                                 Tuesday, 4 September 2018
Trading ex dividend commences                                                                Wednesday, 5 September 2018
Record date                                                                                     Friday, 7 September 2018
Dividend payment date (electronic and certificated register)                                   Monday, 10 September 2018
The salient dates for holders of our American Depository Receipts are:(1)
Ex dividend on New York Stock Exchange (NYSE)                                                Wednesday, 5 September 2018
Record date                                                                                     Friday, 7 September 2018
Approximate date for currency conversion                                                      Tuesday, 11 September 2018
Approximate dividend payment date                                                              Friday, 21 September 2018

(1) All dates approximate as the NYSE sets the record date after receipt of the dividend declaration.

On Monday, 10 September 2018, dividends due to certificated shareholders on the South African registry will either
be electronically transferred to shareholders' bank accounts or, in the absence of suitable mandates, dividend
cheques will be posted to such shareholders. Shareholders who hold dematerialised shares will have their accounts
held by their CSDP or broker credited on Monday, 10 September 2018. Share certificates may not be dematerialised
or rematerialised between 5 September 2018 and 7 September 2018, both days inclusive.

On behalf of the Board

Mandla Gantsho                   Bongani Nqwababa                     Stephen Cornell                    Paul Victor
Chairman                         Joint President and                  Joint President and                Chief Financial Officer
                                 Chief Executive Officer              Chief Executive Officer

Sasol Limited

17 August 2018

The summarised financial statements are presented on a condensed consolidated basis.

Income statement
for the year ended 30 June

   2016         2017       2018                                                           2018         2017         2016   
  US$m*        US$m*      US$m*                                                             Rm           Rm           Rm   
 11 911       12 668     14 121   Turnover                                             181 461      172 407      172 942   
(4 912)      (5 249)    (5 961)   Materials, energy and consumables used              (76 606)     (71 436)     (71 320)   
  (476)        (471)      (549)   Selling and distribution costs                       (7 060)      (6 405)      (6 914)   
  (582)        (636)      (713)   Maintenance expenditure                              (9 163)      (8 654)      (8 453)   
(1 647)      (1 794)    (2 138)   Employee-related expenditure                        (27 468)     (24 417)     (23 911)
   (20)         (36)       (27)   Exploration expenditure and feasibility                (352)        (491)        (282)
                                  costs  
(1 127)      (1 190)    (1 278)   Depreciation and amortisation                       (16 425)     (16 204)     (16 367)   
  (625)        (922)    (1 192)   Other expenses and income                           (15 316)     (12 550)      (9 073)   
     10         (88)        (1)   Translation (losses)/gains                              (11)      (1 201)          150   
  (635)        (834)    (1 191)   Other operating expenses and income                 (15 305)     (11 349)      (9 223)   
     35           79        112   Equity accounted profits, net of tax                   1 443        1 071          509   
  2 557        2 449      2 375   Operating profit before remeasurement                 30 514       33 321       37 131   
                                  items and Sasol Khanyisa share-based
                                  payment                                               
  (888)        (119)      (771)   Remeasurement items                                  (9 901)      (1 616)     (12 892)   
      -            -      (223)   Sasol Khanyisa share-based payment                   (2 866)            -            -   
  1 669        2 330      1 381   Earnings before interest and tax (EBIT)               17 747       31 705       24 239   
    125          115        133   Finance income                                         1 716        1 568        1 819   
  (161)        (240)      (292)   Finance costs                                        (3 759)      (3 265)      (2 340)   
  1 633        2 205      1 222   Earnings before tax                                   15 704       30 008       23 718   
  (598)        (624)      (432)   Taxation                                             (5 558)      (8 495)      (8 691)   
  1 035        1 581        790   Earnings for the year                                 10 146       21 513       15 027   
                                  Attributable to                                                                          
    911        1 497        679   Owners of Sasol Limited                                8 729       20 374       13 225   
    124           84        111   Non-controlling interests in subsidiaries              1 417        1 139        1 802   
  1 035        1 581        790                                                         10 146       21 513       15 027   

    US$          US$        US$                                                           Rand         Rand         Rand   
                                  Per share information                                                                    
   1,49         2,45       1,11   Basic earnings per share                               14,26        33,36        21,66   
   1,49         2,44       1,10   Diluted earnings per share                             14,18        33,27        21,66   

* Supplementary non-IFRS information. US dollar convenience translation, converted at average exchange rate of R12,85/US$1
  (30 June 2017 - R13,61/US$1; 30 June 2016 - R14,52/US$1).
  The income statement has been translated from rand to US dollar for convenience purposes in order to enable offshore
  shareholders to interpret the financial performance in a universally measured currency. This constitutes pro-forma financial
  information, in terms of the JSE Limited Listings Requirements and should be read in conjunction with the basis of preparation set
  out on page 19.

