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TABLE OF CONTENTS
Item 18. FINANCIAL STATEMENTS

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As filed with the Securities and Exchange Commission on 29 September 2014

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

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FORM 20-F

Commission file number: 001-31615

Sasol Limited
(Exact name of registrant as Specified in its Charter)

Republic of South Africa
(Jurisdiction of Incorporation or Organisation)

1 Sturdee Avenue, Rosebank 2196
South Africa
(Address of Principal Executive Offices)

Paul Victor, Acting Chief Financial Officer, Tel. No. +27 11 441 3435, Email paul.victor@sasol.com
1 Sturdee Avenue, Rosebank 2196, South Africa
(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)

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Securities registered or to be registered pursuant to Section 12(b) of the Act:

*

Listed on the New York Stock Exchange not for trading or quotation purposes, but only in connection with the registration of American Depositary Shares pursuant to the requirements of the Securities and Exchange Commission.

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Securities registered pursuant to Section 12(g) of the Act: None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None

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           Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual report:

650 550 166 Sasol ordinary shares of no par value
25 547 081 Sasol preferred ordinary shares of no par value
2 838 565 Sasol BEE ordinary shares of no par value

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           Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes ý No o

           If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.    Yes o No ý

           Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes ý No o

           Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232 405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes o No o

           Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ý    Accelerated filer o    Non-accelerated filer o

           Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

U.S. GAAP o    International Financial Reporting Standards as issued by the International Accounting Standards Board ý    Other o

           If "Other" has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.

Item 17 o    Item 18 o

           If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes o No ý

   

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PRESENTATION OF INFORMATION

        We are incorporated in the Republic of South Africa as a public company under South African Company law. Our audited consolidated financial statements for the financial years ended 30 June 2010, 2011, 2012, 2013 and 2014 included in our corporate filings in South Africa were prepared in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB).

        As used in this Form 20-F:

•

"rand" or "R" means the currency of the Republic of South Africa;



•

"US dollars", "dollars", "US$" or "$" means the currency of the United States (US);



•

"euro", "EUR" or "€" means the common currency of the member states of the European Monetary Union;



•

"GBP" means British Pound Sterling, the currency of the United Kingdom (UK); and



•

"CAD" means Canadian dollar, the currency of Canada.

        We present our financial information in rand, which is our reporting currency. Solely for your convenience, this Form 20-F contains translations of certain rand amounts into US dollars at specified rates as at and for the year ended 30 June 2014. These rand amounts do not represent actual US dollar amounts, nor could they necessarily have been converted into US dollars at the rates indicated.

        All references in this Form 20-F to "years" refer to the financial years ended on 30 June. Any reference to a calendar year is prefaced by the word "calendar".

        Besides applying barrels (b or bbl) and standard cubic feet (scf) for reporting oil and gas reserves and production, Sasol applies the Système International (SI) metric measures for all global operations. A ton, or tonne, denotes one metric ton equivalent to 1 000 kilograms (kg). Sasol's reference to metric tons should not be confused with an imperial ton equivalent to 2 240 pounds (or about 1 016 kg). Barrels per day, or bpd, or bbl/d, is used to refer to our oil and gas production.

        In addition, in line with a South African convention under the auspices of the South African Bureau of Standards (SABS), the information presented herein is displayed using the decimal comma (e.g., 3,5) instead of the more familiar decimal point (e.g., 3.5) used in the UK, US and elsewhere. Similarly, a hard space is used to distinguish thousands in numeric figures (e.g., 2 500) instead of a comma (e.g., 2,500).

        All references to billions in this Form 20-F are to thousands of millions.

        All references to the "group", "us", "we", "our", "the company", or "Sasol" in this Form 20-F are to Sasol Limited, its group of subsidiaries and its interests in associates, joint arrangements and structured entities. All references in this Form 20-F are to Sasol Limited or the companies comprising the group, as the context may require. All references to "(Pty) Ltd" refers to Proprietary Limited, a form of corporation in South Africa which restricts the right of transfer of its shares and prohibits the public offering of its shares.

        All references in this Form 20-F to "South Africa" and "the government" are to the Republic of South Africa and its government. All references to the "JSE" are to the JSE Limited or Johannesburg Stock Exchange, the securities exchange of our primary listing. All references to "SARB" refer to the South African Reserve Bank. All references to "PPI" and "CPI" refer to the South African Producer Price Index and Consumer Price Index, respectively, which are measures of inflation in South Africa. All references to "GTL" and "CTL" refer to our gas-to-liquids and coal-to-liquids processes, respectively.

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        Certain industry terms used in this Form 20-F are defined in the Glossary of Terms.

        Unless otherwise stated, presentation of financial information in this annual report on Form 20-F will be in terms of IFRS. Our discussion of business segment results follows the basis used by the President and Chief Executive Officer (the company's chief operating decision maker) for segmental financial decisions, resource allocation and performance assessment, which forms the accounting basis for segmental reporting, that is disclosed to the investing and reporting public.

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FORWARD-LOOKING STATEMENTS

        We may from time to time make written or oral forward-looking statements, including in this Form 20-F, in other filings with the United States Securities and Exchange Commission, in reports to shareholders and in other communications. These statements may 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:

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statements regarding our future results of operations and financial condition and regarding future economic performance;



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statements regarding recent and proposed accounting pronouncements and their impact on our future results of operations and financial condition;



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statements of our business strategy, plans, objectives or goals, including those related to products or services;



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statements regarding future competition, volume growth and changes in market share in the South African and international industries and markets for our products;



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statements regarding our existing or anticipated investments (including the Lake Charles Chemicals Complex and the gas-to-liquids (GTL) projects in the United States, Uzbekistan and Nigeria, the GTL joint venture in Qatar, chemical projects and joint ventures in North America and other investments), acquisitions of new businesses or the disposition of existing businesses;



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statements regarding our estimated oil, gas and coal reserves;



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statements regarding the probable future outcome of litigation and regulatory proceedings and the future development in legal and regulatory matters;



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statements regarding future fluctuations in refining margins and crude oil, natural gas and petroleum product prices;



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statements regarding the demand, pricing and cyclicality of oil and petrochemical product prices;



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statements regarding changes in the manufacturers' fuel pricing mechanism in South Africa and their effects on fuel prices, our operating results and profitability;



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statements regarding future fluctuations in exchange and interest rates;



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statements regarding total shareholder return;



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statements regarding cost reduction targets and initiatives;



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statements regarding our plans to expand the South African retail and commercial markets for liquid fuels;



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statements regarding our current or future products and anticipated customer demand for these products;



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statements regarding acts of war, terrorism or other events that may adversely affect the group's operations or that of key stakeholders to the group; and



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statements of assumptions underlying such statements.

        Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour" and "project" and similar expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements.

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        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 in such forward-looking statements. 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 include among others, and without limitation:

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the outcomes in pending and developing regulatory matters and the effect of changes in regulation and government policy;



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the political, social and fiscal regime and economic conditions and developments in the world, especially in those countries in which we operate;



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the outcomes of legal proceedings;



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our ability to maintain key customer relations in important markets;



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our ability to improve results despite increased levels of competition;



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the continuation of substantial growth in significant developing markets;



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the ability to benefit from our capital investment programme;



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the accuracy of our assumptions in assessing the economic viability of our large capital projects;



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the capital cost of projects (including material, engineering and construction cost) and the timing of project milestones;



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our ability to obtain financing to meet the funding requirements of our capital investment programme, as well as to fund our on-going business activities and to pay dividends;



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growth in significant developing areas of our business;



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changes in the demand for and international prices of crude oil, gas, petroleum and chemical products and changes in foreign currency exchange rates;



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the ability to gain access to sufficient competitively priced gas, oil and coal reserves and other commodities;



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environmental legislation and the impact of environmental legislation and regulation on our operations and our access to natural resources;



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our success in continuing technological innovation;



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our ability to maintain sustainable earnings despite fluctuations in foreign currency exchange rates and interest rates;



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our ability to attract and retain sufficient skilled employees; and



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our success at managing the foregoing risks.

        The foregoing list of important factors is not exhaustive; when making investment decisions, you should carefully consider the foregoing factors and other uncertainties and events, and you should not place undue reliance on forward-looking statements. 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. See "Item 3.D—Risk factors".

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ENFORCEABILITY OF CERTAIN CIVIL LIABILITIES

        We are a public company incorporated under the company law of South Africa. Most of our directors and officers reside outside the United States, principally in South Africa. You may not be able, therefore, to effect service of process within the United States upon those directors and officers with respect to matters arising under the federal securities laws of the United States.

        In addition, most of our assets and the assets of most of our directors and officers are located outside the United States. As a result, you may not be able to enforce against us or our directors and officers judgements obtained in United States courts predicated on the civil liability provisions of the federal securities laws of the United States.

        There are additional factors to be considered under South African law in respect of the enforceability, in South Africa (in original actions or in actions for enforcement of judgments of US courts) of liabilities predicated on the US federal securities laws. These additional factors include, but are not necessarily limited to:

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South African public policy considerations;



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South African legislation regulating the applicability and extent of damages and/or penalties that may be payable by a party;



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the applicable rules under the relevant South African legislation which regulate the recognition and enforcement of foreign judgments in South Africa; and



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the South African courts' inherent jurisdiction to intervene in any matter which such courts may determine warrants the courts' intervention (despite any agreement amongst the parties to (i) have any certificate or document being conclusive proof of any factor, or (ii) oust the courts' jurisdiction).

        Based on the foregoing, there is no certainty as to the enforceability in South Africa (in original actions or in actions for enforcement of judgments of US courts) of liabilities predicated on the US federal securities laws.

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PART I

ITEM 1.    IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

        Not applicable.

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ITEM 2.    OFFER STATISTICS AND EXPECTED TIMETABLE

        Not applicable.

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ITEM 3.    KEY INFORMATION

3.A Selected financial data

        The following information should be read in conjunction with "Item 5—Operating and Financial Review and Prospects" and the consolidated financial statements, the accompanying notes and other financial information included elsewhere in this annual report on Form 20-F.

        The financial data set forth below for the years ended as at 30 June 2014, 2013 and 2012 and for each of the years in the three-year period ended 30 June 2014 have been derived from our audited consolidated financial statements included in Item 18 of this annual report on Form 20-F. The financial data at 30 June 2014, 2013 and 2012 and for each of the years in the three-year period ended 30 June 2014, should be read in conjunction with, and is qualified in its entirety by reference to, our audited consolidated financial statements.

        Financial data as at, and for the years ended 30 June 2011 and 2010, have been derived from the group's previously published audited consolidated financial statements, which are not included in this document. This data has not been restated for the adoption of the consolidation suite of standards⁽¹⁾.

        The audited consolidated financial statements from which the selected consolidated financial data set forth below have been derived were prepared in accordance with IFRS.

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Exchange rate information

        The following table sets forth certain information with respect to the rand/US dollar exchange rate for the years shown:

        On 19 September 2014, the closing exchange rate of rand per US dollar as reported by Thomson Reuters was R11,08/US$1.

3.B Capitalisation and indebtedness

        Not applicable.

3.C Reasons for the offer and use of proceeds

        Not applicable.

3.D Risk factors

Fluctuations in exchange rates may adversely affect our business, operating results, cash flows and financial condition

        The rand is the principal functional currency of our operations and we report our results in rand. However, a large part of our group's turnover is denominated in US dollars and some part in euro, derived either from exports from South Africa or from our manufacturing and distribution operations outside South Africa. Approximately 90% of our turnover is impacted by the US dollar as petroleum prices in general and the price of most petroleum and chemical products are based on global commodity and benchmark prices which are quoted in US dollars.

        Further, as explained below, the rand/US dollar exchange rate is a component of the basic fuel price (BFP), which impacts the price at which we can sell fuel.

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        A significant part of our capital expenditure is also US dollar-denominated, as it is directed to investments outside South Africa or constitutes materials, engineering and construction costs imported into South Africa. The majority of our operating costs are either rand based for South African operations or euro based for European operations. Accordingly, fluctuations in the exchange rates between the rand and US dollar and/or euro may have a material effect on our business, operating results, cash flows and financial condition.

        Fluctuations in the exchange rates of the rand against the US dollar and euro as well as other currencies, also impact the comparability of our financial statements between periods due to the effects of translating the functional currency of our foreign subsidiaries into rand at different exchange rates. Accordingly, some of the changes in the reported operating results are attributable to fluctuations in exchange rates and do not necessarily reflect the underlying operating results. During 2014, the rand/US dollar exchange rate averaged R10,39 and fluctuated between a high of R11,32 and a low of R9,59. This compares to an average exchange rate of R8,85 during 2013 which fluctuated between a high of R10,21 and a low of R8,08. The rand exchange rate is affected by various international and South African economic and political factors. Subsequent to 30 June 2014, the rand has on average weakened against the US dollar and the euro. In general, a weakening of the rand would have a positive effect on our operating results. Conversely strengthening of the rand would have an adverse effect on our operating results. Refer to "Item 5A—Operating results", for further information regarding the effect of exchange rate fluctuations on our results of operations.

        Although the exchange rate of the rand is primarily market-determined, its value at any time may not be an accurate reflection of its underlying value, due to the potential effect of, among other factors, exchange controls. For more information regarding exchange controls in South Africa see "Item 10.D—Exchange controls".

        We use derivative instruments to partially protect us against adverse movements in exchange rates in accordance with our group hedging policies. See "Item 11—Quantitative and qualitative disclosures about market risk".

Fluctuations in refining margins and crude oil, natural gas and petroleum product prices may adversely affect our business, operating results, cash flows and financial condition

        Market prices for crude oil, natural gas and petroleum products may fluctuate as they are subject to local and international supply and demand fundamentals and factors over which we have no control. Worldwide supply conditions and the price levels of crude oil may be significantly influenced by international cartels, which control the production of a significant proportion of the worldwide supply of crude oil, and by political developments, especially in the Middle East, North Africa and Nigeria.

        The price at which we can sell fuel in South Africa is regulated by the South African government, through a mechanism, known as the Basic Fuel Price, or BFP. The BFP is a formula driven price that considers, amongst others, the international crude oil price, the rand/US dollar exchange rate and the refining margin typically earned by coastal refineries. As a result, turnover will be impacted by factors that may be different than if fuel were sold at prices based only on market factors. For example, demand in the Northern Hemisphere during the winter months that results in an increase in the price of crude oil will increase the price—assuming other factors remain constant—we sell our fuel even if there is lower demand in South Africa. Likewise, if the international crude oil price decreases, the price we sell fuel could decrease even if there is greater demand in South Africa. The impact of using the BFP to establish prices could have a negative impact on our operating results. The price and availability of substitute fuels, changes in product inventory, product specifications and other factors will also impact our revenue. In recent years, prices for petroleum products have fluctuated widely.

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        During 2014, the dated Brent crude oil price averaged US$109,40/b and fluctuated between a high of US$117,13/b and a low of US$103,19/b. This compares to an average dated Brent crude oil price of US$108,66/b during 2013, which fluctuated between a high of US$119,03/b and a low of US$95,51/b.

        A substantial proportion of our turnover is derived from sales of petroleum and petrochemical products. Through our equity participation in the National Petroleum Refiners of South Africa (Pty) Ltd (Natref) crude oil refinery, we are exposed to fluctuations in refinery margins resulting from differing fluctuations in international crude oil and petroleum product prices. We are also exposed to changes in absolute levels of international petroleum product prices through our synthetic fuels and oil operations. Fluctuations in international crude oil prices affect our results mainly through their indirect effect on the BFP price formula, see "Item 4.B—Business overview—"Sasol Oil", as well as the impact on oil derived feedstock. Prices of petrochemical products and natural gas are also affected by fluctuations in crude oil prices.

        We use derivative instruments to partially protect us against day-to-day US dollar oil price and rand to US dollar exchange rate fluctuations affecting the acquisition cost of our crude oil needs. See "Item 11—Quantitative and qualitative disclosures about market risk". While the use of these instruments may provide some protection against short-term fluctuations in crude oil prices, it does not protect us against longer term fluctuations in crude oil prices or differing trends between crude oil and petroleum product prices.

        Prolonged periods of low crude oil and natural gas prices, or rising costs, could also result in our upstream projects being delayed or cancelled, as well as in the impairment of certain assets. In 2014, we recognised an impairment of R5,3 billion with respect to our Canadian shale gas asset in Montney due to the decline in gas prices in North America and the decline in valuation of recent market transactions for similar assets in the Montney region.

        We are unable to accurately forecast fluctuations in refining margins and crude oil, natural gas and petroleum products prices. Fluctuations in any of these may have a material adverse effect on our business, operating results, cash flows and financial condition.

Cyclicality in petrochemical product prices may adversely affect our business, operating results, cash flows and financial condition

        The demand for chemicals and especially products such as solvents, olefins, surfactants, fertilisers and polymers is cyclical. Typically, higher demand during peaks in the industry business cycles leads producers to increase their production capacity. Although peaks in the business cycle have been characterised by increased selling prices and higher operating margins, in the past such peaks have led to overcapacity with supply exceeding demand growth. Low periods during the industry business cycle are characterised by a decrease in selling prices and excess capacity, which can depress operating margins. Failure to anticipate cyclicality in demand and appropriately adjust production capacity, as well as sustained lower prices for chemical products during downturns in the industry business cycle, may have a material adverse effect on our business, operating results, cash flows and financial condition.

We may not be able to exploit technological advances quickly and successfully or competitors may develop superior technologies

        Most of our operations, including the gasification of coal and the manufacture of synfuels and petrochemical products, are highly dependent on the development and use of advanced technologies. The development, commercialisation and integration of the appropriate advanced technologies can affect, among other things, the competitiveness of our products, the continuity of our operations, our feedstock requirements and the capacity and efficiency of our production.

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        It is possible that new technologies or novel processes may emerge and that existing technologies may be further developed in the fields in which we operate. Unexpected advances in employed technologies or the development of novel processes can affect our operations and product ranges in that they could render the technologies we utilise or the products we produce obsolete or less competitive in the future. Difficulties in accessing new technologies may impede us from implementing them and competitive pressures may force us to implement these new technologies at a substantial cost.

        Examples of new technologies which may in the future affect our business include the following:

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The development and commercialisation of non-hydrocarbon-dependent energy carrier technologies, including the further development of fuel cells and batteries, or the large scale broadening of the application of electricity to drive motor vehicles. These may be disruptive to the use of hydrocarbon and refined crude oil-derived fuels;



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The development of improved fuels (and associated automotive technologies) from a crude oil base with equivalent properties to that of Fischer-Tropsch derived fuels, which may erode the competitive advantage of Fischer-Tropsch fuels;



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The development of efficient distribution and gas storage systems that allow light hydrocarbons to be competitively used for mobility and transportation, effectively displacing diesel; and



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The development by competitors of next generation catalysts in which catalyst performance is improved, resulting in highly selective and high purity chemical products, which may render the use of our mixed feed stream catalytic-based production processes uncompetitive.

        We cannot predict the effect of these or other technological changes or the development of new processes on our business or on our ability to provide competitive products. Our ability to compete will depend on our timely and cost-effective implementation of new technological advances. It will also depend on our success in commercialising these advances irrespective of competition we face.

        In addition to the technological challenges, a large number of our expansion projects are integrated across a number of Sasol businesses. Delays with the development of an integrated project might, accordingly, have an impact on more than one Sasol business.

        If we are unable to implement new technologies in a timely or cost-efficient manner, or penetrate new markets in a timely manner in response to changing market conditions or customer requirements, we could experience a material adverse effect on our business, operating results, cash flows and financial condition.

Our large capital projects may not prove sufficiently viable or as profitable as planned and may be affected by delays or cost overruns

        We have constructed a gas-to-liquids (GTL) plant in Qatar and are involved in commissioning a GTL plant in Nigeria. In addition, we are considering further GTL opportunities in Uzbekistan (extended front end engineering and design phase, awaiting final investment decision (FID)), the US (front end engineering and design phase) and Canada (feasibility phase has been completed and a decision on the front end engineering and design phase will be taken at a later stage), as well as the Lake Charles Chemicals Complex project (an ethane cracker and chemical derivatives plant which is in the front end engineering and design phase). The development of these projects is a capital-intensive process over long durations and requires us to commit significant capital expenditure and devote considerable management resources in utilising our existing experience and know-how.

        In assessing the viability of our projects, we make a number of assumptions relating to specific variables, mainly including, but not limited to:

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relative and absolute prices of crude oil, gas, petroleum and chemical products;

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fluctuations in the exchange rate of the US dollar and other currencies against the rand;



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fluctuations in interest rates;



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access to sufficient competitively priced gas reserves;



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sales opportunities and risks in the relevant countries;



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government incentives in the countries in which we invest;



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capital and operational costs of our facilities;



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technology and catalyst performance; and



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conditions in the countries in which we operate, including factors relating to political, social and economic conditions.

Such projects are subject to risks of delay and cost overruns inherent in any large construction project, including costs or delays resulting from the following:

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scarcity of skilled labour and other personnel necessary to perform the work;



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unexpected delays in delivery times, shortages or unforeseen increases in the cost of equipment, labour and raw materials;



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unforeseen design and engineering problems, including those relating to the commissioning of newly designed equipment;



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work stoppages and labour disputes;



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delays in, or inability to obtain, access to financing;



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failure or delay of third-party service providers and disputes with suppliers;



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changes to regulations affecting the facilities, such as environmental regulations and construction standards, defective construction and the resultant need for remedial work;



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adverse weather conditions; and



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defective construction and the resultant need for remedial work.

        Significant variations in any one or more of the above factors or any other relevant factor, may adversely affect the profitability or even the viability of our investments. In view of the resources invested in these projects and their importance to our growth strategy, problems we may experience as a result of these factors may have a material adverse effect on our business, operating results, cash flows, financial condition and opportunities for future growth.

Exposure related to investments in associates, joint ventures and joint operations may adversely affect our business, operating results, cash flows and financial condition

        We have invested in a number of associates, joint ventures and joint operations as part of our strategy to expand operations globally. We are considering opportunities for further upstream GTL investments, as well as opportunities in chemicals, to continue our local and global expansion. The development of these projects may require investments in associates, joint ventures and joint operations most of which are aimed at facilitating entry into countries and/or sharing risk with third parties. Although the risks are shared, the objectives of associates, joint venture and joint operation partners, their ability to meet their financial and/or contractual obligations, their behaviour, their compliance with legal and ethical standards, as well as the increasing complexity of country specific legislation and regulations, may adversely affect our reputation and/or result in disputes and/or litigation, all of which

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may have a material adverse effect on our business, operating results, cash flows and financial condition, and may constrain the achievement of our growth objectives.

We may not achieve projected benefits of acquisitions or divestments

        We may pursue strategic acquisitions or divestments. With any such transaction there is the risk that any benefits or synergies identified at the time of acquisition may not be achieved as a result of changing or incorrect assumptions or materially different market conditions, or other factors. Furthermore, we could be found liable for past acts or omissions of the acquired business without any adequate right of redress.

        In addition, delays in the sale of assets, or reductions in value realisable, may arise due to changing market conditions. Failure to achieve expected values from the sale of assets, or delays in expected receipt or delivery of funds, may result in higher debt levels, underperformance of those businesses and possible loss of key personnel.

We may face constraints in obtaining the expected level of financing to pursue new business opportunities or support existing projects

        As at 30 June 2014, we had authorised approximately R111,4 billion of group capital expenditure in respect of projects in progress, of which we had spent approximately R52,4 billion by 30 June 2014. See "Item 5.F—Capital commitments". Our capital expenditure plans and requirements are subject to a number of risks, contingencies and other factors, some of which are beyond our control, and therefore the actual future capital expenditure and investments may differ significantly from the current planned amounts.

        Our operating cash flow and banking facilities may be insufficient to meet all of these expenditures, depending on the timing and cost of development of these and other projects, as well as operating performance and utilisation of our banking facilities. As a result, new sources of capital may be needed to meet the funding requirements of these developments, to fund ongoing business activities and to pay dividends. In addition, if we opt to proceed with our US growth projects, we will need to obtain additional external financing in order to fund these projects. Our ability to raise and service significant new sources of capital will be a function of macroeconomic conditions, our credit rating, the condition of the financial markets, future prices for the products we sell, the prospects for our industry, our operational performance and operating cash flow and debt position, among other factors.

        Our credit rating may be affected by our ability to maintain our outstanding debt and financial ratios at levels acceptable to the credit ratings agencies, our business prospects, the sovereign credit rating of the Republic of South Africa and other factors, some of which are outside our control. Historically, our credit rating has been affected by movements in the sovereign credit rating of the Republic of South Africa, and recent rating actions and any future downgrade of the South African sovereign credit rating may have an adverse effect on our credit rating, which could negatively impact our ability to borrow money and could increase the cost of debt finance. The sovereign credit rating of the Republic of South Africa was downgraded by Standard & Poor's Ratings Services (S&P) in 2014 from BBB to BBB-, and Fitch Ratings, Inc. changed its ratings outlook to negative from stable.

        In the event of unanticipated operating or financial challenges, any dislocation in financial markets, any further downgrade of our ratings by ratings agencies or new funding limitations, our ability to pursue new business opportunities, invest in existing and new projects, fund our ongoing business activities and retire or service outstanding debt and pay dividends, could be constrained, any of which could have a material adverse effect on our business, operating results, cash flows and financial condition.

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There are country-specific risks relating to the countries in which we operate that could adversely affect our business, operating results, cash flows and financial condition

        Several of our subsidiaries, joint ventures and associates operate in countries and regions that are subject to significantly differing political, social, economic and market conditions. See "Item 4.B—Business Overview" for a description of the extent of our activities in the main countries and regions in which we operate. Although we are a South African domiciled company and the majority of our operations are located in South Africa, we also have significant energy businesses in other African countries, chemical businesses in Europe, the US, the Middle East and Asia, a joint venture in a GTL facility in Qatar, joint arrangements in the US, Canada and Uzbekistan and an economic interest in a GTL project in Nigeria.

        Particular aspects of country-specific risks that may have a material adverse impact on our business, operating results, cash flows and financial condition include:

(a)   Political, social and economic issues

        We have invested, or are in the process of investing in, significant operations in African, European, North American, Asian and Middle Eastern countries that have in the past, to a greater or lesser extent, experienced political, social and economic uncertainty. Government policies, laws and regulations in countries in which we operate, or plan to operate, may change in the future. The impact of such changes on our ability to deliver on planned projects cannot be ascertained with any degree of certainty and such changes may therefore have an adverse effect on our operations and financial results.

(b)   Fluctuations in inflation and interest rates

        Macro-economic factors, such as higher inflation and interest rates, could adversely impact our ability to contain costs and/or ensure cost-effective debt financing in countries in which we operate.

        Our sustainability and competitiveness depend on our ability to optimise our operating cost base. As we are unable to control the market price at which the products we produce are sold, it is possible that if inflation in countries in which we operate should begin to increase, it may result in significantly higher future operational costs.

        In South Africa, consumer price inflation increased to 6,0% in 2014 from 5,7% in 2013, which is the upper limit of the South African Reserve Bank's (SARB) 6% inflation-target ceiling. The SARB increased the bank lending policy interest rate by 50 basis points in January 2014 and a further 25 basis points in July 2014.

        The weakening rand/US dollar exchange rate remains the factor having the greatest impact on inflation, and, accordingly the significant weakening of the rand over the past two years poses a significant risk to the inflation outlook. Producers' pricing power appears relatively limited in a weak economic growth environment, but it is unclear how long producers will still be able to absorb cost increases. We expect consumer inflation to remain above the SARB inflation-target ceiling throughout 2014, which will likely lead to an interest rate hiking cycle.

(c)   Transportation, water and other infrastructure

        The infrastructure in some countries in which we operate, such as rail infrastructure, electricity and water supply may need to be further upgraded and expanded, and in certain instances, possibly at our own cost. Water, as a resource, is becoming increasingly limited as world demand for water increases. In South Africa, the risk that water may become significantly limited is exacerbated by the fact that it is one of the drier countries in the world. Water use by our operations varies widely depending largely on feedstock and technology choice. While a GTL plant is typically a net producer of water, a CTL

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process has a significant water requirement, driven by the need to produce hydrogen and additional cooling requirements. Although various technological advances may improve the water efficiency of our processes, we may experience limited water availability and other infrastructural challenges, which could have a material adverse effect on our business, operating results, cash flows, financial condition and future growth.

(d)   Disruptive industrial action

        The majority of our employees worldwide belong to trade unions. These employees comprise mainly general workers, artisans and technical operators. The South African labour market remains volatile and characterised by major industrial action in key sectors of the economy. For example, in 2014 the platinum sector experienced the longest industrial action ever in the history of democratic South Africa.

        Wage negotiations impacting the South African operations of the Sasol group within the Petroleum and Industrial Chemicals sectors as well as within Sasol Mining have been completed. Although we have constructive relations with our employees and their unions, we cannot assure you that significant labour disruptions will not occur in the future or that our labour costs will not increase significantly in the future.

(e)   Exchange control regulations

        South African law provides for exchange control regulations which apply to transactions involving South African residents, including both natural persons and legal entities. These regulations may restrict the export of capital from South Africa, including foreign investments. The regulations may also affect our ability to borrow funds from non-South African sources for use in South Africa, including the repayment of these borrowings from South Africa and, in some cases, our ability to guarantee the obligations of our subsidiaries with regard to these funds. These restrictions may affect the manner in which we finance our transactions outside South Africa and the geographic distribution of our debt. See "Item 10.D—Exchange controls" and "Item 5.B—Liquidity and capital resources".

(f)   Localisation issues

        In some countries, our operations are required to comply with local procurement, employment equity, equity participation and other regulations which are designed to address country-specific social and economic transformation and localisation issues.

        In South Africa, there are various transformation initiatives with which we are required to comply. We embrace, will engender and participate in initiatives to bring about meaningful transformation in South Africa. We consider these initiatives to be a strategic imperative and we acknowledge the risk of not vigorously pursuing them.

        We are a participant in transformation charters in the liquid fuels and mining industry in South Africa, pursuant to which we have undertaken to enable historically disadvantaged South Africans to hold at least 25% equity ownership in our liquid fuels business and 26% equity ownership, by 2014, in our mining business. We have met these targets, with Sasol Mining's BEE ownership currently above 40%. See "Item 4.B—Empowerment of historically disadvantaged South Africans".

        The President of the Republic of South Africa gazetted the new Codes of Good Practice for broad-based black economic empowerment (BBBEE) on 11 October 2013, with a transition period until 30 April 2015. These codes provide a standard framework for the measurement of BBBEE across all sectors of the economy, other than sectors that have their own sectorial transformation charters (e.g. the mining industry). Furthermore, the BBBEE Amendment Act has been assented on 27 January 2014. The Amendment Act makes compliance with the Codes of Good Practice compulsory for all industries. The increased targets of the new codes will have a negative impact on Sasol's BBBEE contributor status. Many companies in South Africa, including Sasol, may be adversely affected by the change in B-BBEE contributor status.

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        We have complied with the requirements of the BBBEE Codes of Good Practice as gazetted in 2007, and other requirements of the Liquid Fuels Charter and Mining Charter. We believe that the long-term benefits to the company and our country should outweigh any possible short-term adverse effects, but we cannot assure you that future implications of compliance with these requirements or with any newly imposed conditions will not have a material adverse effect on our shareholders or business, operating results, cash flows and financial condition. See "Item 4.B—Empowerment of historically disadvantaged South Africans".

(g)   Ownership rights

        We operate in several countries where ownership of rights in respect of land and resources is uncertain and where disputes in relation to ownership or other community matters may arise. These disputes are not always predictable and may cause disruption to our operations or development plans.

(h)   Stakeholder relationships

        Our operations can also have an impact on local communities, including the need, from time to time, to relocate or resettle communities or relocate infrastructure networks such as railways and utility services. Failure to manage relationships with local communities, governments and non-government organisations may harm our reputation as well as our ability to bring development projects into production. In addition, the costs and management time required to comply with standards of social responsibility, community relations and sustainability, including costs related to resettlement of communities or relocation of infrastructure, have increased substantially recently and are expected to further increase over time.

(i)   Other specific country risks that are applicable to countries in which we operate and which may have a material adverse effect on our business include:

•

acts of warfare and civil clashes;



•

government interventions, including protectionism and subsidies;



•

regulatory, taxation and legal structure changes;



•

the control of oil and gas field developments and transportation infrastructure;



•

failure to receive new permits and consents;



•

cancellation of contractual rights;



•

expropriation of assets;



•

lack of capacity to deal with emergency response situations;



•

the introduction of selective environmental and carbon taxes;



•

social and labour unrest due to economic and political factors in host countries;



•

terrorism and kidnapping threats; and



•

possible demands to participate in unethical or corrupt conduct will lead us to forgo certain opportunities.

        Some of the countries where we have already made, or other countries where we may consider making, investments are in various stages of developing institutions and legal and regulatory systems that are characteristic of democracies. However, institutions in these countries may not yet be as firmly established as they are in democracies in South Africa, North America and some European countries. Some of these countries are also transitioning to a market economy and, as a result, are experiencing

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changes in their economies and their government policies that could affect our investments in these countries.

        Moreover, the procedural safeguards of the new legal and regulatory regimes in these countries are still being developed and, therefore, existing laws and regulations may be applied inconsistently. In some circumstances, it may not be possible to obtain the legal remedies provided under those laws and regulations in a timely manner.

        As the political, economic and legal environments remain subject to continuous development, investors in these countries face uncertainty as to the security of their investments. Any unexpected changes in the political or economic conditions in the countries in which we operate (including neighbouring countries) may have a material adverse effect on the investments that we have made or may make in the future, which may in turn have a material adverse effect on our business, operating results, cash flows and financial condition.

Electricity supply interruptions and increases in electricity costs in South Africa could adversely affect our business, operating results, cash flows, financial condition and future growth

        With the recent commissioning of additional power generation equipment, Sasol has an installed generation capacity of approximately 70% of its total South African power supply needs internally. However, our South African operations remain dependent on power generated by the state-owned utility, Eskom for their remaining power supply requirements. During 2008, South Africa experienced significant electricity supply interruptions, and although the situation has improved since then, the electricity supply is again critically constrained and will remain so until the commissioning of new generation capacity. Although Eskom has implemented a number of short- and long-term mitigation plans, we cannot assure you that we will not experience power supply interruptions which could have material adverse effects on our business, operating results, cash flows, financial condition and future growth.

        South African electricity tariffs may increase by more than the 8% already sanctioned for the year starting 1 April 2015, after the National Energy Regulator of South Africa (NERSA) determined that Eskom had under recovered R7,82 billion in revenue between 2010 and 2013. Accordingly, our 2015 cost increase may be under pressure due to higher than expected electricity price increases. A sharp increase in electricity costs may have material adverse effects on our business, operating results, cash flows, financial condition and future growth.

We may not be in compliance with laws or regulations in the countries in which we operate

        The industry in which we operate is highly regulated and requires compliance with a myriad of laws and regulations, governing matters such as minerals and mining, trading in petroleum products and gas as well as, safety, health and environment, in our South African and global operations. Non-compliance can impact business performance dramatically. Although systems and processes are in place, monitored and improved upon, to ensure compliance with applicable laws and regulations, we cannot assure you that we will be in compliance with all laws and regulations at all times. Any failure to comply with applicable laws and regulations could have a material adverse effect on our business, operating results, cash flows and financial condition.

New South African mining legislation may have an adverse effect on our mineral rights

        Since the enactment of the Mineral and Petroleum Resources Development Act, 28 of 2002, (MPRDA) in May 2004, our subsidiary, Sasol Mining (Pty) Ltd, has been successful in converting its prospecting permits and mining authorisations to new order prospecting and mining rights in terms of the MPRDA. The new order mining rights, known as converted mining rights, became effective on 29 March 2011. The converted new order mining right in respect of the Secunda area have initially

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been granted for a period of ten years, while those in respect of the Mooikraal operations at Sasolburg have been granted for a period of thirty years. We have been successful in extending our Secunda area mining right from 10 years to 30 years (expires on 28 March 2040), which is the maximum allowable period under the MPRDA. In addition to the initial validity period, our converted mining rights may, on application, be renewed for further periods not exceeding thirty years each.

        If a holder of a prospecting right or mining right conducts prospecting or mining operations in contravention of the MPRDA, including the Mining Charter and Social and Labour Plans, the converted mining rights can be suspended or cancelled by the Minister of Mineral Resources if the entity, upon receiving a notice of breach from the Minister, fails to remedy such breach. The MPRDA and applicable provisions in the National Environmental Management Act and National Water Act impose additional responsibilities with respect to environmental management as well as the prevention of environmental pollution, degradation or damage from mining and/or prospecting activities.

        The MPRDA Amendment Bill, 2013 has been approved by the National Assembly of the Parliament of the Republic of South Africa and now awaits to be signed by the President of the Republic of South Africa. After the signature thereof by the President, the MPRDA Amendment Act will be implemented on a date still to be published in the Government Gazette of South Africa. The Department of Mineral Resources (DMR) is currently drafting the regulations to be promulgated under the MPRDA Amendment Bill, but no information as to the content and impact thereof is available. The DMR is currently reviewing the Mining Charter. It is uncertain to what extent the revision of the Mining Charter will impact on the mining industry. The MPRDA Amendment Bill, the Regulations to be promulgated in terms thereof and the amendment of the Mining Charter may impact our business activities.

        We cannot assure you that the proposed changes will not affect our operations, mining and petroleum rights in the future and, as a result, have a material adverse effect on our business, operating results, cash flows and financial condition. See "Item 4.B—Business overview—Regulation of mining activities in South Africa".

New legislation in South Africa on petroleum and energy activities may have an adverse impact on our business, operating results, cash flows and financial condition

        The Petroleum Products Amendment Act (the Petroleum Act) requires persons involved in the manufacturing, wholesale and retail sale of petroleum products to obtain relevant licences for such activities. Sasol Oil, Natref and Sasol Synfuels submitted applications for their respective operations, and the Sasol Oil and Sasol Synfuels wholesale licence applications have been approved and issued. The Natref manufacturing licence application is still under review by the Department of Energy. Nevertheless, these facilities continue to operate, as being persons who, as of the effective date of the Petroleum Act, manufactured petroleum products, they are deemed to be holders of a licence until their applications have been finalised. Until these applications have been finalised, we cannot assure you that the conditions of the licences may not have a material adverse impact on our business, operating results, cash flows and financial condition. See "Item 4.B—Business overview—Regulation of petroleum-related activities in South Africa".

        The South African Petroleum Industry Association confirmed that the South African government has communicated a postponement to the 1 July 2017 introduction date of new cleaner fuels standards, (Clean Fuels 2), which are aligned to EURO 5 fuel specifications, to reduce the environmental impact caused by vehicle emissions. A new target date is awaited. The introduction of the new specifications and standards will require capital investment in our manufacturing facilities. We cannot assure you that these new specifications will not have a material adverse effect on our business, operating results, cash flow and financial condition.

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        The ten year regulatory dispensation negotiated with the South African government with respect to the supply of Mozambican natural gas to the South African market expired in March 2014. In accordance with the regulatory framework relating to gas prices and tariffs, NERSA has, on 26 March 2013, approved transmission tariffs and maximum gas prices which will apply to our gas business in South Africa, after the expiry of the aforesaid regulatory dispensation. Seven of Sasol Gas' largest customers initiated a pricing review, and NERSA and Sasol Gas are responding. We cannot assure you that the provisions of the Gas Act and the implementation of a new gas price and tariff methodology pursuant to the NERSA approvals, and the outcome of the review application, will not have a material adverse impact on our business, operating results, cash flows and financial condition. See "Item 4.B—Business overview—Regulation of gas related activities in South Africa".

Changes in safety, health and environmental regulations and legislation and public opinion may adversely affect our business, operating results, cash flows and financial condition

        Failure to comply with applicable safety, health and environmental laws, regulations or permit requirements may result in fines or penalties or enforcement actions, including regulatory or judicial orders enjoining or curtailing operations or requiring corrective measures, installation of pollution control equipment, decommissioning or other remedial actions, any of which could entail significant expenditures.

        We are subject to a wide range of general and industry-specific environmental, health and safety and other legislation in jurisdictions in which we operate. See "Item 4.B—Business overview—Regions in which Sasol operates and their applicable legislation". Compliance with these requirements is a significant factor in our business, and we incur, and expect to continue to incur, significant capital and operating expenditures in order to continue to comply with these requirements. These laws and regulations and their enforcement are likely to become more stringent over time. We may be required in some cases to incur additional expenditure in order to comply with such legislation. Similarly, public opinion is growing more sensitive to consumer health and safety associated with the manufacturing and use of chemicals, environmental and climate change protection matters, and, as a result, markets may apply pressure on us concerning certain of our products, manufacturing processes, transport and distribution arrangements. As a result of these additional pressures, the associated costs of compliance and other factors, we may be required to withdraw certain products from the market, which could have a material adverse effect on our business, operating results, cash flows and financial condition. We continue to engage with governments and other stakeholders where we operate and monitor this risk on an ongoing basis.

        For example, we are subject to stringent new point source emission standards for a number of air pollutants. New facilities must comply with the new standards immediately. Existing facilities have five years from 1 April 2010 within which to comply with standards imposed thereon and must comply with the standards imposed for new facilities by 2020. These standards and time frames have profound implications, particularly for our existing plants, in terms of technical and financial feasibility. Sasol is using available regulatory mechanisms, such as making applications for postponements, in line with air quality requirements in South Africa to address these challenges.

        We continue to take remedial actions at a number of sites due to soil and groundwater contamination. The process of investigation and remediation can be lengthy and is subject to the uncertainties of site specific factors, changing legal requirements, developing technologies, the allocation of liability among multiple parties and the discretion of regulators. Accordingly, we cannot estimate with certainty the actual amount and timing of costs associated with contaminated land remediation.

        In order to continue to comply with licences, laws and regulations regarding safety, health, environment and the manufacturing and use of chemicals, we may have to incur costs which we may

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finance from our available cash flows or from alternative sources of financing. We may be required to provide for financial security for environmental rehabilitation in the form of a trust fund, guarantee, deposit or other methods as may be required by legislation imposing obligations in respect of decommissioning and rehabilitation of environmental impacts. No assurance can be given that changes in safety, health, environmental, chemical and other product laws and regulations or their application or the discovery of previously unknown contamination or other liabilities will not have a material adverse effect on our business, operating results, cash flows and financial condition.

        Mining is a hazardous industry and working conditions including weather, altitude and temperature can add to the inherent dangers of mining. The mining process, including blasting and processing ore bodies, can generate environmental impacts including dust and noise and may require the storage of waste materials, including in liquid form. Dust, noise or leakage of polluting substances from site operations or mine residue facilities have the potential to generate harm to our employees, the communities near our operations or the environment.

        Failure to provide a safe and healthy working environment may result in government authorities forcing closure of mines on a temporary or permanent basis or refusing mining right applications. We could face civil or criminal fines and penalties, liability to employees and third parties for injury, illness or death, statutory liability for environmental remediation, and other financial consequences, which may be significant.

        In addition, our manufacturing processes may utilise and result in the emission of or exposure to substances with potential health risks. We also manufacture products which may pose health risks. Although we apply a duty of care principle and implement measures with regards to health, safety, the environment and product stewardship as well as the Chemical and Allied Industries' Association Responsible Care® programme to eliminate or mitigate associated potential risks, we may be subject to liabilities as a result of the use or exposure to these materials or emissions.

Regulation of greenhouse gas emissions could increase our operational cost and reduce demand for our products

        Continued political attention to issues concerning climate change, the role of human activity in it, and potential mitigation through regulation could have a material impact on our operations and financial results. International agreements and national or regional legislation and regulatory measures to limit greenhouse emissions are currently in various stages of discussion or implementation. Key international negotiations may possibly be concluded in 2015 where governments plan to adopt a new protocol applicable to all developed and developing countries.

        A reduction of greenhouse gas emissions could be achieved through market-based regulatory programmes, technology-based or performance-based standards or a combination of them. Current measures in South Africa have already resulted in increased compliance costs for power suppliers that are passed to us in the form of levies for electricity generated from fossil fuels. These types of levies may increase substantially over time. The climate change management policy process, culminated in the publication of a National Climate Change Response White Paper (NCCRWP), in November 2011 and, in May 2013, a second carbon tax discussion document was published for comment. In the NCCRWP, South Africa reiterated its intent to, subject to certain conditions, implement nationally appropriate mitigation action to enable a 34% deviation below "business as usual" emissions growth trajectory by 2020, and 42% by 2025. The NCCRWP indicates the implementation of a carbon budget process which will be cascaded to company level and suggests significant changes to the local regulatory landscape. There is uncertainty on how this will be implemented and therefore risk remains on how these targets as well as the carbon budget approach will influence Sasol's business. In addition, government is trying to implement a carbon budget together with a carbon tax, that has been decided by the South African National Treasury. In the recent 2014 Budget Speech, the South African National Treasury indicated

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that the carbon tax has been delayed to 2016 and that investigations on how to integrate the carbon tax with the carbon budget process are currently underway.

        The development of these and other greenhouse gas emissions-related laws, global treaties, policies and regulations may result in substantial capital, compliance, operating and maintenance costs. The level of expenditure required to comply with any laws and regulations is uncertain and will depend on a number of factors including, among others, the sectors covered, the greenhouse gas emissions reductions required by law, the extent to which we would be entitled to receive any emission allowance allocations or would need to purchase compliance instruments on the open market or through auctions, the price and availability of emission allowances and credits, and the impact of legislation or other regulation on our ability to recover the costs incurred through the pricing of our products. Material price increases or incentives to conserve or use alternative energy sources could reduce demand for products we currently sell and adversely affect our sales volumes, revenues and margins.

We are subject to competition and antitrust laws

        Violations of competition/antitrust legislation could expose the group to administrative penalties and civil claims and damages, including punitive damages, by entities which can prove they were harmed by such conduct. Such penalties and damages could be significant and have an adverse impact on our business, operating results, cash flows and financial condition. In addition, there is also the significant reputational damage that accompanies findings of such contraventions as well as imprisonment or fines for individuals in some countries where antitrust violations are a criminal offence. Competition authorities are increasingly engaging with each other to exchange information relating to potential violation of antitrust laws and enforce antitrust laws.

        The South African Competition Commission is conducting investigations into the petroleum and polymer industries. On 5 June 2014, the South African Competition Tribunal imposed administrative penalties of R534 million relating to the pricing of propylene and polypropylene by our subsidiary Sasol Chemical Industries (Pty) Limited (SCI) (previously Sasol Chemical Industries Limited). In addition, the Tribunal also ordered revised future pricing of polypropylene and propylene. SCI filed an appeal against the decision of the Competition Tribunal with the South African Competition Appeal Court.

        The group has co-operated with competition authorities to deal pro-actively with non-compliance matters. We continue to interact and cooperate with the South African Competition Commission in respect of leniency applications as well as in the areas that are subject to the South African Competition Commission investigations. Refer to "Item 4.B Business overview—Legal proceedings and other contingencies".

        Although it is our policy to comply with all laws, and notwithstanding training and compliance programmes, we could inadvertently contravene competition or antitrust laws and be subject to the imposition of fines, criminal sanctions and/or civil claims and damages. This could have a material adverse impact on our business, operating results, cash flows and financial condition.

        The competition law compliance risks mentioned above will escalate for companies as the provisions contained in the Competition Law Amendment Act of 2009 relating to market enquiries became effective, as from 1 April 2013. The market enquiry provisions grant the Competition Commission the authority to conduct inquiries into the general state of competition in any market in South Africa for particular goods or services without referring to specific prohibited conduct or a particular firm. The remaining sections of the Competition Law Amendment Act of 2009 have not as yet come into effect. Should the remainder of the sections relating to individual criminal liability for collusion as well as the concept of a "complex monopoly", which will allow the Competition Commission to start an investigation against larger industry players without a formal complaint, become effective, the competition law compliance risks mentioned above will be further aggravated. This could have a material adverse impact on our business, operating results, cash flows and financial condition.

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We may not be successful in attracting and retaining sufficiently skilled employees

        We are highly dependent on the continuous development and successful application of new technologies. In order to achieve this, we need to maintain a focus on recruiting and retaining qualified scientists, engineers, project execution skills, artisans and operators. In addition, we are dependent on highly skilled employees in business and functional roles to establish new business ventures as well as to maintain existing operations.

        The quality and availability of skills in certain labour markets is impacted by the challenges within the education and training systems in certain countries in which we operate. Localisation, diversity and other similar legislation in countries in which we operate are equally challenging to the attraction and retention of sufficiently skilled employees.

        The shortage of skilled employees will be further exacerbated as global economic recovery progresses and we compete with a global industry for skilled and experienced employees. Failure to attract and retain people with the right capabilities and experience could negatively affect our ability to operate existing facilities, to introduce and maintain the appropriate technological improvements to our business, as well as our ability to successfully construct and commission new plants or establish new business ventures. This may have a material adverse effect on our business, operating results, cash flows and financial condition.

Intellectual property risks may adversely affect our freedom to operate our processes and sell our products and may dilute our competitive advantage

        Our various products and processes, including most notably, our chemical, CTL and GTL products and processes have unique characteristics and chemical structures and, as a result, are subject to confidentiality and/or patent protection, the extent of which varies from country to country. Rapid changes in our technology commercialisation strategy may result in a misalignment between our intellectual property protection filing strategy and the countries in which we operate. The disclosure of our confidential information and/or the expiry of a patent may result in increased competition in the market for our products and processes, although the continuous supplementation of our patent portfolio mitigates such risk to an extent. In addition, aggressive patenting by our competitors, particularly in countries like the US and China, may result in an increased patent infringement risk and may constrain our ability to operate in our preferred markets.

        A significant percentage of our products can be regarded as commodity chemicals, some of which have unique characteristics and chemical structure which make the products suitable for different applications than the typical commodity products. These products are normally utilised by our customers as feedstock to manufacture specialty chemicals or application-type products. We have noticed a worldwide trend of increased filing of patents relating to the composition of product formulations and the applications thereof. These patents may create pressure on those of our customers who market these product formulations which may adversely affect our sales to these customers. These patents may also increase our risk to exposure from limited indemnities provided to our customers of these products in case there is a patent infringement which may impact the use of the product on our customers' side. Patent-related pressures may adversely affect our business, operating results, cash flows and financial condition.

        We believe that our proprietary technology, know-how, confidential information and trade secrets, provide us with a competitive advantage. A possible loss of experienced personnel to competitors, and a possible transfer of know-how and trade secrets associated therewith, may negatively impact this advantage. In addition, the patenting by our competitors of technology built on our know-how obtained through former employees may result in additional risk.

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        Similarly, operating and licensing technology in countries in which intellectual property laws are not well established and enforced may result in an inability to effectively enforce our intellectual property rights. The risk of some transfer of our know-how and trade secrets to our competitors is increased by the increase in the number of licences granted under our intellectual property, as well as the increase in the number of licensed plants which are brought into operation through entities which we do not control. As intellectual property warranties and indemnities are provided under each new licence granted, the cumulative risk increases accordingly.

        The above risks may adversely affect our business, operating results, cash flows and financial condition.

Increasing competition by products originating from countries with low production costs may adversely affect our business, operating results, cash flows and financial condition

        Certain of our chemical production facilities are located in developed countries, including the US and Europe. Economic and political conditions in these countries result in relatively high labour costs and, in some regions, relatively inflexible labour markets. Increasing competition from regions with lower production costs and more flexible labour markets, for example the Middle East, India and China, exerts pressure on the competitiveness of our chemical products and, therefore, on our profit margins. This could result in the withdrawal of particular products or the closure of specific facilities, which may have a material adverse effect on our business, operating results, cash flows and financial condition.

We may face potential costs in connection with industry-related accidents or deliberate acts of terror causing property damage, personal injuries or environmental contamination

        We operate coal mines, explore for and produce oil and gas and operate a number of plants and facilities for the manufacture, storage, processing and transportation of oil, chemicals and gas, related raw materials, products and wastes. These facilities and their respective operations are subject to various risks, such as fires, explosions, releases and loss of containment of hazardous substances, soil and water contamination, flooding and land subsidence, among others. As a result, we are subject to the risk of experiencing, and have in the past experienced, industry-related incidents. Our facilities are also subject to the risk of deliberate acts of terror.

        Our main Sasol Synfuels production facilities are concentrated in a relatively small area in Secunda, South Africa. This facility utilises feedstock from our mining and gas businesses, whilst the chemical and oil businesses rely on the facility for the raw materials it produces. Accidents and acts of terror may result in damage to our facilities and may require shutdown of the affected facilities, thereby disrupting production, increasing production costs and may even disrupt the mining, gas, chemicals and oil businesses which make up a significant portion of our total income. Furthermore, accidents or acts of terror at our operations may have caused, or may in future cause, environmental contamination, personal injuries, health impairment or fatalities and may result in exposure to extensive environmental remediation costs, civil litigation, the imposition of fines and penalties and the need to obtain or implement costly pollution control technology.

        Our products are ultimately sold to customers around the world and this exposes us to risks related to the transportation of such products by road, rail or marine vessels. Such activities take place in the public domain exposing us to incident risks over which we have limited control.

        It is Sasol's policy to procure appropriate property damage and business interruption insurance cover for its production facilities above acceptable deductible levels at acceptable commercial premiums. However, full cover for all loss scenarios may not be available at acceptable commercial rates, and we cannot give any assurance that the insurance procured for any particular year would

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cover all potential risks sufficiently or that the insurers will have the financial ability to pay all claims that may arise.

        The costs we may incur as a result of the above or related factors could have a material adverse effect on our business, operating results, cash flows and financial condition.

We may face the risk of information security breaches or attempts to disrupt critical information technology services, which may adversely impact our operations

        The increasing use of information technology (IT) systems in operations are making all industries, including the energy and chemicals industries, much more susceptible to cyber threats. Recent global trends have shown that the energy sector is increasingly becoming the target of cyber-attacks. Although we have an information security programme in place, Sasol may be vulnerable to cyber-attacks and attempts to gain unauthorised access to our IT systems. Disruption of critical IT services, or breaches of information security, could have a material adverse effect on our disclosure control processes.

Our coal, synthetic oil, natural oil and natural gas reserve estimates may be materially different from quantities that we eventually recover

        Our reported coal, synthetic oil, natural oil and gas reserves are estimated quantities based on applicable reporting regulations that under present and anticipated conditions have the potential to be economically mined, processed or produced.

        There are numerous uncertainties inherent in estimating quantities of reserves and in projecting future rates of production, including factors which are beyond our control. The accuracy of any reserve estimate is a function of the quality of available data, engineering and geological interpretation and judgement.

        Reserve estimates will require revision based on actual production experience and other factors, including extensions and discoveries. In addition, regulatory changes, market prices, increased production costs and other factors may result in a revision to estimated reserves. Significantly revised estimates may have a material adverse effect on our business, operating results, cash flows and financial condition. See "Item 4.D—Property, plants and equipment".

Our international activities increase the compliance risks associated with economic and trade sanctions imposed by the United States, the European Union and other jurisdictions

        Our international operations could expose us to trade and economic sanctions or other restrictions imposed by the United States or other governments or organisations, including the United Nations, the European Union and its member countries. Under economic and trading sanctions laws, governments may seek to impose modifications to business practices, and modifications to compliance programmes, which may increase compliance costs, and may subject us to fines, penalties and other sanctions.

        Although we believe that we are in compliance with all applicable sanctions and embargo laws and regulations, and intend to maintain such compliance, there can be no assurance that we will be in compliance in the future, particularly as the scope of certain laws may be unclear and may be subject to changing interpretations.

        We are monitoring developments in the United States, the European Union and other jurisdictions that maintain sanctions programs, including developments in implementation and enforcement of such sanctions programs. Expansion of sanctions programs, embargoes and other restrictions in the future (including additional designations of countries subject to sanctions), or modifications in how existing sanctions are interpreted or enforced, could have a material adverse effect on our business, operating results, cash flows and financial condition.

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The exercise of voting rights by holders of American Depositary Receipts is limited in some circumstances

        Holders of American Depositary Receipts (ADRs) may exercise voting rights with respect to the ordinary shares underlying their American Depositary Shares (ADSs) only in accordance with the provisions of our deposit agreement (Deposit Agreement) with The Bank of New York Mellon, as the depositary (Depositary). For example, ADR holders will not receive notice of a meeting directly from us. Rather, we will provide notice of a shareholders meeting to The Bank of New York Mellon in accordance with the Deposit Agreement. The Bank of New York Mellon has undertaken in turn, as soon as practicable after receipt of our notice, to mail voting materials to holders of ADRs. These voting materials include information on the matters to be voted on as contained in our notice of the shareholders meeting and a statement that the holders of ADRs on a specified date will be entitled, subject to any applicable provision of the laws of South Africa and our Memorandum of Incorporation, to instruct The Bank of New York Mellon as to the exercise of the voting rights pertaining to the shares underlying their respective ADSs on a specified date. In addition, holders of our ADRs will be required to instruct The Bank of New York Mellon how to exercise these voting rights.

        Upon the written instruction of an ADR holder, The Bank of New York Mellon will endeavour, in so far as practicable, to vote or cause to be voted the shares underlying the ADSs in accordance with the instructions received. If instructions from an ADR holder are not received by The Bank of New York Mellon by the date specified in the voting materials, The Bank of New York Mellon will not request a proxy on behalf of such holder. The Bank of New York Mellon will not vote or attempt to exercise the right to vote other than in accordance with the instructions received from ADR holders.

        We cannot assure you that you will receive the voting materials in time to ensure that you can instruct The Bank of New York Mellon to vote the shares underlying your ADSs. In addition, The Bank of New York Mellon and its agents are not responsible for failing to carry out voting instructions or for the manner of carrying out voting instructions. This means that you may not be able to exercise your right to vote and there may be no recourse if your voting rights are not exercised as you directed.

Sales of a large amount of Sasol's ordinary shares and ADSs could adversely affect the prevailing market price of the securities

        Historically, trading volumes and liquidity of shares listed on the JSE Limited (JSE) have been low in comparison with other major markets. The ability of a holder to sell a substantial number of Sasol's ordinary shares on the JSE in a timely manner, especially in a large block trade, may be restricted by this limited liquidity. The sales of ordinary shares or ADSs, if substantial, or the perception that these sales may occur and be substantial, could exert downward pressure on the prevailing market prices for the Sasol ordinary shares or ADSs, causing their market prices to decline.

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ITEM 4.    INFORMATION ON THE COMPANY

4.A    History and development of the company

        Sasol Limited, the ultimate holding company of our group, is a public company. It was incorporated under the laws of the Republic of South Africa in 1979 and has been listed on the JSE Limited (JSE) since October 1979. Our registered office and corporate headquarters are at 1 Sturdee Avenue, Rosebank, 2196, South Africa, and our telephone number is +27 11 441 3111. Our agent for service of process in the United States is Puglisi and Associates, 850 Library Avenue, Suite 204, P.O. Box 885, Newark, Delaware 19715.

        As of 30 June 2014, we were one of the largest JSE listed companies by Sasol ordinary shares market capitalisation (R411 413 million in respect of the Sasol ordinary shares), with total consolidated turnover of R202 683 million for the year ended 2014.

4.B    Business overview

        Sasol is an international integrated energy and chemicals company that leverages the talent and expertise of our more than 33 000 people working in 37 countries. We develop and commercialise technologies, and build and operate world-scale facilities, to produce a range of product streams, including liquid fuels, high-value chemicals and low-carbon electricity.

        While continuing to support our home-base of South Africa, Sasol is expanding internationally based on a unique value proposition. Our ability to deliver sustainable shareholder value is premised on developing our people, keeping them safe and healthy, contributing meaningfully to the social and economic development of the countries and communities within which we work, and doing so in an environmentally responsible way. Sasol is listed on the Johannesburg Stock Exchange in Johannesburg (JSE: SOL) and the New York Stock Exchange (NYSE: SSL), with headquarters in Johannesburg, South Africa.

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Our activities

        Sasol believes that its ability to compete and grow sustainably is contingent on internal collaboration, knowledge and resource sharing, as well as building effective external partnerships and joint ventures in different markets, territories and cultural contexts. We cluster our businesses according to common business drivers. Clustering involves creating linkages among logically related businesses that allow for strategic consistency and operational efficiencies. The group's structure is organised into three focused business clusters—South African Energy Cluster, International Energy Cluster and Chemical Cluster.

        We divide our operations into the following segments:

South African Energy Cluster

•

Sasol Mining.  We mine approximately 41,5 million tons (Mt) of saleable coal per year, mostly for gasification feedstock and utilities coal for our complexes in Secunda and Sasolburg, in South Africa, and export approximately 2,9 Mt of coal annually. Sasol Mining accounted for 1% of our total external segmental turnover in 2014.



•

Sasol Gas.  We distribute and market Mozambican-produced natural gas and Secunda-produced methane-rich gas to customers in the Gauteng, Mpumalanga, KwaZulu-Natal, Free State and North-West provinces of South Africa. We also have a 50% interest in Republic of Mozambique Pipeline Investments Company (Pty) Ltd (Rompco), a company which owns, operates and maintains the 865 km cross-border pipeline that transmits natural gas from the Temane central processing facility in Mozambique to the gas network in South Africa. Sasol Gas accounted for 2% of our total external segmental turnover in 2014.



•

Sasol Synfuels.  We operate the world's only commercial coal-based synfuels manufacturing facility at Secunda. We produce synthesis gas through coal gasification and natural gas reforming, using our proprietary technology to convert synthesis gas into synthetic fuel components, chemical feedstock and pipeline gas. We sell fuel components and heavy fuel oils to Sasol Oil, and methane-rich gas to Sasol Gas. Chemical feedstocks are sold to the chemical divisions of Sasol. Sasol Synfuels accounted for less than 1% of our total external segmental turnover in 2014.



•

Sasol Oil.  We market fuels blended at Secunda and fuels refined through our 63,64% interest in the Sasolburg Natref refinery. We also market lubricants blended at Engen, Sasol Oil and the Agip (ESA) facility in Durban, in which we own a 40% stake. Products include petrol, diesel, jet fuel, illuminating paraffin, liquid petroleum gas (LPG), fuel oils, bitumen, motor and industrial lubricants and sulphur. We have 293 Sasol branded service stations, including seven Sasol branded integrated energy centres, and 87 Exel branded service stations in South Africa. Fuel is exported by way of third parties to several Southern African Development Community (SADC) countries. Sasol Oil accounted for 40% of our total external segmental turnover in 2014.



•

Other.  This segment includes capitalised costs associated with a pre-feasibility study for the expansion of our synthetic fuels capacity in South Africa. Based on the reprioritisation of our capital projects, we have decided to put this project on hold.

International Energy Cluster

•

Sasol Synfuels International (SSI).  We develop, implement and manage international business ventures based on Sasol's proprietary GTL technology, marketing and support subsidiary. SSI primarily focuses on securing opportunities to advance Sasol's GTL strategy. SSI is currently involved in two GTL production facilities in Qatar and Nigeria, and is in front end engineering and design (FEED) for the US GTL project and extended FEED in Uzbekistan. A feasibility

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study has been completed for a GTL project in Canada, and a decision on FEED will be taken at a later stage. SSI is also conducting feasibility studies for GTL facilities at various other locations globally, including Mozambique. SSI accounted for less than 1% of our total external segmental turnover in 2014.

•

Sasol Petroleum International (SPI).  We manage the group's natural oil and gas exploration and production interests in West and Southern Africa, Canada and Australia. Our current development and production assets and exploration portfolio are shown on the maps on pages M-6 to M-9. We are mandated to pursue opportunities for the exploration, appraisal, development and production of hydrocarbon resources to supply feedstock to existing or potential future Sasol downstream plants and external customers. We operate production facilities in Mozambique, and have non-operating interests in producing assets in Canada and Gabon. SPI accounted for 1% of our total external segmental turnover in 2014.

Chemical Cluster

•

Sasol Polymers.  We operate plants at Sasolburg and Secunda in South Africa and supply ethylene, propylene, polyethylene, polypropylene, polyvinyl chloride, chlor-alkali chemicals and mining reagents to domestic and international customers. We also have joint venture monomer and polymer interests in Malaysia and marketing facilities in China. Sasol Polymers accounted for 10% of our total external segmental turnover in 2014.



•

Sasol Solvents.  We operate plants in South Africa and supply a diverse range of solvents (ketones and alcohols), acrylates and associated products. We disposed of the majority of our German assets in May 2014. We have a maleic anhydride investment in joint venture with Huntsman Corporation, in Germany. Sasol Solvents accounted for 8% of our total external segmental turnover in 2014.



•

Sasol Olefins & Surfactants.  We operate plants in Germany, Italy, the US, the Slovak Republic and China and supply surfactants, linear alkylbenzene, surfactant intermediates, n-paraffins, n-olefins, C₆-C₂₂ alcohols, co-monomers, ethylene and other organic intermediates to customers worldwide as well as specialty aluminas, silica aluminas and hydrotalcites. Sasol Olefins & Surfactants accounted for 28% of our total external segmental turnover in 2014.



•

Other chemical businesses.  We are involved in a number of other activities in the chemicals industry, both in South Africa and internationally, which, among others, include production and marketing of other chemical products, like waxes, fertilisers and mining explosive products. These activities accounted for 10% of our total external segmental turnover in 2014.

Other businesses

•

Other.  We are involved in a number of other activities in the energy and chemicals industries, both in South Africa and internationally, which, among others, are technology research and development, generation of low-carbon electricity, our financing activities as well as alternative energy activities.

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        The following tables present our total external turnover after the elimination of inter-segment turnover by business operation and geographic market in accordance with IFRS:

 

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Our strategy

        Our primary strategic focus is:

•

nurture and grow our existing foundation businesses in Southern Africa, Europe and North America;



•

commercialising our technology internationally through our GTL growth strategy;



•

increasing natural gas reserves through exploration; acquisitions of chemical investments or other investments that complement our GTL value proposition; and



•

pursuing opportunities where we have either a feedstock, technology or market advantage across all our value chains.

        In addition, we are working to develop low-carbon electricity in Southern Africa, particularly, to improve energy security and monetise our gas resources.

        Nurturing and growing our existing foundation businesses—To drive improved operational and overall business performance, we continue to pursue our business excellence corporate-wide initiative. This initiative cuts across all Sasol operations and is a key part of Sasol's strategy to more effectively extract value from the company's existing integrated asset base, proprietary technology and product portfolio.

        We continually review and optimise our asset portfolio to maximise Sasol's foundation business performance. As a result, in 2014, Sasol disposed of its methyl-ethyl-ketone (MEK) and iso-propyl-alcohol (IPA) assets in Germany.

        Commercialising and expanding our GTL technology growth prospects—We have made further progress in growing our GTL businesses based on the Sasol SPD™ process in natural gas-rich regions. The Sasol SPD™ process allows us to monetise competitively priced gas resources by converting them into GTL kerosene, superior quality diesel, naphtha and higher value chemicals in line with global trends towards cleaner fuel and reduced emissions to the environment.

        The prospects for GTL and chemical plants are promising, in light of the availability of gas at various locations in the world.

        The FEED work for our world-scale chemical complex in Westlake, Louisiana is nearing completion. The economics of the complex, consisting of a world-scale 1,5 million tons per annum ethane cracker and six ethylene derivative units, remain robust. We have secured sufficient ethane transportation capacity on various pipeline systems, as well as term-based ethane supply agreements. We remain on track to take a final investment decision on the ethane cracker before the end of the 2014 calendar year.

        Our well-defined contracting strategy mixes fixed-price and reimbursable contracts. This will limit undue cost contingencies and the related risk. The capital expenditure for the chemical complex includes extraordinary costs incurred to acquire additional land for the construction of the project, and establish our Lake Charles Chemical Complex as an integrated multi-asset site similar to our Secunda site. This land and enabling infrastructure will facilitate and enable future growth in the region, and benefit our Lake Charles site for decades to come.

        Working alongside Technip, we are progressing with the FEED phase of our planned US GTL and chemicals value-adds facility. This facility which will be located adjacent to the ethane cracker and downstream derivatives complex in Westlake, Louisiana, will produce at least a nominal 96 000 barrels per day of product, with the potential to produce up to 10% more. The final investment decision on the GTL facility is expected to follow within 24 months of that of the US ethane cracker and derivatives complex, taking into consideration the progress made with the execution of the cracker

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project, prevailing market conditions, as well as the impact on Sasol's gearing and progressive dividend policy.

        The air, water and wetlands permits for the ethane cracker and derivatives complex as well as the US GTL and chemical value adds facility were issued without any challenges or objections, supporting the positive view taken by stakeholders on this project.

        In Nigeria, the Escravos GTL project achieved the start of beneficial operation during June 2014. Start-up activities have continued as scheduled, and the facility is expected to ramp up to full capacity in 2015.

        In Mozambique, a joint pre-feasibility study for a large-scale GTL plant, based on gas from the Rovuma Basin in Northern Mozambique, is underway. The study, conducted in conjunction with Mozambique's national oil company, Empresa Nacional de Hidrocarbonetos and the Italian multinational, Eni S.p.A., will assess the viability and benefits of such a plant in the region.

        We continue to assess various opportunities in a number of countries. We are conducting extended FEED activities for a GTL facility in Uzbekistan, and completed a feasibility study into a GTL facility in Western Canada in 2012. A decision on the FEED phase will be taken at a later stage.

        Furthermore, in support of this growth driver, our team of researchers continues to advance our next-generation GTL technology, including our proprietary low-temperature Slurry Phase Fischer-Tropsch reactor and cobalt based catalysts. These improvements are included in the designs for new facilities as they are released for commercial application.

        Growing our chemicals portfolio—The chemicals cluster represents the second leg in Sasol's portfolio, in addition to energy and fuels. The South African chemicals businesses focuses primarily on chemicals emanating from our Secunda facilities and have identified the C₂ and C₃ value chains as a source of growth. The aim in these businesses is to secure feedstock and economy of scale advantage. This is achieved through our close integration into the Fischer Tropsch value chain. Similarly, our investment in the ethane cracker in Lake Charles will provide us with a feedstock advantage, as a result of the availability of competitively priced ethane in the US.

        Our international chemicals businesses are focused on the wax, linear alkyl benzene (LAB), detergent alcohols, co-monomers, phenolics and catalyst businesses. The strategic objective, in these areas, is to meet the evolving needs of the market, through focused applications, research and customer relationships, to achieve higher margins.

        We are pursuing substantial growth opportunities in our chemicals portfolio through the development of a world-scale ethane cracker facility at Lake Charles in the US. We also plan to extract high value chemical feedstock from our existing and future GTL projects. These developments will benefit most of our chemicals businesses.

        Outside of these opportunities, our chemical businesses continue to pursue a strategy to improve the operating performance of our existing assets and grow in selected areas of competitive advantage. In this regard, we have constructed the world's first commercial ethylene tetramerisation unit at the Lake Charles production site in the US in 2014. The capacity for this facility is 100 000 tons per annum of combined 1-octene and 1-hexene, which are co-monomers used in the plastics industry. Our chemicals businesses continue to add value through a focus on improved operational and product margin improvements. These efforts are aimed at creating value from the unique properties of many of the products that arise from Sasol's proprietary chemicals technologies. In order to take full advantage of the benefit of low ethane prices in the US, we are constructing a 470 kilotons per annum high density polyethylene (HDPE) plant in partnership with INEOS. The ethylene required for the production of HDPE will be supplied from our existing Lake Charles operations. Once the new ethane

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cracker is operational (subject to the final investment decision), the ethylene from the existing Lake Charles operations will be supplemented with ethylene from the new ethane cracker.

        Acquiring, maturing and developing upstream hydrocarbon opportunities.    In support of our upstream growth aspirations we maximise production from existing producing assets, appraise and develop our non-producing assets, mature the resources in our existing exploration portfolio, and expand our upstream asset base by evaluating opportunities to diversify and expand our portfolio.

        In 2014, we completed the initial phase, and commenced the define phase of the development project for the Pande- Temane Production Sharing Agreement (PSA) asset, and converted a Technical Cooperation Permit (TCP) to an Exploration Right (ER236) in the Durban Basin, offshore South Africa. Additionally, we concluded an agreement to obtain two additional licences in Canada to extend our existing acreage in the Farrell Creek and Cypress A area. In August 2014, we also signed a conditional farm-in agreement to acquire an interest in three onshore Exploration Permits (EP76, EP98 and EP117) in the Beetaloo Basin of Australia's Northern Territory.

        Our current areas of interests and activities are shown on the maps on pages M-6 to M-9. We produce natural gas and condensate from the onshore Temane and Pande gas fields in Mozambique, oil in Gabon from the offshore Etame, Avouma and Ebouri oil field cluster and natural gas and petroleum liquids from the unconventional (shale/tight gas) Farrell Creek and Cypress A asset in Canada. We continue our efforts to expand the upstream asset base in order to supply feedstock gas for existing and new downstream businesses. For that purpose, we continue to pursue a growth plan to: maximise production from existing assets; expand our exploration portfolio; consider acquisition opportunities; and investigate conventional and unconventional gas opportunities.

        Sasol Gas continues to focus on growing the South African gas market following the successful introduction of natural gas from Mozambique in 2004.

        Develop and grow low carbon power generation—We have successfully developed a number of gas-to-power opportunities, including the start-up of the Sasolburg 175 megawatt gas engine power plant in December 2012. We also advanced the development of our 49% share of the US$246 million, 175 megawatt gas-fired power generation plant in Ressano Garcia, Mozambique, in partnership with the country's state-owned power utility Electricidade de Moçambique which is expected to reach beneficial operation in October 2014. The plant is currently being commissioned.

South African Energy Cluster

Sasol Mining

Nature of the operations and principal activities

        In South Africa, we have three coal mining operations:

•

The coal-to-liquids (CTL) complex, comprising of Bosjesspruit, Brandspruit, Middelbult and Syferfontein, supplied our primary customer, Sasol Synfuels, with 39,5 Mt of coal during the year. Of this amount, 32,9 Mt of coal was produced, 5,1 Mt was externally purchased and 2,3 Mt was a mixture of run of mine (ROM) and by-product coal transferred from our Export complex. At 30 June 2014, the stockpile gained 0,7 Mt on the opening stock.



•

The Export complex, consisting of the Twistdraai Colliery, produced 6,9 Mt during the year. 2,3 Mt was transferred to the CTL complex, 2,9 Mt exported and 1,8 Mt discarded during the beneficiation process. The stockpile reduced by 0,1 Mt.



•

The Sigma complex, situated near Sasolburg in the Free State province, produced 1,7 Mt from the Mooikraal Colliery during the year. In total, 2,1 Mt coal was supplied to Infrachem,

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approximately 1,7 Mt from Mooikraal Colliery and 0,4 Mt fine coal was purchased from the Sasol Synfuels plant in Secunda.

        During 2014, we produced 41,5 Mt of coal, compared to 40,1 Mt in the previous year. The focus to add capacity, by opening additional pit room and dealing more effectively with stonework development, resulted in increased production during the latter part of the year. The Twistdraai Colliery: Thubelisha Shaft in particular, benefitted from these initiatives, and the ramp-up to full production is progressing to plan.

        The higher coal production enabled Sasol Mining to increase its coal exports, thereby taking advantage of the weaker rand compared to the US dollar.

Operational statistics

Principal markets

        We extract and supply coal mainly to our Synfuels and chemical plants under terms and conditions which are determined on an arm's length basis. We export approximately 7% of our production. In 2014, exports increased to 2,9 Mt from 2,5 Mt in 2013. In a volatile currency market, average US dollar export prices decreased by 10%, while the rand weakened by 17% compared with the prior year.

        Marketing opportunities for coal in both the international and domestic utility market continue to be explored. Our exports are currently constrained by our throughput entitlement at the Richards Bay Coal Terminal.

External market opportunities

        Limpopo West Mining project.    We were awarded a prospecting right in respect of the Limpopo West reserves in August 2007. The prospecting right was extended for the maximum period permitted by the Mineral and Petroleum Resources Development Act (Act 28 of 2002) (MPRDA) after its initial term, which expired on 2 September 2012. The prospecting right was committed to the Eyesizwe Sasol Waterberg Joint Venture. Exxaro Coal Mpumalanga (previously known as Eyesizwe Coal) has agreed

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and accepted that the prospecting joint venture with Sasol Mining has been terminated. Sasol Mining remains as the unencumbered holder of the prospecting right.

        In view of the government's National Development Plan relating to the Waterberg coal resource area, which was communicated in December 2011, Sasol Mining investigated options to exploit possible future business opportunities relating to the Limpopo West reserves independent of the CTL market. Based on the outcome of study results completed in May 2012, Sasol Mining submitted a mining right application on behalf of the Eyesizwe Sasol Waterberg Joint Venture in August 2012. The mining right application was accepted on 16 January 2013. An amended Social and Labour Plan was submitted to the Department of Mineral Rights (the Department) in November 2013. On 29 October 2013, the pre-feasibility study for the Limpopo West project was approved. Sasol Mining will inform the Department of the termination of the joint venture. Depending on the Department's requirements, a new black economic empowerment partner will be identified to conclude a shareholders agreement.

Seasonality

        The demand for coal by our Synfuels and chemical plants is consistent throughout the year. The export coal demand is consistent, mainly in India and the Middle East. Even though the demand for coal is seasonal in certain regions, our sales are planned to ensure even shipment of coal throughout the year.

Marketing channels

        We make use of both a direct and an agency sales model as the chosen channels to market our products to third parties. Currently, only one agent represents Sasol Mining in a specific geographic market. The agent operates on a commission basis and is authorised to act as an intermediate only, with the aim of promoting our products and providing after-sales service. All sales require approval by Sasol Mining before they may be concluded with the customer.

Factors on which the business is dependent

        Being part of the Sasol value chain, Sasol Mining is required to be engaged on an on-going basis with Sasol Synfuels, to ensure optimal delivery and utilisation of our coal resources. We also have dedicated strategic and long-term planning departments to ensure that mining and other related activities are performed in accordance with our strategic plans for the future.

        Also refer to Item 4B "Business overview—Regulation of mining activities in South Africa".

Property, plants and equipment

        Sasol Mining operates six mines for the supply of coal to Sasol Synfuels, Sasol Infrachem (utility coal only) and the external market. The annual production of each mine, the primary market to which it supplies coal and the location of each mine are indicated in the table below:

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        Some of our collieries are approaching the end of their useful lives and, accordingly, new collieries and shafts are being developed to sustain consistent supply. Approval for the construction of the Impumelelo colliery, which will replace the ageing Brandspruit Colliery, was obtained in November 2010. Despite some shaft sinking challenges related to productivity, we still expect the project to reach beneficial operation during the middle of the 2015 calendar year.

        Construction work at the Shondoni Colliery, which will replace the current Middelbult Colliery production, started during February 2012. The project is expected to reach beneficial operation during the second half of the 2015 calendar year.

        Construction on the Tweedraai shaft, an additional shaft for the Syferfontein complex, started in 2013 and the first development section opening up underground area started in April 2014. Tweedraai does not require shaft sinking. Beneficial operation is planned for the first half of the 2015 calendar year, coinciding with the availability of the conveyor system and ventilation shaft.

        We expect these capital projects to be completed within their approved budgets.

Coal handling facility—Sasol Coal Supply (SCS)

        SCS at Secunda is responsible for the conveyance of coal from the mine mouth to a stock holding facility. Coal from the various collieries is blended in order to homogenise the product, which is then conveyed to Sasol Synfuels, as required.

Beneficiation plant

        We operate a coal beneficiation plant in Secunda to enable us to supply export quality coal to the international markets. The design throughput of the plant is 10,5 Mt per annum. The plant feedstock is supplied by Twistdraai colliery via overland conveyor belts of approximately 20 km in length. The new Twistdraai Thubelisha shaft conveyor, which is approximately 17 km in length, will replace the current conveyor system over the next few years.

Sasol Gas

Nature of the operations and its principal activities

        Established in 1964, as the South African Gas Distribution Corporation Limited (Gascor), Sasol Gas operates and maintains a pipeline network of approximately 2 500km in South Africa and Mozambique.

        As part of the Natural Gas Project for the development, production and transportation of natural gas from Mozambique, Rompco was established as the owner of the Mozambique to Secunda gas transmission pipeline (MSP). Sasol Gas has a 50% interest in Rompco.

        As part of Sasol Gas's commitment to broad-based BEE, Sasol Gas formed a joint venture company, Spring Lights Gas, with Coal Energy and Power Resources Limited (CEPR), in 2002 to which it sold a portion of its marketing business in KwaZulu-Natal, a province in South Africa. In 2012, CEPR sold its 51% share in Spring Lights Gas to another broad-based BEE consortium, Kwande Ziko. On 2 July 2013, Sasol Gas sold its 49% share in Spring Lights Gas to Kwande Capital for R474 million.

        In 2011, Sasol Gas commenced with the construction of the R1,4 billion Gauteng Network Pipeline (GNP). The GNP is a 156 km, 26 inch gas transmission pipeline between Secunda and Sasolburg, South Africa. The pipeline was completed on 28 March 2013 and beneficial operation was achieved on 23 May 2013. The pipeline added an additional capacity of 51 MGJ/a to the Gauteng network. The additional capacity has increased the delivery pressure to the Sasol Chemical Industries (SCI) complex in Sasolburg.

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Principal markets

        Sasol Gas markets methane-rich gas, produced by Sasol Synfuels, and natural gas produced from gas fields in Mozambique. In the energy market, pipeline gas competes with crude oil-derived products, electricity and coal in various industries, such as ceramics, glass, metal, manufacturing, chemical, food, pulp and paper.

        The pipeline gas segment makes up a small part of the overall energy industry in South Africa. The market has grown since 2004 as a result of the introduction of natural gas from Mozambique. The current supply of 173,6 million gigajoules per annum (MGJ/a) of pipeline gas increased from 161,4 MGJ/a in 2013. Compared to developed countries, South Africa is a small consumer of natural gas as a percentage of its total energy requirements. Although the opportunity to increase sales of natural gas exists, there is a limitation on the amount of gas available. During 2014, natural gas volumes sold were 147,3 MGJ compared to 138,3 MGJ in 2013. Methane rich gas volumes sold were 23,4 MGJ in 2014 compared to 21,8 MGJ in 2013.

        Sasol Gas supplies gas to industrial and commercial customers in the South African provinces of Mpumalanga, Gauteng, KwaZulu-Natal, North-West and the Free State. Besides marketing pipeline gas to these customers, natural gas is also supplied as feedstock to Sasol's facilities in Sasolburg and Secunda.

Seasonality

        Demand for gas in South Africa is consistent throughout the year, and is generally not subject to seasonal fluctuations due to moderate temperature variances between seasons and the absence of a significant residential market.