Statement of comprehensive income
for the year ended 30 June

                                                                                         2018          2017         2016   
                                                                                           Rm            Rm           Rm   
Earnings for the year                                                                  10 146        21 513       15 027   
Other comprehensive income, net of tax                                                                                     
Items that can be subsequently reclassified to the income statement                     6 068       (8 931)       13 253   
Effect of translation of foreign operations                                             5 237      (10 074)       15 112   
Effect of cash flow hedges                                                              1 233         1 821      (2 855)   
Fair value of investments available-for-sale                                               13            11          (7)   
Tax on items that can be subsequently reclassified to the income statement              (415)         (689)        1 003   
Items that cannot be subsequently reclassified to the income statement                   (54)           743        (546)   
Remeasurements on post-retirement benefit obligations                                    (80)         1 114        (877)
Tax on items that cannot be subsequently reclassified to the income                        26         (371)          331
statement   
Total comprehensive income for the year                                                16 160        13 325       27 734   
Attributable to                                                                                                            
Owners of Sasol Limited                                                                14 727        12 234       25 890   
Non-controlling interests in subsidiaries                                               1 433         1 091        1 844   
                                                                                       16 160        13 325       27 734   

Statement of financial position
at 30 June

  2017     2018                                                                                         2018        2017   
 US$m*    US$m*                                                                                           Rm          Rm   
                  Assets                                                                                                   
12 157   12 196   Property, plant and equipment                                                      167 457     158 773   
10 010   12 044   Assets under construction                                                          165 361     130 734   
   181      196   Goodwill and other intangible assets                                                 2 687       2 361   
   904      801   Equity accounted investments                                                        10 991      11 813   
    48      109   Post-retirement benefit assets                                                       1 498         622   
   236      298   Deferred tax assets                                                                  4 096       3 082   
   276      429   Other long-term assets                                                               5 888       3 600   
23 812   26 073   Non-current assets                                                                 357 978     310 985   
    17        8   Assets in disposal groups held for sale                                                113         216   
     -        6   Short-term assets                                                                       85           -   
 1 943    2 139   Inventories                                                                         29 364      25 374   
 2 310    2 406   Trade and other receivables                                                         33 031      30 179   
   210      112   Short-term financial assets                                                          1 536       2 739   
   138      144   Cash restricted for use                                                              1 980       1 803   
 2 117    1 103   Cash and cash equivalents                                                           15 148      27 643   
 6 735    5 918   Current assets                                                                      81 257      87 954   
30 547   31 991   Total assets                                                                       439 235     398 939   
                  Equity and liabilities                                                                                   
16 211   16 240   Shareholders' equity                                                               222 985     211 711   
   423      410   Non-controlling interests                                                            5 623       5 523   
16 634   16 650   Total equity                                                                       228 608     217 234   
 5 690    7 042   Long-term debt                                                                      96 691      74 312   
 1 275    1 104   Long-term provisions                                                                15 160      16 648   
   847      867   Post-retirement benefit obligations                                                 11 900      11 069   
    70       64   Long-term deferred income                                                              879         910   
    56       10   Long-term financial liabilities                                                        133         733   
 1 980    1 887   Deferred tax liabilities                                                            25 908      25 860   
 9 918   10 974   Non-current liabilities                                                            150 671     129 532   
     -        3   Liabilities in disposal groups held for sale                                            36           -   
   744    1 071   Short-term debt                                                                     14 709       9 718   
    57      140   Short-term financial liabilities                                                     1 926         740   
 3 185    3 147   Other current liabilities                                                           43 196      41 592   
     9        6   Bank overdraft                                                                          89         123   
 3 995    4 367   Current liabilities                                                                 59 956      52 173   
30 547   31 991   Total equity and liabilities                                                       439 235     398 939   

* Supplementary non-IFRS information. US dollar convenience translation, converted at a closing exchange rate of R13,73/US$1 (30 June 2017 - R13,06/US$1).
  The Statement of financial position has been translated from rand to US dollar for convenience purposes in order to enable offshore shareholders to interpret
  the financial performance in a universally measured currency. This constitutes pro-forma financial information, in terms of the JSE Limited Listings
  Requirements and should be read in conjunction with the basis of preparation set out on page 19.