Raw materials

        The natural gas is purchased in Mozambique, from an unincorporated joint venture (UJV), consisting of Sasol Petroleum Temane Limitada (SPT), a subsidiary of Sasol Petroleum International, International Finance Corporation (IFC) and Companhia Moçambicana de Hidrocarbonetos, S.A.R.L (CMH). The gas is transported by Rompco to Secunda in South Africa. Methane-rich gas is purchased from the Sasol Synfuels facility in Secunda. The UJV has supplied Sasol Gas with natural gas since 2004 and Sasol Synfuels has been supplying methane-rich gas to Sasol Gas since 1994.

Marketing channels

        Sasol Gas sells approximately 94% of gas to end-use industrial customers through our own sales and marketing personnel. We also supply a small number of traders and reticulators who sell gas to their own customers.

Factors on which the business is dependent

Licences and regulations

        We have obtained the necessary licences required from the National Energy Regulator of South Africa (NERSA), in terms of the Gas Act to operate our gas transmission and distribution facilities, as well as, to engage in our trading activities.

        As and when expansion of our transmission and distribution facilities is required, we would apply for the required construction licences from NERSA.

        Sasol Gas priced its gas in terms of the Market Value Pricing methodology, as set out in the Regulatory Agreement with the South African government. In compliance with the regulatory framework, Sasol Gas submitted two applications to NERSA in December 2012, namely a maximum

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price application and a transmission tariff application. NERSA approved both applications in March 2013. The standardised prices and tariffs became effective on 26 March 2014. Sasol Gas has valid arrangements in place with all its customers relating to the supply of gas at the new prices and tariffs. Seven of Sasol Gas' largest customers have initiated a judicial review of the NERSA decisions relating to its maximum price and tariff methodologies as well as NERSA's decision on Sasol Gas's maximum price application.

        Refer to Item 4B "Business overview—Regulation of pipeline gas activities in South Africa" for additional information.

Property, plants and equipment

        The Mozambique to Secunda natural gas transmission pipeline owned by Rompco is a 26 inch carbon steel underground pipeline of 865 km. The pipeline starts from the natural gas central processing facility (CPF) at Temane in Mozambique, and ends at the pressure protection station (PPS) in Secunda. The instantaneous capacity of the pipeline is 136 MGJ/a, with an annual average in excess of 120 MGJ/a without any additional compression along the pipeline. In 2010, Rompco commissioned its first compressor station near Komatipoort in South Africa. This facility supplies midpoint compression and enables the pipeline to increase gas transportation up to an annual average of 170 MGJ/a, with an instantaneous pipeline capacity in excess of 176 MGJ/a. In 2013, Rompco embarked on a R2 billion project to construct a 128 km loop line in Mozambique to expand capacity, and allow for additional monetisation of gas in Mozambique. It is expected to reach beneficial operation in October 2014.

        The inland transmission network of Gauteng is fed from the PPS in Secunda via a 30 inch carbon steel underground pipeline, which feeds into a second PPS at Nigel. The section of pipeline up to the Nigel PPS is operated at a maximum allowable operating pressure (MAOP) of 4 550 kPa. From Nigel, the network is operated at a MAOP of 3 550 kPa and the capacity of the Gauteng transmission network is approximately 89 MGJ/a. The newly commissioned GNP also serves the inland network and has increased the overall capacity of the Gauteng network by 51 MGJ/a to 140 MGJ/a. These pipelines supply various low pressure distribution areas, as well as some customers directly. Where these lines enter into the distribution areas, a pressure reduction station reduces the pressure to 625 kPa. The southern part of the inland network ends in Sasolburg.

        The Secunda, Witbank and Middelburg pipeline network receives methane-rich gas from Sasol Synfuels. The MAOP for this pipeline is 3 000 kPa and the capacity of the network is approximately 10 MGJ/a. Methane-rich gas, similar to that which is supplied to Witbank and Middelburg, is compressed and fed into the Transnet Pipelines transmission pipeline to supply our customers in the KwaZulu-Natal province. The MAOP for this transmission pipeline is 5 300 kPa and the capacity of the network is approximately 21 MGJ/a.

Sasol Synfuels

Nature of the operations and principal activities

        Sasol Synfuels, based in Secunda, operates a coal and gas based synthetic fuels manufacturing facility. We produce syngas primarily from low-grade coal with a smaller portion of natural gas. The process uses advanced, high temperature Fischer-Tropsch technology to convert syngas into a range of synthetic fuel components, heating fuels (including industrial pipeline gas), ammonia, sulphur and chemical feedstock. Fuel components are used mainly for blending into automotive fuels as well as liquefied petroleum gas. Chemical feedstreams that are produced are used for the production of chemical and polymer building blocks, including ethylene, propylene, detergent alcohols, phenols, alcohols and ketones. Apart from the production of saleable products, we are self-sufficient in the production of utilities such as oxygen and steam required in the production process as well as

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generating approximately 50% of our own electricity demand. Together with Sasol New Energy's first gas-to-electricity power generation plant in Sasolburg, the group is able to increase its cumulative electricity generation capacity to approximately 70% of its own requirements. We operate the world's largest oxygen production facilities (according to Air Liquide, the French industrial gas company), currently consisting of 16 units.

        The Secunda Natural Gas Growth Project (SNGGP) phase 1(a) was approved by the Sasol Limited board during March 2010. The total approved amount of R14,2 billion consists of capital and feasibility funds. This investment will result in an increase in production of approximately 3% on a production baseline of 7,3 million tons per annum, on a sustainable basis, as well as additional electricity generation from gas turbines. Many of the benefits are already evidenced by the increased production performance. Sasol Synfuels has incurred total costs of R13,4 billion to 30 June 2014 in respect of the SNGGP phase 1(a). The first set of gas heated heat exchange reformers (GHHER's) reached beneficial operation on 13 June 2013. The second set of GHHER's is expected to reach beneficial operation during the 2014 calendar year.

        With regards to the Clean Fuels 2 programme, the South African Petroleum Industry Association confirmed that the South African government has communicated a postponement to the 1 July 2017 introduction date, of new cleaner fuels standards. A new target date is awaited. Furthermore, market trends are indicating upward pressure on octane demand. With the clean fuels programme schedule still uncertain, and the potential to allow for increased octane capacity, higher capital requirements are likely. Studies are in process to quantify the impact and to determine an appropriate way forward.

Principal markets

        Sasol Synfuels sells fuel components and heavy fuel oils to Sasol Oil, and methane-rich gas to Sasol Gas. Chemical feedstocks are sold to the chemical divisions of Sasol. These feedstocks are processed and marketed for a wide range of applications locally and abroad.

Raw materials

        The main feedstock components used by Sasol Synfuels in the production process are low grade coal obtained from Sasol Mining and natural gas obtained from Sasol Gas. Prices of low grade coal are determined using an arm's length pricing mechanism for Sasol Mining. The natural gas price for the first three quarters of 2014 was determined by movements in the international price of Brent crude oil, the rand /US dollar exchange rate, as well as the South African Producer Price Index. From April 2014 a new methodology, based on a basket of alternative energy carriers, was introduced. The new methodology, as well as the maximum tariffs, was approved by NERSA.

Marketing channels

        The bulk of our products are sold to other Sasol business units. A very small volume of carbon products are directly marketed to clients locally and abroad, via commercial distribution channels.

Property, plants and equipment

Specific product volumes

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        Our focus on operational improvements delivered an increase in Sasol Synfuels production volumes. Sasol Synfuels managed to maintain stable plant operations for 2014 resulting in an increase in production volumes by 2,3% from 7,44 Mt in 2013 to 7,61 Mt in 2014 despite a full and phase shutdown during the year.

        Sasol Synfuels continues to advance a series of major environmental projects as part of a wider group initiative in South Africa to reduce our environmental footprint and enhance operational efficiency.

        Sasol Synfuels has approved R5,8 billion for environmental projects to date. This amount further includes spending on site remediation, stabilisation of sludges and solids in the black product site, the reduction of VOC emissions and the sulphuric acid plant. At 30 June 2014, the total expenditure on these projects was R3,6 billion, with the remaining R2,2 billion to be spent in the upcoming years.

        The VOC abatement project was approved in stages, with the most recent capital expenditure being approved during February 2014. The total amount approved for the project is R2,5 billion, including development funds of R6,2 million. At 30 June 2014, the total expenditure on this project amounted to R1,3 billion with beneficial operation expected during June 2016.

        A total amount of R2,2 billion was approved for the replacement of tar tanks and separators. This will ensure that the production capacity of the Secunda complex is maintained. As at 30 June 2014, the total expenditure on this project amounted to R1,2 billion. The project is expected to reach beneficial operation in September 2015.

        The coal tar filtration (CTF) east project is another significant project at Sasol Synfuels, with a total approved amount of R2,9 billion. At 30 June 2014, the total expenditure on this project was R1,0 billion. The CTF east project will ensure compliance with environmental and health requirements and will also increase tar processing capacity to avoid tar dumping. Beneficial operation is expected during January 2017.

Sasol Oil

Nature of the operations and principal activities

        Sasol Oil encompasses the established liquid fuels, bitumen, heating fuels and lubricants marketing activities of Sasol through wholesale and commercial interests featuring the Sasol brand, as well as retailing interests which feature both the Sasol and the Exel brands. Operations include fuel blending and storage facilities in Secunda where fuel components procured from Sasol Synfuels are blended to be marketable liquid fuels. Sasol Oil is also responsible for crude oil procurement, shipping and the subsequent refining of crude oil through our interest in the Natref refinery in Sasolburg. Products include petrol, diesel, jet fuel, illuminating paraffin, liquid petroleum gas (LPG), fuel oils, bitumen and sulphur. Sasol Oil utilises its 40% share in the Engen, Sasol Oil, Agip (ESA) lubricants blending facility to produce both motor and industrial lubricants for marketing purposes.

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Liquid fuels marketed

Principal markets

        Sasol Oil's fuel production is primarily located in South Africa's industrial heartland, where an estimated 58% of the country's petrol and diesel is consumed. Sasol's production of approximately 7,7 million m³ of white products per year is insufficient to supply this market. The balance of the requirement is supplied from coastal refineries and imports, transported via road, rail and pipelines. Limited volumes of white products are exported overland to neighbouring countries.

Seasonality

        The total South African demand for road transportation fuels is fairly consistent throughout the year. Slightly higher demand for petrol is evident during the December summer holiday period. Diesel demand tends to peak during October due to the summer grain planting season. In recent years, the decrease in December diesel consumption due to reduced business activity was offset by increased diesel demand from motorists. The demand for fuel oil and LPG tends to be stronger in winter as a result of heating demand.

        As described in "Item 3.D—Risk Factors", South African fuel prices are derived from international reference prices as a result of a regulatory dispensation based on import alternatives. Local prices reflect northern hemisphere seasonality for petrol and diesel.

        Despite a slow economic recovery, international petrol and diesel crack-spreads were lower during 2014, mainly as result of a reduction in refinery disruptions compared to the previous year, as well as new refining additions and increased capacity.

Raw materials

        Sasol Oil's main raw material inputs are blending components from Sasol Synfuels, crude oil and base oils for lubricant manufacturing.

•

Blending components

Sasol Oil has an agreement with Sasol Synfuels to uplift fuel components, which are then blended to market specifications in the Sasol Oil Fuel Blending facility in Secunda. Fuel oil components from Sasol Synfuels and Natref are blended to provide customer specific heating fuel solutions. The purchase price of fuel components is referenced to international petroleum product prices, crude oil prices and refinery operating costs.

•

Crude oil

Natref historically obtained approximately 50% of its crude oil requirements from the Middle East (Iran and Saudi Arabia) through crude oil term contracts. Purchases from Iran were terminated in 2012. Iranian crude oil has been partially replaced with Saudi Arabian crude oil. The balance is purchased on the spot market from West Africa and other sources. Volatility in crude oil prices has increased since the late 1990's as a result of international supply/demand dynamics and geo-politics. Crude oil prices traded in a range of US$117,13/bbl to US$103,18/bbl in 2014, with supply disruptions in the Middle East and North Africa related to geo-political stability outweighing increased non-OPEC production (mainly US shale oil). These developments resulted in relatively stable prices, trading in a narrow band, during the year.

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Crude oil is landed at Durban, South Africa, and conveyed to Natref by a 583 km pipeline owned and operated by Transnet Pipelines, a subsidiary of Transnet Limited, which is a state-owned multi-modal transport company.

•

Lubricant base oils

Sasol Oil is a 40% shareholder in the ESA Lubricants Blending facility at Island View in Durban. The plant is managed by Engen Petroleum and blends automotive and industrial lubricants to Sasol Oil specifications. Base oils are predominantly procured locally.

Marketing channels

        Sasol Oil's marketing effort can be divided into four main areas namely sales to licenced wholesalers, direct marketing (retail and commercial markets) in South Africa, direct marketing in other African countries and overland exports into Africa.

•

Licenced wholesalers

Licenced wholesalers include multinational oil companies with their own South African refining capacity including, BP, Engen Petroleum (Engen), Royal Dutch Shell (Shell), Chevron, Total South Africa (Total) and PetroSA as well as non-refinery wholesalers without South African refinery capacity.

The bulk of Sasol's fuel sales in South Africa are to licensed wholesalers that either do not have their own refinery production or market more fuel than what they themselves produce. Therefore these wholesale customers either buy from Sasol Oil or import the balance of their fuel supply requirements.

Individual agreements that vary in terms of duration, volume, and modes of delivery, regulate the relationship between Sasol and its licenced wholesale customers. The agreed product slates reflect Sasol Oil's production slate to aid efficient and reliable supply. Product is imported to cover planned and unplanned refinery outages to ensure that supply commitments are met.

We also sell base bitumen to wholesalers and construction companies.

•

Direct markets (retail, commercial, lubricants, aviation fuel, fuel oil and bitumen)

We currently operate a dual branded network of retail convenience centres (Exel and Sasol), which consists of 373 service stations and seven Sasol branded integrated energy centres, across South Africa. Our current national retail market share is estimated to be 10%. We have commenced with a process to phase out the Exel brand and to convert existing Exel retail service stations to the Sasol brand. New site development is progressing satisfactorily although the regulatory environment remains a challenge. In 2013, we signed an exclusive agreement with Burger King to open fast food outlets at our retail convenience centres. This creates an opportunity for us to expand our retail footprint and increase the average throughput at the Sasol service stations. The first Burger King site, Sasol Circle Centre in Centurion, commenced operations in February 2014 and exceeded all expectations to date.

We have also partnered with ABSA Bank in South Africa to offer a rewards programme to customers at the retail convenience centres which has added value to the network.

We recently introduced 10ppm diesel at a limited number of retail sites in Gauteng and Mpumalanga with very successful results. We are in the process of rolling the product out to the rest of our network in the Gauteng region.

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Liquid fuels (i.e. fuel oil, diesel, petrol and LPG) are sold to a variety of end -users through the commercial marketing channel. Our customer base includes companies in the transportation, mining, food and electricity generation industries.

Lubricants are sold in industrial markets and to motorists via our retail network.

Jet fuel marketing is focused on South Africa's premier airport, OR Tambo International Airport, with Sasol's market share estimated at 17%.

•

Africa marketing

Exel Lesotho, a wholly owned subsidiary of Sasol Oil, is involved in retail and commercial marketing of transport fuels in Lesotho. The company sells its products through 20 dealer owned (or leased) and operated retail convenience centres, and to 23 commercial customers. Exel Lesotho has a 42% percent share of the Lesotho petrol and diesel markets.

Sasol Oil, through Exel Swaziland, markets transport fuels through six retail convenience centres. Exel Swaziland has 44 commercial customers and a 10% market share in Swaziland. Exel Lesotho and Exel Swaziland were classified as held for sale on 31 December 2013. On 23 May 2014, Sasol Oil entered into agreements to sell these businesses, and the transaction is expected to be completed in the second half of calendar year 2014.

We also hold a 49% interest in Petromoc e Sasol Sarl (PeSS), which is a joint venture with the Mozambican National State Oil Company, Petromoc. PeSS markets its product through eight company owned and three dealer owned retail convenience centres. PeSS has approximately 50 commercial customers and has an 8% share of the petrol and diesel market in Mozambique. PeSS also markets illuminating paraffin and lubricants.

•

Exports (Africa Overland)

We are ideally situated to supply volumes into Africa Overland. Volumes available for exports are limited by demand in South Africa, hence only limited volumes are available to be supplied into the inland area.

Sales are made on a carriage paid to (CPT) basis.

Factors on which the business is dependent

        Activities across the value chain, including manufacturing, storing, wholesaling and retailing, are regulated through a licensing regime. Retail pump prices of petrol, the maximum refining gate price of LPG, the maximum cylinder retail price for LPG, and a maximum single national retail price of unpacked illuminating kerosene are regulated by the Petroleum Controller under the Petroleum Products Act, 1977.

        Manufacturing, storing, wholesaling and retailing of petroleum products may only be conducted once a licence has been issued by the Petroleum Controller under the Petroleum Products Act, 1977. Onerous application requirements and a lengthy licensing process may hamper the development of retail convenience centres in future.

        NERSA, under the Petroleum Pipelines Act, sets tariffs for petroleum pipelines and approves tariffs for third party access to storage and marine loading facilities. See "Item 4.B—Business overview—Regulation of petroleum-related activities in South Africa" for additional information.

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Property, plants and equipment

Natref refinery operational statistics⁽¹⁾

        Natref is an inland refinery, focused on producing refined petrol and distillate fuels. It is designed to upgrade relatively heavy crude oil with high sulphur content (sour) and yield about 91% white petroleum products. Refinery production includes petrol, diesel, propane, jet fuel, and multiple grades of bitumen, fuel oils, sulphur and various gasses.

        Natref is managed by the Natref board and is governed by the Natref shareholders agreement between Sasol Oil and Total South Africa (TSA). The shareholders agreement gives TSA veto rights over a number of corporate actions, including, increasing or reducing Natref's share capital, amending Natref's Memorandum of Incorporation and the rights attaching to its shares, appointing the Natref senior managers and determining directors' remuneration. Sasol Oil and TSA are responsible for procuring their own crude oil and marketing their own products.

        In June 2012, the South African Government gazetted the Clean Fuels 2 specification regulations. The South African Petroleum Industry Association confirmed that the South African government has communicated a postponement to the 1 July 2017 introduction date of new cleaner fuels standards. A new target date is awaited. The Clean Fuels 2 project will enable Natref to produce petrol and diesel that complies with Euro V specifications as required by the new regulations. Delays in the clean fuels project schedule and an investment in additional octane capacity to fulfil rising demand will result in increased capital requirements. The construction of a fuel pipeline, owned by Sasol Oil, to integrate Sasol Synfuels and Natref was completed in May 2013. This pipeline will facilitate and optimise the production of new specification fuels by both plants.

International Energy Cluster

Sasol Synfuels International

Nature of operations and principal activities

        Sasol Synfuels International (Pty) Ltd (SSI), is responsible for developing, implementing and managing international GTL business ventures based on our proprietary technology.

        The catalyst business, which forms a part of SSI, is an integral component of the Sasol Fischer-Tropsch (FT) value chain and aims to provide security of supply of quality competitive FT catalyst to the current and future GTL ventures. To support our current GTL projects, we use three 680 tons per annum cobalt catalyst manufacturing units, with two units situated in De Meern, in The Netherlands, operated and owned by BASF, and a third at our Sasolburg site, operated and owned by Sasol Cobalt Catalyst Manufacturing (Pty) Ltd (SCCM), a wholly owned subsidiary of SSI.

The Sasol SPD™ process

        Based on our long and extensive experience in the commercial application of the FT technology, we have successfully developed the FT-based Sasol SPD™ process for converting natural gas into

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high-quality, environment-friendly GTL diesel, GTL kerosene and other liquid hydrocarbons. The SPD™ process consists of three main steps, each of which is commercially proven. These include:

•

the Haldor Topsøe reforming technology, which converts natural gas and oxygen into syngas;



•

our Slurry Phase FT technology, which converts syngas into hydrocarbons; and



•

the Chevron Isocracking™ technology, which converts hydrocarbons into particular products, mainly diesel, naphtha and LPG.

        Currently we believe, based on our knowledge of the industry and publicly available information, that on a worldwide basis we have the most extensive experience in the application of FT technology on a commercial scale. Given the increasing discovery of extensive natural gas reserves, our Sasol SPD™ process can be applied with significant commercial advantages in various parts of the world. As a consequence, our technology has evoked interest from countries and companies with extensive natural gas reserves as an appealing alternative for commercialising these reserves. The Sasol SPD™ process converts natural gas into diesel and other liquid hydrocarbons, which are generally more environmentally friendly and of higher quality and performance compared to the equivalent crude oil-derived products. In view of product specifications gradually becoming more stringent, especially with respect to emissions, we believe that the option of environmentally friendly GTL fuels will become increasingly appealing. GTL diesel can be used with optimised engines for best performance, although it can also be utilised with current compression ignition engines. GTL diesel is currently used as a cost-competitive blend stock for conventional diesels, thereby enabling conventional diesel producers to improve the quality and capacity of their product without investing substantially in sophisticated new plants and infrastructure. We anticipate that the combined factors of GTL diesel's superior characteristics and the prevailing market conditions in developed economies will enable GTL diesel to command premium prices for either niche applications or as a blend stock for upgrading lower-specification products. The construction of GTL facilities and the production of GTL fuels require significant capital investment.

GTL developments utilising the Sasol SPD™ process

        SSI is progressing with GTL projects in the US (FEED), Uzbekistan (extended FEED) and Nigeria (started beneficial operation) and has achieved record, sustainable operations at ORYX GTL, in Qatar.

        As a result of the magnitude of Sasol's growth portfolio, as well as significant sustenance capital required for our South African operations, Sasol regularly reviews projects in its project pipeline. As a result of these reviews, the Sasol Limited board, approved a decrease in our shareholding in the Uzbekistan GTL project from 44,5% to 25,5% at the end of the front end engineering and design phase. The final investment decision remains subject to key conditions, including successful project financing, confirming a suitable partner to take up Sasol's 19% share in the project and non-state ownership of at least 50,1%. We expect to make a final decision on this project before the end of 2015.

        To support the Uzbekistan GTL project we are progressing, together with BASF, an FT catalyst expansion project (FEED) at the facility situated in De Meern, which will be operated and owned by BASF.

Principal markets

        The bulk of the ultra-low sulphur GTL diesel produced at ORYX GTL is sold as a blend stock with middle distillate product streams derived from conventional oil refining to produce on-specification automotive diesel. The GTL naphtha produced at ORYX GTL is sold to naphtha crackers that produce olefins such as ethylene.

        The FT catalyst is currently exclusively sold to Sasol's GTL operations, in particular ORYX GTL in Qatar and Escravos GTL in Nigeria.

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Seasonality

        GTL product prices are impacted by the seasonal behaviour of global petroleum product markets.

        Catalyst demand is fairly stable but is driven by higher oil prices if the GTL plant owner decides to increase diesel output to maximise profits.

Raw materials

        ORYX GTL purchases natural gas feedstock from Al Khaleej Gas, a joint venture between ExxonMobil Middle East Gas Marketing Limited and Qatar Petroleum, under a gas purchase agreement with a contractual minimum off-take volume. The agreement commenced in January 2006 and is valid for a term of 25 years with an option to extend for a further 7 years.

        Ethanol, wax, ammonia, as well as precious and transition metals, are key input materials required to produce FT catalyst, although customers provide the precious metals. These inputs are commodities and prices will therefore be market dependent.

Marketing channels

        The diesel produced by ORYX GTL was until 1 August 2013, marketed by Sasol Synfuels International Marketing Limited (SSIM), under a marketing agency agreement. From this date, ORYX GTL has taken over responsibility for the marketing of the diesel. The GTL naphtha and LPG are sold by Qatar International Petroleum Marketing Company Limited (Tasweeq).

        For the catalyst business, SCCM is a customer facing business and sells its product directly to its customers.

Factors on which the business is dependent

Technology

        SSI is dependent on the successful integration of various technologies also referred to in the description of the Sasol SPD™ process. The continuous improvement of our cobalt catalyst performance is also key. SCCM licences the catalyst manufacturing technology from Sasol Technology and BASF, and is dependent on catalyst technology development to improve its product offering.

Feedstock

        The growth of the SSI business depends on the availability of competitively priced natural gas reserves.

Remaining cost competitive

        Working closely with Sasol Technology's Fischer-Tropsch process innovation teams, we are involved in an on-going programme aimed at further improving competitiveness by lowering the capital and operating costs of future GTL plants. There is also a continued focus to reduce the total cost and increase the efficiency of the cobalt catalyst used in the process through improvement of the performance and total value chain of the catalyst supplied.

GTL and CTL ventures

        SCCM follows a demand-supply approach, where new customer demand drives catalyst production and plant capacity. Therefore, the presence of GTL demand is key to the catalyst business sustainability.

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Property, plants and equipment

Production capacity at 30 June 2014

Sasol Petroleum International

Nature of the operations and principal activities

        Sasol Petroleum International (Pty) Ltd (SPI) was founded to undertake oil and gas exploration and production in selected high potential areas in West and Southern Africa. Our principal activities are the exploration, appraisal, development and production of hydrocarbon resources. We currently hold equity in three producing assets with proved natural oil and gas reserves in Mozambique, Gabon and Canada. We also have equity in non-producing assets and exploration licences in West and Southern Africa and Australia.

        In Mozambique we operate the onshore Pande- Temane Petroleum Production Agreement (PPA) asset, producing natural gas and condensate from the Temane and Pande gas fields. Gas production from the Temane field commenced in 2004 and from the Pande field in 2009.

        In British Columbia, Canada we have a non-operated interest in the unconventional (shale/tight gas) Farrell Creek and Cypress A asset, which is operated by Progress Energy Canada Limited. The asset has produced gas and small volumes of petroleum liquids since before we acquired our interest in 2011.

        In Gabon we have a non-operated interest in the VAALCO Gabon (Etame) Inc operated offshore Etame Marin Permit asset. Oil production from the Etame field commenced in 2002, followed by production in 2007 and 2009 from the associated Avouma and Ebouri fields.

Principal markets and marketing channels

Mozambique production

        Gas produced from the Pande-Temane PPA asset, other than royalty gas that is provided to the Mozambican government, is supplied in accordance with long-term gas sales agreements (GSAs). The gas sold in accordance with GSA1 and GSA2 is sold to Sasol Gas, with a base-case supply of 120 MGJ/a and 27 MGJ/a respectively, for use as part of the feedstock for our chemical and synthetic fuel operations in Secunda and Sasolburg. There are three GSA3 contracts that supply gas to the Mozambique market, which satisfies a licence condition that a portion of gas produced is utilised in-country. The contracts are with Matola Gas Company S.A., Empresa Nacional de Hidrocarbonetos (ENH) and Central Térmica de Ressano Garcia S.A.(CTRG). Additionally, in 2014, gas was sold to Aggreko Mozambique Limitada (Aggreko) under a short term, two year, sales agreement executed in 2012, for power generation in Mozambique. The natural gas condensate produced in Mozambique is sold to Temane Trading, who then transports the condensate by truck, for export via the port of Beira or to the Matola depot for export via the port of Maputo.

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Canada production

        Gas produced from the unconventional (shale/tight gas) Farrell Creek and Cypress A assets is sold by the Progress/Sasol Montney Partnership into Western Canada, under a long-term marketing agreement with Progress Energy Canada Limited. Pricing is based on the daily realised spot market prices less transportation and marketing fees, in accordance with the marketing agreement. Petroleum liquids are sold under the same marketing agreement.

Gabon production

        Oil produced from the Etame Marin Permit asset is sold internationally on the open market. An annual crude oil sale and purchase agreement is typically entered into for the sale of oil, based on a competitive bidding process, with sales prices linked to international oil prices. In 2014, oil was sold to Mercuria Trading NV and to Vitol S.A. (Vitol). The contract with Mercuria Trading NV was effective until March 2014 as a fixed term agreement. The contract with Vitol was effective from April 2014. This contract required all production to be lifted by and sold to Vitol in accordance with marketing and agency agreements.

Property, plants and equipment

        We operate production facilities in Mozambique and have non-operating interests in producing assets in Canada and Gabon.

Production capacity at 30 June 2014

Chemical Cluster

Sasol Polymers

Nature of the operations and its principal activities

        In Sasol Polymers, we produce ethylene by separating and purifying an ethylene-rich mixture and by cracking of ethane and propane supplied by Sasol Synfuels. Propylene is separated and purified from a Fischer-Tropsch stream produced in the Sasol process. The ethylene is polymerised into low density polyethylene (LDPE), linear low density polyethylene (LLDPE) and the propylene into polypropylene (PP). We operate a fully integrated chlor-alkali/polyvinylchloride chain. Ethylene and chlorine, from on-site chlor-alkali plants, are reacted to produce vinyl chloride monomer and then polymerised to polyvinylchloride (PVC). Caustic soda, hydrochloric acid and calcium chloride are other chlor-alkali products which are produced. Liquid sodium cyanide is produced from methane, ammonia and caustic soda.

        We are a major South African plastics and chemicals operation and our vision is to be an exceptional producer of polymers and a preferred supplier in our market. We supply quality monomers, polymers, chlor-alkali chemicals and mining reagents.

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        We manage the following international investments:

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Our 12% shareholding in PETRONAS Chemicals Olefins Sdn Bhd (previously known as Optimal Olefins Sdn Bhd) with PETRONAS, a manufacturer of ethylene and propylene. PETRONAS Chemicals produces 600 kilotons per annum (ktpa) ethylene in an ethane/propane cracker. The cracker co-produces 90 ktpa of propylene;



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Our 40% shareholding in PETRONAS Chemicals LDPE Sdn Bhd (previously known as Petlin Malaysia Sdn Bhd) with PETRONAS, a manufacturer and supplier of LDPE with a capacity of 255 ktpa is operated by PETRONAS Chemicals LDPE; and



•

A wholly owned marketing and sales business Wesco China Limited, a polymer distributor in China and Taiwan.

Principal markets

        Over the past three years between 64% and 67% of our revenue has been earned from sales into the South African market.

        We are the sole polymer producer of PVC, LDPE and LLDPE in South Africa and have the leading share of sales of these products in South Africa, where the competition is in the form of polymer imports primarily from Asian and Middle Eastern producers. We supply 160 ktpa ethylene and 110 ktpa propylene under contract to Safripol (Pty) Ltd (Safripol) in Sasolburg by pipeline for the production of HDPE and polypropylene, respectively. We compete directly with Safripol in the polypropylene market, where we have a large share of the South African market. Caustic soda is sold primarily in South Africa into the pulp and paper, minerals beneficiation and soap and detergent industries. We are the sole local producer of sodium cyanide solution which is sold to the local gold mining industry. Currently, we export polymers from our South African operations to the African continent, South East Asia, Europe and South America. Product from the PETRONAS Chemicals LDPE plant in Malaysia is sold into Malaysia, India, China, Australia and New Zealand.

Former activities in Iran

        The activities listed below related to our 50% shareholding in Arya Sasol Polymer Company (ASPC), which we disposed of on 16 August 2013 (the "Divestment Date") in a process for which we obtained a license from the United States Office of Foreign Assets Control (OFAC). The activities listed below have been conducted outside the US by non-US Sasol subsidiaries, and reference to Sasol shall mean such non-US subsidiaries for purposes of the description of our activities listed below.

Arya Sasol Polymer Company

        Until the Divestment Date, Sasol held a 50% shareholding in ASPC, an Iranian joint venture with Pars Petrochemical Company. ASPC is a manufacturer and supplier of ethylene, low density polyethylene, and medium and high density polyethylene.

        In 2014, Sasol received dividend payments from ASPC in an amount equal to R185 958 825.

Sale of Arya Sasol Polymer Company products

        Until the Divestment Date, Sasol engaged in the marketing and distribution of polymer products manufactured by ASPC, including ethylene, low density polyethylene, and medium and high density polyethylene.

        In 2014, Sasol's marketing and distribution of ASPC products generated a gross revenue of R1 177 111 106 and a net profit of R61 376 561.

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        In 2014, Sasol made payments to ASPC in an aggregate amount equal to R1 059 703 237 in respect of polymer products manufactured by ASPC that were marketed and distributed by Sasol.

Other matters

        During 2014, ASPC paid management service fees in an amount equal to R2 434 944 to Sasol in exchange for management services.

Sale of SPI International (Pty) Ltd

        On the Divestment Date, Sasol Investment Company (Pty) Ltd entered into a definitive sale and share purchase agreement pursuant to which Main Street 1095 (Pty) Ltd, a South African subsidiary of the Armed Forces Social Welfare Investment Organization of Iran, an Iranian pension fund, completed and effected the acquisition of 100% of the shares of SPI International (Pty) Ltd. SPI International (Pty) Ltd is the indirect owner of Sasol's 50% shareholding in ASPC. The total purchase price for the sale of SPI International (Pty) Ltd was R2 402 million (AED 873 541 486 or US$238 million), was paid by Main Street 1095 (Pty) Ltd to Sasol Investment Company (Pty) Ltd in several installments, all of which have been paid in 2014.

        As a result of the sale of SPI International (Pty) Ltd, Sasol has no ownership interest in ASPC and no on-going investment in Iran. The sale of SPI International (Pty) Ltd was authorised by OFAC pursuant to License No. IA-2013-299863-1.

        The sale and share purchase agreement contains limited warranties given by Sasol Investment Company (Pty) Ltd in favor of Main Street 1095 (Pty) Ltd as to, among other things, title to the shares of SPI International (Pty) Ltd. In addition, Main Street 1095 (Pty) Ltd has committed not to use the Sasol name or any related names or trademarks, other than the name "Arya Sasol". Main Street 1095 (Pty) Ltd's right to use the name "Arya Sasol" will expire on 16 August 2015.

        Prior to the Divestment Date, Sasol made commitments on product offtake (and has certain Sasol branded inventory in ASPC which Sasol has procured in order to prevent ASPC selling this branded product in the market). All products were delivered by ASPC by 31 October 2013 and Sasol settled all related amounts payable to ASPC by 31 December 2013. Sasol has no other commitments to acquire products from ASPC and will not make further purchases of ASPC products.

        In connection with other transactions between Sasol and ASPC prior to the Divestment Date, including in respect of management services, salary and other compensation related payments for Sasol employees that were seconded to ASPC, Sasol currently has no amounts receivable from ASPC. Sasol no longer provides seconded employees or management services to ASPC or makes any payments to the Maccauvlei Learning Academy for services to ASPC employees.

Seasonality

        Global polymer demand does not show any marked annual seasonality although higher demand tends to arise in the third quarter of each calendar year as converters stock up for increased sales over the South African festive season.

        The global polymer industry is, however, cyclical in terms of margins earned, given irregular investment patterns caused by large capital requirements and size of plants. The duration of a typical cycle has been seven years and margins can vary from low trough conditions to extreme peak conditions. During tight supply/demand periods, which usually coincide with increases in economic activity as measured by gross domestic product (GDP), margins may increase disproportionately with high peaks. Over time margins reduce as investment is stimulated or as demand slows down in line with GDP. It may happen that excess capacity is installed, which results in collapsed margins.

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Raw materials

        Feedstock for ethylene and propylene in South Africa is purchased from Sasol Synfuels at market-priced fuel-alternative values. The mechanism for determining the fuel-alternative value is based on the South African Basic Fuel Price (BFP) mechanism administered by the Department of Energy. Feedstock prices have increased in line with the oil price. Salt used in our chlor-alkali production process is imported from Namibia and Botswana at US dollar denominated prices. Electricity is purchased from Eskom, South Africa's state-owned electricity provider.

        Feedstock namely, ethane and propane, for our joint venture cracker in Malaysia (PETRONAS Chemicals Olefins Sdn Bhd), is purchased from PETRONAS at set prices, unrelated to oil, that escalates annually in line with US inflation rates. PETRONAS Chemicals LDPE Sdn Bhd buys its ethylene feedstock from PETRONAS Chemicals Olefins at prices related to the South East Asian ethylene market.

Marketing channels

        Our sales in South Africa are made directly to customers using our own marketing and sales staff. Sales offices are located in Johannesburg, Durban and Cape Town, South Africa. Account managers are responsible for management of our relationship with customers. For exports from South African operations, we sell directly into Southern Africa and through distributors and agents into East and West Africa, the Far East, Europe and South America. All sales, administration and logistics are arranged from the Johannesburg office.

Property, plants and equipment

        The construction of a 47 000 tpa ethylene purification unit (EPU) in Sasolburg, which will yield additional ethylene to support our polymer plants to run continuously, achieved beneficial operation on 18 October 2013. We also constructed a 58 000 tpa propylene stability unit in Secunda. This facility will enable full capacity utilisation of the polypropylene plants and achieved beneficial operation on 27 June 2014.

        The following table summarises the production capacities of each of our main product areas:

Production capacity at 30 June 2014

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Sasol Solvents

Nature of the operations and its principal activities

        We are one of the leading manufacturers and suppliers of a diverse range of solvents, co-monomers and associated products. Solvent products are supplied to customers in approximately 90 countries and are used primarily in the coatings, printing, packaging, plastics, pharmaceutical, fragrance, aerosol paint and adhesive industries, as well as in the polish, cosmetics, agriculture and mining chemicals sectors. Pentene, hexene and octene are used as co-monomers in polyethylene production. As of 1 July 2013, the marketing and sales of the co-monomers portfolio has been transferred to Sasol O&S. We have production facilities in South Africa in Secunda and Sasolburg and in Germany in Moers. In May 2014, we disposed of the majority of our German assets to INEOS. Our product range includes ketones, glycol ethers, acetates, alcohols, acrylates and mining chemicals. Our joint venture with Huntsman Corporation (Sasol Huntsman) produces maleic anhydride in Europe. We believe that the breadth of our product portfolio provides a competitive advantage relative to the more limited portfolios of most of our competitors in the global market.

Principal markets

        In 2014, approximately 1,32 Mt of products were sold worldwide. Our global business is managed from offices in Johannesburg in South Africa. We have sales offices in Europe, Asia, the Middle East and the US.

        We market our products throughout the world, with a large proportion of our alcohols being distributed in Europe. We are a leading producer of solvents in South Africa. Our competition varies depending on the products sold and includes a number of major international oil and chemical companies. Our competitors include ExxonMobil, BP Chemicals, Chevron Phillips, INEOS, the Dow Chemical Company, Celanese and Eastman.

Seasonality

        Production and sales volumes are generally not subject to seasonal fluctuations but tend to follow the broader global industry trends. In terms of the global cyclical nature of our products, periods of high demand and higher prices are followed by an increase in global production capacity which can depress global margins. The global economic crisis has had a detrimental effect on our sales prices, and market demand has shown signs of contraction as a result of increased volatility, caused in part by the continuing European debt crisis, as well as declining growth in China. The rising feedstock prices, on the back of stable but high crude oil prices accompanied by the weakness of the rand, have resulted in margins decreasing from the highs experienced during 2011. In South Africa, we have seen a progressive increase in chemical prices and our margins were positively impacted in 2014.

Raw materials

        Feedstocks for our operations in Secunda are derived mainly from Sasol Synfuels at market-priced fuel-alternative values based on the Basic Fuel Price (BFP) mechanism. Fluctuations in the crude oil price and rand/US dollar exchange rate have a direct impact on the cost of our feedstocks and hence on margins. Feedstocks in Sasolburg are purchased from Sasol Polymers (based on fuel-alternative value) and Sasol Infrachem based on a long-term supply contract price with an annual inflation-linked escalation clause.

        Ethylene, propylene, raffinate, butylene and butane, used in our production facilities in Germany, were purchased at market prices from third party suppliers under a combination of long-term supply contracts and open market purchases.

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        Some products are produced by converting primary chemical commodities produced in our facilities to higher value-added derivatives. These include:

•

Methyl iso-butyl ketone from acetone;



•

Ethyl acetate from ethanol;



•

Ethyl and butyl acrylates from acrylic acids and the corresponding alcohols; and



•

Ethylene glycol butyl ethers from butanol and ethylene oxide.

Marketing channels

        We operate thirteen regional sales offices and nine storage hubs in South Africa, Europe, the Asia-Pacific region, the Middle East and the US. We utilise a number of distributors and agents worldwide as an extension of our sales and marketing force to enable increased market penetration.

        A combination of product and account managers ensures continued, long-term relationships with our customers. Our in-house sales and administrative staff manage order processing, logistics and collection of payments as well as customer relationships. The use of bulk supply facilities situated in China, Dubai, Europe, Singapore, South Africa and the US allows for timely delivery to our customers.

Factors on which the business is dependent

        Our plants operate using a combination of proprietary technology developed by Sasol, primarily by Sasol Technology, as well as technology licenced from various suppliers. Our acrylates and n-butanol technology is licenced from the Mitsubishi Chemical Company. Our maleic anhydride technology (utilised in Sasol Huntsman) is licenced from Huntsman Corporation. We own the licence to the MiBK technology. The hydroformylation technology for use in our Safol and Octene 3 plants is licenced from Davy Process Technology.

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        We licence our technology for alcohol recovery to PetroSA. Being fully integrated into the Sasol operations in South Africa, we are dependent on Sasol Synfuels and Sasol Infrachem for the supply of both our raw materials and utilities (electricity, water and air).