Statement of changes in equity
for the year ended 30 June

                                                                                              2018       2017       2016   
                                                                                                Rm         Rm         Rm   
Balance at beginning of year                                                               217 234    212 418    196 483   
Movement in share-based payment reserve                                                      3 942      1 108        177   
Share-based payment expense                                                                    823        463        123   
Deferred tax                                                                                   166          -          -   
Implementation of Sasol Khanyisa transaction                                                 2 953          -          -   
Shares issued on implementation of long-term incentive scheme                                    -          -         54   
Long-term incentive scheme converted to equity-settled                                           -        645          -   
Total comprehensive income for the year                                                     16 160     13 325     27 734   
Transactions with non-controlling shareholders                                                (51)          -          -   
Dividends paid to shareholders                                                             (7 952)    (8 628)   (10 680)   
Dividends paid to non-controlling shareholders in subsidiaries                               (725)      (989)    (1 296)   
Balance at end of year                                                                     228 608    217 234    212 418   
Comprising                                                                                                                 
Share capital                                                                               15 775     29 282     29 282   
Share repurchase programme                                                                       -    (2 641)    (2 641)   
Retained earnings                                                                          184 352    176 714    164 917   
Share-based payment reserve                                                                (4 021)   (12 525)   (13 582)   
Foreign currency translation reserve                                                        28 500     23 285     33 316   
Remeasurements on post-retirement benefit obligations                                      (1 844)    (1 790)    (2 533)   
Investment fair value reserve                                                                   43         33         26   
Cash flow hedge accounting reserve                                                             180      (647)    (1 788)   
Shareholders' equity                                                                       222 985    211 711    206 997   
Non-controlling interests in subsidiaries                                                    5 623      5 523      5 421   
Total equity                                                                               228 608    217 234    212 418   

Statement of cash flows
for the year ended 30 June

                                                                                            2018        2017        2016   
                                                                                              Rm          Rm          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)   
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)   
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                                                              24 961       9 277      34 008   
Repayment of long-term debt                                                              (9 199)     (2 364)     (3 120)   
Proceeds from short-term debt                                                              1 957       4 033       2 901   
Repayment 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 in cash and cash equivalents                                                   (12 284)    (22 857)       (852)   
Cash and cash equivalents at the beginning of year                                        29 323      52 180      53 032   
Cash and cash equivalents at the end of the year                                          17 039      29 323      52 180   

Segment report
for the year ended 30 June

                                                                                              Earnings before interest
            Turnover                                                                                and tax (EBIT)
           R million                                                                                 R million        
   2016*       2017*       2018   Segment analysis                                             2018     2017*      2016*   
  21 186      23 046     23 995   Operating Business Units                                    1 561     4 310    (6 975)   
  16 975      18 962     19 797   Mining                                                      5 244     3 725      4 739   
   4 211       4 084      4 198   Exploration and Production International                  (3 683)       585   (11 714)   
 173 042     170 413    179 630   Strategic Business Units                                   22 852    26 843     29 831   
  64 341      64 772     69 773   Energy                                                     14 081    11 218     14 069   
  37 795      38 414     40 091   Base Chemicals                                                588     6 862      5 606   
  70 906      67 227     69 766   Performance Chemicals                                       8 183     8 763     10 156   
     108         516         52   Group Functions                                           (6 666)       552      1 383   
 194 336     193 975    203 677   Group performance                                          17 747    31 705     24 239   
(21 394)    (21 568)   (22 216)   Intersegmental turnover                                                                  
 172 942     172 407    181 461   External turnover                                                                        

* Restated for the transfer of the US ethylene business from Performance Chemicals to Base Chemicals.