Property, plants and equipment

Production capacity as at 30 June 2014

        Approximately 92% of our production capacity is located at sites in South Africa and 8% in Germany. Our second MiBK plant at Sasolburg, with a nameplate capacity of 30 ktpa, started up in April 2010.

Sasol Olefins & Surfactants

Nature of the operations and its principal activities

        Sasol Olefins & Surfactants (Sasol O&S) comprises ten areas of activity, grouped into two business divisions, namely the Organics and Inorganics Divisions.

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        The Organics Division consists of:

•

Alkylates;



•

Alcohols;



•

Surfactants;



•

Co-monomers;



•

Organic intermediates; and



•

Ethylene.

        The Inorganics Division consists of:

•

Specialty aluminas;



•

Specialty silica aluminas;



•

Multi-element doped aluminas; and



•

Hydrotalcites.

Alkylates

        The main alkylate products are paraffins, olefins and linear alkyl benzene (LAB). LAB is the feedstock for the manufacture of linear alkyl benzene sulfonate (LAS), an essential surfactant ingredient for the detergents industry. Paraffins (n-paraffins) and n-olefins are produced mainly as feedstock for the production of LAB and oxo-alcohols. A portion of this business unit's products are used internally for the production of downstream surfactants.

Alcohols

        These products cover a diversified portfolio of linear and semi-linear alcohols of carbon range between C₆ and C₂₂+. The diversity of this product portfolio is supported by the wide range of feedstocks (petrochemical, oleochemical and coal-based), technologies and manufacturing facilities used. A portion of the alcohols production is consumed internally to produce surfactants and specialty plasticisers.

Surfactants

        These products include nonionic and anionic surfactants, based on alcohol, LAB and other organic intermediates.

Co-monomers

        These products include pentene, hexene and octane, and are primarily used as co-monomers in polyethylene production. Competitors include Chevron Phillips, Shell and INEOS.

Organic intermediates

        Other organic intermediate chemicals include ethylene oxide, alkyl phenols, alkanolamines, etc.

Ethylene

        Our ethane-based cracker in Lake Charles, Louisiana, the US, produces ethylene for the US market. A portion of the ethylene production is consumed internally to manufacture Ziegler alcohols, ethylene oxide and co-monomers.

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        In 2011, Sasol commenced with a pre-feasibility study to assess the technical and commercial viability of a world-scale ethane cracker and associated ethylene derivatives in Louisiana. This project has subsequently moved into FEED with a final investment decision expected during the 2014 calendar year.

Inorganics

        These products involve mainly specialty aluminas and related products. The inorganics specialities are further processed by means of a variety of technical processes to adapt the product characteristics to highly specialised products. The inorganics division also manufactures shaped catalyst carriers, as well as ultra-high purity alumina for sapphire applications as required for LED lighting.

Principal markets

        The bulk of the production from the alkylates product group ends up as surfactants, either produced internally (our surfactants product group) or by other parties having acquired the intermediates from us. The bulk of these surfactants result in the making of detergents and industrial or institutional cleaning products. The main competitors include Shell and Cepsa in n-paraffins; Huntsman Corporation, Cepsa and ISU in the LAB market.

        Although a substantial portion of the alcohols and resultant surfactants products also end up in detergents and industrial and institutional cleaning products, these products also find wide application in industries such as metalworking, flavours and fragrances, personal care, cosmetics, plastic additives, textiles and agriculture. The main competitors include Shell and BASF, as well as a growing number of oleochemical alcohol producers in Southeast Asia.

        Specialty aluminas and related products from the inorganic division are used in a broad range of applications, including catalyst support, raw material for ceramics, coatings, polymer additives and synthetic sapphires. Competitors in aluminas include UOP and Sumitomo.

        Ethylene, based on ethane as feedstock, is sold to plastic manufacturers in the US Gulf Coast region and is used internally to manufacture alcohols and ethylene oxide.

Seasonality

        There is very little seasonality associated with our products or the markets in which they participate. Cyclicality of this business is more related to the general chemical investment cycle, which impacts the supply side of the market equation. Many of the markets that we serve typically follow global and regional gross domestic product growth trends and are therefore impacted more by macro-economic factors.

Raw materials

        The main feedstocks used in this business are kerosene, benzene, ethane, ethylene, oleochemical and aluminium (all purchased externally with the exception of some portion of our ethylene which is produced at our Lake Charles facility and the Fischer-Tropsch based feedstock used for our South African alcohol and co-monomer production). The prices of most of these materials are related to crude oil and energy pricing and the prices follow the movement of crude oil and energy pricing reasonably closely and, to a lesser extent, lauric oils. In view of the expected increase in oleochemical-based alcohol production, the differential between crude oil and lauric oils is expected to become increasingly important in determining competitiveness.

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Marketing channels

        Over 90% of the products produced by Sasol O&S are sold directly to end-user customers by our sales and marketing personnel. A limited number of distributors are used. Approximately 60% of the total sales by Sasol O&S are conducted under annual and, in some cases, multi-year contracts.

Factors upon which the business is dependent

        The business, especially margins, is dependent on the supply and demand of the various products that we make and the feedstock costs. Demand growth is typically GDP driven with some exceptions of higher growth products and markets. Supply is primarily influenced by the build-up of new capacity in the developing regions, especially China, India and Southeast Asia. Feedstock costs generally follow the trends of crude oil and vegetable oil.

        We are in the on-going process of obtaining the relevant data required in order to comply with the EU REACH regulation (REACH), which became effective on 1 June 2007. We have already complied with the first two major deadlines by registering our highest volume products (tiers one and two). We are now working on the next tier of products (volumes below 100 tons per year) with the deadline of 31 May 2018. The estimated total costs of compliance over the 10 year registration period amounts to approximately €22 million. To date, €11 million has been incurred to comply with REACH.

Property, plants and equipment

        The following table summarises the production capacity for each of the main products marketed by Sasol O&S.

Production capacity at 30 June 2014

Other chemical businesses

        Other chemical businesses include Sasol Wax, Sasol Nitro, Sasol Phenolics (previously Merisol), Sasol Infrachem and various smaller chemical businesses.

        Sasol Wax produces and markets wax and wax-related products to commodity and specialty wax markets globally. The division refines and blends crude oil-derived paraffin waxes, as well as synthetic waxes produced on the basis of our Fischer-Tropsch technology. The division markets its products globally, but its main markets are in Europe, the US and Southern Africa. The overall world market for waxes is estimated at about 4 500 ktpa and our main competitors in the commodity market are ExxonMobil, Shell, China Oil and Sinopec.

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        Sasol Nitro manufactures and markets fertilisers, commercial explosives and related products. The division also markets sulphur produced by other Sasol divisions. All production activities are located in Southern Africa. The business's products are mainly sold within Southern Africa with increasing exports into Western Africa. Fertiliser products produced at the South Africa Secunda manufacturing plant are limited to ex-works sales as per the agreement with the South African Competition Commission.

        Sasol Phenolics manufactures the pure products, phenol, ortho-cresol, meta-cresol and para-cresol, and a diverse range of blended products, consisting of mixtures of phenol, cresols, xylenols and other phenol derivatives.

        Sasol Infrachem is the supplier of utilities and services to various Sasol business units (Sasol Polymers, Sasol Solvents, Sasol Wax, Sasol Phenolics and Sasol Nitro) as well as external businesses in Sasolburg. Sasol Infrachem operates and maintains the auto thermal reformer (ATR), which reforms natural gas into synthesis gas. Sasol Infrachem is the custodian of the Sasolburg gas loop and the primary responsibility of this function is to ensure that the reformed gas demand/supply is balanced and that reformed gas is supplied to the users of gas on its site.

        Sasol Infrachem also produces ammonia. About half of Sasol's total ammonia production is used by Sasol Nitro to produce ammonium nitrate-based fertilisers and explosives. The balance of ammonia is sold mainly to other South African explosives and fertiliser manufacturers with relatively small quantities sold for use in other industrial applications, which include chemical manufacture and mineral beneficiation. Sasol is the only ammonia producer in South Africa, with a total nameplate production capacity of 660 ktpa.

Property, plants and equipment

        The following table summarises the production capacity of our other chemical businesses at 30 June 2014:

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Sasol Infrachem

Other businesses

Sasol Technology

Nature of the operations and its principal activities

        Sasol Technology, as the technology partner in the group, is fully committed to the Sasol group growth objectives by working together with the business units and taking responsibility for the long-term research and development of technology improvements as well as developing new technologies. Through engineering and project execution activities Sasol Technology demonstrates its commitment to the delivery of viable solutions to our business partners for their operations.

Acquiring technology—research and development

        The central research and development division in Sasolburg focuses on process research and competency development, while the decentralised divisions focus on product applications. The Sasolburg research facility was expanded and modernised in 2012 with the aim to:

•

enhance infrastructure through the installation of new pilot plants to improve operational efficiency and flexibility;



•

enable enhanced reactor and catalyst development programs in support of our advanced Fischer-Tropsch technology development objectives; and



•

improve information and data management.

        The enhanced facilities allow the opportunity to commercialise new and improved petrochemical processes more effectively. The central research function has a full suite of state-of-the-art pilot plants to support the development of both current and future technologies. As new technologies are developed, these facilities are growing, with new pilot plant and laboratory facilities being added on an on-going basis. Two significant pilot plants to support chemical and GTL process development and demonstration were installed in 2013 and 2014. As a result of our investment in facility upgrades in recent years, we are now seeing the benefits in the improved quality and efficiency of our research efforts.

        The Sasolburg research activities, supplemented by a presence at the University of St Andrews in Scotland and in Enschede in The Netherlands, are also conducted through external alliances and research collaborations with over 100 research institutions, consortia and universities worldwide. In addition, we acquired a further GTL pilot plant facility in Tulsa, Oklahoma, to support the optimisation and commercialisation of new technology.

        Sasol Technology research and development projects over the past decade include the development of the slurry phase and advanced synthol reactors, the development of the proprietary cobalt catalyst,

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the low temperature Fischer-Tropsch process, ethylene tetramerisation and the extraction of value added chemicals from the GTL process. A significant part of the research focuses on supporting the GTL technologies and associated products. The production of chemicals from the primary Fischer-Tropsch products is of particular interest.

        Research is also focused on the reduction of the Sasol operations' environmental footprint which includes greenhouse gas reduction, water treatment and purification. In this regard, special attention is given to water utilisation, given the location of some of the current and future plants in semi-arid areas. For example, one of the new water treatment processes developed by Sasol is currently being commercialised at Sasol's Synfuels site. Additionally, we inaugurated a new pilot plant last year to demonstrate a novel water treatment process for future GTL facilities. Reduction in greenhouse gases focuses on improving plant efficiencies, carbon dioxide capturing and understanding potential utilisation alternatives. Sasol Technology has also increased its focus on exploring technology options adjacent to, but beyond, our current technology portfolio, with a view to diversifying the options available to Sasol.

Commercialising technology—front end engineering and technology management

        All front end engineering and technology integration and management are performed by specialist Sasol Technology teams and supported by specialised external partners where appropriate. The team takes the idea from our research and development departments and engineers it into a commercial proposition for exploitation by the group. The conceptual studies, basic design and engineering management of projects are undertaken on an integrated basis with the business unit, leveraging external technology suppliers and contractors.

Installing technology—project execution and engineering

        Sasol Technology is responsible for the execution of capital projects and project engineering in the group. The involvement is not only focused in South Africa but also elsewhere in the world where Sasol is undertaking studies and the execution of projects. Delivery of some smaller projects and shutdowns are also undertaken. These initiatives are highly leveraged with external engineering and construction contractors providing support to deliver projects.

Optimising technology—operations support

        Technical support groups work on an integrated basis with the operations personnel of the business units to improve the profitability and optimise plant performance throughout the group.

Principal Markets

        Sasol Technology partners with all business units in the Sasol group. However, in line with the group's strategic priorities Sasol Technology mainly is focused on:

South African energy landscape

•

ensuring sustainable South African synthetic fuels capacity, specifically in the Secunda Complex, that meets all environmental and modern fuel requirements.

International energy landscape

•

implementing prospective GTL facilities globally; and



•

catalyst manufacture facilities to supply GTL plants with proprietary FT cobalt catalyst.

Chemicals landscape

•

co-monomers, solvents, polymers and waxes;

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•

extracting value added products including chemicals from GTL and CTL products; and



•

exploring chemical opportunities that do not rely on the Fischer-Tropsch value chain.

New energy landscape

•

understanding the energy landscape and evaluating various alternatives with a view to introducing low-carbon electricity into our energy mix.

Sasol group landscape

•

long-term strategic research in gas monetisation via GTL, chemical processes.

Property, plants and equipment

        The Sasolburg research facility was expanded affording the opportunity to commercialise new and improved petrochemical processes more effectively. The central research function has a full suite of state-of-the-art pilot plants to support the development of both current and future technologies. Besides the new laboratories and the fuels research facilities in Sasolburg, plans have been approved to expand the fuel testing and engine emissions laboratory in Cape Town, South Africa, to more effectively research the application of our unique GTL and CTL fuels at sea level.

Legal proceedings and other contingencies

        Sasol Nitro—As previously reported, Sasol Nitro, formerly a division of Sasol Chemical Industries (Proprietary) Limited (SCI), concluded a settlement agreement with the Competition Commission of South Africa (the Commission) in May 2009. This settlement agreement was in full and final settlement of contraventions relating to price fixing, market division and collusive tendering.

        In May 2012, 58 individual farmers, through facilitation of the Transvaal Agricultural Union, filed civil claims totalling approximately R52 million against SCI. The applicants alleged that they had been overcharged by SCI for products purchased, and that this overcharge arose from conduct which was admitted to by SCI in the settlement agreement concluded with the Commission in May 2009.

        The pleadings have closed. The trial will commence on 11 August 2015. RBB Economics (RBB) has submitted a draft economic expert report regarding the alleged damages suffered by the applicants. In July 2014, RBB and Sasol Nitro's counsel held a meeting to discuss the draft RBB report. Sasol Nitro requested RBB to reconsider some aspects of the draft report and to resubmit an updated version in August 2014. It is currently not possible to make an estimate of any contingent liability.

        Sasol Chemical Industries—complaint referral by Omnia    On 31 August 2011, Omnia Group (Pty) Ltd (Omnia) submitted a complaint against SCI to the Commission. The complaint related to, inter alia, allegations of excessive pricing for ammonia and price discrimination in respect of ammonia.

        On 7 March 2012, the Commission issued a notice of non-referral in respect of the complaint on the grounds that the conduct complained of was substantially the same as the conduct in respect of which the Commission had concluded a settlement agreement with Sasol in July 2010.

        On 5 April 2012, Omnia referred the complaint themselves to the South African Competition Tribunal (the Tribunal). Omnia alleges that:

a)

SCI charged Omnia an excessive price for ammonia during the period from May 2006 to December 2008;



b)

SCI has prevented Omnia from expanding within the markets for the supply of certain fertilisers during this period; and



c)

SCI has engaged in prohibited price discrimination in respect of ammonia.

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        SCI does not agree with the allegations made and is defending the matter. The allegations made are substantially similar to allegations in a civil claim for damages made by Omnia in 2009, which SCI is also defending in arbitration proceedings.

        Sasol continues to prepare its defence in this matter. The parties have agreed that Omnia will argue its case before the Tribunal from 1 - 12 December 2014 and SCI will thereafter present its case to the Tribunal from 16 February 2015 to 6 March 2015. It is currently not possible to make an estimate of a contingent liability for the claim and, accordingly, no provision was recognised at 30 June 2014.

        Sasol Wax    As previously reported, on 1 October 2008, the European Commission found that members of the European wax industry, including Sasol Wax GmbH, had formed a cartel and violated antitrust laws. A fine of EUR 318,2 million was imposed by the European Commission on Sasol Wax GmbH and was subsequently paid. On 15 December 2008, all Sasol companies affected by the decision lodged an appeal with the European Union's General Court against the decision of the European Commission on the basis that the fine is excessive and should be reduced. On 11 July 2014, the European General Court reduced the fine by EUR 168,22 million to EUR 149,98 million. The European Commission did not appeal the decision. Sasol has accounted for this as a post balance sheet adjusting event. The effect of the reduced fine has been accounted for in Sasol's 2014 income statement. The refund was received in August 2014.

        As a result of the fine imposed on Sasol Wax GmbH, on 23 September 2011, Sasol Wax GmbH and Sasol Wax International AG were served with a law suit in The Netherlands by a company to which potential claims for compensation of damages have been assigned to by eight customers.

        On 9 December 2013, Sasol Wax GmbH and the other defendants concluded a joint defence agreement and submitted a joint non-binding offer to pay a lump sum of EUR5 million (including interest and costs of the plaintiff) to settle all claims. Sasol Wax's share in this offer was approximately EUR3,2 million. The plaintiff rejected the offer and indicated that it would continue pursuing its claims against Sasol and the other three main defendants in court. As a consequence, Sasol prepared a statement of defence which was submitted to the court on 5 February 2014. The hearing will take place on 3 November 2014 in The Hague.

        The plaintiff has not yet specified the amount of the claim. Further detailed information will be exchanged during the court proceeding. Accordingly, a reliable estimate of the amount of the claim could not be made at this point in time.

        Sasol Polymers—The Commission alleges that SCI charged excessive prices for propylene and polypropylene in the South African market from 2004 to 2007. Sasol disputes the Commission's allegations. In 2010, the matter was referred by the Commission to the Tribunal. The matter was heard before the Tribunal during 2013.

        On 5 June 2014, the Tribunal released its decision in respect of Sasol Polymers' pricing of propylene and polypropylene. In its decision, the Tribunal made a finding against SCI in relation to its pricing of both propylene and polypropylene, for the period in question. In respect of purified propylene, the Tribunal has imposed an administrative penalty of R205,2 million. In respect of polypropylene, the Tribunal has imposed a penalty of R328,8 million. In addition, the Tribunal also ordered revised future pricing of propylene and polypropylene.

        On 27 June 2014, SCI filed an appeal against the decision of the Tribunal with the South African Competition Appeal Court. SCI recognised a provision for the fine of R534 million. The outcome of the appeal process cannot be predicted.

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        On 11 July 2014, the Commission delivered a Notice of Cross- Appeal in requesting the Competition Appeal Court to increase the administrative penalties imposed on SCI to R1 094 million for propylene, and R1 754 million for polypropylene.

        Abuse of dominance investigation—Sasol Chemical Industries (Sasol Polymers), Sasol Synfuels, Sasol Oil and Sasol Limited

        In November 2011, Safripol (Pty) Ltd (Safripol) initiated a complaint with the Commission against SCI. In the complaint, Safripol alleged that SCI had contravened various sections of the Competition Act with regard to pricing and supply of propylene and ethylene. Safripol subsequently, withdrew the complaint.

        The Commission however elected to continue with its investigation into the matter. Sasol was informed of the investigation in a letter from the Commission dated 30 July 2011. The Commission alleges that Sasol engaged in the following conduct:

•

Excessive pricing of propylene and ethylene required by Safripol;



•

Constructive refusal to supply scarce goods (namely propylene and ethylene);



•

Margin squeezing in respect of the supply of propylene and polypropylene; and



•

Price discrimination in relation to the sale of propylene and ethylene.

        The Commission stated in the above mentioned letter that as the alleged conduct relates to pricing of inputs, and may be linked with the pricing and supply of feedstock propylene and ethylene, their investigation extends to Sasol Limited, Sasol Oil, Sasol Synfuels and SCI. The period under investigation is from 2008 to 30 July 2012.

        Although there had been no engagement with the Commission on this matter, since Sasol's last submission in November 2012, Sasol received a further information request from the Commission on 7 August 2014. Sasol is in the process of gathering the information.

        The outcome of this matter cannot be estimated at this point in time and accordingly, no provision was recognised at 30 June 2014.

        Sasol Oil—Commercial diesel    On 24 October 2012, the Commission referred allegations of price-fixing and market division against Chevron SA, Engen, Shell SA, Total SA, Sasol Limited, BP SA and the South African Petroleum Industry Association ("SAPIA") to the Tribunal for adjudication.

        The Commission is alleging that the respondents exchanged commercially sensitive information, mainly through SAPIA, in order to ensure that their respective prices for commercial diesel followed the Wholesale List Selling Price published by the Department of Energy.

        This is not a new matter and Sasol began engaging with the Commission in this regard in 2008 as part of its group-wide competition law compliance review, which preceded the Commission's investigation into the liquid fuels sector.

        Sasol has reviewed the Commission's referral documents and does not agree with the Commission's allegations. Accordingly, Sasol is assessing the legal options available to it.

        Other    From time to time Sasol companies are involved in other litigation and similar proceedings in the normal course of business. Although the outcome of these proceedings and claims cannot be predicted with certainty, the company does not believe that the outcome of any of these cases would have a material effect on the group's financial results.

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Competition matters

        Sasol continuously evaluates its compliance programmes and controls in general, and its competition law compliance programme and controls. As a consequence of these compliance programmes and controls, including monitoring and review activities, Sasol has also adopted appropriate remedial and/or mitigating steps, where necessary or advisable, lodged leniency applications and made disclosures on material findings as and when appropriate. These ongoing compliance activities have already revealed, and may still reveal, competition law contraventions or potential contraventions in respect of which we have taken, or will take, appropriate remedial and/or mitigating steps including lodging leniency applications.

        The Commission is conducting investigations into the South African liquid petroleum, piped gas, fertilisers and polymer industries. Sasol continues to interact and co-operate with the Commission in respect of the subject matter of current leniency applications brought by Sasol, conditional leniency agreements concluded with the Commission, as well as in the areas that are subject to the Commission's investigations.

Environmental Orders

        Sasol is subject to loss contingencies pursuant to numerous national and local environmental laws and regulations that regulate the discharge of materials into the environment and that may require Sasol to remediate or rehabilitate the effects of its operations on the environment. The contingencies may exist at a number of sites, including, but not limited to, sites where action has been taken to remediate soil and groundwater contamination. These future costs are not fully determinable due to factors such as the unknown extent of possible contamination, uncertainty regarding the timing and extent of remediation actions that may be required, the allocation of the environmental obligation among multiple parties, the discretion of regulators and changing legal requirements.

        Sasol's environmental obligation accrued at 30 June 2014 was R11 013 million compared to R9 831 million at 30 June 2013. Included in this balance is an amount accrued of approximately R4 852 million in respect of the costs of remediation of soil and groundwater contamination and similar environmental costs. These costs relate to the following activities: site assessments, soil and groundwater clean-up and remediation, and on-going monitoring. Due to uncertainties regarding future costs the potential loss in excess of the amount accrued cannot be reasonably determined.

        Although Sasol has provided for known environmental obligations that are probable and reasonably estimable, the amount of additional future costs relating to remediation and rehabilitation may be material to results of operations in the period in which they are recognised. It is not expected that these environmental obligations will have a material effect on the financial position of the group.

        As with the oil and gas and chemical industries generally, compliance with existing and anticipated environmental, health, occupational and process safety laws and regulations increases the overall cost of business, including capital costs to construct, maintain, and upgrade equipment and facilities. These laws and regulations have required, and are expected to continue to require, the group to make significant expenditures of both a capital and expense nature.

Regulation

        The South African government has, over the past 20 years, introduced a legislative and policy regime with the imperative of redressing historical, social, and economic inequalities, as stated in the Constitution of the Republic of South Africa, by way of the empowerment of historically disadvantaged South Africans (HDSAs) in the areas of ownership, management and control, employment equity, skills development, procurement, enterprise development and socio-economic development.

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        The majority of our operations are based in South Africa, but we also operate in numerous other countries throughout the world. In South Africa, we operate coal mines and a number of production plants and facilities for the storage, processing and transportation of raw materials, products and wastes related to coal, oil, chemicals and gas. These facilities and the respective operations are subject to various laws and regulations that may become more stringent and may, in some cases, affect our business, operating results, cash flows and financial condition.

Empowerment of historically disadvantaged South Africans

Broad-based Black Economic Empowerment Act, 53 of 2003

        Sasol is well aligned with the economic transformation and sustainable development objectives embodied in the South African legislative and regulatory framework governing Broad-based Black Economic Empowerment (BBBEE). The key elements of this framework are the BBBEE Act, the Codes of Good Practice (the new Codes were gazetted on 11 October 2013, with a transition period until 30 April 2015) for BBBEE issued by the Minister of Trade and Industry in terms of the Act (the Codes), as well as the Charters (i.e. the Mining Charter and Liquid Fuels Charter in South Africa addressing employment equity) adopted by the various sectors within which Sasol operates businesses and related scorecards. The measures discussed below reflect Sasol's commitment to giving meaningful effect to the letter and spirit of the BBBEE legislative and regulatory framework.

Sasol Inzalo share transaction

        The Sasol Inzalo share transaction is one of the major broad-based black economic empowerment initiatives undertaken by Sasol. Its components include employee trusts, the Sasol Inzalo Foundation, a transaction for selected participants, as well as a public offering targeted at black participants. It resulted in the transfer of beneficial ownership of 10% (63,1 million shares) of Sasol Limited's issued share capital before the implementation of this transaction to its employees and a wide spread of black South Africans (BEE participants).

        It has a tenure of 10 years and the effective date of the transaction for the Employee Trusts and the Sasol Inzalo Foundation was 3 June 2008. The effective date of the transaction for the selected participants was 27 June 2008. The effective date for the black public invitations was 8 September 2008. Refer to "Item 5A—Operating results—Sasol Inzalo share transaction".

The Mining Charter

        In October 2002, the government and representatives of South African mining companies and mineworkers' unions reached broad agreement on the Mining Charter, which is designed to facilitate the participation of HDSAs in the country's mining industry.

        The Mining Charter, together with a scorecard which was published on 18 February 2003 to facilitate the interpretation of and compliance with the Mining Charter (the scorecard), requires mining companies to ensure that HDSAs hold at least 15% ownership of mining assets or equity in South Africa within five calendar years and 26% ownership within 10 calendar years from the enactment of the new MPRDA which came into force on 1 May 2004.

        The Mining Charter was revised after the initial five year period and the revised Mining Charter became effective on 13 September 2010. The revised Mining Charter stated objectives include the:

•

Promotion of equitable access to the nation's mineral resources to all the people of South Africa;



•

Substantial and meaningful expansion of opportunities for HDSAs to enter the mining and minerals industry and to benefit from the exploitation of the nation's mineral resources;

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•

Utilisation and expansion of the existing skills base for empowerment of HDSAs and to serve the community;



•

Promotion of employment and advancement of the social and economic welfare of mine communities and major labour sending areas;



•

Promotion of beneficiation of South Africa's mineral commodities; and



•

Promotion of sustainable development and growth.

        The scorecard reporting template released by the Department of Mineral Resources also added further elements, not contained in the revised Mining Charter. The current Mining Charter will end during the 2014 calendar year and will be reviewed during this year. It is uncertain whether the revised Mining Charter will be aligned with the revised Department of Trade and Industry Codes of Good Practice (DTI Codes) which came into effect during October 2013.

        The President of South Africa gazetted the new Codes of Good Practice for broad-based black economic empowerment (B-BBEE) on 11 October 2013, with a transition period until 30 April 2015. These codes provide a standard framework for the measurement of B-BBEE across all sectors of the economy, other than sectors that have their own sectoral transformation charters (e.g. the mining industry). Furthermore, the B-BBEE Amendment Act was enacted on 27 January 2014. The B-BBEE Amendment Act makes compliance with the Codes of Good Practice compulsory for all industries. The B-BBEE Amendment Act provides that where any black economic empowerment legislation existed prior to the implantation of the B-BBEE Amendment Act, the B-BBEE Amendment Act will prevail. This is commonly referred to as the trumping provision. It is uncertain to what extent the revision of the Mining Charter, the revised DTI Codes and the trumping provisions will have an impact on our mining operations.

        On 11 October 2007, Sasol Mining announced the implementation of a BEE transaction valued at approximately R1,8 billion in terms whereof a black-woman controlled mining company called Ixia Coal (Pty) Ltd (Ixia), acquired 20% of Sasol Mining's shareholding through the issue of new shares. The transaction increased Sasol Mining's BEE ownership component by 20%. The effective date of the Ixia Coal transaction was 29 September 2010, when the remaining conditions precedent were met. Refer to "Item 5A—Operating results—Sasol Mining Ixia BEE transactions".

        We are a participant in transformation charters in the liquid fuels and mining industries in South Africa, pursuant to which we have undertaken to enable HDSA's to hold at least 25% equity ownership in our liquid fuels business and 26% equity ownership in our mining business by 2014. We have met these targets, with Sasol Mining's BEE ownership currently above 40%.

The Liquid Fuels Charter

        In 2000, following a process of consultation, the Department of Minerals and Energy (now the Department of Energy) and a number of companies in the liquid fuels industry, including Sasol Oil, signed the Liquid Fuels Charter (the Charter) which sets out the principles for the empowerment of HDSA's in the South African petroleum and liquid fuels industry.

        The Charter requires liquid fuels companies, including Sasol Oil, among other things, to ensure that HDSAs hold at least 25% equity ownership in the South African entity holding their operating assets by the end of a period of 10 years from the date of the signing of the Charter.

        In order to meet the equity ownership objective of the Charter, Sasol Limited concluded a black economic empowerment (BEE) transaction with an HDSA owned company, Tshwarisano LFB Investment (Pty) Ltd (Tshwarisano), in terms of which Sasol Limited disposed of 25% of its shareholding in Sasol Oil to Tshwarisano. Refer to "Item 5A—Operating results—Broad-based Black Economic Empowerment transactions".

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        The Charter also requires liquid fuels companies to adopt policies to further the other empowerment objectives of the Charter, among other things, employment equity, preferential procurement and skills development.

        The Charter further provides for the evaluation by the Department of Energy, from time to time, of the industry's progress in achieving the objectives of the Charter. Given the fact that the aforementioned 10 year period had run its course, the Department of Energy initiated a compliance audit in respect of the Charter in the latter part of the 2010 calendar year. Sasol Oil's compliance with the Charter was audited during the first half of the 2011 calendar year and the final industry report, albeit that the written report has not yet been issued to industry, has been discussed with industry by the Department of Energy on an aggregated basis. Sasol Oil awaits the issuance of the final written report.

BEE policies and legislation

        The Broad-based Black Economic Empowerment Act, underpinned by the scorecard setting out clear targets for broad-based BEE, was promulgated into law on 9 February 2003. The scorecard measures the following areas:

•

ownership;



•

management and control;



•

employment equity;



•

skills development;



•

procurement;



•

enterprise development; and



•

socio-economic development.

        As from 1 July 2006, Sasol Oil has met the 25% BEE ownership target with Tshwarisano holding 25% of the shares in Sasol Oil in line with the Charter.

Employees

        In keeping with the spirit of the Charter, as well as the Employment Equity Act, we have set employment equity targets. This requires that advantageous treatment be given to HDSAs in aspects of employment such as hiring and promotion. Employment equity targets are set out and reviewed periodically to ensure that they are met. Special training and mentorship programmes are in place to create a work environment that is suited to the successful nurturing of HDSA staff.

Procurement

        Procurement is a crucial element of BEE as set out in the Charter, as well as in other industry charters and government policy. BEE procurement affords smaller industry players the opportunity to participate meaningfully in the sector. As prescribed in the Charter, HDSA owned companies are accorded preferred supplier status as far as possible.

        Sasol Oil has established a BEE procurement policy; an enhanced procurement governance model and unique strategies to stimulate growth in its BEE spend.

Corporate social investment

        We focus on facilitating the socio-economic development of the communities in which we operate, through partnerships with key stakeholders in these communities.

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        Social investment is presently channelled into five main areas:

•

Education (particularly in mathematics and science);



•

Job creation and capacity building;



•

Health and welfare;



•

Arts, culture and sport development; and



•

Environment.

The Restitution of Land Rights Act, 22 of 1994

        Our privately held land could be subject to land restitution claims under the Restitution of Land Rights Act, 22 of 1994. Under this act, any person who was dispossessed of rights to land in South Africa as a result of past racially discriminatory laws or practices is granted certain remedies, including, but not limited to:

•

restoration of the land claimed with or without compensation to the holder;



•

granting of an appropriate right in alternative state-owned land to the claimant; or



•

payment of compensation by the state or the holder of the land to the claimant.

        The Restitution of Land Rights Amendment Act became law in February 2004. This act would entitle the minister to expropriate land in the absence of agreement. Such an expropriation could be for restitution or other land reform purposes. Compensation payable to the owner of the land would be subject to the provisions of the Expropriation Act 63 of 1975 and section 25(3) of the South African Constitution which provides, in general, that compensation must be just and equitable.

        All claims had to have been lodged with the Land Claims Commission by 31 December 1998. The Restitution of Land Rights Amendment Bill of 2013 that was passed by the National Assembly and the National Council of Provinces on 25 February 2014 and 27 March 2014, respectively, reopens the period for filing of land claims by extending the period until 31 December 2018.

        Sasol has been notified of a potential land claim over a property that belongs to Sasol Synfuels, namely the farm Goedehoop 301 IS. Although we have not received any written confirmation in respect of the remedy that will be granted to the claimants in this matter, the Land Claims Commission did indicate verbally that they acknowledge that the land is not suitable for restoration of ownership and all indications are that compensation may be paid to the claimants by the government. In 2012, Sasol received a notification of a further land claim instituted over parts of the farm Grootvlein 293 IS. Sasol Mining is the owner of Portions 13 and 29 of the farm Grootvlein 293 IS. At this stage it is unclear which portions of the farm fall within the land claim and whether the claim has any merit. In February 2013, Sasol received a notification of a further land claim instituted over Portion 8 of the farm Rietvley 320 IS that belongs to Sasol Synfuels. A new ash dam will be partly constructed on this property. This property is already traversed by a Sasol Mining conveyor belt and another conveyor belt is due to cross the property in future. Sasol has engaged with the Land Claims Commission and the claimants on this issue to resolve the matter. Another piece of land was identified to be sold to the Land Claims Commission in place of Portion 8 of Rietvley 320 IS, subject to the withdrawal of the claim.

Regulation of mining activities in South Africa

The Mineral and Petroleum Resources Development Act (MPRDA)

        A fundamental shift in the regulation of mineral resources was brought about by the MPRDA, which came into effect on 1 May 2004. As a result of this legislation, South Africa transitioned from private ownership of minerals to a system where the state will act as the custodian of all mineral

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resources, and is entrusted with the responsibility of regulating the mining industry to the benefit of the nation. The MPRDA recognises that the mineral resources of the country are the common heritage of all South Africans and therefore belong to all citizens of South Africa. The MPRDA introduced a comprehensive statutory framework whereby the state, as guardian of mineral resources, may grant prospecting and mining rights to applicants who comply with the required minimum criteria. The MPRDA also introduced extensive new requirements for prospecting- and mining work programmes and the prescribed social and labour plans which accompany applications for mining rights.The MPRDA adopts the environmental management principles and environmental impact assessment provisions of the National Environmental Management Act (NEMA). The MPRDA addresses the allocation of responsibilities for environmental damage, pollution and degradation and imposes rehabilitation obligations. It significantly extends the scope of liability of directors who may be jointly and severally liable for any unacceptable negative impact on the environment, advertently or inadvertently caused by the company. It also allows the state to take remedial action and claim costs from the holder of the applicable right. It requires the approval of an environmental management programme/plan for all prospecting and mining operations and prohibits the carrying out of mining activities prior to the approval of the programme/plan. When rehabilitation is required, it is not limited to the land surface.

        The South African government has also enacted the MPRDA Amendment Act, 49 of 2008, and the NEMA Amendment Act, 62 of 2008, in an effort to streamline environmental approvals. The MPRDA Amendment Act of 2008 came into effect on 7 June 2013, but the government intends to make further changes through the proposed MPRD Amendment Bill, 2013 which has already been approved by the National Assembly and the National Council of Provinces, and is awaiting the President's signature.

        Whilst the implementation of the 2008 MPRDA Amendment Act had some impact on our business, the 2013 MPRD Amendment Bill initially contained several clauses which caused significant concerns for Sasol Mining, as well as the mining industry as a whole. These concerns related mainly to broad delegations of authorities to ministries and restrictions on the export of minerals and compulsory sale of an undetermined percentage of coal production to local beneficiaries. A further concern was that mining companies will remain liable for rehabilitation post mine closure even if a closure certificate is granted by the Department of Mineral Resources.

        Various industry members, including the Chamber of Mines and Sasol, presented submissions to the National Assembly's portfolio committee on minerals during the public hearings on the proposed MPRD Amendment Bill. The Department of Mineral Resources eventually reached a compromise with the industry and changed the wording of almost all of the contentious provisions. Although far from ideal, these amendments were acceptable to most industry members. The provision which entitles the government to a free carried interest in all new petroleum ventures still remains a concern. A number of critical issues will be dealt with in the new regulations to be published under the MPRD Amendment Bill. These regulations are not yet available and their impact on Sasol remains unclear.

Mining rights

        All Sasol Mining's old order prospecting and mining rights have been converted to new order rights. Sasol Mining's mining rights in respect of its Mpumalanga operations (Secunda Complex) as well as its Sigma: Mooikraal operations in the Free State have been extended to 2040, and can be renewed for further periods of 30 years at a time.

        We are a participant in transformation charters in the liquid fuels and mining industry in South Africa, pursuant to which we have undertaken to enable historically disadvantaged South Africans to hold at least 25% equity ownership in our liquid fuels business and 26% equity ownership, by 2014, in our mining business. We have met these targets, with Sasol Mining's BEE ownership currently above

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40%. Sasol Mining achieved an overall score of 88% for its Secunda operations and 91% for Sigma: Mooikraal operations with regard to its Mining Charter compliance for the 2013 calendar year. The scores have been verified by an independent verification agency.

        Furthermore, royalties from mining activities are payable to the state, as from 1 March 2010, under provisions contained in the Mineral and Petroleum Resources Royalty Act, 28 of 2008, and the Mineral and Petroleum Royalty Administration Act, 29 of 2008. The most significant feature of the acts is that the royalty is determinable in accordance with a formula-based system. The impact on Sasol Mining for the year ended 30 June 2014 is a cost of R51,9 million (2013—R44,3 million). The royalty is deductible for normal income tax purposes.

Regulation of pipeline gas activities in South Africa

The Gas Act

        The Gas Act, which is currently being revised, came into effect on 1 November 2005. The Gas Act regulates matters relating to gas transmission, storage, distribution, liquefaction and re-gasification activities. Among its stated objectives are:

•

promoting the efficient development and operation of the respective facilities and the provision of respective services in a safe, efficient, economically and environmentally responsible way;



•

promoting companies in the gas industry that are owned or controlled by HDSAs;



•

promoting competition and investment in the gas markets; and



•

securing affordable and safe access to gas services.

        The Gas Act provides for the powers of the National Energy Regulator of South Africa (NERSA) regarding pipeline gas, whose powers include the issuance of licences for a range of activities including:

•

the construction, conversion or operation of gas transmission, storage, distribution, liquefaction and re-gasification facilities; and



•

trading in gas.

        NERSA has the authority to determine maximum prices for distributors, reticulators and all classes of consumers where there is inadequate competition as contemplated in the South African Competition Act. The Gas Act gives NERSA the authority to impose fines and other punitive measures for failure to comply with the licence conditions and/or the provisions of the Gas Act.

The National Energy Regulator Act

        The National Energy Regulator Act came into operation on 15 September 2005. The National Energy Regulator Act provides for the establishment of a regulator to regulate the piped gas, petroleum pipeline and electricity industries and for the functions and composition of the energy regulator. On 1 November 2005, NERSA, pursuant to the National Energy Regulator Act, came into existence.

        A draft National Energy Regulator Amendment Bill has been published for comment and Sasol has subsequently commented on the proposed changes.

        All construction activities relating to the distribution and transmission pipeline networks of Sasol Gas are also undertaken subject to the relevant construction licences as prescribed by the Gas Act. All gas trading, distribution and transmission activities of Sasol Gas are undertaken subject to the applicable licences issued by NERSA.

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The Mozambique Gas Pipeline Agreement (Regulatory Agreement)

        This agreement entered into between Sasol Limited and the South African Government, represented by the Minister of Minerals and Energy, and the Minister of Trade and Industry in connection with the introduction of natural gas by pipeline from Mozambique into South Africa is incorporated into the Gas Act through the reference thereto in Section 36 of the act. The Gas Act provides that the terms of the agreement bind the Gas Regulator for a period until 10 years after natural gas is first received from Mozambique (26 March 2004). From the date of the conclusion of the agreement, the terms of the agreement relating to the following matters constitute conditions of the licences to be issued to Sasol Gas and Rompco under the Gas Act:

•

our rights and periods granted in respect of transmission and distribution of gas;



•

third party access to the transmission pipeline from Mozambique and to certain of our pipelines;



•

prices we charge for gas;



•

our obligation to supply customers, distributors and reticulators with gas; and



•

the administration of the agreement.

        At the conclusion of the 10 year period provided for in the Regulatory Agreement, on 25 March 2014, the transmission tariffs for piped gas and gas prices charged by Sasol Gas became subject to regulation by NERSA in terms of the regulatory powers of NERSA established by the Gas Act. In this regard, NERSA has promulgated the tariff methodology that will apply to gas transmission and storage operations and NERSA has published the methodology that will apply to the approval of maximum prices in terms of the Gas Act.

        As part of the Gas Act, the Regulatory Agreement forms part of the legislation and, as such, the same legislative processes generally applicable to changes in legislation would apply to it.

        The 10 year regulatory dispensation negotiated with the South African government with respect to the supply of Mozambican natural gas to the South African market expired in March 2014.