                                                                                                     EBITDA
                                                                                                    R million
                                                                                           2018       2017*        2016*
Operating Business Units                                                                  9 146       8 299        7 737
Mining                                                                                    7 060       5 658        6 443
Exploration and Production International                                                  2 086       2 641        1 294
Strategic Business Units                                                                 41 647      40 080       43 771
Energy                                                                                   20 045      17 590       19 343
Base Chemicals                                                                            9 212       9 685       10 598
Performance Chemicals                                                                    12 390      12 805       13 830
Group Functions                                                                           1 620       (752)        2 484
Group performance                                                                        52 413      47 627       53 992

Salient features
for the year ended 30 June

                                                                                            2018        2017        2016   
Selected ratios                                                                                                            
Earnings before interest and tax margin                                            %         9,8        18,4        14,0   
Finance costs cover                                                            times         4,1         9,2         8,0   
Net borrowings to shareholders' equity (gearing)                                   %        43,2        26,7        14,6   
Dividend cover - Core headline earnings per share(1)                           times         2,8         2,8         2,8   
Share statistics                                                                                                           
Total shares in issue                                                        million       645,6       679,8       679,8   
Sasol ordinary shares in issue                                               million       623,1       651,4       651,4   
Treasury shares (share repurchase programme)                                 million           -         8,8         8,8   
Weighted average number of shares                                            million       612,2       610,7       610,7   
Diluted weighted average number of shares                                    million       615,9       612,4       610,7   
Share price (closing)                                                           Rand      502,86      366,50      397,17   
Market capitalisation - Sasol ordinary shares                                     Rm     313 323     238 738     258 717   
Market capitalisation - Sasol BEE ordinary shares                                 Rm       1 918         866         892   
Net asset value per share                                                       Rand      359,60      348,27      340,51   
Dividend per share                                                              Rand       12,90       12,60       14,80   
- interim                                                                       Rand        5,00        4,80        5,70   
- final                                                                         Rand        7,90        7,80        9,10 
  
(1) With effect from 23 February 2018, the Board approved a change in dividend policy from HEPS to CHEPS. 
                                    
                                                                                            2018        2017        2016   
Other financial information                                                                                                
Total debt (including bank overdraft)                                             Rm     109 454      81 405      80 151   
- interest-bearing                                                                Rm     108 017      80 352      79 175   
- non-interest-bearing                                                            Rm       1 437       1 053         976   
Finance expense capitalised                                                       Rm       3 568       2 764       2 253   
Capital commitments (subsidiaries and joint operations)                           Rm      63 276      90 736     137 286   
- authorised and contracted                                                       Rm     179 172     154 739     143 380   
� authorised, not yet contracted                                                  Rm      40 687      61 673      95 590   
- less expenditure to date                                                        Rm   (156 583)   (125 676)   (101 684)   
Capital commitments (equity accounted investments)                                Rm         893         584         608   
- authorised and contracted                                                       Rm         536         292         175   
- authorised, not yet contracted                                                  Rm         623         573         756   
- less expenditure to date                                                        Rm       (266)       (281)       (323)   
Guarantees (excluding treasury facilities)                                                                                 
- maximum potential exposure                                                      Rm      80 260      81 896      98 312   
- related debt recognised on the balance sheet                                    Rm      76 199      64 057      71 252   
Effective tax rate                                                                 %        35,4        28,3        36,6   
Adjusted effective tax rate(2)                                                     %        27,3        26,5        28,2   
Number of employees(3)                                                        number      31 270      30 900      30 100   
Average crude oil price - dated Brent                                     US$/barrel       63,62       49,77       43,37   
Average rand/US$ exchange rate                                           1US$ = Rand       12,85       13,61       14,52   
Closing rand/US$ exchange rate                                           1US$ = Rand       13,73       13,06       14,71   

(2) Effective tax rate adjusted for equity accounted investments, remeasurement items and once-off items.
(3) The total number of employees includes permanent and non-permanent employees and the group's share of employees within joint operations, but excludes
    contractors and equity accounted investments' employees.

                                                                                         2018         2017          2016   
                                                                                           Rm           Rm            Rm   
Reconciliation of headline earnings                                                                                        
Earnings attributable to owners of Sasol Limited                                        8 729       20 374        13 225   
Effect of remeasurement items for subsidiaries and joint operations(1)                  9 901        1 616        12 892   
Impairment of property, plant and equipment                                             7 623          415         8 424   
Impairment of assets under construction                                                 1 492        1 942         3 586   
Impairment of goodwill and other intangible assets                                          -          120           310   
Reversal of impairment                                                                  (354)      (1 136)             -   
Fair value write down - assets held for sale                                                -           64             -   
Loss/(profit) on disposal of non-current assets                                             7         (21)         (389)   
(Profit)/loss on disposal of investment in businesses                                   (833)         (51)           226   
Scrapping of non-current assets                                                         1 654          283         1 099   
Write-off of unsuccessful exploration wells                                               312            -           (3)   
Realisation of foreign currency translation reserve                                         -            -         (361)   
Tax effects and non-controlling interests                                             (1 843)        (539)         (846)   
Effect of remeasurement items for equity accounted investments                             11           14            13   
Headline earnings                                                                      16 798       21 465        25 284   
Headline earnings adjustments per above
Mining                                                                                     34            6            31   
Exploration and Production International                                                4 241          (6)         9 963   
Energy                                                                                    971        1 844         1 267   
Base Chemicals                                                                          4 499        (901)         1 723
Performance Chemicals                                                                     116          663            55
Group Functions                                                                            40           10         (147)   
Remeasurement items                                                                     9 901        1 616        12 892   
Headline earnings per share                                               Rand          27,44        35,15         41,40   
Diluted headline earnings per share                                       Rand          27,27        35,05         41,40   

(1) Includes the impact of the full impairment of our Chlor Vinyls value chain of R5,2 billion in South Africa, the impairment of the PSA
    asset of R1,1 billion (US$94 million) in Mozambique, the partial impairment of our Canadian shale gas assets of R2,8 billion
    (CAD281 million) and the scrapping of our US GTL project amounting to R1,1 billion (US$83 million).

Basis of preparation

The summarised consolidated financial statements are prepared in accordance with the JSE Limited's (JSE) Listings
Requirements for summary financial statements, and the requirements of the Companies Act applicable to
summary financial statements. The JSE requires summary financial statements to be prepared in accordance with
the framework concepts and the measurement and recognition requirements of International Financial Reporting
Standards as issued by the International Accounting Standards Board (IFRS), the SAICA Financial Reporting Guides
as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial
Reporting Standards Council and to also, as a minimum, contain the information required by IAS 34, Interim
Financial Reporting.

The summarised consolidated financial statements do not include all the disclosure required for complete annual
financial statements prepared in accordance with IFRS as issued by the International Accounting Standards Board.

These summarised consolidated financial statements have been prepared in accordance with the historic cost
convention except that certain items, including derivative instruments, liabilities for cash-settled share-based
payment schemes, financial assets at fair value through profit or loss and available-for-sale financial assets, are
stated at fair value.

The summarised consolidated financial statements are presented in South African rand, which is Sasol Limited's
functional and presentation currency. The accounting policies applied in the preparation of these summarised
consolidated financial statements are in terms of IFRS and are consistent with those applied in the consolidated
annual financial statements for the year ended 30 June 2018.

The summarised consolidated financial statements appearing in this announcement are the responsibility of the
directors. The directors take full responsibility for the preparation of the summarised consolidated financial
statements. Paul Victor CA(SA), Chief Financial Officer, is responsible for this set of summarised consolidated
financial statements and has supervised the preparation thereof in conjunction with the Senior Vice President:
Financial Control Services, Brenda Baijnath CA(SA).

Pro-forma financial information

Core headline earnings and US dollar convenience translations included in this announcement constitutes pro-
forma financial information.

The pro-forma financial information is the responsibility of the board of directors and is presented for illustrative
purposes only. Because of its nature, the pro-forma financial information may not fairly present Sasol's financial
position, changes in equity, results of operations or cash flows. The underlying information, used in the preparation
of the pro-forma financial information, has been prepared using accounting policies which comply with IFRS and
are consistent with those applied in the published group consolidated annual financial statements for the year
ended 30 June 2018.

This pro-forma information has been reported on by the group's auditors, being PricewaterhouseCoopers Inc. Their
unqualified reporting accountant's report thereon is available for inspection at the company's registered address.

Related party transactions

The group, in the ordinary course of business, entered into various sale and purchase transactions on an arm's
length basis at market rates with related parties.

Subsequent events 
The Sasol Limited Board approved that Sasol repurchase the shares from Inzalo Public Funding Limited (RF) in
September 2018 and settle the outstanding debt of R7,4 billion and a cash top-up for value realised of approximately
R 600 million in September 2018, assuming a shape price of R500. This will then conclude the unwinding of the 
Sasol Inzalo transaction.

Financial instruments

Fair value

Fair value is determined using valuation techniques as outlined unless the instrument is listed in an active market.
Where possible, inputs are based on quoted prices and other market determined variables.