        In accordance with the regulatory framework relating to gas prices and tariffs, NERSA has on 26 March 2013 approved transmission tariffs and maximum gas prices which will apply to our gas business in South Africa after the expiry of the aforesaid regulatory dispensation. Pursuant to the approved tariffs and maximum prices, Sasol Gas implemented a standardised pricing mechanism in its supply agreements with customers in compliance with the applicable regulatory and legal framework. Seven of Sasol Gas' largest customers initiated a judicial review of the NERSA decisions relating to its maximum price and tariff methodologies and NERSA's decision on Sasol Gas's maximum price application. This review application has not concluded. It is uncertain how the outcome of this review application will affect the tariffs and gas prices that Sasol Gas charges. We cannot assure you that the provisions of the Gas Act, the implementation of a new gas price and tariff methodology pursuant to the NERSA approvals and the outcome of the review application will not have a material adverse impact on our business, operating results, cash flows and financial condition.

The Gas Regulator Levies Act

        The Gas Regulator Levies Act came into effect on 1 November 2005. It provides for the imposition of levies by the Gas Regulator on the amount of gas delivered by importers and producers to inlet flanges of transmission or distribution pipelines. These levies will be used to meet the general administrative and other costs of the gas regulation activities of NERSA and the functions performed by NERSA in this regard. During the NERSA financial year which ended on 31 March 2014, Sasol Gas paid a total amount of R52 million (2013—R56,1 million) in levies under this Act. For the NERSA financial year ending on 31 March 2015, the levies proposed have been R0,3793/GJ. The levies have yet to receive the required ministerial approval. It is anticipated that approximately R62 million will be paid in levies during this period.

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Regulation of petroleum-related activities in South Africa

The Petroleum Products Amendment Act (Amendment Act)

        The Amendment Act, which amends the Petroleum Products Act and became effective in 2006, prescribes that a person may not be involved in the activities of manufacturing, wholesaling, holding or development of retail sites and retail sale of petroleum products without the appropriate licence having been issued in terms of the Amendment Act. The Amendment Act deems any person, who was, at the time of commencement of an act amending the Petroleum Products Act in 2003, involved in the aforementioned activities, to be a holder of a licence for that activity, provided such person has applied for such licence. With the exception of licences for new retail site developments, applications for which are approved on an on-going basis on a per site basis, Sasol Oil is not at risk from a licensing perspective.

        The Amendment Act entitles the Minister of Energy to regulate the prices, specifications and stock holding of petroleum products and the status in this regard is as follows:

•

A regulatory price review was conducted by the Department of Energy which resulted in new price calculation methodologies. The new pricing structures came into effect during December 2013;



•

Changes to align South African liquid fuels specifications with those prevailing in Europe are currently under discussion. It is uncertain as to when these new specifications, which pertain to all liquid fuels consumed in South Africa, will be effective. Compliance with these new specifications will require substantial, however as yet not finalised, capital investments at both National Petroleum Refiners of South Africa (Pty) Ltd (Natref) and Sasol Synfuels. Discussions regarding cost recoveries and/or incentives for these prospective capital investments are on-going with the South African government; and



•

Regulations to oblige licenced manufacturers and/or wholesalers to keep minimum levels of market-ready petrol, diesel, illuminating paraffin, jet fuel and liquid petroleum gas (LPG) are currently under consideration by the Department of Energy. No indications on volumes, cost recovery and compensation mechanisms available as yet.

        We cannot assure you that the application of these regulations will not have a material adverse effect on our business, operating results, cash flows and financial condition.

        The Petroleum Products Act authorises the Minister of Energy to promulgate regulations and we cannot assure you that the application of these provisions of the Act, or the promulgation of regulations in terms thereof, will not have a material adverse effect on our business, operating results, cash flows and financial condition.

The Petroleum Pipelines Act

        The Petroleum Pipelines Act (the Act), which became effective in 2005, establishes a petroleum pipelines authority, namely NERSA, as custodian and enforcer of the regulatory framework applicable to petroleum pipelines, storage facilities and loading facilities.

        The Act provides that no person may construct, or operate, a petroleum pipeline, loading facility or storage facility without a licence issued by NERSA. It enables NERSA to impose conditions on such licences including the setting and approval of petroleum pipeline, storage facility and loading facility tariffs for third party access.

        We have been granted licences for our regulated facilities. Applications for tariffs have been submitted in terms of the NERSA rules. The applications are of an interim nature, as Sasol Oil is not yet in a position to fully comply with the applicable regulatory information request from NERSA. Sasol

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Oil has agreed a process with NERSA to implement the NERSA prescribed RRM that will enable NERSA to fully execute its regulatory mandate in this regard.

        It is unlikely that the tariffs, once approved, will have a material financial impact on Sasol Oil.

        The Act authorises the South African Minister of Energy to promulgate regulations and we cannot assure you that the application of these provisions of the Act, or the promulgation of regulations in terms thereof, will not have a material adverse effect on our business, operating results, cash flows and financial condition.

Safety, health and environment

Regions in which Sasol operates and their applicable legislation

South Africa

        In South Africa, we operate a number of plants and facilities for the manufacture, storage, processing and transportation of chemical feedstock, products and wastes. These operations are subject to numerous laws and ordinances relating to safety, health and the protection of the environment.

Environmental regulation

        The Constitution of the Republic of South Africa provides the framework for the environmental legislation in South Africa. Section 24 of the constitution enshrines the right of all citizens to an environment that is not harmful to their health and well-being and provides individuals with a right to the protection of the environment. It further provides that these rights can be enforced through reasonable legislative and other measures to prevent pollution and degradation, to promote conservation and to secure ecologically sustainable development. Below is an analysis of some of these laws, which are material to our operations.

        National Environmental Management Act.    The Act regulates environmental authorisation requirements to manage the environmental impact associated with certain identified activities, as well as, compliance enforcement. These governance and enforcement measures also extend to special environmental management acts, such as the Waste Act, the Water Act and the Air Quality Act. The Act principally imposes a duty of care on persons who have or may pollute or degrade the environment and other responsible parties to take reasonable measures to prevent and remediate environmental damage, protects workers' rights and provides for control over emergency incidents. Non-compliances with provisions on, amongst other things, the duty of care and reporting of significant incidents, are regarded as offences under the Act.

        Mineral and Petroleum Resources Development Act.    Environmental governance with respect to mining, prospecting, production and exploration is regulated under the MPRDA, consistent with the provisions of the National Environmental Management Act. This act makes provision for the effective management of impacts associated with mining activities. An environmental management programme or plan (EMP) must be compiled and approved by the Department of Mineral Resources, and regularly reviewed. The EMP is required to cover potential environmental as well as socio-economic impacts. This act further requires the making of financial provision for the rehabilitation or management of negative environmental impacts.

Water protection

        The National Water Act (the Act) provides for the equitable allocation of water for beneficial use, sustainable water resource management and the protection of the quality of water resources. The Act establishes water management procedures and protects water resources through the licensing of various uses of water. It also includes provisions for pollution prevention, remediation requirements and

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emergency incident management. The Department of Water Affairs is implementing a pricing strategy (in future to include a Waste Discharge Charge System) aimed at allocating the appropriate price for the use of water, which may have a significant impact on operational costs. Sasol is supporting the Department of Water Affairs in developing an implementation plan for the National Water Resource Strategy 2.

        A significant part of our operations, including mining, chemical processing and others, require use of large volumes of water. South Africa is generally an arid country and prolonged periods of drought or significant changes to current water laws could increase the cost of our water supplies or otherwise impact our operations.

Air quality protection

        The National Environmental Management: Air Quality Act.    In terms of this act, the Department of Environmental Affairs (the Department) imposes stricter standards on air quality management in South Africa, through the adoption of ambient and minimum point source emission standards. The minimum point source emission standards impose different standards for new and existing facilities. New facilities must comply with the standards immediately. Existing facilities have five years from 1 April 2010 within which to comply with standards imposed thereon and must comply with the standards imposed for new facilities within 10 years. Compliance with the minimum point source emission standards will result in significant capital and operational costs.

        In respect of the licencing conditions, that will require Sasol to comply with the prescribed point source emission standards contained in the applicable regulations issued under the Act, Sasol is in the process of applying for a postponement of the mandated compliance date of 1 April 2015. Sasol has already engaged the public and the authorities on its intended applications. Draft applications have already been submitted for public comment, and a further commenting period is underway in respect of some of its applications.

        Sasol participated individually and through industry associations, in air quality law reform initiatives in 2013. The most significant of these included amendments to the minimum emission standards in November 2013. Sasol continues to constructively engage with all stakeholders, including the regulatory authorities, to achieve reasonable and sustainable ambient air quality improvements. Sasol recently submitted extensive comments on the draft offset policy published by the Department of Environmental Affairs. Currently, the outcomes of these applications are uncertain and we cannot confirm that the postponement applications will be successful.

        The Department has declared the Vaal Triangle (where the Sasolburg plant is situated) and the Highveld area (where our Secunda operations are situated) as Priority Areas. The Vaal Triangle and Highveld Priority Area Air Quality Improvement Plans are being implemented. Compliance with the provisions of these plans will have significant cost implications.

        Climate change management:    Some of our processes in South Africa, especially coal gasification, result in relatively high carbon dioxide emissions. South Africa is considered a developing country in terms of the United Nations Framework Convention on Climate Change and, accordingly, is largely exempt from the emissions reductions required. However, the South African government has committed to an emission reduction pledge under the voluntary Copenhagen accord which has been incorporated into the National Climate Change Response White Paper published in November 2011. In May 2013, a second carbon tax discussion document was published for comments and early in 2014 it was indicated that the carbon tax would be integrated with the carbon budget as contemplated in the National Climate Change Response White Paper. This represents a step forward in developing an integrated mitigation approach for South Africa. South Africa has agreed to implement mitigation actions that will collectively result in a 34% and 42% deviation below its "Business As Usual" emissions trajectory by 2020 and 2025, respectively.

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Waste

        The National Environmental Management: Waste Act.    The act introduces legislative requirements on all aspects of waste management in a comprehensive manner. The act also regulates on contaminated land management. The act imposes various duties on holders of waste including prohibitions on waste disposal. These duties are potentially far reaching as waste is broadly defined. The act also requires licences to be obtained for the commencement, undertaking or conducting of waste management activities. The act further regulates waste information systems and provides for specific regulation of priority wastes. New landfill prohibition standards were introduced in 2013, which will be phased in over the next 15 years. Sasol is actively participating in an industry waste forum established to enable the Department of Environmental Affairs and Business to address implementation challenges with the new legislation. We believe that compliance with specific provisions of the Waste Act may have significant cost implications.

Hazardous substances

        Hazardous Substances Act.    This act provides for the control and licensing of substances that may cause injury, ill-health or death to human beings by reason of their toxic, corrosive, irritant, strongly sensitising or flammable nature. Regulations have also been proposed providing for the adoption of the United Nations Globally Harmonised System for the classification and labelling of chemicals. This will facilitate alignment with existing international practices.

Health and safety

        Occupational Health and Safety Act.    This act covers a number of areas of employment activity and use of machinery in South Africa, excluding mining activities. This act and specific regulations thereunder impose various obligations on employers and others to reasonably and practicably maintain a safe and healthy workplace and minimise the exposure of employees and the public to workplace hazards, and establish penalties and a system of administrative fines and other measures for non-compliance.

        Mine Health and Safety Act.    The purpose of this act is to protect the health and safety of persons at mines by requiring that employers and others ensure that their operating and non-operating mines provide a safe and healthy working environment, determining penalties and a system of administrative fines and other enforcement measures for non-compliance. It specifically gives the Minister of Mineral Resources the right to restrict or stop work and requires an employer to take steps to minimise health and safety risks at any mine.

        Compensation for Occupational Injuries and Diseases Act.    The purpose of this act is to provide for compensation for disablement caused by occupational injuries or diseases sustained or contracted by employees in the course of their employment, or for death resulting from such injuries or diseases. This act is administered by the Minister of Labour who manages a compensation fund to which employers contribute, directly or indirectly.

        Occupational Diseases in Mines and Works Act.    This act relates to the payment of compensation in respect of certain diseases contracted by persons employed at mines. Any mine (including the Sasol Mining operations) at which risk work takes place is deemed to be a controlled mine in respect of the employees for whom the employer is required to make payments to the fund for occupational diseases, in order to meet relevant claims. For further information, refer to "Item 6.C—Board Practices—The risk and safety, health and environment committee".

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Germany

        In Germany, we operate a number of plants and facilities for the manufacture, storage, processing and transportation of chemical feedstock, products and waste. These operations are subject to numerous laws and ordinances relating to safety, health and the protection of the environment.

General environmental care

        In terms of the act regulating the Assessment of Environmental Impacts, the environment impact assessment (EIA), is an instrument of preventative environmental care that is legally binding. Issues relating to general environmental care are addressed by the environmental provisions of the Regional Planning Act and other specific and planning law. Installations that pose a particular risk to the environment must have provisions for sufficient cover, an obligation which may be met by arranging liability insurance.

        Criminal law provisions are included in the act to combat environmental crime, which targets a range of polluting activities, including water, soil and air pollution, environmentally damaging waste disposal and noise. It also addresses licensing of the operation of installations and the handling of hazardous substances and goods and particularly serious environmental offences.

Specific environmental protection legislation

        Emission control.    The guideline legislation to protect humans and the environment from air pollution and noise pollution is the Federal Emission Control Act. This act and the ordinances promulgated under it provide the framework for environmental protection and the technical safety of installations. It provides for licensing for installations that are particularly susceptible to causing harmful environmental impacts, including chemical facilities or mineral oil refineries.

        Avoidance, recovery and disposal of waste.    The Closed Substance Cycle and Waste Management Act regulates the avoidance, recovery and disposal of waste. The aim of this act is to promote an economy based on closed substance cycles, thus conserving resources, and to guarantee the environmentally sound disposal of waste. Wherever waste cannot be avoided, recovered or used to produce energy, it must be removed from the cycle and, as a matter of principle, be disposed of within Germany in a way that is not detrimental to the common good.

        Water protection.    The guideline legislation in the field of water protection is the Federal Water Act. This requires everyone to exercise adequate care when carrying out measures which may have an impact on a water body so that water pollution or any other negative effect on water is prevented. Surface waters and groundwater are, as public utilities, subject to a public management and utilisation code, which leaves the allocation of users' rights at official discretion.

        The Waste Water Charges Act complements the Water Management Act and authorises an annually rising waste water charge linked to the toxicity of the discharged waste water.

        Soil protection.    The protection and care of soil as an environmental medium and part of the ecosystem is promoted by a range of environmental provisions, primarily the Federal Soil Protection Act. Soil protection measures, preventative or remedial, aim at avoiding or reducing substance inputs into the soil, or removing already existing soil damage, and at addressing the extensive land consumption caused by soil sealing.

Hazardous substances

        Regulation of hazardous substances.    Provisions for the protection of humans and the environment against the harmful effects of hazardous substances and preparations are provided in the Chemicals Act, the related ordinances on the Prohibition of Certain Chemicals and the Hazardous Incidents

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Ordinance. All hazardous substances, as per the scope identified in the EU REACH Regulation, are subject, to a registration and notification obligation before they can be brought onto the market. Hazardous substances and mixtures must be classified, labelled and packed in accordance with the EU Classification, Labelling and Packaging (CLP) Regulation in line with their hazardous properties. Further regulations prohibiting and limiting manufacture, marketing and use also apply.

Health and safety

        The Health and Safety at Work Act provides for protection of the health and safety of employees. It places the employer under a duty to assess hazards at the workplace, to take appropriate preventive measures, and to instruct employees about measures used. The employer must take precautions for especially hazardous areas and situations and provide preventive occupational healthcare. This act is complemented by the Safety at Work Act, which places employers under a duty to appoint appropriately qualified officers to support them in occupational health and safety matters, including ergonomic workplace design.

Italy

        In Italy, we operate a number of plants and facilities for the storage and processing of chemical feedstock, products and wastes. These operations are subject to numerous laws and ordinances relating to safety, health and the protection of the environment.

General environmental care

        The Environmental Decree (Legislative Decree 152/2006) regulates the most important environmental matters, including authorisations, emissions, water management, wastes and remediation and environmental damages. Several decrees were issued detailing different aspects of the law.

        The Industrial Emissions Directive (2010/75/EU) provides that companies must obtain an integrated authorisation for all environmental impacts.

Specific environmental protection legislation

        Emission control.    Environmental protection and the technical requirements for the licensing of all installations from which emissions emanate is regulated by Legislative Decree 152/06, section 5.

        Avoidance, recovery and disposal of waste.    Legislative Decree 152/06, Part 4, incorporates the 'polluters pay' principle and further provides for cradle to grave liability for waste. Legislative Decree 4/2008 introduced some requirements about Waste Water Treatment and Risks analysis compliance for underground water contamination.

        Water protection.    Legislative Decree 152/2006, Part 3, defines the authorisation procedure and discharge limits, in order to protect surface and underground water. Surface water and groundwater are, as public utilities, subject to a public management and utilisation regulation which leaves the allocation of users' rights at official discretion.

        Soil protection.    The protection and care of soil as an environmental medium and part of the ecosystem is promoted by Legislative Decree 152/06, which essentially follows the Ministerial decree 471/1999 with some simplification as far as documentation is concerned. Soil protection measures, preventative or remedial; aim at avoiding or reducing substance inputs into the soil, or removing already existing soil damage. The Legislative Decree sets forth both the acceptable limits and the rules for monitoring communication and reclamation.

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Hazardous substances

        Regulation of hazardous substances.    Legislative Decree 52/1997, implemented in Italy, the EU Directive, relevant to classification, packaging and labelling of dangerous substances. Legislative Decree 65/2003 implemented the EU Directives relevant to classification, packaging and labelling or dangerous preparations. All hazardous substances, as per the scope identified in the EU REACH Regulation, are subject, to a registration and notification process before they can be brought onto the market. Hazardous substances and mixtures must be classified in accordance with the EU CLP Regulation in line with their hazardous properties. Further regulations prohibiting and limiting manufacture, marketing and use also apply.

Health and safety

        Legislative Decree (LD) 81/08, governs Safety and Occupational Health (including construction work) with the exclusion of Major Hazards (Seveso). This Decree imposes obligations on an employer with regards to workplace health and safety and also provides for liability related to health and safety incidents.

United States

        In the US, we operate a number of plants and facilities for the storage and processing of chemical feedstock, products and wastes. These operations are subject to numerous laws and ordinances relating to safety, health and the protection of the environment.

Environmental compliance

        Sasol's US operations and growth projects are subject to numerous federal, state, and local laws and regulations that regulate the discharge of materials into the environment or that otherwise relate to the protection of human health and the environment. As with the chemical industry, generally, compliance with existing and anticipated environmental, health, safety, and process safety laws and regulations increases the overall cost of business, including capital costs to construct, maintain, and upgrade equipment and facilities. These laws and regulations have required, and are expected to continue to require our operations and projects to make significant expenditures of both a capital and expense nature.

Canada

        In Canada, Sasol is a 50% partner in a partnership with Progress Energy Canada Ltd (previously Talisman Energy Inc.) for the development and operation of the Farrell Creek and Cypress A assets in British Columbia. Progress Energy Canada Ltd. is the managing partner and operates the assets on behalf of the partnership. A feasibility study for a proposed gas-to-liquids facility in Alberta was completed, including purchasing of land for a future gas-to-liquids site, which Sasol now owns and maintains.

        The operation of these assets is subject to various Canadian federal and provincial laws and regulations.

Oil and natural gas production

        The British Columbia Petroleum and Natural Gas Act (PNGA) and Oil and Gas Activities Act (OGAA) are the primary sources of regulatory controls over Sasol's joint interests in oil and gas producing areas in Canada. These statutes include a wide array of tenure, operational and public review requirements. A common theme of the requirements is that producers must hold applicable

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licences, leases, permits and other approvals. As of 1 January 2014, British Columbia introduced mandatory public disclosure of hydraulic fracturing fluid ingredients.

Water protection

        Substantial volumes of water are needed for oil and gas production in British Columbia. Extractions of water from ground and surface sources are regulated by the OGAA, PNGA and the British Columbia Water Act, the latter of which will be replaced by the Water Sustainability Act in 2015. Water extraction wells are subject to requirements governing well tenure and location, construction and aquifer management. The piping of water to exploration or production sites is governed by special approval requirements (covering fisheries, pipeline construction, tenure and surface rights issues).

Emissions

        British Columbia's Environmental Management Act (EMA) prohibits emissions, discharges and the like into the environment without prescribed permits. Several permits apply to activities at the British Columbia subject properties, covering releases to air and water.

Contaminated sites

        Soil and groundwater contamination in the British Columbia oilpatch is regulated primarily by the contaminated sites regime in the EMA and its supporting Contaminated Sites Regulation (CSR).

Environmental assessment

        Further development of the British Columbia oil and gas assets might trigger one or both of provincial and federal environmental assessment (EA) requirements. EAs commonly will require substantive public review and Aboriginal (or First Nations and Metis group consultation) consultation. To date, none of the activities undertaken in relation to the British Columbia operations have triggered an EA.

Aboriginal consultation

        A unique aspect of Canadian law is the recognition of Aboriginal rights. The Crown (the federal or provincial government) is obliged to consult with, and where appropriate, accommodate, Aboriginal groups in making governmental decisions which may infringe on Aboriginal rights. This duty continues to evolve in response to judicial decisions.

Occupational and workplace safety

        The British Columbia Workers Compensation Act and supporting regulations and policies set out detailed rules respecting workplace safety in British Columbia. Special rules (in regulations to this act) apply to the oil and gas sector.

Mozambique

        In Mozambique, Sasol operates a processing plant and associated facilities for the extraction and processing of natural gas and condensate and transportation of natural gas. The Central Processing Facility (CPF) has been in operation since February 2004. These operations are subject to numerous Mozambican laws and regulations as well as World Bank requirements and best practice standards.

        Environmental, health and safety regulations.    The Ministry for the Coordination of Environmental Affairs (MICOA) coordinates environmental affairs in Mozambique. A National Environmental Management Programme is the policy document outlining the priorities for environmental management

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and sustainable development in Mozambique. This programme contains a National Environmental Policy, a proposal for Framework Environmental Legislation and Environmental Legislation and an Environmental Strategy.

        The Framework Environmental Law (20/97) provides a legal framework for the use and correct management of the environment and its components and to assure sustainable development in Mozambique. The Petroleum Industry in Mozambique is regulated by both Environmental Impact Assessment Regulations (Decree 45/2004 and its update Decree 42/2008) and the Environmental Regulations for Petroleum Operations (Decree 56/2010).

        An Environmental Impact Assessment (EIA) is a legal requirement under the Framework Environmental Law for any activity which may have direct or indirect impacts on the environment. Article 2 of Decree no. 45/2004 states that EIA's are required for oil, gas and mineral resource-related activities or developments. Regulations on Petroleum Operations (Decree 24/2004) and Environmental Regulations for Petroleum Operations (Decree 56/2010) govern EIA for petroleum and gas projects.

Environmental Regulations for Petroleum Operations (Decree 56/2010)

        These following regulations establish the EIA requirements for petroleum operations and the associated prevention, control, mitigation and rehabilitation procedures to be followed. This is achieved through Environmental Impact Assessments (EIAs), Simplified Environmental Impact Assessments (SEIAs) and/or the adoption of good environmental management norms according to the classification of a new project's activities.

        Regulations on Environmental Quality and Emission Standards (Decree 18/2004), with additions and amendments in supplement (Decree 67/2010). This Regulation aims to establish the standards for environmental quality and for effluents release in order to assure the effective control and maintenance of the admissible standards of concentration of polluting substances on the environmental components.

        Regulations on Solid Waste Management (Decree 13/2006 of 15 June). The Regulations establish rules on the production, emission or disposal in the soil and subsoil, in water or the air, of any toxic or polluting substance, as well as the execution of activities that accelerate deterioration of the environment, in order to avoid or minimize their negative impact on health and the environment.

        Regulations on Water Quality for Human Consumption (Ministerial Diploma 180/2004). The Regulations establish quality parameters and control procedures for water intended for human consumption. The purpose of these regulations is to protect consumers from the harmful effects of contamination in the water supply system.

        In terms of environmental protection and safety, the Petroleum Act (3/2001) and the Petroleum Operations Regulations (24/2004) require holders of exploration and production rights to conduct petroleum operations in compliance with environmental and other applicable legislation. Petroleum operations must be understood as all or any activities related to exploration, development, separation and treatment, storage, transportation and sale or delivery of petroleum from the point of export, or to the agreed supply point in the Republic of Mozambique will have to comply with the environmental and other applicable legislation, and includes Natural Gas processing and the closure of all concluded activities.

        Mineral Rights.    Petroleum activities are regulated by the Petroleum Act and Regulation (Law 3/2001, of 21 February and Decree 24/2004, of 20 August, respectively). The National Petroleum Institute administers and regulates petroleum operations on behalf of the Mozambique Government.

        Mining Law no. 14/2002, of 26 June 2002. This law governs the terms for the exercise of the rights and obligations regarding the use of mineral resources taking into account the environment, aiming its rational utilisation to the benefit of the national economy.

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Qatar

        In Qatar, we participate in a joint venture involving a number of plants and facilities for the storage and processing of chemical feedstock, products and wastes. These operations are subject to numerous laws and ordinances relating to safety, health and the protection of the environment.

        Environmental regulation.    All public or private development plans, including industrial, agricultural and infrastructure projects are required to follow the Environmental Protection Law and obtain an environmental authorisation permit from the Ministry of Environment (MOE). The MOE is also responsible for environmental protection and conservation in the State of Qatar.

        The Environmental Protection Law, Decree-Law No. (30) of 2002 is aimed at protection of the environment, prevention of pollution (short -and long-term) and sustainable development by providing for development of natural resources for the benefit of the present and future generations, the protection of society, human health and other living creatures, and protection of the environment from the damaging effect of activities outside of the State of Qatar.

        The Executive By-Law for the Environmental Protection Law, issued vide the Decree Law No. 30 for the Year 2002 (the By-Law) stipulates specific standards and regulations to meet the objectives of The Environmental Protection Law. This includes regulations on determining the environmental impact of projects (requirements to conduct an EIA), emergency response plans for environmental disasters, hazardous wastes and materials, air pollution, water pollution, protection of marine environment. It also includes annexure regulations on:

•

Air protection.    Prescribing standards for air quality for different industries;



•

Water protection.    Prescribing standards for pollutants and limitations for discharges into the water; and



•

Waste.    Regulates the management and trans-boundary movement of hazardous wastes. In addition it regulates the import, production, handling and transportation of hazard materials including the categorisation, labelling, separation and packing of hazardous materials.

        Consent to Operate (CTO).    This is ORYX GTL's operating permit issued under the Authority of Law, 30 of 2002, and its By-Law No. 4 of 2005 and is renewable on an annual basis. This permit stipulates general monitoring requirements, waste water quality standards, point source air emission standards, overall noise level limit, handling and storage of hazardous wastes, chemical use, records and emergency response programmes.

        The State of Qatar has implemented a Clean Development Mechanisms (CDM), an initiative to reduce the emission of greenhouse gases. Gas flaring mitigation and the reduction of carbon emissions were among the two key areas focused on by the State of Qatar as part of its commitment towards CDM.

        Occupational Health and Safety Administration (OSHA).    There is no regulatory authority for safety or health in Qatar and therefore ORYX GTL used the internationally recognised OSHA standards as guidelines where applicable.

Other countries

        In a number of other countries we are engaged in various activities that are regulated by local and international laws, regulations and treaties. In Malaysia, China and other countries, we operate plants and facilities for the storage, processing and transportation of chemical substances, including feedstock, products and waste. In the United Arab Emirates, Nigeria, Gabon and other countries, we are involved, or are in the process of being involved, in exploration, extraction, processing or storage and transportation activities in connection with feedstock, products and waste relating to natural oil and

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gas, petroleum and chemical substances. Our operations in the respective jurisdictions are subject to numerous laws and regulations relating to exploration and mining rights and the protection of safety, health and the environment.

4.C    Organisational Structure

        Sasol Limited (Sasol) is the ultimate parent of the Sasol group of companies. Our wholly owned subsidiary, Sasol Investment Company (Pty) Ltd, a company incorporated in the Republic of South Africa, holds primarily our interests in companies incorporated outside South Africa.

        The following table presents a list of Sasol's significant subsidiaries (including direct and indirect subsidiaries), the nature of business, percentage of shares of each subsidiary owned and the country of incorporation or residence at 30 June 2014.

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4.D Property, plants and equipment

Plants and facilities

        We operate coal mines and a number of plants and facilities for the storage, manufacturing, processing and transportation of oil, chemicals and gas related raw materials, products and wastes. For a detailed discussion regarding the use, capacity and products of these facilities provided for each business, including joint arrangements, refer to "Item 4.B—Business Overview".

Coal mining facilities

        Our main coal mining facilities are located at the Secunda Mining Complex, consisting of underground mines (Bosjesspruit, Brandspruit, Middelbult, Syferfontein and Twistdraai export mine) and Sigma: Mooikraal near Sasolburg.

        Pages M-1 to M-5 include maps showing the location of our coal properties and major manufacturing plants in South Africa.

Our Secunda facilities

        Our main manufacturing facilities are located at Secunda, and they are the base for our Synfuels operations and a range of our chemical industries operations, including explosives, fertilisers, monomers and polymers, solvents and tar. The approximate size of this property is 82,5 square kilometres (km²) with operating plants accounting for 8,35 km².

Our Sasolburg facilities

        Our facilities at Sasolburg are the base for a number of our chemical industries operations, including ammonia, explosives, fertilisers, mining chemicals, phenols, solvents, polymers, tars and wax operations. The approximate total size of these properties is 51,4 km².

        The size of the Natref refinery, also based in Sasolburg, is approximately 2,0 km².

Our Mozambique facilities

        In Mozambique natural gas and condensate is produced from the Pande-Temane PPA asset operated by Sasol Petroleum Temane (SPT) Limitada, a subsidiary of SPI. Production from the Temane field is routed from wellheads via infield flowlines and pipelines to the central processing facility (CPF) on a site of approximately 400 000 m² which is located some 700 km north of Maputo, the capital of Mozambique. Production from the Pande field is routed from the wellheads via infield flowlines, infield pipelines, a trunkline and a slug catcher to the CPF.

Our Canada facilities

        In Canada, natural gas and liquids are produced from the unconventional (shale/tight gas) Farrell Creek and Cypress A assets operated by Progress Energy Inc. Production is by means of production wells, flowlines, gathering lines and processing facilities located in British Columbia. Farrell Creek gas is processed through facilities owned by Sasol and Progress Energy, covering a site of approximately 160 000 m². Cypress A gas is processed and sold through third party production facilities.

Our Gabon facilities

        In Gabon oil is produced from the Etame Marin Permit asset which is operated by VAALCO Gabon (Etame) Inc. The facilities are located some 35 km offshore southern Gabon. Production from the Etame field is by means of subsea wells and through a floating production, storage and off-loading vessel (FPSO) contracted from Tinworth and which is moored offshore at the field location. Production

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from the Avouma and Ebouri fields is through minimum facilities fixed platforms which are tied back by pipelines to the FPSO. The processed oil is stored in tanks on the FPSO and is exported by shipping tanker according to a nominations and lifting schedule.

Our facilities in Germany

        Sasol Olefins & Surfactants operations are based at two locations in Germany, namely at Brunsbüttel (site size approximately 2,0 million m²; plant size 500 000 m²) and Marl (site size approximately 160 000 m²; plant size 75 000 m²).

        Sasol Wax facilities are based in Hamburg (site size approximately 160 000 m²; plant size 100 000 m²).

Our facilities in Italy

        The operations of Sasol Olefins & Surfactants are based at three locations in Italy. The primary facilities are at Augusta (site size approximately 1,36 million m²; plant size 510 000 m²) and Terranova (site size approximately 330 000 m²; plant size 160 000 m²).

Our facilities in the United States

        Various operations of Sasol Olefins & Surfactants are based at a number of locations in the US. The most significant of these facilities is located at Lake Charles, Louisiana (site size approximately 3 million m²; plant size 540 000 m²).

        Sasol Phenolics also has operations based at Oil City, Pennsylvania and Houston and Winnie, Texas.

        Sasol Wax's production facility is located in Richmond, California.

Our facilities in Qatar

        ORYX GTL is a gas-to-liquids plant, located at Ras Laffan Industrial City, situated along the northeast coast of Qatar (site size approximately 8 km²).

Our catalyst manufacturing facilities in Sasolburg and The Netherlands

        Sasol Cobalt Catalyst Manufacturing (Pty) Ltd is a wholly owned subsidiary of SSI and has the following catalyst manufacturing interests:

•

A fully owned 680 tpa cobalt catalyst manufacturing unit, situated in Sasol's Sasolburg site, 80 km south of Johannesburg, South Africa; and



•

A manufacturing agreement with BASF, De Meern, The Netherlands, which currently has two 680 tpa cobalt catalyst manufacturing units fully operational, dedicated exclusively to Sasol.

        The units above are sufficient to supply cobalt catalyst to current committed ventures and as future GTL ventures are realised. Sasol plans to expand its cobalt catalyst capacity to ensure supply.

        For more information regarding capital expenditure in respect of these properties and the related facilities and operations, refer to "Item 5.F—Liquidity and capital resources" for a description of our material plans to construct, expand and enhance our facilities.

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Mining properties and operations

Mine systems and their production capacity

        Sasol Mining operates six mines, the annual nominated capacities and actual production values are indicated in the following table:

Nominated capacity and production

        All mines employ the underground board and pillar mining method, using continuous miners. At Sasolburg, the Sigma Mine was established in 1950 and the Mooikraal shaft started production during 2006. In the Secunda area, production at the first two mines, Brandspruit and Bosjesspruit, commenced in 1977. Twistdraai and Middelbult followed during the early 1980s, while Syferfontein started production in 1992. The Brandspruit mine reserves are almost depleted and will be replaced by a new greenfields mine, Impumelelo, in a phased approach from 2015. In 1996, the Twistdraai Export mine was commissioned. The mine boundaries are extended based on on-going studies and new planning. All the production equipment is either replaced or overhauled on a regular basis according to a managed maintenance system.

Processing operations

        Export business—Secunda operations.    The export business was initiated in August 1996 as part of a growth strategy. To date, a total of 54,3 Mt and 2,3 Mt of beneficiated coal has been exported and sold locally, respectively. This was beneficiated from 140 Mt of run of mine coal (ROM) at the Twistdraai Export Plant, between 1996 and 2014. Run of mine Coal is sourced from the existing Twistdraai Colliery shafts (138,2 Mt) and the new Thubelisha Shaft (1,8 Mt). The Twistdraai colliery reserves are almost depleted and are replaced by the new greenfields mine, Thubelisha, in a phased approach from 2013. The beneficiation plant produces a primary export product with an ash content of approximately 13,5% (air dried) as well as a secondary product for the Sasol Synfuels market.

        The export beneficiation plant has a design throughput capacity of 10,5 Mt per annum. In 2014, 5,8 Mt was processed. The plant consists of a primary and secondary beneficiation stage. The primary stage consist of three modules, each module divided into two identical feed streams. The coal is fed at a rate of 500 ton per per hour, per module to a total of 18 primary cyclones. The secondary stage consists of two modules, each equipped with a 1 000 mm diameter dense medium cyclone.

        The run of mine (ROM) coal is transported via overland conveyor belts to the export beneficiation plant from the Twistdraai and Thubelisha Collieries respectively. The export product is loaded onto trains by means of a rapid load-out system, and then transported to the Richards Bay Coal Terminal (RBCT) in KwaZulu-Natal.

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        The existing nameplate capacity at the RBCT was increased from 76 Mt to 91 Mt per year, following the commissioning of the Phase V expansion in May 2010. Sasol Mining has a 5% share in the original capacity of this terminal, which corresponds to the existing entitlement of 3,6 Mt per year. For the foreseeable future, it is anticipated that Sasol Mining will only export approximately 3 Mt per year. This is largely due to the phasing in process of the Phase V entrants and availability of export entitlement to new participants at RBCT.

        Sasol Coal Supply—Secunda operations.    Sasol Coal Supply operates the coal handling facility between Sasol Mining and Sasol Synfuels by stacking and blending coal on six live stockpiles. The overland conveyors from the mining operations to the coal handling facility are, in total, 35 km long and also form part of the Sasol Coal Supply operation.

        The operation has a live stockpile capacity of 660 000 tons, which is turned over approximately 1,2 times per week. In addition, there is a strategic stockpile capacity of more than 2,0 Mt. The objectives of this facility are:

•

to homogenise the coal quality supplied to Sasol Synfuels;



•

to keep mine bunkers empty;



•

to keep the Sasol Synfuels bunkers full with a product that conforms to customer requirements;



•

to maintain a buffer stockpile to ensure even supply; and



•

to prevent fine coal generation.

        The daily coal supply to Sasol Synfuels is approximately 108 000 tons.

Coal exploration techniques

        Sasol Mining's geology department employs several exploration techniques in assessing the geological risks associated with the exploitation of the coal deposits. These techniques are applied in a mutually supportive way to achieve an optimal geological model of the relevant coal seams, targeted for production purposes. The Highveld Basin is considered to be structurally complex when compared to the other coalfields in South Africa where mining activities are taking place. As a result, Sasol Mining bases its geological modelling on sufficient and varied geological information. This approach is utilised in order to achieve a high level of confidence and support to the production environment.

        Core recovery exploration drilling.    This is the primary exploration technique that is applied in all exploration areas, especially during reconnaissance phases. In and around operational mines, the average vertical borehole density varies from 1:10 to 1:15 (boreholes per hectare), while in medium term mining areas, the average borehole density is in the order of 1:25. Depths of the boreholes drilled vary, depending on the depth to the Pre-Karoo basement, from 160 m to 380 m. The major application of this technique is to locate the coal horizons, to determine coal quality and to gather structural information about dolerite dykes and sills, and the associated de-volatilisation and displacement of coal reserves. This information is used to compile geological models and forms the basis of geological interpretation.

        Directional drilling.    Directional drilling from surface to in-seam has been successfully applied for several years. A circular area with a radius of approximately 1,6 km of coal deposit can be covered by this method, from one drill site. The main objective of this approach is to locate dolerite dykes and transgressive dolerite sills, as well as faults with displacements larger than the coal seam thickness.

        Horizontal drilling.    This technique is applied to all operational underground mines and supplies short-term (minimum three months) exploration coverage per mining section. No core is usually recovered, although core recovery is possible, if required. The main objective is to locate dolerite dykes

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and transgressive sills intersecting the coal mining horizon, by drilling horizontal holes in the coal seam from a mined out area. A drilling reach of up to 1 km is possible, although the average length is usually 800 m in undisturbed coal.

        Aeromagnetic surveys.    Many explorations were usually aero-magnetically surveyed before the focused exploration was initiated. The main objective is to locate magnetic dolerite sills and dykes, as well as large-scale fault zones.

        Airborne electro-magnetic surveys.    Due to the occurrences of non-magnetic dolerite dykes and sills, it has been necessary to survey certain exploration areas electro-magnetically to pinpoint these structures to optimise mine deployment.

        Geophysical wireline surveys of directional boreholes.    Geophysical surveys are routinely conducted in the completed directional drilled boreholes. This results in the availability of detailed information leading to increased confidence of the surface directional drilling results. This technique has also been applied in underground directional drilling with excellent results.

Secunda operations

        The coal supplied to Sasol Synfuels is the raw coal mined from the four mines supplying Sasol Synfuels exclusively and the secondary product from the export mine's beneficiation plant.

        Extensive geological exploration has been done in the coal resource areas. Additional exploration is undertaken to update and refine the geological models, which allows accurate forecasting of geological conditions and coal qualities, for the effective planning and utilisation of the coal reserves.

Computation and storage of geological information

        Geological information is stored in the Acquire database. Data validation and quality checking through several in-house methods is conducted regularly. Data modelling is conducted by manual interpretation and computer-derived geological models, using the Minex 6 edition of the GEOVIA/MINEX software. Reserves and composite qualities are computed using established and recognised geo-statistical techniques.

General stratigraphy

        The principal coal horizon, the Number 4 Lower Coal Seam, provides some 89,97% (2013—90,26%) of the total proved and probable reserves. The Number 4 Lower Coal Seam is one of six coal horizons occurring in the Vryheid Formation of the Karoo Supergroup, a permo-carboniferous aged, primarily sedimentary sequence. The coal seams are numbered from the oldest to the youngest.

        Characteristics of the Number 4 Lower Coal Seam. The Number 4 Lower Coal Seam is a bituminous hard coal, characterised by the following borehole statistics:

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The depth to the base of the seam ranges from 40 m to 241 m with an average depth of 135 m below the surface topography. All the current mining done on this seam is underground;



•

The floor of the seam dips gently from north to south at approximately 0,5 degrees;



•

The thickness of the seam varies in a range up to 10 m with a weighted average thickness of 3,3 m. In general, thinner coal is found to the south and thicker coal to the west adjacent to the Pre-Karoo basement highs;



•

The inherent ash content (air dried basis) is an average 28,6%, which is in line with the coal qualities supplied during the past 30 years to Sasol Synfuels;



•

The volatile matter content is tightly clustered around a mean of 19,5% (air dried); and

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•

The total sulphur content (air dried), which primarily consists of mineral sulphur in the form of pyrite and minor amounts of organic sulphur, averages 1,08% of the total mass of the coal.