Fair value hierarchy

The table below represents significant financial instruments measured at fair value at reporting date, or for which
fair value is disclosed at 30 June 2018. The US dollar bond, the interest rate swap, the crude oil put options, the
zero-cost foreign exchange collars and the coal swaps were considered to be significant financial instruments for
the group based on the amounts recognised in the statement of financial position. The calculation of fair value
requires various inputs into the valuation methodologies used. The source of the inputs used affects the reliability
and accuracy of the valuations. Financial instruments have been classified into the hierarchical levels in line with
IFRS 13.

Level 1 Quoted prices in active markets for identical assets or liabilities.
Level 2 Inputs other than quoted prices that are observable for the asset or liability (directly or indirectly).
Level 3 Inputs for the asset or liability that are unobservable.

                          IFRS 13   Carrying       Fair
                       fair value      value      value
Instrument              hierarchy         Rm         Rm   Valuation method            Significant inputs
Listed long-term          Level 1     13 704     13 345   Fair value                  Quoted market price for the
debt                                                                                  same or similar instruments
Derivative financial      Level 2      (232)      (232)   Forward rate interpolator   Foreign exchange rates,
assets and                                                model, discounted           market commodity prices, US$
liabilities                                               expected cash flows,        swap curve, as appropriate
                                                          numerical approximation,
                                                          as appropriate

For all other financial instruments, fair value approximates carrying value.

Independent audit by the auditors: 

These summarised consolidated financial statements, including the segment report for the year 
ended 30 June 2018, have been audited by PricewaterhouseCoopers Inc., who expressed an 
unmodified opinion thereon. The individual auditor assigned to perform the audit is Mr PC Hough. 
The auditor also expressed an unmodified opinion on the annual financial statements from which 
these summarised consolidated financial statements were derived. A copy of the auditor's report on 
the summarised consolidated financial statements and of the auditor's report on the annual 
consolidated financial statements are available for inspection at the company's registered office, 
together with the financial statements identified in the respective auditor's reports. The auditor's 
report does not necessarily report on all of the information contained in this announcement of 
financial results. Shareholders are therefore advised that in order to obtain a full understanding of 
the nature of the auditor's engagement they should obtain a copy of the auditor's report together 
with the accompanying summarised consolidated financial statements from the company's registered office. 

Registered office: Sasol Place, 50 Katherine Street, Sandton, Johannesburg 2090
PO Box 5486, Johannesburg 2000, South Africa

Share registrars: Computershare Investor Services (Pty) Ltd, 15 Biermann Avenue, Rosebank 2196
PO Box 61051, Marshalltown 2107, South Africa, Tel: +27 11 370 5000 Fax: +27 11 688 5248

JSE Sponsor: Deutsche Securities (SA) Proprietary Limited

Directors (Non-executive): Dr MSV Gantsho* (Chairman), Mr C Beggs*, Mr MJ Cuambe (Mozambican)*,
Ms MBN Dube*, Dr M Fl�el (German)*, Ms GMB Kennealy*, Ms NNA Matyumza*, Mr ZM Mkhize*,
Mr MJN Njeke^*, Ms ME Nkeli*, Mr PJ Robertson (British and American)*, Mr S Westwell (British)*

Directors (Executive): Mr SR Cornell (Joint President and Chief Executive Officer) (American),
Mr B Nqwababa (Joint President and Chief Executive Officer), Mr P Victor (Chief Financial Officer)

*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                         NYSE
Ordinary shares
Share code:                                SOL                         SSL
ISIN:                                      ZAE000006896                US8038663006

Sasol BEE Ordinary shares
Share code:                                SOLBE1
ISIN:                                      ZAE000151817

American depository 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,United States of America

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, executing our
growth projects (including LCCP) oil and gas reserves and cost reductions, including in connection with our Business Performance
Enhancement Programme, Response Plan, Continuous Improvement programme and our business performance outlook. Words such as
"believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast", "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 on Form 20-F filed on 28 August 2017 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.

Please note: One billion is defined as one thousand million, bbl - barrel, bscf - billion standard cubic feet, mmscf - million standard
cubic feet, oil references brent crude, mmboe - million barrels oil equivalent. All references to years refer to the financial year ended
30 June. Any reference to a calendar year is prefaced by the word "calendar".

Comprehensive additional information is available on our website: www.sasol.com



Date: 20/08/2018 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Email this JSE Sens Item to a Friend.

Share This Story