        The other potential coal seam is:

•

The Number 2 Coal Seam at Middelbult mine and Impumelelo colliery have been included in our reserve base.

Mining parameters and assumptions used during reserve estimation

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Minimum mining height (meters):  the minimum mining height used is 1,8 m.



•

Maximum mining height (meters):  the maximum mining height used is 4,8 m for the Twistdraai colliery Thubelisha shaft.



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Primary safety factor⁽¹⁾:  the safety factor used in the mine planning, for primary development, in normal ground conditions is 1,8.



•

Secondary safety factor⁽¹⁾:  the safety factor used in the mine planning, for secondary development, in normal ground conditions is 1,6.



•

Minimum dry ash free volatile matter content:  the dry ash free volatile matter content gives an indication of devolatilised coal. During estimations, areas with a dry, ash free volatile matter content of less than 28% are excluded, and considered to be devolatilised coal areas.



•

Geological loss factor:  the geological loss factors vary in the respective blocks from 5,0% (Twistdraai) to 27,0% (Block 2S and Block 3 South) and averages at 11,01% in the operational mines. The geological loss factor is a discount factor applied to the gross in situ tonnage to take into account as yet unobserved geological features, which may occur. The geological loss factor is therefore a function of the borehole density and known geological complexity of the area, as well as the judgement of the competent person involved.



•

Mine layout losses:  the mine layout loss factors, expressed as a percentage of the in situ coal reserves used varies between 10,0% for Twistdraai colliery Thubelisha shaft and 55,6% for Brandspruit where panels have been laid out but not scheduled. The mine layout loss factor is a discount factor required to account for the expected loss of coal reserves, due to actual mining activities, not reaching the defined boundary of the mineable in situ coal reserve block. The mine layout loss factors applied are therefore a function of the complexity of the depicted actual and anticipated geological structures and the actual historical loss factors experienced.



•

Mine method losses:  this is the coal left behind in the roof due to not mining the full seam. The reason for this being safety, leaving a protective layer of coal in the roof of the coal seam. Losses reported are 23,9% (2013—21,0%) for Syferfontein, and 11,2% (2013—7,3%) for Sigma Mooikraal.



•

Mining losses:  mining loss factor, expressed as a percentage of the mineable in situ coal reserve, vary between 33,1% for Twistdraai colliery Thubelisha shaft and 63,7% for the Number 2 Seam at Impumelelo. The mining loss factor is the discount factor required to account for the expected loss of coal reserves, due to actual mining activities, which requires support pillars to be left in situ. The mining loss factors applied are therefore a function of the mining method used and planned to be used, as well as the actual historical loss factors experienced.

   

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(1)

The safety factor is calculated by dividing the strength of the pillar by the stress acting on the pillar. The strength of the pillar is determined by the inherent strength of the coal material, the width of the pillar and the height of the pillar. The stress on the pillar is the result of the pillar load, which is determined by the depth of mining, the pillar width and the board width.

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•

Contamination factor:  the contamination factor expressed as a percentage of the extractable coal reserve, varies between 0,5% (2013—0,5%) for Syferfontein and 3,9% for Impumelelo and the average is 2,8%. The contamination factor refers to the extraneous coal and non-coal material which is unintentionally added to the practical mining horizon, as a result of the mining operations. The contamination factors applied are therefore a function of expected geological conditions in the immediate roof and floor of the mining horizon, as well as the actual and historical contamination factors experienced. Contamination factors are also influenced by the equipment selection relative to the planned mining height.



•

Superficial moisture factor:  the superficial moisture factor, expressed as a percentage of the extractable coal reserve, varies between 3,6% for Twistdraai colliery and 6,8% for the coal seam 2 (C2) at Middelbult. The superficial moisture refers to the extraneous moisture added to the extracted coal as a result of the mining operations. The factors applied are therefore based mostly on the historical factors experienced.

Reserve estimation (remaining reserves at 31 March 2014)

        We have approximately 3,7 billion tons (Bt) (2013—3,9 Bt) of gross in situ proved and probable coal reserves in the Secunda Deposit and approximately 1,3 Bt (2013—1,3 Bt) of recoverable reserves. The coal reserve estimations are set out in table 1 below. Reported reserves have not been decreased by the synthetic oil reserves as reported in the supplemental oil and gas information, as the reserve disclosure in this section is inclusive of Sasol Mining's total coal resources and reserves available for mining operations. The different reserve areas are depicted on maps on pages M-4 and M-5, as well as whether a specific reserve area has been assigned to a specific mine.

Table 1.

Coal reserve estimations⁽¹⁾ as at 31 March 2014, in the Secunda area where we have converted mining rights (signed on 29 March 2010) in terms of the Mineral and Petroleum Resources Development Act, Act 28 of 2002

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Coal qualities per associated reserve estimation (remaining reserves at 31 March 2014)

        In tables 2 and 3, additional information regarding coal qualities is provided.

Table 2.

Coal qualities, on an air dry basis, in respective coal reserve areas, where Sasol Mining has converted mining rights in respect of the Secunda mining complex in terms of the Mineral and Petroleum Resources Development Act, Act 28 of 2002.

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Table 3.

Coal qualities, on an as received basis, in respective coal reserve areas, where Sasol Mining has converted mining rights in the Secunda mining complex in terms of the Mineral and Petroleum Resources Development Act, Act 28 of 2002.

Criteria for proved and probable

        Over and above the definitions for coal reserves, probable coal reserves and proved coal reserves, set forth in Industry Guide 7, under the US Securities Act of 1933, as amended, which are included in our glossary, we consider the following criteria to be pertinent to the classification of the reserves.

        Probable reserves are those reserve areas where the drill hole spacing is sufficiently close in the context of the deposit under consideration, where conceptual mine design can be applied, and for which all the legal and environmental aspects have been considered. Probable reserves can be estimated with a lower level of confidence than proved coal reserve. Currently this classification results in variable drill spacing depending on the complexity of the area being considered and is generally less than 500 m, although in some areas it may extend to 880 m. The influence of increased drilling in these areas should not materially change the underlying geostatistics of the area on the critical parameters such as seam floor, seam thickness, ash and volatile content.

        Proved reserves are those reserves for which the drill hole spacing is generally less than 350 m, for which a complete mine design has been applied which includes layouts and schedules resulting in a full financial estimation of the reserve. This classification has been applied to areas in the production stage or for which a detailed feasibility study has been completed.

Legal rights on coalfields

        Since the enactment of the Mineral and Petroleum Resources Development Act, 28 of 2002 (MPRDA) in May 2004, our subsidiary Sasol Mining (Pty) Ltd, has been successful in converting its prospecting permits and mining authorisations to new order prospecting permits and mining authorisations to new order prospecting and mining rights in terms of provisions of the MPRDA. In respect of the Secunda Complex, the new order mining rights, known as converted mining rights, became effective on 29 March 2011. The Secunda Complex mining rights, in extent approximately 168 439ha, have been granted for a period of ten years and comprise the total reserve area depicted in table 1 and plan in attachment page M-5. Please also refer to "Item 4.B Business Overview—Regulation of mining activities in South Africa". An application to extend the validity of the Secunda

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Complex mining rights to 30 years, the maximum allowable period under the MPRDA, was submitted to the regulator and approval was granted during February 2014. The amendment to the Secunda Complex mining right has still to be notarially executed. In respect of the Mooikraal Operation in the Free State, the relevant old order mining right was also converted and signed on 29 March 2010 and a mining right in respect of small reserve blocks situated within or adjacent to the Sigma: Mooikraal operation was signed on 30 March 2010. The mining rights, approximately 6 647 ha, have been granted for a period of thirty years. An application to consolidate the two mining rights held over the Sigma: Mooikraal operation was submitted, and we are awaiting approval from the regulator. The validity period of our mining rights may, on application, be renewed for further periods not exceeding thirty years each.

Sasolburg operations

Exploration history

        The Northern Free State area in South Africa was first explored in the late 1930s. The exploration was conducted by drilling core recovery boreholes over the current Sasolburg area. Some boreholes were initially drilled by the South African government. The Sigma mine was established in 1950. Subsequent drilling by the General Mining and Finance Corporation in the 1960s identified more coal reserves in the southwest of the existing Sigma mine as well as extensions to the south and east. Page M-4 includes a map showing the location of our Sasolburg coal operations.

        The geological models are continually updated and refined with additional drill and analytical results.

Coal seam geology

        There are two primary coal seams of importance, the Number 2 Coal Seam and the Number 3 Coal Seam. These coal seams are separated by a carbonaceous mudstone to siltstone parting and consist of a number of coal plies and carbonaceous mudstone interburdens. The individual coal plies are numbered from the base upwards and selected mining horizons are identified on the basis of the coal quality required. The major controlling factor on the coal development is the pre-Karoo basement.

        Selective mining within coal seams implies that strict horizon control is exercised to maintain mining on the selected horizon. This has been done very successfully at the old Sigma underground operations and at the Mohlolo underground operation. The same principles which were applied when mining the old Sigma and Mohlolo underground operations are applied at the Sigma: Mooikraal mine. In the visible coal seam a well-defined sulphide marker within the seam assists in the identification and verification of the pre-determined minable horizon underground, even in areas where the coal seam is displaced by faulting.

        In general, the quality of the coal (the ash yield or the fixed carbon content) deteriorates from the base of the coal seam to the top of the coal seam.

        In-seam occurrence of inorganic material is rare in the selected mineable area and may consist of locally developed carbonaceous mudstone lenses. Inorganic material occurs mainly towards the top of the coal seam, but has been excluded from the selected mineable horizon.

        Sigma mine has been active since 1950 and has completed total extraction of board and pillar and longwall mining on both the major coal seams. The operations at the Mohlolo underground mines, developed from the highwalls of the Wonderwater strip mine, were closed during the 2006 calendar year.

        The Sigma: Mooikraal mine started production during 2006. The production for 2014 is 1,7 Mt (2013—1,7 Mt), where the number 3 B seam is mined.

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Selected mining horizon

        The determination of the selected mining horizon is driven primarily by the required coal quality for the steam process at Sasol Infrachem. In order to define the mining horizon, detailed sampling, with associated coal seam descriptions, are conducted. From this, both a visual and chemical correlation of the plies are made.

Reserve estimation

        Sasol Mining has 53 Mt (2013—57 Mt) proved recoverable coal reserves for supply to Sasol Infrachem for steam generation from the number 3B coal seam. The reserve estimation is depicted in Table 4 below.

Table 4.

Coal reserve estimation⁽¹⁾ of proved and probable reserves, in areas where we have converted mining rights in the Sasolburg mining complex, in terms of the Mineral and Petroleum Resources Development Act, Act 28 of 2002.

Coal qualities per associated reserve estimation (remaining reserves at 31 March 2014)

        In tables 5 and 6 additional information regarding coal qualities is provided.

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Table 5.

Coal qualities on an air dry basis, per reserve estimation area, in areas where Sasol Mining has converted mining rights in the Sasolburg mining complex in terms of the Mineral and Petroleum Resources Development Act, Act 28 of 2002.

Table 6.

Coal qualities on an as received basis, per reserve estimation area, in areas where Sasol Mining has converted mining rights in the Sasolburg mining complex in terms of the Mineral and Petroleum Resources Development Act, Act 28 of 2002.

Synthetic oil activities

        Refer to "Item 4. D Property, plants and equipment—Mining properties and operations" for details regarding our mining properties, coal exploration techniques and the mining parameters and assumptions used during the estimation of synthetic oil reserves.

Synthetic oil equivalent production, production prices and production costs

        The following table sets forth a summary of the synthetic oil equivalent average sales price and related production costs for the year shown:

Oil and gas operations

        Through SPI, its subsidiaries and Sasol's Canadian holding companies, we currently hold equity in three producing assets with proved natural oil and gas reserves in Mozambique, Gabon and Canada; and interests in West and Southern Africa and Australia for exploration, appraisal and development.

Mozambique assets

        In Mozambique, we have one producing asset, one asset that is being considered for development and interests in three exploration licences.

        The Mozambique producing asset is held under the Pande-Temane Petroleum Production Agreement (PPA). Sasol Petroleum Temane Limitada, a subsidiary of SPI, is the operator of the

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onshore Pande-Temane PPA asset and holds a 70% working interest in the asset under the terms and conditions of the Pande-Temane PPA.

        In 2014, the net economic interest production from the Pande-Temane PPA asset amounted to 105,1 Bscf gas and 0,2 MMbbl condensate, and the net economic interest proved reserves at 30 June 2014 are 1 388,4 Bscf gas and 4,1 MMbbl condensate.

        The Pande-Temane Production Sharing Agreement (PSA) onshore Mozambique asset, which is operated by the SPI subsidiary, Sasol Petroleum Mozambique Limitada, includes areas that have been declared commercial discoveries, which are currently being assessed for development. We hold a 100% interest in the asset, with Empresa Nacional de Hidrocarbonetos (ENH) the national oil company of Mozambique, being entitled, under the terms and conditions of the Pande-Temane PSA to a calculated share in any production. The immediate project goals are to obtain a final investment decision on the first phase of the project and to submit a field development plan to the government by February 2015.

        One of the three Mozambique exploration licences is located onshore and the other two are located offshore. All are operated by SPI subsidiaries.

        We hold a 100% interest in the onshore Mozambique licenced area of the Exploration and Production Concession Block A, with ENH assigned a 10% carried interest until field development. SPI is in the process of farm down, which is subject to governmental approval.

        In the offshore Mozambique Exploration and Production Concession for Blocks 16&19, the deepwater parts of the licence were relinquished in June 2013. In the remaining shallow water area, we currently hold a 58,8% paying interest, which, when the assignment of our partner's interests is concluded, will increase to 100%. ENH is assigned a 15% carried interest until field development. Petroleum operations in the shallow areas were suspended in 2008 and will remain so until the Strategic Environmental Assessment (SEA) is made public.

        The other offshore Mozambique Exploration and Production Concession is Sofala, in which we have a 100% interest, with ENH assigned a 15% carried interest until field development.

Canada assets

        In Canada, natural gas and petroleum liquids are produced from the unconventional (shale/tight gas) Farrell Creek and Cypress A asset located in British Columbia. We acquired our 50% economic interest in Farrell Creek and Cypress A from Talisman Energy Inc. in two transactions, with licence participation commencing on 1 January 2011. During November 2013, Talisman announced that it received an offer from Progress Energy Canada Limited, for its 50% economic interest in Farrell Creek and Cypress A. The transaction between Talisman and Progress Energy closed on 12 March 2014, resulting in Progress Energy taking over as operator under the same terms and conditions of the Talisman Sasol Montney Partnership agreements.

        In 2014, the net economic interest production from the Farrell Creek and Cypress A asset amounted to 21,3 Bscf gas and 0,1 MMbbl petroleum liquids, and the net economic interest proved reserves at 30 June 2014 were 72,5 Bscf gas and 0,2 MMbbl liquids.

Gabon assets

        In Gabon, oil is produced from the offshore Etame Marin Permit asset. Under the terms of the Etame Marin Permit Exploration and Production Sharing Contract, Sasol holds a 27,75% economic interest in the areas covered by Exclusive Exploitation Authorisations and a 30% paying interest in the exploration areas. The permit contains three oil fields (Etame, Avouma and Ebouri) as well as other discoveries and prospects.

        In 2014, the net economic interest production from the Etame Marin Permit asset amounted to 1,4 MMbbl oil, and the net economic interest proved reserves at 30 June 2014 were 4,2 MMbbl oil.

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Other exploration and development assets

Australia

        In the offshore Northwest Shelf of Australia, we have a 30% economic interest in the Finder Exploration (Pty) Ltd operated ACP-52 licence. This follows the farm-down to Shell Development Australia (Pty) Ltd (Shell Australia), which is now the operator.

        Onshore Australia we have signed a conditional farm-in agreement with Falcon Oil & Gas Limited (Falcon) to acquire a 35% economic interest in three onshore exploration permits (EP76, EP98 and EP117) in Australia's Northern Territory within the highly prospective Beetaloo Basin. The agreement is subject to certain conditions precedent, including regulatory approval, which was obtained during August 2014.

Botswana

        In Botswana, we have 50% equity in three coalbed methane and coal prospecting licences (PL134/2010, PL135/2010 and PL136/2010). The licences, which are operated by Kubu Energy Resources (Pty) Ltd (Kubu), a joint venture between SPI and Origin Energy Southern Africa Holdings Pty Ltd, are in the process of being relinquished.

Nigeria

        Sasol holds interests in two offshore deepwater licences in Nigeria. In the Oil Mining Licence (OML) 140, Sasol holds a 5% paying interest and 2% economic interest. The licence is operated by Chevron. One area of OML 140 has been declared a discovery, and the development potential is currently being assessed.

        The OML 140 licence also includes part of the Bonga South West and Aparo (BSWAp) development project, in which Sasol holds a 0,375% paying interest and 0,15% participating interest. As well as part of OML 140, the development project spans the OML 118 (Shell) and OML 132 (Chevron) licences and is operated by Royal Dutch Shell under the terms of a Pre-Unitisation Agreement and Contractors' Pre-Unitisation Operating Agreement. The development project is currently being defined, with the final investment decision targeted for later in calendar year 2014 and first oil in calendar year 2020.

        In the Oil Prospecting Licence (OPL) 214, Sasol holds a 5% paying and economic interest. The licence is operated by Esso. One area of OPL 214 has been declared a discovery, and the development potential is being assessed. In April 2012 the operator applied for conversion of OPL 214 to an Oil Mining Licence (OML 145). The conversion will be effected on payment of the signature bonus.

Papua New Guinea

        The Papua New Guinea government has approved the transfer of operatorship and the sale of our interests in both licences (PPL-426 and PPL-287) to Talisman. This has fulfilled the sale conditions and will enable us to conclude the Sales & Purchase Agreements for both licences, effective August 2014.

South Africa

        In November 2013, the application for an Exploration Right over the former TCP032 in the Durban Basin was granted as ER236 on a 100% basis to SPI. SPI has signed a conditional farm-down agreement to grant a 40% economic interest to Eni SpA (Eni), which is subject to government approval.

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        In May 2014, an application for an Exploration Right over the 3A/4A area (previously covered by a Technical Co-operation Permit) was submitted, with SPI and PetroSA each holding a 50% economic interest. Approval from government is currently pending.

Reserve disclosure

        Proved developed and proved undeveloped reserves estimates:    The table below summarises the proved developed and proved undeveloped reserves of synthetic oil and natural oil and gas for the producing assets, as at 30 June 2014. The total proved reserve estimate for synthetic oil is 680,7 million barrels in oil equivalent terms. The total proved reserves estimate for natural oil and gas is 252,0 million barrels in oil equivalent terms.

Summary of synthetic and natural oil and gas proved reserves at 30 June 2014

        South Africa proved reserves:    The South African proved reserves are contained in our Sasol Mining properties. Refer "Item 4.D Property, plants and equipment—Mining properties and operations."

        Mozambique proved reserves:    The Mozambique proved reserves are contained in the Pande-Temane PPA asset. These represent the net economic interest volumes that are attributable to SPI after the deduction of production tax. The reserves are limited by take or pay quantities defined in the five existing gas sales agreements for the remainder of the terms of the contracts.

        Canada proved reserves:    The Canada proved reserves are contained in the unconventional (shale/tight gas) Farrell Creek and Cypress A asset. Full development of the asset will require around 3 000 wells, of which only some 5% have been drilled and completed to date. In view of the low natural gas price in Western Canada and North America, the extensive remaining development plan has slowed to adjust to market conditions. Reserves are presently limited to those volumes of gas and condensate that are forecast to be produced from existing wells.

        Gabon proved reserves:    The Gabon proved reserves are contained in the Etame Marin Permit asset. These represent the net economic interest volumes attributable to SPI after application of the terms of the Exploration and Production Sharing Contract.

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        Changes to proved reserves:    The table below presents in oil equivalent terms the proved reserves of natural oil and gas for the producing assets managed by SPI, over the years shown and identifies the reasons for the changes in the estimates.

Changes in Synthetic and Natural Oil and Gas Proved Reserves at 30 June 2014
(oil equivalent, million barrels⁽¹⁾)

        Proved undeveloped reserves converted to proved developed reserves:    There were no proved undeveloped reserves converted to proved developed reserves in the Pande-Temane PPA asset during 2014.

        In 2014, proved developed reserves were added in Canada (24,6 Bscf) through the continued drilling programme in Farrell Creek and Cypress A, which were not disclosed as proved undeveloped reserves last year. Net capital expenditure to Sasol was R2 466 million for well and pad preparation, drilling and completion activities and R129 million for associated infrastructure. The actual spending incurred by Sasol is affected by the capital carry obligations that form part of the consideration for Sasol's acquisition of its interest in the asset.

        In 2014, proved developed reserves were added in Gabon (0,1 MMbbl) through the drilling of the Etame Marin Permit ETBSM-1H-B, which were not disclosed as proved undeveloped reserves last year, partially offset by loss of production from ET-5H as a result of onset of H₂S production. Net capital expenditure to Sasol in 2014 for this well was R66 million.

        Proved undeveloped reserves remaining undeveloped:    A significant volume of proved undeveloped natural gas reserves (presently about 800 Bscf) has remained undeveloped in the Mozambique Pande-Temane PPA asset for the last eight years. The total proved volume (developed plus undeveloped)

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represents gas that will be recovered as part of the approved field development plan and which is required to satisfy existing gas sales agreements.

        Gas from SPI's Mozambique Pande-Temane PPA operations is presently sold under five long-term gas sales contracts, all of which extend until 2023 and some of which extend to 2029 and 2030. The total proved gas reserves disclosed by SPI for Mozambique represent the future minimum off-take volumes under these contracts. Minimum delivery volumes are also specified in the contracts.

        In order to optimise timing of capital expenditures required to convert undeveloped reserves to developed reserves, SPI regularly studies production performance from the two fields and reviews its plan for installation of additional compression and wells. The current estimate is that additional wells will not be required before 2024 but low-pressure compression is planned to be installed in phases between 2015 and 2023.

        As at 30 June 2014, there are no proved undeveloped reserves in Farrell Creek or Cypress A.

        The Gabon proved undeveloped reserves (2,3 MMbbl) in the Etame Marin Permit relate to additional recovery anticipated as a result of 6 new approved development wells to be drilled as part of the Etame Expansion Project (EEP) and the South East Etame & North Tchibala (SEENT) development. These were first disclosed as proved undeveloped reserves in 2013. Net capital expenditure to Sasol on the project in 2014 was R454 million.

        Preparation of reserve estimates:    To ensure natural oil and gas reserves are appropriately estimated, are accurately disclosed and are compliant with current SEC regulations and Financial Accounting Standards Board (FASB) requirements, SPI has established and maintains guidelines and procedures, which are reviewed by suitably experienced independent external consultants, and a set of internal controls, which are in accordance with the requirements of the Sarbanes Oxley Act of 2002. The internal controls cover, amongst other matters, the segregation of duties between those who prepare, review and approve the estimates; confirmation that those who estimate the reserves are appropriately qualified and experienced; the review, by an internal panel containing an experienced independent external assessor or by an independent consultancy, of all estimated future production rates and future capital and operating costs to ensure that the assumptions, data, methods and procedures are appropriate; a review of the technologies used in the estimation process to determine reliability; confirmation that the compensation arrangements of those who are involved in the estimation of reserves are not materially affected by the reserves; and approval and authorisation arrangements to validate the economic assumptions and to ensure that only accurate, complete and consistent data are used in the estimation of reserves.

        The technical person within SPI who is primarily responsible for overseeing the preparation of natural oil and gas reserves is the Senior Manager: Subsurface Characterisation & Engineering. The qualifications of the incumbent include a MA and MSc in Mathematics with 36 years' experience in oil and gas exploration and production activities and 27 years' experience in reserves estimation.

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Natural oil and gas production, production prices and production costs

        Oil and gas production quantities:    The table below presents net production quantities, by final product sold, for the years shown.

        Oil and gas sales prices and production costs: The table below summarises the average sales prices for natural gas or oil produced and the average production cost, not including ad valorem and severance taxes, per unit of production for each of the last three years.

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Drilling and other exploratory and development activities

        Exploratory and development wells:    The table below provides the number of net exploratory wells and development wells completed regardless of when drilling was initiated, in each of the last three years.

        Other exploratory and development drilling activities:    The table below provides the number of net wells that are not exploratory wells or development wells, drilled in each of the last three years.

        Mozambique exploratory and development activities 2012:    In the Pande-Temane PPA asset the main activity was the completion of the 183 MGJ/a CPF expansion project. In the Pande- Temane PSA asset, the Inhassoro I-9z extended well test commenced to establish the economic viability of a liquids development.

        Other exploration and pre-development activities and technical studies were undertaken in Mozambique including the acquisition of 3D and 2D seismic data in Sofala and Area A respectively.

        Canada exploratory and development activities 2012:    Cumulatively, as at 30 June 2012, 99 wells were drilled in Farrell Creek of which 82 were brought on-stream. The Farrell Creek Processing Facility

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was expanded by the addition of two refrigeration units with 50 and 90 MMscf/day capacities respectively, bringing the total processing capacity to 320 MMscf/day. In Cypress A, there were 6 wells on stream. Additional 3D seismic data acquisition for Farrell Creek and Cypress A was completed.

        Gabon exploratory and development activities 2012:    3D seismic data was acquired in the shallow water part of the Etame Marin Permit in 2012 and interpretation of the re-processed seismic dataset commenced with a view to identifying drillable exploration prospects and firming up resource estimates for potential new developments.

        Other areas exploratory and development activities 2012:    The key activities undertaken in other areas in 2012 included the drilling of three stratigraphic test wells of exploratory type. Two of these (Uge-5 and Nza-1X) were commitment wells in the Nigeria OPL 214 licence and the other (Vucko-1) was a commitment well in the Australia WA-433 licence. Both the OPL 214 wells resulted in discoveries of oil and gas. The WA-433 well was dry and was plugged and abandoned.

        In the other assets various exploration and pre-development activities and technical studies were undertaken including seismic processing and data interpretation in Papua New Guinea and the Australia ACP-52 licence and an aeromagnetic survey commenced in the Botswana PL134/2010, PL135/2010 and PL136/2010 licences.

        Mozambique exploratory and development activities 2013:    In the Pande-Temane PPA asset, a well surveillance program was undertaken to improve our understanding of the asset's resource base and validate assumptions about timing of future development projects. Also a development project commenced for the procurement and installation of LP compressors to meet delivery requirements of current gas sales agreements.

        In the Pande-Temane PSA licence, the testing of the Inhassoro I-9z well was extended and completed in March 2013. In November 2012, an appraisal report was submitted to the Instituto Nacional de Petroleo (INP), the petroleum regulator in Mozambique. Subsequent to submission of the report, in February 2013, notice of commercial discovery of some of the oil and gas accumulations was made. This was followed by the declaration of two associated development and production areas and assessment of the development options commenced. Also in February 2013, commercial assessment periods were requested on a number of other discoveries in the PSA licence area.

        In November 2012, the Mupeji-1 exploration well in the offshore M-10 Concession was 'plugged and abandoned' as a dry hole. The post-well analysis confirmed the absence of sufficient remaining potential to warrant continuing the exploration phase, and the licence was relinquished at the end of the second period on 30 April 2013.

        Sasol relinquished the Njika discovery and deepwater parts of the offshore Blocks 16&19 Concession at the end of the contract term on 30 June 2013, but has retained the shallow water area with a view to perform further studies when the outcome of the Strategic Environmental Assessment is known.

        In the offshore Sofala licence, further studies are continuing to determine if a prospect can be matured in the third period before the licence termination in January 2015.

        Onshore Area A an acquisition program of 2D seismic data continued throughout 2013.

        Canada exploratory and development activities 2013:    In Farrell Creek, a total of 29 (gross) development wells were drilled, while 13 (gross) wells were completed. In addition, 1 stratigraphic test well was drilled in Cypress A. 3D seismic data was in the process of being acquired in Cypress A.

        Gabon exploratory and development activities 2013:    The key development activity in the Etame Marin Permit in 2013 was the drilling of one horizontal development well on the Avouma field which

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proved up an eastern area of the field and was immediately brought into production. Two workovers were also conducted in 2013.

        An exploration well was drilled as part of the 2012 drilling campaign. Both targets were encountered but found to be water-bearing, and the well was classified as a dry hole. The deepest section of the hole was plugged and abandoned but the top-hole section could be re-entered for additional, future drilling if required. Reprocessing of 3D seismic data was completed, in tandem with the reprocessing of 2D lines in the shallower water area of the license.

        A study was undertaken to examine the origin and characteristics of the H₂S encountered in the Ebouri field and a project was initiated for Ebouri field crude sweetening. All partners sanctioned the combined Ebouri Expansion and South East Etame & North Tchibala project in December 2012. The Etame Field Development Plan was submitted to the Gabon authorities and verbal approval was received. Engineering and design studies commenced.

        Other areas exploratory and development activities 2013:    In Australia, activities in ACP-52 were limited to the joint farm-out by Sasol and Finder. In WA-433, an evaluation of the Vucko-1 well result was performed and the remaining potential was reviewed.

        In Botswana, an aeromagnetic survey (acquisition of approximately 31 000 line kilometers of high resolution magnetic data) and an airborne light detection, ranging and imaging survey were completed over the PL134/2010, PL135/2010 and PL136/2010 licenses. An environmental management plan was completed in November 2012 and in December 2012 the exploration core-hole project commenced. Three stratigraphic test wells—exploratory type were drilled in each license. All nine wells intersected coal containing gas in variable quantities. The project also included sampling, logging and permeability testing of reservoir sections in each well. The wells were plugged and abandoned and remediation of drill sites was completed. Studies to understand the well results were initiated.

        In the Nigeria OML 140 licence, front-end engineering design work continued on the Bonga South West Aparo field development project following approval of the full-field development plan in December 2012. This is a Shell operated field that overlaps part of OML 140. The project targets achievement of Final Investment Decision by 4^th quarter of calendar year 2014 and First Oil in the 1^st quarter of calendar year 2020. No development drilling took place in 2013. Exploration activity by the operator Chevron in OML-140 comprised studies on several prospects in the permit. Exploration well planning was in progress for two prospects, which are being considered for drilling in 2014 and 2015. Some drilling long-lead items were ordered.

        In the Nigeria OPL 214 licence, operator ExxonMobil evaluated concepts to develop the Uge field, including a study with Chevron for Nsiko joint development. Exploration activity comprised risk and resource assessment of leads and prospects inventory, and analysis of Uge North oil quality.

        In Papua New Guinea, exploration activities in PPL-426 comprised acquisition of 130 km 2D seismic which was completed during 2013. In PPL-287, seismic reprocessing was ongoing to complete the work programme.

        In South Africa, approval of the relinquishment of exploration rights for Block 3A/4A was received in October 2012. Former operator BHP withdrew and in May 2013 SPI and former JV partner PetroSA were awarded the area as a Technical Co-operation Permit for a one year study.

        An application for an Exploration Right over the existing South African TCP032 was submitted in September 2012. In June 2013, SPI signed a contract with CGG Services SA (CGG) to license 6 000 km seismic data. 4 830 km data was acquired by end-May 2013.

        Mozambique exploratory and development activities 2014:    In the Pande-Temane PPA asset, the project to install low pressure (LP) compressors progressed. Commissioning is scheduled to start in January 2015, and it is anticipated that the compressors will be operational in June 2015. The LP

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compressors will enable us to continue to meet delivery under the current gas sales agreement. Two production wells were brought back on stream in October after being shut-in since 2012. In November and December 2013, produced condensate was re-injected because road transportation was disrupted by political and civil disturbances. The buyer has now established an alternative export route.

        In the Pande-Temane PSA asset, work on the development project progressed, following the approval of the development and production areas by the Instituto Nacional de Petroleo in October 2013. Front end engineering design and environmental impact assessment contracts were awarded in February 2014. Project costs are R183,8 million as at June 2014.

        The total 1 836 km² 3D seismic acquired and completed in the Sofala licence in 2012 fulfilled the second Exploration Period commitment and part of the third Period requirements. In January 2013, SPI entered the Third Exploration Period, which carries a one well commitment to be drilled by January 2015.

        Following the relinquishment in respect of the Njika wells discovery area and the deep-water part of the 16&19 Concession on 1 July 2013, the Concessionaires gave notice to retain the shallow water area with a view (if the area deemed prospective) to define a future discretionary work programme within a 6 month period when the outcome of the Strategic Environmental Assessment (SEA) is known. This follows a submission in May 2008, whereby Ministerio de Industria e Recursos Energeticos de Mocambique agreed to the suspension of exploration activities in the shallow water area until after completion of the SEA. In mid-2014, Petronas announced their intention to withdraw from the Concession, resulting in SPI's equity increasing to a 85% working interest and a 100% paying interest.

        The Area A 1st Exploration Period expired on 31 May 2014. The commitment for this period was an airborne gravity and magnetic survey and 1 000 km of 2D seismic acquisition. The airborne gravity and magnetic survey was completed in June 2011, and the seismic acquisition project (total ~2 250km) was completed during October 2013. SPI entered the 2nd Exploration Period on 1 June 2014, which carries a drilling commitment of one well in the next two year period, together with a 20% relinquishment.

        Canada exploratory and development activities 2014:    Development drilling activities have continued in Farrell Creek, with 25 wells being drilled during the year. In Cypress A, 4 vertical wells have been drilled in the early part of the year (classified as exploratory stratigraphic test wells). Completion activities were limited to Farrell Creek, with a total of 33 wells completed during the year.

        Gabon exploratory and development activities 2014:    The EOVKM-1 commitment exploration well was drilled in July 2013 to test the Ovoka prospect. No significant hydrocarbon shows were recorded for the intervals of interest nor was the presence of hydrocarbons confirmed. The well was subsequently plugged and abandoned. Additional near-field exploration studies within the licence area have been ongoing but the 6th and final period of the exploration licence expired in July 2014. Discussions related to licence extension and relinquishment are in progress with the Gabonese government but no decision has so far been reached.

        The Avouma ETBSM-1H well, which had been shut in due to failure of both electrical submersible pumps (ESP), was on further investigation found to have failed due to casing collapse induced by salt movement. The well was therefore suspended indefinitely. The drilling of a horizontal sidetrack to the original ETBSM-1H well commenced in late March 2014 and the new well (ETBSM-1H-B) was successfully brought on production in May 2014.

        On 31 December 2013, H₂S concentrations in excess of 50 parts per million were detected in ET-5H located in the north west of the Etame field. The well has since been shut in pending further investigation into the provenance of the H₂S and its potential movement to other areas of the field. The Crude Sweetening Project that was initially focused on the Ebouri field is now being broadened to encompass the Etame field as well.

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        Other areas exploratory and development activities 2014:    Work on the Australia ACP-52 licence consisted solely of technical studies.

        No activities had been undertaken during 2014 in Botswana, and the business commenced a process of licence relinquishment.

        In the Nigeria OML 140 concession, the operator, Chevron, continued with studies for the Nsiko discovery and is considering development options for the field. In addition, the operator continued planning exploration drilling to improve commerciality of the Nsiko development. An exploration well, Nsiko North 1x, is planned to spud in late August 2014.

        In terms of the Nigerian BSWAp development project, the operator, Shell, is targeting first oil in 2020. Approval was received from the Department of Petroleum Resources in April 2014 for the BSWAp front-end engineering and design work. The Pre-Unitisation Agreement and Contractors' Pre-Unitisation Operating Agreement were signed in November 2013. Negotiation of the Unitisation Agreement (UA) and Contractors' Unitisation Operating Agreement commenced in January 2014 and is continuing. A draft version of the UA was submitted to the Nigerian National Petroleum Corporation in late March 2014.

        In Nigeria OPL 214, the operator, Esso, continued with the evaluation of development concept options for the Uge discovery. In April 2012 the operator applied for conversion of OPL 214 to an Oil Mining Licence (OML). This was granted by the Minister of Petroleum Resources on 6 June 2014 subject to payment of the signature bonus.

        In South Africa on TCP3A/4A, technical studies based on existing data were completed in May 2014, with an application submitted to convert the TCP to an exploration permit. On ER236, the processing of 4 100km seismic data acquired during 2013, was completed in December 2013. In April 2014, CGG Services SA returned to the area to complete the seismic acquisition. Technical evaluation of the seismic data is ongoing.

        Capitalised exploratory well costs:    The table below summarises the capitalised exploratory well costs, providing the amount of costs that are capitalised pending the determination of proved reserves at the end of the year.

 

        Mozambique capitalised exploratory well costs:    In the Pande-Temane PSA licence, R1 018,6 million of exploratory well costs continue to be capitalised for a period greater than one year after the

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completion of drilling. This amount relates to the exploration drilling conducted and completed in 2008 and appraisal drilling activities conducted in 2009 and continued in 2011. Notices of commercial discovery have been given for a number of accumulations in the PSA licence and front-end engineering and design studies are under way.

        Canada capitalised exploratory well costs:    At 30 June 2014, there were no capitalised exploratory wells costs in Canada.

        Gabon capitalised exploratory well costs:    At 30 June 2014, there were no capitalised exploratory well costs in Gabon.

        Other capitalised exploratory well costs:    For the Nigeria OML 140 licence, exploratory well costs continue to be capitalised pending completion of the define phase activities for the BSWAp development and the completion of pre-FEED and FEED studies for the proposed Nsiko field development. OPL214 licence exploratory well costs and other costs continue to be capitalised pending the evaluation of the proposed Uge field development.

        There were no capitalised exploratory wells costs in Papua New Guinea or South Africa.

Present activities

        Wells in the process of being drilled:    The table below summarises the gross number of natural oil and gas wells being drilled and the number of suspended oil and gas wells at 30 June 2014. The number of wells being drilled includes wells that have been drilled, but have not yet been mechanically completed.

        Mozambique present activities:    For the PSA, the Field Development Plan will be submitted to the Mozambique Government during February 2015.

        Canada present activities:    Development drilling continued in Farrell Creek, with 25 wells being drilled during the year. In Cypress A, 4 vertical wells were drilled in the early part of the year. Completion activities were limited to Farrell Creek, with a total of 33 wells completed during the year.

        Gabon present activities:    Sampling studies are in progress to better understand the origin and characteristics of the H₂S encountered in the Etame and Ebouri field. The Crude Sweetening Project is being assessed to mitigate the potential loss of reserves due to H₂S souring in the Ebouri and Etame fields. It is expected that front-end engineering and design studies will commence in early 2015, subject to the partnership agreement.

        The Ebouri Expansion and South East Etame & North Tchibala projects commenced with installation of rigid pipelines and relocation of flexible flowlines. The fabrication of the jackets was completed and transported to Gabon for installation in July 2014. Construction and pre-commissioning of the topsides was completed, with load-out planned for July 2014. The project remains on-target for the planned start of development well drilling in mid-October 2014.

        Other areas present activities:    In Australia, work consists solely of technical studies.

        SPI is progressing with the relinquishment of PL134/2010, PL135/2010 and PL136/2010 in Botswana, and no further work is being undertaken.

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        In Nigeria, the current approved calendar year 2014 work programme for OPL 214 comprises studies only. For OML 140, the current work programme comprises planning and execution of the Nsiko North 1x exploration wells and studies on the Nsiko field development.

        In South Africa, TCP3A/4A technical studies were completed, and we are currently awaiting approval of an Exploration Right application. For ER236, processing of the 2D seismic data is ongoing.

Delivery commitments

        Mozambique assets production:    The PPA Unincorporated Joint Venture concluded two gas sales agreements (GSAs) with Sasol Gas Limited. GSA1 and GSA2 were signed on 27 December 2002 (25 years contract term) and 10 December 2008 (20 years contract term), respectively, to supply the South African market. Three gas sales agreements, known collectively as GSA3, were also concluded in June 2013, consisting of a 20-year contractor with ENH for 6 MGJ/a that started 1 April 2013, a 20-year contract with Central Termica de Ressano Garcia SA for 11 MGJ/a that will start, at latest, at the end of November 2014, and a 20-year contract with Matola Gas Company for 8 MGJ/a commencing from 1 July 2014. The GSA3 contracts supply the Mozambican market.

        There are no oil or gas sales agreements currently in place for the PSA licence.

        Canada assets production:    All of the gas produced from the unconventional (shale/tight gas) Farrell Creek and the Cypress A asset is sold by the Progress Sasol Montney Partnership into the Western Canada gas market under a long-term marketing agreement with Progress Energy Canada, which is effective until 2024. Condensate and Natural Gas Liquids are sold under the same marketing agreement. Production from Farrell Creek and Cypress A is currently not sufficient to meet contracted gas transportation obligations. Because of reduced production in 2014 (due to the sustained reduction in drilling and completion activities, in reaction to the depressed gas price environment in Western Canada), Sasol continues to incur unutilised transport charges because it only partially utilises its pre-contracted gas transmission capacity in the Spectra and TransCanada/NOVA pipelines. Progress Energy, as operator, partially mitigates exposure through placing of unutilised gas transmission capacity in the gas transmission market.

        Gabon assets production:    Oil production from the Etame Marin Permit operations is sold internationally on the open market. An annual sales contract is typically entered into for the sale of the Etame Marin Permit oil based on a competitive bidding process, with sales prices linked to international oil prices. In the reporting period the oil was sold under two separate contracts. Under the first contract, effective from 1 July 2013 to 31 March 2014, oil was sold to Mercuria Trading NV. From 1 April 2014 to 30 June 2014, oil was sold to Vitol S.A. under a new marketing structure. The Crude Oil Sale and Purchase Agreement for calendar year 2014 requires all production from the Etame Marin Permit to be lifted by the buyer, Vitol S.A.

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Oil and gas properties, wells, operations and area

        Productive wells and area:    The table below provides details of the productive wells and the amount of developed and undeveloped acreage at 30 June 2014.

        Licence terms Mozambique:    The Petroleum Production Agreement for the Pande-Temane PPA asset expires in 2034, and carries two possible five year extensions. There are no remaining licence obligations and there is no requirement to relinquish any acreage until the expiry of the Petroleum Production Agreement.

        The Pande-Temane PSA licence is in the development period. Two development and production areas were proposed and approved by the government, and a period for commercial assessment was approved for the remaining reservoirs. Approval to develop the reservoirs in the commercially declared development and production area is dependent on submission of a field development plan to the Mozambican authorities.

        Sasol relinquished the deep-water parts of the Exploration and Production Concession for Blocks 16&19 at end of the contract term on 30 June 2013, but has retained the shallow water area with a view to define a future work programme when the outcome of the Strategic Environmental Assessment is known. The remaining licence area is 622,7 thousand undeveloped net acres.

        When entering the third period in January 2013, 50% of the original Exploration and Production Concession Sofala area was relinquished, resulting in the acreage being reduced to 1 208,1 thousand undeveloped net acres.

        The Exploration and Production Concession Area A licence is in the second exploration period which started on 1 June 2014 and expires on 31 May 2016. When entering the second period, a 20% relinquishment was required, resulting in 1 490,0 thousand undeveloped net acres remaining.

        Licence terms Canada:    As at 30 June 2014, Farrell Creek comprised 30 licences and leases and Cypress A comprised 27 licences and leases. Acreage retention and the conversion of licences (which carry no production rights) to leases (with production rights) is enabled by drilling commitments, the provincial government's prescribed lease selection and validation process and licence extension applications.

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        The decision to retain acreage and convert licences to leases is dependent on the drilling results and ongoing study work. Drilling and retention activities have been and will be included in the applicable work programmes so that licences and leases due to expire before 30 December 2015 are retained (covering 17 licences and leases in Farrell Creek and Cypress A, jointly comprising 59 155 undeveloped and 19 580 developed gross acres).

        Licence terms Gabon:    We are in the process of extending the remaining exploration area in the Etame Marin permit for a 7^th term. The current exploration area potentially affected by relinquishment is 219,3 thousand undeveloped net acres. The decision to apply for an extension around commercially declared resources and retain acreage is dependent on ongoing study work. Discussions related to licence extension and relinquishment are in progress with the Gabonese government but no decision has been reached.

        The three exploitation areas of the Etame Marin Permit are covered by three 10-year Exclusive Exploitation Authorisations, each with two five-year extensions available on request and subject to government decree. The Etame Exclusive Exploitation Authorisation is in the first extension period to July 2016. The Exclusive Exploitation Authorisations for Avouma and Ebouri expire in March 2015 and June 2016, respectively. The current plan of development assumes the various extensions to July 2021 would be being granted.

        Licence terms other areas:    In Australia, the ACP-52 licence is currently in Permit Year 6 (commenced 26th May 2014) which carries an exploration well commitment. A farm-down agreement was reached with Shell in August 2013, whereby Sasol reduced its share from 45% to 30%. Shell became the operator effective 26 November 2013, when all the necessary approvals were obtained (160,8 thousand undeveloped net acres affected).

        In Botswana, the first renewal exploration period of the PL134/2010, PL135/2010 and PL136/2010 licences expires at the end of September 2015. An application for early relinquishment of all of the licences has been submitted to the Botswana government, and we are awaiting approval.

        The Operator of Oil Prospecting Licence 214 (OPL 214) in Nigeria, Esso, applied to the Government in April 2012 to convert the licence into an Oil Mining Licence (OML). The Operator received notification from the Ministry of Petroleum Resources that OPL 214 was approved for conversion to an OML (OML 145) on 6 June 2014 subject to payment of the signature bonus. This occurred in August 2014. Only 50% of the block was converted and the remaining 50% portion relinquished. The conversion will allow development and production activities to commence shortly. The OML 145 area covers 16,9 thousand undeveloped net acres.

        The Nigeria OML 140 licence for development and production expires in 2029.

        Papua New Guinea: In July 2013 Sasol agreed to sell its full remaining interest in PPL-287 and PPL-426 to Talisman. The sale transaction will be finalised shortly following Government approval which was obtained during August 2014.

        South Africa: ER236 was awarded in November 2013 for a period of three years. SPI is in the process of divesting 40% of its interest to Eni, which is subject to government approval.

Supplemental oil and gas information

        Supplemental oil and gas information:    See "Item 18—Financial Statements—Supplemental Oil and Gas Information" for supplemental information relating to natural oil and gas producing activities.

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ITEM 4A.    UNRESOLVED STAFF COMMENTS

        There are no unresolved written comments from the SEC staff regarding our periodic reports under the Securities Exchange Act of 1934 received not less than 180 days before 30 June 2014.

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ITEM 5.    OPERATING AND FINANCIAL REVIEW AND PROSPECTS

        This section should be read in conjunction with our consolidated financial statements included in "Item 18—Financial Statements" as at 30 June 2014, 2013 and 2012, and for the years ended 30 June 2014, 2013 and 2012, including the accompanying notes, that are included in this annual report on Form 20-F. The following discussion of operating results and the financial review and prospects as well as our consolidated financial statements have been prepared in accordance with IFRS as issued by the IASB.

        Certain information contained in the discussion and analysis set forth below and elsewhere in this annual report includes forward-looking statements that involve risks and uncertainties. See "Item 3.D—Key information—Risk factors" for a discussion of significant factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in this annual report.

5.A Operating results

Company and business overview

        The group has nine reportable segments that comprise the structure used by the President and Chief Executive Officer to make key operating decisions. While the information is presented by cluster, the underlying business unit information in each of the clusters is still presented to the President and Chief Executive Officer and board. We have continued to present each of the business units as reporting segments.

        While Sasol Petroleum International (SPI) and Sasol Synfuels International (SSI) do not meet the quantitative criteria for disclosure as a separate segment, they are expected to become significant contributors to the group's performance in future years as the supplier of resources for the group's GTL activities. Consequently, the President and Chief Executive Officer has chosen to include SPI and SSI as reportable operating segments, as we consider this presentation to be appropriate in light of their strategic importance to the group.

        We divide our operations into the following segments:

South African energy cluster:

•

Sasol Mining;



•

Sasol Gas;



•

Sasol Synfuels; and



•

Sasol Oil.

International energy cluster:

•

Sasol Synfuels International; and



•

Sasol Petroleum International.

Chemical cluster:

•

Sasol Polymers;



•

Sasol Solvents;



•

Sasol Olefins & Surfactants; and

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•

Other Chemicals—includes Sasol Wax, Sasol Nitro, Sasol Phenolics (Merisol), Sasol Infrachem and other chemical businesses.

Other businesses:

•

Other—includes Sasol Technology, Sasol Financing, the group's central administration activities and alternative energy businesses.

New operating model

        In 2013, Sasol announced its Business Enhancement Programme which was aimed at improving operational productivity, designing a new operating model and implementing initiatives, to ensure that the group would become more effective, efficient and competitive over the long-term.

        A key consideration in the change programme was to review the effectiveness of our operating model in relation to our refocused strategic aspirations. The review clearly indicated the need to restructure our organisation and overhaul our operating platform, to enable our businesses and functions to work together.

        After detailed work, our new operating platform became effective on 1 July 2014. Our new group structure supports a value-chain based operating model, which organises our business according to capability, and standardises the group functions required to support and enable these activities.

        Our new operating model comprises four distinct groupings, which relate to the resources, relationships and capabilities we require to deliver on our strategy:

•

Operating Business Units, which comprise our mining and upstream oil and gas activities;



•

Regional Operating Hubs, which include our operations in Southern Africa, North America and Eurasia;



•

Strategic Business Units, which focuses on our commercial and enhanced customer interfaces within the energy and chemicals arenas; and



•

Group Functions, which will deliver fit-for-purpose business support services and solutions.

The new reportable segments which will be effective in 2015 will be restated and presented in the annual report for 2015.

External factors and conditions

        Our business, operating results, cash flow and financial condition are subject to the influence of a number of external factors and conditions. These include conditions in the markets in which we sell our products, including the fluctuations in the international price of crude oil, effect of fluctuations in the currency markets, most notably in the exchange rate between the rand and the US dollar, cyclicality in the prices of chemical products, the effect of coal prices on export coal operations and the effects of inflation on our costs. Other factors which may influence our business and operating results include economic, social, political and regulatory conditions and developments in the countries in which we operate our facilities or market our products. See "Item 3.D—Key information—Risk factors".

Fluctuations in refining margins and crude oil, natural gas and petroleum products prices

        Through our participation in the Natref refinery, we are exposed to fluctuations in refinery margins resulting from fluctuations in international crude oil and petroleum product prices. We are also exposed to changes in absolute levels of international petroleum product prices through our Synfuels' operations. Fluctuations in international crude oil prices affect our results mainly through their indirect effect on the Basic Fuel Price (BFP) formula. A key factor in the BFP is the Mediterranean and

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Singapore (for petrol) or the Arab Gulf (for diesel) spot price. See "Item 4.B—Business overview—"Sasol Oil" and "Sasol Petroleum International". Furthermore, prices of petrochemical products and natural gas are also affected by fluctuations in crude oil prices.

        Market prices for crude oil, natural gas and petroleum products fluctuate as they are subject to local and international supply and demand fundamentals and factors over which we have no control. Worldwide supply conditions and the price levels of crude oil may be significantly influenced by international cartels, which control the production of a significant proportion of the worldwide supply of crude oil, and by political developments, especially in the Middle East and North Africa.

        The volatility of the crude oil price is illustrated in the following table, which shows the annual high, low and average of the European Brent crude oil price (free on board) in US dollars for the past ten years and to 19 September in the 2014 calendar year:

        Subsequent to 30 June 2014, the price of European Brent crude oil decreased further. On 19 September 2014, the price of European Brent crude oil was US$96,65/b.

        Significant changes in the price of crude oil, natural gas and petroleum products over a sustained period of time may lead us to alter our production, which could have a material impact on our turnover. Decreases in the price of crude oil, natural gas and petroleum products can have a material adverse effect on our business, operating results, cash flows and financial condition.

        Other factors which may influence the aggregate demand and hence affect the markets and prices for products we sell may include changes in economic conditions, the price and availability of substitute fuels, changes in product inventory, product specifications and other factors. In recent years, prices for petroleum products have fluctuated widely.

        We could make use of derivative instruments, including commodity options and futures contracts of short duration from time to time, as a means of mitigating price and timing risks on crude oil and other energy-related product purchases and sales. While the use of these derivative instruments provides some protection against short-term volatility in crude oil prices, it does not protect against longer-term trends in crude oil prices.

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        As a result of the group's substantial capital investment programme and cash flow requirements, we deemed it necessary to shield the group's income from fluctuations in crude oil prices by means of appropriate hedging strategies.

        The group's hedging strategy is considered together with the group's other risk mitigation initiatives, such as cost containment, cash conservation and capital prioritisation. The situation is monitored on an on-going basis to assess the appropriateness of oil price hedging to improve the stability and predictability of cash flows as part of Sasol's risk management activities.

        In 2012, 2013 and 2014, we did not enter into any oil price hedging contracts. This situation is monitored regularly, to assess when a suitable time might be, to enter into an appropriate hedge again in the future. Refer to "Item 11.—Quantitative and qualitative disclosure about market risk".

        In 2015, for forecasting purposes, we estimate that for every US$1/b increase in the annual average crude oil price, our group operating profit will increase by approximately R746 million. This estimate is applicable for a US$105,50/b crude oil price and an average rand/US dollar exchange rate of R10,60. It should be noted that in the current volatile environment, these sensitivities could be materially different than those disclosed depending on the crude oil price, exchange rates, product prices and volumes.

Exchange rate fluctuations

        The rand is the principal functional currency of our operations. However, a large part of our group's turnover is denominated in US dollars and some part in euros, derived either from exports from South Africa or from our manufacturing and distribution operations outside South Africa. Approximately 90% of our turnover is linked to the US dollar as petroleum prices in general and the price of most petroleum and chemical products are based on global commodity and benchmark prices which are quoted in US dollars. A significant part of our capital expenditure is also US dollar denominated, as it is directed to investments outside South Africa or constitutes materials, engineering and construction costs imported into South Africa.

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Source: Thomson Reuters

        In 2012, the rand weakened by 11% against the US dollar, with the average rate for the year being R7,78 per US dollar. In 2013, the rand weakened by 14% against the US dollar, with the average rate for the year being R8,85 per US dollar. In 2014, the rand further weakened by 17% against the US dollar, with the average rate for the year being R10,39. The weakening of the rand had a positive impact on our overall operating results in 2014. However, the weakening of the rand also resulted in increased costs, which primarily impacted our South African operations negatively. The relationship between the euro and US dollar impacts the profitability of our European operations, where our costs are euro based and a significant portion of our turnover is US dollar based. Although the euro strengthened against the dollar in 2014, our European chemical businesses performed better than expected. In 2013 and 2012, the euro weakened against the US dollar which had a positive impact on our operating results.

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        Subsequent to year end, the rand/US dollar exchange rate has weakened further. On 19 September 2014, the rand/US dollar exchange rate was R10,88.

        The average exchange rate for the year has a significant effect on our turnover and our operating profit. In 2015, for forecasting purposes, we estimate that for every R0,10 weakening or strengthening in the annual average rand/US dollar exchange rate, our operating profit will increase or decrease by approximately R857 million, as applicable. This estimate is applicable for a US$105,50/b crude oil price and an average rand/US dollar exchange rate of R10,60. It should be noted that in the current volatile environment, these sensitivities could be materially different than those disclosed depending on the crude oil price, exchange rates, product prices and volumes.

        Although the exchange rate of the rand is primarily market determined, its value at any time may not be an accurate reflection of the underlying value of the rand, due to the potential effect of, among other factors, exchange controls. These regulations also affect our ability to borrow funds from non-South African sources for use in South Africa or to repay these funds from South Africa and, in some cases, our ability to guarantee the obligations of our subsidiaries with regard to these funds. These restrictions have affected the manner in which we have financed our acquisitions outside South Africa and the geographic distribution of our debt. See "Item 10—Additional information".

        We manage our foreign exchange risks through the selective use of forward exchange contracts and cross currency swaps. We use forward exchange contracts to reduce foreign currency exposures arising from imports into South Africa. The group executive committee (GEC) sets intervention levels to specifically assess large forward cover amounts which have the potential to materially affect Sasol's financial position. These intervention levels are reviewed from time to time. All major capital expenditure in foreign currency is hedged immediately on commitment of expenditure or on approval of the project (with South African Reserve Bank approval), by way of forward exchange contracts.

        See "Item 11—Quantitative and qualitative disclosure about market risk".

Cyclicality in petrochemical products prices

        The demand for our chemical products is cyclical. Typically, higher demand during peaks in industry cycles leads producers to increase production capacity, at which point prices decrease. Most commodity chemical prices tend, over the longer term, to track the crude oil price.

        On average, in 2014 we experienced a 7% increase in polymer prices, a 23% decrease in ammonia product prices, and a 3% increase in solvents prices compared to 2013.

        Although peaks in these cycles have been characterised by increased selling prices and higher operating margins, in the past such peaks have led to overcapacity with supply exceeding demand growth. In times of high crude oil and related product prices (the primary feedstock of most commodity chemicals), the profit margin shifts towards the feedstock producer, while in times of high chemical prices and lower feedstock prices, the profit margin shifts towards the downstream activities. Our strategy for our commodity chemicals business, therefore, is wherever possible to invest in the value chain of raw materials to final products. As a result of this approach, the group has elected not to hedge its exposure to commodity chemical prices as this may, in part, negate the benefits of being backward integrated into its primary feed streams.

Coal prices

        Internal coal sales are made to Sasol Synfuels and Sasol Infrachem. Coal sales prices into these internal markets are based on contracts and are subject to periodic price adjustments. Transfer price negotiations are conducted at arm's length and are market related.

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        Approximately 7% of coal production is sold to external markets (2,9 million tons (Mt) was sold to the export market in 2014 (2013—2,5 Mt) predominantly in the Middle East and India. No coal was sold to the South African market in 2014 (2013—0,1 Mt)). External sales to these markets represented approximately 15,24% of the total turnover generated by Sasol Mining during 2014 (2013—14,87%).

        Export coal sales prices are compared to the published international coal price indices to track performance. Sasol Mining's policy is to sell at prices partially on an American Petroleum Standard Index (API) related basis, and partially on a fixed price basis.

        The average free on board Richards Bay price index for the past seven financial years:

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Source: Argus/McCloskey's Coal Price Index Report

Inflation

        While over recent years, inflation and interest rates have been at relatively low levels, the economy of South Africa, though currently well managed, has had high inflation and interest rates compared to the United States and Europe. Should these conditions recur, this would increase our South African-based costs.

        High interest rates could adversely affect our ability to ensure cost-effective debt financing in South Africa. We expect the impact of changes in the inflation rates on our international operations to be less significant.

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        The history of the South African consumer price index (CPI) and producer price index (PPI) is illustrated in the following table, which shows the average increase in the index for the past 10 calendar years and on a monthly basis in the 2014 calendar year:

Our operations are subject to various laws and regulations in the countries in which we operate

        The group operates in numerous countries throughout the world and is subject to various laws and regulations which may become more stringent. See "Item 4.—Business overview" and "Item 3.D—Key information—Risk factors" for the details of the various laws and regulations which may impact on our operating results, cash flows and financial condition.

        In South Africa, our operations are required to comply with certain procurement, employment equity, ownership and other regulations which have been designed to address the country's specific transformation issues. See "Item 4.B—Business overview".

Broad-based Black Economic Empowerment transactions

Sasol Mining Ixia BEE transaction

        On 11 October 2007, Sasol Mining announced the implementation of its black economic empowerment strategy for compliance with the Mining Charter and the MPRDA. In a transaction valued at approximately R1,8 billion, a black-women controlled mining company called Ixia Coal (Pty) Ltd, through a funding company (Ixia Coal Funding (Pty) Ltd), subscribed for a 20% share in

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Sasol Mining for a purchase consideration of R1,8 billion. The black-women members of Ixia Coal, through WipCoal (Pty) Ltd (WipCoal), and Sasol Mining Holdings (Pty) Ltd, a wholly-owned subsidiary of Sasol Limited, contributed, in cash, equity of R47 million, in their respective shareholdings of 51% and 49%. The balance of the contribution was funded through preference share debt, including preference shares subscribed for by Sasol, issued by the funding company. Over time, the preference shares will be redeemed with the proceeds of dividends distributed by Sasol Mining.

        The Competition Tribunal of South Africa approved the Ixia Coal transaction on 1 September 2010. The effective date of the Ixia Coal transaction was 29 September 2010, when the remaining conditions precedent were met.

        The parties are entitled to receive dividends on their shareholding in Sasol Mining in proportion to their effective interest in Sasol Mining's issued share capital, subject to the financing requirements of the preference share debt. As a result of the transaction, WipCoal now owns 10,2% of the equity in Sasol Mining.

Preference shares

        The preference share funding comprises A preference shares, which are held by an external financier and B preference shares, which are held by Sasol. The A preference shares are secured by the preference shares held by Sasol Mining Holdings (Pty) Ltd. In certain limited default circumstances, which include Ixia Coal being in default on the repayment of the preference shares, the external financier may require Sasol to purchase some or all of the outstanding preference shares under a call option (the preference share call option) or, alternatively, to subscribe for new preference shares issued by Ixia Coal Funding to enable Ixia Coal to redeem the preference shares held by the external financier. The B preference shares are not redeemable until the A preference shares have been fully redeemed.

        The preference shares are accounted for in the statement of financial position as debt and should the preference share call option be exercised, Sasol will be required to raise the necessary funding in order to either exercise the preference share call option or, alternatively, honour the call under the preference share call option.

Accounting for transaction

        The transaction was accounted for as follows:

•

The funding vehicle, Ixia Coal Funding, created to facilitate the transaction has been consolidated into the Sasol group results from the effective date of the transaction.



•

Ixia Coal, in which Sasol Mining Holdings has a 49% interest, has been accounted for as a joint venture investment and accordingly has been equity accounted into the Sasol group results from the effective date of the transaction.



•

The total value of the preference shares recognised in the statement of financial position at 30 June 2014 amounts to R488 million (30 June 2013—R680 million), including finance charges and after repayment of debt issued to financial institutions related to the Ixia Coal transaction. All other preference shares issued as part of the Ixia Coal transaction have been eliminated on consolidation.



•

A total non-controlling interest of R299 million (30 June 2013—R374 million) related to the 10,2% investment that Ixia Coal has in Sasol Mining has been recognised in the statement of changes in equity.

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Sasol and Tshwarisano BEE transaction

        We entered into a R1,45 billion transaction with our BEE partner Tshwarisano LFB Investment (Pty) Ltd (Tshwarisano). Tshwarisano acquired a 25% shareholding in Sasol Oil (Pty) Ltd from Sasol Limited with effect from 1 July 2006. The financing of the transaction has been provided in part through the issue of preference shares by Tshwarisano to Standard Bank South Africa Limited (Standard Bank), and in part by application of the subscription proceeds from the issue of the ordinary shares to Tshwarisano ordinary shareholders. The Tshwarisano ordinary shareholders in turn raised the funding to subscribe for the ordinary shares through the issue of preference shares to Standard Bank. Over time, Tshwarisano and its ordinary shareholders will redeem their respective preference shares with the proceeds of dividends distributed by Sasol Oil. As part of this arrangement, Sasol Oil has amended its dividend policy such that it could pay out up to a maximum of one time earnings for that financial year by way of dividends. The actual dividend paid could be the maximum possible amount, taking into account certain specified ratios relating to net debt to shareholders' equity and earnings before interest, tax, depreciation and amortisation to net interest. The dividend paid is usually one-third of earnings.

        In certain limited default circumstances, which include Tshwarisano being in default on the repayment of the preference shares, Standard Bank may require that a trust (consolidated by Sasol Limited) be established in the context of the transaction to acquire the preference shares held by Standard Bank or, alternatively, to subscribe for new preference shares issued by Tshwarisano to enable Tshwarisano to redeem the preference shares held by Standard Bank. In addition and in the same limited default circumstances, the trust may acquire the ordinary shares held by its ordinary shareholders. As a result, the trust may own all or a portion of the outstanding securities issued by Tshwarisano. This would enable the trust to place these securities in another transaction in compliance with the Liquids Fuel Charter. Neither Tshwarisano nor its ordinary shareholders would owe any amounts to this trust or any other person. We have guaranteed the trust's obligation to make payment in these circumstances. This guarantee was valued at R39 million at the time of the transaction.

Sasol Inzalo share transaction

        During May 2008, the shareholders approved the Sasol Inzalo share transaction, a broad-based BEE transaction, which resulted in the transfer of beneficial ownership of 10% (63,1 million shares) of Sasol Limited's issued share capital before the implementation of this transaction to its employees and a wide spread of black South Africans (BEE participants). The transaction was introduced to assist Sasol, as a major participant in the South African economy, in meeting its empowerment objectives. This transaction will provide long-term sustainable benefits to all participants and has a tenure of 10 years from the inception of the scheme. The following BEE participants acquired indirect or direct ownership in Sasol's issued share capital at the time as follows:

•

Sasol employees and black managers through the Sasol Inzalo Employee Trust and Sasol Inzalo Management Trust (Employee Trusts)—4,0%;



•

The Sasol Inzalo Foundation—1,5%;



•

Selected participants—1,5%; and



•

The black public through:



•

The funded invitation—2,6%; and



•

The cash invitation—0,4%.

        The Employee Trusts and the Sasol Inzalo Foundation were funded entirely through Sasol facilitation whilst the selected participants and the black public participating, through the funded invitation, were funded by way of equity contributions and preference share funding (including

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preference shares subscribed for by Sasol). The black public participating through the cash invitation were financed entirely by the participants from their own resources.

        The effective date of the transaction for the Employee Trusts and the Sasol Inzalo Foundation was 3 June 2008. The effective date of the transaction for the selected participants was 27 June 2008. The effective date for the black public invitations was 8 September 2008.

The Sasol Inzalo Employee Trust and The Sasol Inzalo Management Trust

        On 3 June 2008, employees that were South African residents or who were migrant workers that did not participate in the Sasol Share Incentive Scheme and the Sasol Share Appreciation Rights Scheme, participated in The Sasol Inzalo Employee Trust (Employee Scheme), while all senior black management that are South African residents participated in The Sasol Inzalo Management Trust (Management Scheme). The share rights, which entitled the employees from the inception of the scheme to receive ordinary shares at the end of the ten years, vest according to the unconditional entitlement as follows:

–

after three years: 30%; and



–

thereafter: 10% per year until maturity.

        Participants in the Employee Scheme were granted share rights to receive 850 Sasol ordinary shares. The allocation of the shares in the Management Scheme was based on seniority and range from 5 000 to 25 000.

        The Sasol ordinary shares which were issued to the Employee Trusts, were funded by contributions from Sasol, which collectively subscribed for 25,2 million Sasol ordinary shares at an issue price of R366,00 per share, with a nominal value of R0,01 per share subject to the following pre-conditions:

•

right to receive only 50% of ordinary dividends paid on Sasol ordinary shares; and



•

Sasol's right to repurchase a number of shares at a nominal value of R0,01 per share at the end of year 10 in accordance with a pre-determined formula.

        Participants have the right to all ordinary dividends received by the Employee Trusts for the duration of the transaction.

        After Sasol has exercised its repurchase right and subject to any forfeiture of share rights, each participant will receive a number of Sasol ordinary shares in relation to their respective share rights. Any shares remaining in the Employee Trusts after the distribution to participants may be distributed to the Sasol Inzalo Foundation.

The Sasol Inzalo Foundation

        On 3 June 2008, The Sasol Inzalo Foundation (the Foundation), which is incorporated as a trust and is being registered as a public benefit organisation, subscribed for 9,5 million Sasol ordinary shares at an issue price of R366,00 per share, with a nominal value of R0,01 per share. The primary focus of the Foundation is skills development and capacity building of black South Africans, predominantly in the fields of mathematics, science and technology.

        The conditions of subscription for Sasol ordinary shares by the Foundation includes the right to receive dividends in the amount of 5% of the ordinary dividends declared in respect of Sasol ordinary shares held by the Foundation. During October 2012, the Sasol Limited shareholders approved the increase in the dividend of up to 50% for the 2013 financial year end. Sasol is entitled to repurchase a number of Sasol ordinary shares from the Foundation at a nominal value of R0,01 per share at the end of 10 years in accordance with a predetermined formula. After Sasol has exercised its repurchase right,

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the Foundation will in future receive 100% of dividends declared on the Sasol ordinary shares owned by the Foundation.

Selected participants

        On 27 June 2008, selected BEE groups (selected participants) which included Sasol customers, Sasol suppliers, Sasol franchisees, women's groups, trade unions and other professional associations, through a funding company, subscribed for 9,5 million Sasol preferred ordinary shares at an issue price of R366,00 per share. The shares, which were not allocated to selected participants, have been subscribed for by a facilitation trust, which is funded by Sasol. As at 30 June 2014, 1,1 million (2013—1,1 million) Sasol preferred ordinary shares were issued to the facilitation trust. The selected participants contributed equity of between 5% and 10% of the value of their underlying Sasol preferred ordinary shares allocation, with the balance of the contribution being funded through preference share debt, including preference shares subscribed for by Sasol, issued by the funding company.

        The selected participants are entitled to receive a dividend of up to 5% of the dividend declared on the Sasol preferred ordinary shares in proportion to their effective interest in Sasol's issued share capital, from the commencement of the fourth year of the transaction term of 10 years, subject to the financing requirements of the preference share debt.

        At the end of the transaction term, the Sasol preferred ordinary shares will automatically be Sasol ordinary shares and will then be listed on the JSE Limited. The Sasol ordinary shares remaining in the funding company after redeeming the preference share debt and paying costs may then be distributed to the selected participants in proportion to their shareholding. The funding company, from inception, has full voting and economic rights with regard to its shareholding in Sasol's issued share capital.

Black public invitations

Funded invitation

        The members of the black public participating in the funded invitation, through a funding company, subscribed for 16,1 million Sasol preferred ordinary shares. The black public contributed equity between 5% and 10% of their underlying Sasol preferred ordinary shares allocation, with the balance of the contribution being funded through preference share debt, including preference shares subscribed for by Sasol, issued by the funding company.

        As at 30 June 2014, 56 452 (2013—56 090) Sasol preferred ordinary shares, which were not subscribed for by the black public, were issued to the facilitation trust, which is funded by Sasol.

        Participants in the funded invitation were not allowed to dispose of their shares for the first three years after inception. For the remainder of the transaction term of 10 years, trading in the shares is allowed with other black people or black groups through an over-the-counter trading mechanism. Participants in the funded invitation may not encumber the shares held by them before the end of the transaction term.

        Members of the black public are entitled to receive a dividend of up to 5% of the dividend on the Sasol preferred ordinary shares in proportion to their effective interest in Sasol, from the commencement of the fourth year of the transaction term of ten years, subject to the financing requirements of the preference share debt.

        At the end of the transaction term, the Sasol preferred ordinary shares will automatically be Sasol ordinary shares and will then be listed on the JSE Limited. The Sasol ordinary shares remaining in the funding company after redeeming the preference share debt and paying costs may then be distributed to the black public in proportion to their shareholding. The funding company will have, from inception, full voting and economic rights with regard to its interest in Sasol's issued share capital.

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Cash invitation

        The cash invitation allowed members of the black public to invest directly in 2,8 million Sasol BEE ordinary shares. The Sasol BEE ordinary shares could not be traded for the first two years of the transaction term of 10 years and, for the remainder of the transaction term, can only be traded between black people and black groups. Participants in the cash invitation are entitled to encumber their Sasol BEE ordinary shares, provided that these shares continue to be owned by members of the black public for the duration of the transaction term. In February 2011, Sasol Limited listed the Sasol BEE ordinary shares on the BEE segment of the JSE Limited's main board. This trading facility provides Sasol Inzalo shareholders access to a regulated market in line with Sasol's commitment to broad-based shareholder development. At the end of the transaction term, the Sasol BEE ordinary shares will automatically be Sasol ordinary shares. At 30 June 2014, 17 405 (2013—17 475) BEE ordinary shares, which were not subscribed for by the black public, were issued to the facilitation trust, which is funded by Sasol.

Preference shares

        The preference share funding comprises A, B and guaranteed C preference shares which are funded by external financiers and D preference shares funded by Sasol. The funding companies are required to maintain, inter alia, minimum share cover ratios in respect of the A and B preference shares, being the ratio between the value of the Sasol preferred ordinary shares and the amount required to redeem the preference shares. The maintenance of the ratio is dependent upon the Sasol ordinary share price and the dividends paid by Sasol on the Sasol preferred ordinary shares. Sasol has call options to purchase some or all of the outstanding A, B and C preference shares. Currently, the minimum share cover ratio will be breached when for the A preference shares, the Sasol ordinary share price falls below approximately R141 per share and R147 per share in respect of the black public and selected participants, respectively. The minimum share cover ratio will be breached when for the B preference shares, the Sasol ordinary share price falls below approximately R185 per share and R167 per share in respect of the black public and selected participants, respectively. The Sasol ordinary share price at 30 June 2014 was R632,36 per share. The share cover ratios decrease over time with the maturation of the preference shares. In addition, a further condition to the guaranteed C preference shares is that the Sasol group must maintain a net debt to earnings before interest, taxation, depreciation and amortisation (EBITDA) cover ratio equal to or less than 2,5 times. Our current net debt to EBITDA ratio is 0,2 times at 30 June 2014.

        The preference shares are accounted for in the statement of financial position as debt and should the preference share covenants described above be breached, Sasol will be required to raise the necessary funding in order to either exercise the call option or, alternatively, honour the call under the guarantee.

Accounting for the transaction

        At 30 June 2014, the transaction has been accounted for as follows:

•

All structured entities created to facilitate the transaction have been consolidated into the Sasol group results from the applicable effective dates of the transaction.



•

An amount of R267 million (2013—R372 million) has been recognised in the income statement and in the share-based payment reserve in the statement of changes in equity in respect of the share-based payment expense related to the Employee Trusts. The amount in respect of the Employee Trusts represents the current period's expense taking into account the vesting conditions of the rights granted over the tenure of the transaction and an assumed forfeiture rate. The unrecognised share-based payment expense in respect of the share rights granted, expected to be recognised over the vesting period of the transaction amounted to R454 million

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at 30 June 2014 (2013—R721 million; 2012—R1 093 million). No additional shares were issued to the black public and selected participants during the year ended 30 June 2014. There is an amount of approximately R116 million still to be recognised in respect of the shares held in the Facilitation Trusts that are still available for issue.

•

The total value of the preference shares related to the Sasol Inzalo share transaction, recognised in the statement of financial position at 30 June 2014 amounts to R7 618 million (2013—R 7 497 million), including finance charges.

        Based on the weighted average number of shares issued at 30 June 2014, the share-based payment expense for 2014 decreased the earnings per share by R0,30.

        The total share-based payment expense relating to the Employee Trusts expected to be recognised in the 2015 financial year is estimated to be R196 million.

Competition from products originating from countries with low production costs

        Certain of our chemical production facilities are located in developed countries, including the United States and various European countries. Economic and political conditions in these countries result in relatively high labour costs and, in some regions, inflexible labour markets, compared to other countries. Increasing competition from regions with lower labour costs, feedstock prices and more flexible labour markets, for example the Middle East and China, exerts pressure on the competitiveness of our chemical products and, therefore, on our profit margins and may result in the withdrawal of particular products or closure of facilities.

Engineering contract costs

        We have a significant capital portfolio and are therefore exposed to fluctuations in the price and supply of engineering, procurement and construction services, in particular the availability of scarce technical skills and capacity. We are currently not expecting the abnormal inflationary pressures of the pre-recession period, but rather low to moderate increases as gradual economic recovery sets in. Significant fluctuations and volatility are, however, currently being observed.

        Scarce technical skills remain a key factor, to a varying degree in different geographical areas. Cost increases will depend on the region and market dynamics, which could have a material adverse effect on our business, operating results, cash flows and financial condition.

Significant accounting policies and estimates

        The preparation of our consolidated financial statements requires management to make estimates and assumptions that affect the reported results of its operations. Some of our accounting policies require the application of significant judgements and estimates by management in selecting the appropriate assumptions for calculating financial estimates. By their nature, these judgements are subject to an inherent degree of uncertainty and are based on our historical experience, terms of existing contracts, management's view on trends in the industries in which we operate and information from outside sources and experts. Actual results may differ from those estimates.

        Our significant accounting policies are described in more detail in the notes to the consolidated financial statements. Refer "Item 18—Financial statements". This discussion and analysis should be read in conjunction with the consolidated financial statements and related notes included in "Item 18—Financial statements".

        Management believes that the more significant judgements and estimates relating to the accounting policies used in the preparation of Sasol's consolidated financial statements could potentially impact the reporting of our financial results and future financial performance.

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        We evaluate our estimates, including those relating to environmental rehabilitation and decommissioning obligations, long-lived assets, trade receivables, inventories, investments, intangible assets, income taxes, share-based payment expenses, pension and other post-retirement benefits and contingencies and litigation on an ongoing basis. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making our judgements about carrying values of assets and liabilities that are not readily available from other sources.

Share options and other share-based payments

The Sasol Share Incentive Scheme

        In 1988, the shareholders approved the adoption of the Sasol Share Incentive Scheme. Following the introduction of the Sasol Share Appreciation Rights Scheme in 2007, no further options have been granted in terms of the Sasol Share Incentive Scheme. The share-based payment expense recognised relates to options granted in previous years and is calculated based on the assumptions applicable to the year in which the options were granted.

        We recognised a share-based payment expense for the years indicated:

        The last tranche of share options vested in December 2012, therefore the unrecognised share-based payment expense amounted to Rnil million at 30 June 2014 (2013—Rnil million; 2012—R2 million).

The Sasol Inzalo share transaction

        During May 2008, our shareholders approved our broad-based BEE transaction valued then at approximately R24 billion (at R380 per share). See "Broad-based Black Economic Empowerment transactions—Sasol Inzalo share transaction".

        The share-based payment expense was calculated using an option pricing model reflective of the underlying characteristics of the transaction. The assumptions used in the option pricing model are described in Note 47.2 to "Item 18—Financial statements" and include, amongst others, the risk-free rate, exercise price, expected volatility, expected dividend yield and vesting period.

        The valuation of share-based payment expenses requires a significant degree of judgement to be applied by management.

The Sasol Share Appreciation Rights Scheme

        During March 2007, the group introduced the Sasol Share Appreciation Rights Scheme, which replaced the Sasol Share Incentive Scheme. The Sasol Share Appreciation Rights Scheme allows certain senior employees to earn a long-term incentive amount calculated with reference to the increase

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in the Sasol Limited ordinary share price between the offer date of share appreciation rights and the vesting and exercise of such rights.

        Previously in terms of the long-term incentive scheme, the number of share options and share rights available to eligible group employees through the Sasol Share Incentive Scheme, Sasol Share Appreciation Rights Scheme and the Sasol Long-term Incentive Scheme could not at any time exceed 80 million shares/rights.

        In June 2012, the Sasol Limited board approved that the maximum number of rights to be issued under the Sasol Share Appreciation Rights Scheme and the Sasol Long-term Incentive Scheme (including unvested share options issued under the Sasol Share Incentive Scheme) be 69 million shares/rights, representing 10% of Sasol Limited's issued share capital immediately after the Sasol Inzalo share transaction.

Share Appreciation Rights with no corporate performance targets

        No shares are issued in terms of this scheme and all amounts payable in terms of the Sasol Share Appreciation Rights Scheme will be settled in cash.

        Rights are granted for a period of nine years and vest as follows:

•

2 years—1st third;



•

4 years—2nd third; and



•

6 years—final third.

        The offer price of these appreciation rights equals the closing market price of the underlying shares on the trading day immediately preceding the granting of the right. The fair value of these rights is determined at each reporting date and the unrecognised cost amortised to the income statement over the period that the employees provide services to the company.

        Refer to Note 47 to "Item 18—Financial statements" for further details on this share-incentive scheme.

        We recognised a share-based payment expense for the years indicated:

        The total unrecognised share-based payment expense related to non-vested share appreciation rights, expected to be recognised over a weighted average period of 0,74 years, amounted to R81 million at 30 June 2014 (2013—R86 million and 2012—R111 million).

        The share-based payment expense was calculated using an option pricing model reflective of the underlying characteristics of the transaction. The assumptions used in the option pricing model are described in Note 47.3.1 to "Item 18—Financial statements" and include, amongst others, the risk-free rate, exercise price, expected volatility, expected dividend yield and vesting period.

        These rights are recognised as a liability at fair value in the statement of financial position until the date of settlement.

        The valuation of share-based payment expenses requires a significant degree of judgement to be applied by management.

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Share Appreciation Rights with corporate performance targets

        During September 2009, the group introduced corporate performance targets as an additional vesting criteria for share appreciation rights. The corporate performance targets are linked to the total shareholders' return relative to the JSE Resources 10 index and the MSCI energy index, Sasol earnings growth and Sasol production volumes/employee growth. The corporate performance targets determine how many rights will vest. Qualifying employees retain the share appreciation rights with no corporate performance targets that have been previously granted to them.

        No shares are issued in terms of this scheme and all amounts payable in terms of the Sasol Share Appreciation Rights Scheme will be settled in cash.

        The vesting period of these rights are the same as the share appreciation rights with no corporate performance targets.

        During September 2012, the group introduced share appreciation rights with new corporate performance targets. The rights are granted for a period of nine years and vest as follows:

•

3 years—1st third;



•

4 years—2nd third; and



•

5 years—final third.

        The offer price of these appreciation rights equals the closing market price of the Sasol Limited ordinary shares on the trading day immediately preceding the granting of the right. The fair value of these rights is determined at each reporting date and the unrecognised cost amortised to the income statement over the period that the employees provide services to the company.

        Refer to Note 47 to "Item 18—Financial statements" for further details on this share-incentive scheme.

        We recognised a share-based payment expense for the years indicated:

        The total unrecognised share-based payment expense related to non-vested share appreciation rights with corporate performance targets, expected to be recognised over a weighted average period of 1,32 years, amounted to R1 415 million at 30 June 2014 (2013—R1 044 million and 2012—R509 million).

        The share-based payment expense was calculated using an option pricing model reflective of the underlying characteristics of the transaction. The assumptions used in the option pricing model are described in Note 47.3.2 to "Item 18—Financial statements" and include, amongst others, the risk-free rate, exercise price, expected volatility, expected dividend yield and vesting period.

        These rights are recognised as a liability at fair value in the statement of financial position until the date of settlement.

        The valuation of share-based payment expenses requires a significant degree of judgement to be applied by management.

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The Sasol Long-term Incentive Scheme

        During September 2009, the group introduced the Sasol Long-term Incentive Scheme (LTI). The objective of the Sasol Long-term Incentive Scheme is to provide qualifying employees who participate in the Share Appreciation Rights Scheme the opportunity of receiving incentive payments based on the value of ordinary shares in Sasol Limited. Refer to Note 47 to "Item 18—Financial statements" for further details on this share-incentive scheme.

        Rights are granted for a period of three years and vest at the end of the third year. The LTIs are encashed at the end of the third year subject to the achievement of targets. The LTI carries no issue price.

        We recognised a share-based payment expense for the year indicated:

        The total unrecognised share-based payment expense related to non-vested LTIs, expected to be recognised over a weighted average period of 0,99 years, amounted to R1 595 million at 30 June 2014 (2013—R1 015 million and 2012—R370 million).

        The share-based payment expense was calculated using an option pricing model reflective of the underlying characteristics of the transaction. The assumptions used in the option pricing model are described in Note 47.4 to "Item 18—Financial statements" and include, amongst others, the risk-free rate, exercise price, expected volatility, expected dividend yield and vesting period.

        These rights are recognised as a liability at fair value in the statement of financial position until the date of settlement.

        The valuation of share-based payment expenses requires a significant degree of judgement to be applied by management.

Estimation of natural oil and gas reserves

        In accordance with the United States Securities and Exchange Commission (SEC) regulations, proved oil and gas reserves, are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be recoverable commercially and be economically producible—from a given date forward, from known reservoirs under existing economic conditions, operating methods, and government regulations—prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. The project to extract hydrocarbons must be approved and must have commenced or the operator must be reasonably certain that it will commence the project within a reasonable time. Existing economic conditions define prices and costs at which economic producibility is to be determined. The price is the average sales price during the 12-month period prior to the ending date of the period covered by the report, determined as an un-weighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices are defined by contractual arrangements. Future price changes are limited to those provided by contractual arrangements in existence at year-end.

        Our reported natural oil and gas reserves are estimated quantities based on SEC reporting regulations. Additionally, we require that the estimated quantities of oil and gas and related substances will be produced by a project sanctioned by all internal and external parties to the extent necessary for the project to enter the execution phase and sufficient to allow the resultant products to be brought to market.

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        See "Item 4.D Information on the company—Property, plants and equipment—Oil and gas production and exploration operations—Reserve disclosure".

        There are numerous uncertainties inherent in estimating quantities of reserves and in projecting future rates of production, including factors which are beyond our control. The accuracy of any reserve estimate is a function of the quality of available data, engineering and geological interpretation and judgement. Estimates of oil and gas reserves therefore are subject to future revision, upward or downward, resulting from new data and current interpretation, as well as a result of improved recovery, extensions and discoveries, the purchase or sale of assets, commercial arrangements, operational factors and production. Accordingly, financial and accounting measures (such as the standardised measure of future discounted cash flows, depreciation and amortisation charges and environmental and decommissioning obligations) that are based on proved reserves are also subject to revision and change.

        Refer to "Table 5—Standardised measure of discounted future net cash flows", on page G-7 for our standardised discounted future net cash flow information in respect of proved reserves for the year ended 30 June 2014 and to "Table 6—Changes in the standardised measure of discounted future net cash flows", on page G-9.

Depreciation of coal mining assets

        We calculate depreciation charges on coal mining assets using the units-of-production method, which is based on our proved and probable reserves. Proved and probable reserves used for the depreciation of life-of-mine assets are the total proved and probable reserves assigned to that specific mine (accessible reserves) or complex which benefit from the utilisation of those assets. Inaccessible reserves are excluded from the calculation. A unit is considered to be produced once it has been removed from underground and taken to the surface, passed the bunker and been transported by conveyor over the scale at the shaft head. The lives of the mines are estimated by our geology department using interpretations of mineral reserves, as determined in accordance with Industry Guide 7 under the US Securities Act of 1933, as amended. The estimate of the total reserves of our mines could be materially different from the actual coal mined. The actual usage by the mines may be impacted by changes in the factors used in determining the economic value of our mineral reserves, such as the coal price and foreign currency exchange rates. Any change in management's estimate of the total expected future lives of the mines would impact the depreciation charge recorded in our consolidated financial statements, as well as our estimated environmental rehabilitation and decommissioning obligations. See "Item 4.D—Information on the company—Property, plants and equipment".

Useful lives of long-lived assets

        Given the significance of long-lived assets to our financial statements, any change in the depreciation period could have a material impact on our results of operations and financial condition.

        In assessing the useful life of long-lived assets, we use estimates of future cash flows and expectations regarding the future utilisation pattern of the assets to determine the depreciation to be charged on a straight-line basis over the estimated useful lives of the assets or units-of-production method where appropriate. Annually, we review the useful lives and economic capacity of the long-lived assets with reference to any events or circumstances that may indicate that an adjustment to the depreciation period is necessary. The assessment of the useful lives takes the following factors into account:

•

The expected usage of the asset by the business. Usage is assessed with reference to the asset's expected capacity or physical output;

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•

The expected physical wear and tear, which depends on operational factors such as the number of shifts for which the asset is to be used, the repair and maintenance programme of the business and the care and maintenance of the asset while idle;



•

Technological obsolescence arising from changes or improvements in production or from a change in the market demand for the output of the asset;



•

Legal or similar limits on the use of the asset, such as expiry dates and related leases; and



•

Dependency or co-dependency on supply of raw materials.

        There were no significant changes to the useful lives of our long-lived assets (other than oil and gas and coal mining assets as discussed above) during 2014, 2013 and 2012.

Impairment of long-lived assets

        Long-lived assets are reviewed using economic valuations to calculate impairment losses whenever events or a change in circumstance indicate that the carrying amount may not be recoverable. In carrying out the economic valuations, an assessment is made of the future cash flows expected to be generated by the assets, taking into account current market conditions, the expected lives of the assets and our latest budgets. The actual outcome can vary significantly from our forecasts, thereby affecting our assessment of future cash flows. Assets whose carrying values exceed their estimated recoverable amount, determined on a discounted basis, are written down to an amount determined using discounted net future cash flows expected to be generated by the asset. The expected future cash flows are discounted based on Sasol's weighted average cost of capital (WACC) which, at 30 June 2014 and 2013, was:

        Discount rates for all other countries are based on their specific risk rate. Refer to the discussions included below under the Segment overview for the financial impact of the impairment assessments performed during the current year.

        Management has considered the sensitivity of the values in use to various key assumptions such as crude oil and gas prices, commodity prices and exchange rates. These sensitivities have been taken into consideration in determining the required impairments and reversals of impairments.

        With regard to the impairment recognised in 2014 in respect of the Canadian shale gas assets, the value in use is particularly sensitive to changes in gas prices, the estimated ultimate recovery factor as well as changes in drilling and completion costs. These variables are interdependent and accordingly a 5% change in any of these variables could change the recoverable amount by CAD200 million - CAD420 million. Refer to Note 38 to "Item 18—Financial statements" for the table that includes the assumptions used for impairment testing.

Environmental rehabilitation and decommissioning obligations

        We have significant obligations to remove plant and equipment, rehabilitate land in areas in which we conduct operations upon termination of such operations and incur expenditure relating to environmental contamination treatment and cleanup. Environmental rehabilitation and decommissioning obligations are primarily associated with our mining, oil and gas and petrochemical operations around the world.

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        Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Expenditure related to environmental contamination treatment and cleanup incurred during the production of inventory in normal operations is expensed. The estimated fair value of dismantling and removing facilities is accrued for as the obligation arises, if estimable, concurrent with the recognition of an increase in the related asset's carrying value. Estimating the future asset removal expenditure is complex and requires management to make estimates and judgements because most of the removal obligations will be fulfilled in the future and contracts and regulations often have vague descriptions of what constitutes removal. Future asset removal costs are also influenced by changing removal technologies, political, environmental, safety, business relations and statutory considerations.

        The group's environmental rehabilitation and decommissioning obligations accrued at 30 June 2014 were R11 013 million compared to R9 831 million in 2013.

        It is envisaged that, based on the current information available, any additional liability in excess of the amounts provided will not have a material adverse effect on the group's financial position, liquidity or cash flow.

        The following risk-free rates were used to discount the estimated cash flows based on the underlying currency and time duration of the obligation:

        An increase in the discount rate by one percentage point would result in a decrease in the long-term obligations recognised of approximately R970 million and a decrease of one percentage point would result in an increase in the long-term obligations recognised of approximately R1 023 million.

Employee benefits

        We provide for our obligations and expenses for pension and provident funds as they apply to both defined contribution and defined benefit schemes, as well as post-retirement healthcare benefits. The amount provided is determined based on a number of assumptions and in consultation with an independent actuary. These assumptions are described in Note 21 to "Item 18—Financial statements" and include, among others, the discount rate, healthcare cost inflation and rates of increase in compensation costs. The nature of the assumptions is inherently long-term, and future experience may differ from these estimates.

        The group provides post-retirement healthcare benefits to certain of its retirees. The entitlement to these benefits is usually based on the employee remaining in service up to retirement age and the completion of a minimum service period. The expected costs of these benefits are accrued on a systematic basis over the expected remaining period of employment, using the accounting methodology described in respect of defined benefit pension plans above. A one percentage point increase in assumed healthcare cost trend rates would increase the accumulated healthcare post-retirement benefit obligation by approximately R569 million to R4 199 million.

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        The group's net obligation in respect of defined benefit pension plans is actuarially calculated separately for each plan by deducting the fair value of plan assets from the gross obligation for post-retirement benefits. The gross obligation is determined by estimating the future benefit attributable to employees in return for services rendered to date.

        While management believes that the assumptions used are appropriate, significant changes in the assumptions may materially affect our pension and other post-retirement obligations and future expense. For example, a one percentage point increase in the pension increase assumption would increase the post-retirement pension obligation by approximately R1 793 million. Similarly, a one percentage point decrease in the discount rate assumption would increase the post-retirement pension obligation by approximately R1 858 million.

        In terms of the Pension Funds Second Amendment Act 2001, the Sasol Pension Fund (Fund) in South Africa undertook a surplus apportionment exercise as at December 2002. The surplus apportionment exercise, and the 31 December 2002 statutory valuation of the fund, was approved by the Financial Services Board on 26 September 2006. Payments of benefits to former members in terms of the surplus apportionment scheme have been substantially completed and an amount of R108 million has been set aside for members that have not claimed their benefits. Based on the rules of the fund, the latest actuarial valuation of the fund and the approval of the trustees of the surplus allocation, the company has an unconditional entitlement to only the funds in the employer surplus account and the contribution reserve. The estimated surplus due to the company amounted to approximately R487 million as at 31 March 2014 and has been included in the pension asset recognised in the current year.

        In terms of the rules of the Fund, on retirement, employees employed before 1 January 2009 have an option to purchase a defined benefit pension with their member share. Should a member elect this option, the group is exposed to actuarial risk from the date of retirement. Since Sasol is exposed to actuarial risk, the Fund has been classified as a defined benefit plan.

Fair value estimations of financial instruments

        We base fair values of financial instruments on quoted market prices of identical instruments, where available. If quoted market prices are not available, fair value is determined based on other relevant factors, including dealers' price quotations and price quotations for similar instruments traded in different markets. Fair value for certain derivatives is based on pricing models that consider current market and contractual prices for the underlying financial instruments or commodities, as well as the time value and yield curve or fluctuation factors underlying the positions. Pricing models and their underlying assumptions impact the amount and timing of unrealised gains and losses recognised, and the use of different pricing models or assumptions could produce different financial results. See "Item 11—Quantitative and qualitative disclosures about market risk".

Deferred tax

        We apply significant judgement in determining our provision for income taxes and our deferred tax assets and liabilities. Temporary differences arise between the carrying values of assets and liabilities for accounting purposes and the amounts used for tax purposes. These temporary differences result in tax liabilities being recognised and deferred tax assets being considered based on the probability of our deferred tax assets being recoverable from future taxable income. A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which the deferred tax asset can be realised. We provide deferred tax using enacted or substantively enacted tax rates at the reporting date on all temporary differences arising between the carrying values of assets and liabilities for accounting purposes and the amounts used for tax purposes unless there is a temporary difference that is specifically excluded in accordance with IFRS. The carrying value of our net deferred tax assets

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assumes that we will be able to generate sufficient future taxable income in applicable tax jurisdictions, based on estimates and assumptions.

Commitments and contingencies

        Management's current estimated range of liabilities relating to certain pending liabilities for claims, litigation, competition matters, tax matters and environmental remediation is based on management's judgement and estimates of the amount of loss. The actual costs may vary significantly from estimates for a variety of reasons. A liability is recognised for these types of contingencies if management determines that the loss is both probable and estimable. We have recorded the estimated liability where such amount can be determined. As additional information becomes available, we will assess the potential liability related to our pending litigation proceedings and revise our estimates. Such revisions in our estimates of the potential liability could materially impact our results of operation and financial position. See "Item 4.B—Business overview—Legal proceeding and other contingencies" and "Item 5.E—Off-balance sheet arrangements".

OUR RESULTS OF OPERATIONS

        The financial results for the years ended 30 June 2014, 2013 and 2012 below are stated in accordance with IFRS as issued by the IASB.

        With effect from 1 July 2013, the group adopted the consolidation suite of standards, namely IFRS 10, Consolidated Financial Statements (IFRS 10), IFRS 11, Joint Arrangements (IFRS 11) and IFRS 12, Disclosure of Interests in Other Entities (IFRS 12), which became effective for annual periods beginning on or after 1 January 2013. In accordance with the transitional provisions, the new accounting standards were applied retrospectively, which resulted in restatement of the group's previously reported results for the years ended 30 June 2013 and 2012.

Results of operations

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Overview

        Earnings attributable to shareholders for the year ended 30 June 2014 increased by 13% to R29 580 million from R26 274 million in 2013 (2012—R23 580 million). Operating profit after remeasurement items increased by 7% to R41 674 million compared to R38 779 million in 2013 (2012—R31 749 million).

        Turnover increased by 19% in 2014 to R202 683 million. This achievement was on the back of an overall improved operational performance with Sasol Synfuels production volumes increasing by 2,3% from 7,44 million tons (mt) in 2013 to 7,61 million tons in 2014. Normalised Synfuels production increased by 4% on a comparable basis. This performance, a record for the past decade, was achieved despite a planned total and phase shutdown of the east factory in September 2013.

        Operating profit was boosted by a 17% weaker average rand/US dollar exchange rate (R10,39/US$ at 30 June 2014 compared with R8,85/US$ at 30 June 2013), and a progressive improvement in chemical prices, while the average Brent crude oil price remained relatively flat (average dated Brent was US$109,40/barrel at 30 June 2014 compared with US$108,66/barrel at 30 June 2013).

        Operating profit was negatively impacted by remeasurement items totalling R7,6 billion. These items relate primarily to the R5,3 billion (CAD540 million) partial impairment of our Canadian shale gas asset, and the R466 million (EUR32 million) partial impairment and final loss on disposal of R966 million (EUR67 million) of our Solvents Germany assets.

        In 2013, turnover increased by 7%, operating profit after remeasurement items by 22% and earnings attributable to shareholders by 11% compared to 2012. The higher operating profit in 2013 resulted mainly from improved operational performance and a 14% weaker average rand/US dollar exchange rate (R8,85/US$ at 30 June 2013 compared with R7,78/US$ at 30 June 2012), despite a 3% lower average Brent crude oil price (average dated Brent was US$108,66/barrel at 30 June 2013 compared with US$112,42/barrel at 30 June 2012). Overall, the group benefited from improved production performance, with Sasol Synfuels's production volumes increasing by 4% compared to 2012. Stable operations as well as the performance of the plant during the phase shutdown resulted in the improved production volumes.

        In 2013, operating profit was negatively impacted by net once-off charges totalling R2 949 million. These items relate primarily to partial impairment of the Fischer—Tropsch (FT) wax expansion project R2 033 million and of our Solvents Germany business R242 million, as well the write off of the Mupeji-1 dry well in Mozambique amounting to R442 million. These once-off items also include a gain relating to the remeasurement to fair value of our existing shareholding in the Sasol Phenolics (Merisol) business of R233 million, which arose from the acquisition of the remaining 50% of Sasol Phenolics. Operating profit further includes a gain on the valuation of the open Canadian foreign exchange contracts amounting to R439 million.

        In 2012, operating profit includes the partial impairment of our Canadian shale gas asset and impairment of Blocks 16&19 in Mozambique of R964 million and R434 million, respectively, and the write-off of unsuccessful exploration wells in Australia amounting to R274 million, offset by the profit of R124 million on sale of our Sasol Nitro Phalaborwa operation and certain of the downstream fertiliser businesses and the profit realised on the disposal of the Witten plant in Germany of R285 million.

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Turnover

        Turnover consists of the following categories:

        The primary factors contributing to these increases were:

Operating costs and expenses

        Operating costs and expenses consists of the following categories:

        Materials, energy and consumables used.    Materials, energy and consumables used in 2014 amounted to R89 224 million, an increase of R12 607 million, or 16%, compared with R76 617 million in 2013, which decreased by 3% from R78 711 million in 2012. The increase in 2014 compared to 2013 was mainly due to increase in volumes and feedstock prices and higher external purchases by Sasol Oil. The decrease in 2013 compared with 2012 was mainly due to a decrease in feedstock prices resulting from lower average crude oil prices and lower external purchases by Sasol Oil as result of lower production volumes at Natref resulting from an extended planned maintenance shutdown.

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        Selling and distribution costs.    These costs comprise marketing and distribution of products, freight and customs and excise duty after the point of sale. Selling and distribution costs in 2014 amounted to R5 762 million, which represents an increase of R660 million, or 13%, compared with R5 102 million in 2013, which increased by R916 million compared with R4 186 million in 2012. The variation in these costs was mainly attributable to weaker rand levels against major currencies which affected the foreign operations during 2014. Selling and distribution costs represented 3% of sales in 2014, 2013 and 2012.

        Maintenance expenditure.    Maintenance expenditure in 2014 amounted to R8 290 million, which represents an increase of R1 047 million, or 14%, compared with R7 243 million in 2013, which increased by R96 million compared with R7 147 million in 2012. The main reason for the increase in maintenance expenditure was due to inflation, renewal activity due to the ageing plant and increase in maintenance activities at Sasol Synfuels.

        Employee related expenditure.    Employee related expenditure amounted to R 28 569 million, which represents an increase of R6 092 million, or 27%, compared with R22 477 million in 2013, which increased by R3 869 million, or 21%, from 2012. This amount includes labour costs of R22 917 million (2013—R20 439 million and 2012—R17 917 million) and share-based payment expenses of R5 652 million (2013—R2 038 million and 2012—R691 million). Sasol's share price increased by 47% over the 2014 financial year and accordingly the increase in share-based payment expenses is, mainly due to the increase in the provision for long-term employee share-based payment incentives. Excluding the effect of the share-based payment expenses, our employee costs increased by R2,4 billion (approximately) 12% which is due to annual inflationary increases of 7,8%, as well as the effects of exchange rates. In 2013 the increase in labour costs was mainly due to the average annual inflationary increases of approximately 7%, increased share-based payment expenses related to the performance of the Sasol ordinary share price of 7%, an increase in employee numbers growth of 4%, as well as the effects of exchange rates of 4%.

        Exploration expenditure and feasibility costs.    Exploration expenditure and feasibility costs in 2014 amounted to R604 million, which represents a decrease of R765 million, or 56%, compared with R1 369 million in 2013, which increased by R326 million compared with R1 043 million in 2012. The decrease in 2014 is due to the reduced exploration in Mozambique and Papua New Guinea. The increase in exploration and feasibility costs in from 2012 to 2013 is mainly due to increased costs associated with the establishing and advancing of various growth initiatives at SPI and SSI.

        Depreciation and amortisation.    Depreciation and amortisation in 2014 amounted to R13 516 million, which represents an increase of R2 395 million, or 22%, compared with R11 121 million in 2013, which increased by R2 279 million compared with R8 842 million in 2012. The increase in depreciation and amortisation in 2014 compared to 2013 is mainly due to the increase in assets that reached beneficial operation in 2014 and 2013 at Sasol Synfuels, Sasol Mining and Sasol Polymers, as well as the impact of the weaker rand/US dollar exchange rate.

        Translation gains.    Translation gains arising primarily from the translation of monetary assets and liabilities amounted to R798 million in 2014 (2013—R2 892 million and 2012—R739 million). The gain recognised is due to the weakening of the rand/US dollar exchange rate during the year closing at R10,64 at 30 June 2014, compared with the closing rate of R9,88 at 30 June 2013. The closing rate is used to translate, to rand, all our monetary assets and liabilities denominated in a currency other than the rand at the reporting date and, as a result, a net gain was recognised on these translations in 2014. The strengthening of the rand has a positive impact on the translation of our monetary liabilities, while the weakening of the rand has a positive impact on the translation of our monetary assets.

        Other operating expenses.    Other operating expenses in 2014 amounted to R12 522 million, an increase of R3 633 million, compared to R8 889 million in 2013, which decreased by R302 million from R9 191 million in 2012. This amount includes rental expenses of R1 141 million (2013—R931 million

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and 2012—R780 million), insurance costs of R649 million (2013—R470 million and 2012—R405 million), computer costs of R1 568 million (2013—R1 486 million and 2012—R1 378 million), hired labour of R771 million (2013—R797 million and 2012—R468 million), professional fees of R1 420 million (2013—R 1 586 million and 2012—R1 389 million) and other expenses of R5 227 million (2013—R3 444 million and 2012 R4 694 million). In 2014 restructuring costs of R1 131 million that related to the business performance enhancement programme was included in other operating expenses as well as a competition related administrative penalty of R534 million relating to Sasol Polymers.

        Other operating income.    Other operating income in 2014 amounted to R4 309 million, which represents an increase of R2 546 million, or 144%, compared with R1 763 million in 2013, which increased by R362 million compared with R1 401 million in 2012. Included in other operating income for 2014 is the Sasol Wax European Union cartel fine reduction of R2 449 million relating to the Sasol Wax fine imposed in 2008.

        Remeasurement items The effects of remeasurement items⁽¹⁾ recognised for the year ended 30 June are set out below:

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Operating profit

        The factors contributing to the increase in operating profit are set forth in the table below:

Share of profit of equity accounted joint ventures, net of tax

        Share of profit of equity accounted joint ventures, net of tax consists of the following:

        The share of equity accounted joint ventures (net of tax) amounted to R3 810 million in 2014 compared with R1 562 million in 2013 and R4 545 million in 2012. The increase in 2014 is mainly due to our share of income from the ORYX GTL joint venture, which increased by 52% to R4 028 million. This was due to the record average utilisation rate of 97% for the financial year as well as the effect of the weaker rand/US dollar exchange rate.

        Remeasurement items decreased to R13 million in 2014, compared to R3 459 million in 2013. Included in the 2013 remeasurement items is an impairment of R3 611 million relating to the impairment of Arya Sasol Polymers Company (ASPC).

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Share of profit of associates, net of tax

        Share of profit of associates, net of tax consists of the following:

        The share of profit of associates (net of tax) amounted to R334 million in 2014 compared with R504 million in 2013 and R416 million in 2012. The decrease in profit of associates in 2014 is due to the lower share of associates profit earned during the year, coupled with Wesco China no longer being equity accounted as Sasol had acquired the remaining 60% shareholding in Wesco China in September 2013. The increase in 2013 is attributable to the higher share of associates profit earned during the year.

Net finance costs

        Net finance cost consists of the following:

        Finance income.    Finance income in 2014 amounted to R1 220 million, which represents an increase of R551 million, or 82%, compared with R669 million in 2013, which decreased by R142 million compared with R811 million in 2012. Included in finance income for the 2014 year is R1 170 million interest received (2013—R642 million and 2012—R781 million) and dividends received from investments available-for-sale of R38 million (2013—R24 million and 2012—R22 million). The increase in finance income in 2014 compared to 2013 is mainly due to higher average cash balances.

        Finance costs.    Finance costs in 2014 amounted to R1 925 million, which represents an increase of R117 million, or 6%, compared with R1 808 million in 2013, which decreased by R10 million compared with R1 818 million in 2012. Included in finance costs for the 2014 year is R810 million interest on debt (2013—R623 million and 2012—R356 million), R793 million on the A and B preference share debt (2013—R771 million and 2012—R884 million) that relates to the Sasol Inzalo long-term debt and notional interest of R616 million (2013—R556 million and 2012—R485 million). R530 million was capitalised to assets under construction during 2014 (2013—R300 million and 2012—R15 million). This increase in interest capitalised is mainly due to the increase in interest on general borrowings eligible for capitalisation due to the US bond issued in November 2012 and additional debt issued in 2014 relating to the Sasol Mining mine replacement programme.

Income tax

        Income tax expense in 2014 amounted to R14 696 million, an increase of 17%, compared with R12 595 million in 2013, which increased by 10% from R11 501 million in 2012.

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        The income statement charge consists of the following:

        The effective tax rate was 32,6% in 2014, 31,7% in 2013 and 32,2% in 2012.

        The change in the effective tax rate from 31,7% to 32,6% in 2014 resulted primarily from the effective tax rate impact of the Canada partial impairment and the tax impact of the reduction of the fine imposed by the European Commission in 2009.

        The decrease in the effective tax rate from 32,2% in 2012 to 31,7% in 2013 is mainly due to an increase in non-deductible expenses relating mainly to once-off charges, which was offset by the absence of Secondary Tax on Companies, due to the implementation of dividend withholding tax, as well as the increase in exempt income.

Non-controlling interests in subsidiaries

        Profit attributable to non-controlling interests in subsidiaries in 2014 amounted to R837 million compared with R837 million in 2013 and R622 million in 2012. While the share of profit attributable to non-controlling interests was the same in 2014 as in 2013, Sasol Gas' profit increased whilst Sasol Oil's profit decreased, resulting in unchanged profit attributable to non-controlling interest in 2014 compared to 2013. In 2013, the non-controlling interests in subsidiaries increased compared to 2012 due to an increase in profits earned from Sasol Oil, in which outside shareholders hold a 25% interest.

Segment overview

        Segmental financial performance is measured on a management basis. This approach is based on the way in which the President and Chief Executive Officer organises segments within our group for making operating decisions and assessing performance. The segment overview included below is based on our segment results. Inter-segment turnover was entered into under terms and conditions substantially similar to terms and conditions which would have been negotiated with an independent third party.

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Turnover per segment

Operating profit/(loss) after remeasurement items per segment

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Segment review

South African energy cluster

Sasol Mining—results of operations

Results of operations 2014 compared to 2013

        Total turnover increased by 15% from R12 324 million to R14 134 million. Operating profit increased by 11% to R2 453 million compared to the prior year. The improved operating profit was supported by higher export volumes, increased sales prices to Sasol Synfuels, as well as the weaker rand/US dollar exchange rate. Sasol Mining's normalised mining unit cost from its operations increased by 7% compared with the prior year. Sales volumes remained flat at 44,5 million tons (Mt) in 2014 compared with 2013.

        Production volumes increased by 3,5% to 41,5 Mt for 2014 compared with 40,1 Mt in 2013.

        Operating costs and expenses increased by 16%, mainly due to inflation, higher production, higher than inflation related labour changes stemming from a sensitive labour environment in the mining industry and the maintaining of duplicated infrastructure associated with opening three new operations simultaneously. Additional employees were also appointed to assist with opening up reserves faster and supporting production stability.

Results of operations 2013 compared to 2012

        Total turnover increased by 15% from R10 672 million to R12 324 million mainly due to higher volumes and sales prices to Sasol Synfuels and the positive impact of the weaker rand/US dollar exchange rate, offset by lower US dollar export coal prices per ton and lower export sales volumes. Sales volumes increased by 4% to 44,5 million tons (Mt) for 2013 compared with 42,8 Mt in 2012.

        Production volumes were slightly higher than those of the prior year at 40,1 Mt for 2013 compared with 40,0 Mt in 2012.

        Operating costs and expenses increased by 21%, mainly due to inflation and increased mining costs to create additional capacity in phasing out old shafts while ramping up new shafts. This impacted negatively on productivity leading to external coal purchases and increased transport costs. Production in the export plant was affected by new geological information relating to the Thubelisha shaft, which has a significant impact on the planned future market of the mine. This also resulted in lower productivity and higher costs at certain sections of the Twistdraai Colliery.

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        The main factors contributing to the increase/decrease in operating profit were:

Remeasurement items

        Operating costs and expenses include the effect of the following remeasurement items:

        The remeasurement items in 2014 includes a loss on disposal of investment of R4 million and a loss on disposal of property, plant and equipment of R3 million.

        The remeasurement items in 2013 includes the scrapping of refurbishments of R7 million as well as the scrapping of geographical expansions R4 million. The profit of R6 million on disposal of property, plant and equipment relates to the sale of a continuous miner.

        The remeasurement items in 2012 include the scrapping of thin seam mining components which were no longer economically viable (R43 million) and projects, which were discontinued and whose technologies could no longer be used (R12 million). In addition, an impairment was recognised in respect of battery haulers of which the recoverable amount was assessed as being below R6 million of its carrying amount.

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Sasol Gas—results of operations

Results of operations 2014 compared to 2013

        Total turnover increased by 16% from R8 081 million in 2013 to R9 355 million in 2014 mainly due to higher sales volumes and the positive impact of the weaker rand/US dollar exchange rate. Sales volumes were 7% higher at 170,7 MGJ for 2014 compared with 160,1 MGJ in 2013.

        Operating costs and expenses increased by 24% mainly due to increase in feedstock prices, which are US dollar based. The weaker rand/US dollar exchange rate resulted in increased operating costs.

Results of operations 2013 compared to 2012

        Total turnover increased by 19% from R6 778 million in 2012 to R8 081 million in 2013 mainly due to higher sales volumes and sales prices and the positive impact of the weaker rand/US dollar exchange rate. Sales volumes were 5% higher at 160,1 MGJ for 2013 compared with 152,4 MGJ in 2012.

        Operating costs and expenses increased by 6% mainly due to inflation.

        The main factors contributing to the increase in operating profit were:

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Remeasurement items

        Operating costs and expenses include the effect of the following remeasurement items:

        In 2014, Sasol Gas disposed of its 49% share in Spring Lights Gas resulting in a gain of R453 million.

        In 2014 and 2012, smaller projects which were no longer considered economically viable were written off.

Sasol Synfuels—results of operations

Results of operations 2014 compared to 2013

        Total turnover increased by 16% from R58 275 million in 2013 to R67 654 million in 2014. Operating profit increased by 15% to R32 988 million compared to the prior year primarily due to increased production volumes and a weaker average rand/US dollar exchange rate.

        Production volumes of 7,61 million tons (mt) (2013—7,44 mt) improved by 2,3% compared to the prior year, mainly due to a focus on operational improvements. This performance, a record for the past decade, was achieved despite a planned total and phase shutdown of the east factory in September 2013. Normalised production increased by 4% on a comparable basis.

        Cash unit costs increased by 10,6% compared to the prior year mainly due to higher feedstock and electricity prices.

Results of operations 2013 compared to 2012

        Total turnover increased by 19% from R48 791 million in 2012 to R58 275 million in 2013 mainly due to a weaker average rand/US dollar exchange rate resulting in favourable product prices and margins, and increased sales volumes.

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        Production volumes of 7,44 million tons were 4% higher than the prior year due to stable operations, as well as the performance of the running plant during the phased shutdown in September 2012.

        Operating costs and expenses increased by 11% mainly due to higher feedstock prices, which are largely internal to the group, as well as increased labour and energy costs.

        The main factors contributing to the increase in operating profit were:

Remeasurement items

        Operating costs and expenses include the effect of the following remeasurement items:

        The remeasurement items in 2014 include the following:

•

Scrapping of assets under construction of R282 million relating to the Clean Fuels 2 programme, whereby the scope of the project changed due to new cleaner fuels standards.



•

Scrapping of property, plant and equipment of R52 million which are no longer economically viable and whose technologies can no longer be used.



•

Other smaller assets were disposed of realising a profit of R3 million in 2014.

        The remeasurement items in 2013 include the scrapping of sections of projects and property, plant and equipment (R62 million) and assets under construction (R16 million) which are no longer economically viable and whose technologies can no longer be used. Other smaller assets were disposed of realising a profit of R1 million in 2013.

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        The remeasurement items in 2012 include the scrapping of sections of projects and property, plant and equipment (R57 million) and assets under construction (R181 million) which are no longer economically viable and whose technologies can no longer be used.

Sasol Oil—results of operations

Results of operations 2014 compared to 2013

        Total turnover increased by 20% from R67 274 million in 2013 to R80 639 million in 2014. Compared to the prior year, sales and production volumes were respectively 4,8% and 6,8% higher. Sales volumes increased due to higher demand from the export, aviation and commercial markets. Production volumes were higher in 2014 primarily due to the extended shutdown of Natref in 2013. Normalised production volumes for Natref increased by 2%.

        Operating profit of R1 531 million was 18% lower than the operating profit of R 1 859 million in 2013, primarily due to lower refining margins of US$7,13 in 2014 compared to US$9,67 in 2013, as well as lower virtual refining margins of US$2,01/b in 2014 compared to US$3,23/b in 2013, partially offset by a weaker average rand/US dollar exchange rate.

Results of operations 2013 compared to 2012

        Total turnover increased by 1% from R66 859 million in 2012 to R67 274 million in 2013 mainly due to higher crude refining margins of US$9,67 in 2013 compared to US$8,44 in 2012 as well has higher virtual refining margins of US$3,23/b in 2013 compared to US$3,21/b in 2012. In addition, profitability was enhanced by higher petroleum product prices and a weaker average rand/US dollar exchange rate. This benefit was partially offset by lower sales and production volumes due to lower demand, in particular for black products, on the back of higher petroleum product prices. Total liquid fuel sales were lower at 8,9 million cubic metres (Mm³) in 2013 compared with 9,6 Mm³ in 2012, specifically due to the overland exporters into Southern Africa and lower sales to refining wholesalers resulting from lower production volumes at Natref.

        The crude oil throughput at our Natref refinery decreased by 21% from 3,3 million cubic metres (Mm³) in 2012 to 2,6 Mm³ in 2013, resulting from an extended planned maintenance shutdown at the Natref refinery.

        Operating costs and expenses remained in line with the previous year. Higher marketing and refining margins, together with higher product prices underpinned the improved operating profit. Higher wholesale margins were also partly negated by the impact of the weaker rand/US dollar exchange rate.

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        The main factors contributing to the decrease/increase in operating profit were:

Remeasurement items

        Operating costs and expenses include the effect of the following remeasurement items:

        The remeasurement items in 2014 include the impairment of selected retail convenience centres which have been identified for divestment, as well as various other projects and assets with small carrying values which were written off.

        The remeasurement items in 2013 include the impairment of goodwill of R45 million that relates to the disposal of Sasol's bitumen business, operated by Tosas. The reversal of impairment of property, plant and equipment of R8 million relates to the improved operational performance of retail convenience centres resulting from the successful implementation of turnaround plans. In addition, various projects and assets with small carrying values were retired from use and scrapped, with the remaining carrying values attributable to these assets written off. The profit on the disposal of property, plant and equipment relates to various small items.

        The remeasurement items in 2012 include the impairment and scrapping of various projects and assets with small carrying values.

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International energy cluster

Sasol Synfuels International (SSI)—results of operations

Results of operations 2014 compared to 2013

        Total turnover decreased by 18% from R881 million in 2013 to R725 million in 2014 mainly due to decreased catalyst sales to ORYX GTL and Sasol Chevron.

        Operating costs and expenses decreased by 11% mainly due to lower US GTL study costs and the positive impact on other operating income of the weaker average rand US/dollar exchange rate, which was partially offset by the impairment of our investment in Uzbekistan GTL of R275 million.

        Excluding a partial impairment of Uzbekistan of R275 million during 2014, operating costs and expenses decreased from 2013 by R487 million mainly due to a refund from Chevron of R250 million, paid as part of a settlement agreement between Sasol, Chevron and EGTL.

Results of operations 2013 compared to 2012

        Total turnover increased by 10% from R802 million in 2012 to R881 million in 2013 mainly due increase in catalyst sales to ORYX GTL and Sasol Chevron.

        Operating costs and expenses increased by 14% mainly due to inflation and higher US GTL study costs offset by the positive impact on other operating income of the weaker average rand US/dollar exchange rate.

        The main factors contributing to the decrease/increase in operating loss were:

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Remeasurement items

        Operating costs and expenses include the effect of the following remeasurement items:

        The impairment of investment of R275 million in 2014 relates to the partial impairment of our investment in Uzbekistan GTL. In 2013, based on the reprioritisation of our capital projects, the Sasol Limited board approved a decrease in Sasol's shareholding in the Uzbekistan GTL project from 44,5% to 25,5%.

        The remeasurement items in 2013 include the profit on disposal of property, plant and equipment of R7 million which primarily relates to catalysts sold to ORYX GTL.

Sasol Petroleum International (SPI)—results of operations

Results of operations 2014 compared to 2013

        Total turnover increased by 43% from R3 634 million in 2013 to R5 208 million in 2014.

        Production volumes from our assets in Mozambique and Gabon increased by 9% mainly due to an improvement in production. Natural gas produced and sold in Mozambique increased by 13% from 103,0 MGJ in 2013 to 116,4 MGJ in 2014. Our Canadian operations produced and sold 21,3 billion standard cubic feet (Bscf) of natural gas during 2014 compared to 22,3 Bscf in 2013. Total condensate sales decreased from 0,4 million bbl in 2013 to 0,3 million bbl in 2014. Total oil sales after royalties from Gabon was 1,7 million bbl in 2014 compared to 1,5 million bbl in 2013.

        Operating costs increased by 103% mainly due to the impairment of our Canadian shale gas asset in Montney of R5,3 billion. An operating loss of R5 981 million was recorded in 2014 compared to an operating loss of R1 886 million in 2013.

        Our Canadian shale gas asset remains under pressure due to low gas market prices and high depreciation charges, contributing to the operating loss for the year. We are actively de-risking this asset to optimise ramp-up of development activities once gas prices increase.

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        Excluding Canada, an operating profit of R1 022 million was achieved in 2014, compared to an operating loss of R71 million in 2013, mostly due to improved production from our Mozambique and Gabon assets and the positive impact of a weaker rand/US dollar exchange rate.

Results of operations 2013 compared to 2012

        Total turnover increased by 17% from R3 111 million in 2012 to R3 634 million in 2013.

        Production volumes from our combined assets in Mozambique, Canada and Gabon, increased by 16% compared to 2012. Natural gas produced and sold increased by 14% from 90,0 MGJ in 2012 to 103,0 MGJ in 2013. Our Canadian operations produced and sold 22,3 billion standard cubic feet (Bscf) of natural gas during 2013 compared to 17,0 Bscf in 2012. Total condensate sales increased from 0,3 million bbl in 2012 to 0,5 million bbl in 2013. Total oil sales after royalties from Gabon was 1,5 million bbl in 2013 compared to 1,5 million bbl in 2012. Although Gabon oil production is slowly declining, we are maturing additional volumes in Gabon to sustain the asset life-time.

        Operating costs and expenses increased by 9% mainly due to the advancing of various growth initiatives, the impact of a weaker rand/US dollar exchange rate, increased depreciation relating to our Canadian operations as well as the write off of the Mupeji-1 dry well in Mozambique amounting to R442 million.

        The main factors contributing to the movement in the operating loss were:

Remeasurement items

        Operating costs and expenses include the effect of the following remeasurement items:

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        The remeasurement items for 2014 include the following:

•

Impairment of the Farrel Creek and Cypress A shale gas assets in Canada of R5,3 billion (CAD540 million). The impairment was mainly due to the decline in gas prices in North America and the decline in valuation of recent market transactions for similar assets in the Montney region.



•

The write-off of the unsuccessful exploration wells of R43 million mainly relates to the Ovoka well in the Etame Marin Permit, offshore Gabon that was declared dry during 2014.



•

Other impairments for 2014 include prospecting licences in Botswana of R95 million and R36 million relating to an exploration licence in Mozambique.



•

A few assets with small carrying values were scrapped as the projects were not considered to be economically viable. The proceeds from scrapping amounted to a net R7 million.

        The remeasurement items for 2013 include the following:

•

An amount of R442 million that was written-off on the Mupeji-1 dry well in Mozambique as well as R27 million that was written-off on the EEBOM-5P dry well.



•

The net impairment of assets under construction relates to the impairment of the M-10 licence acquisition costs of R26 million as well as the partial reversal of impairment of R11 million relating to Blocks 16&19 arising from the finalisation of the cost of the project. The impairment recognised in 2012 was based on the estimated cost.



•

A few assets with small carrying values were scrapped as the projects were not considered to be economically viable.



•

SPI realised a R69 million profit on the disposal of its share in PPL426 and PPL287 licences in Papua New Guinea.

        The remeasurement items for 2012 include the following:

•

An amount of R270 million that was written-off in respect of capitalised exploration wells subsequently appraised to be unsuccessful. This amount mainly relates to the WA-433-P licence in the Carnavon Basin offshore North West Australia.



•

An amount of R434 million, which had been capitalised in respect of exploration expenditure on Blocks 16&19, in Mozambique was impaired to zero as it was determined that it is not economically viable to develop Blocks 16&19.



•

An amount of R964 million (CAD120 million) was recognised as a partial impairment in respect of the Farrell Creek and Cypress A asset at 30 June 2012.



•

Sasol Petroleum International disposed of its JDZ Block-1 licence in Nigeria, realising a loss on disposal of R1 million. This was offset by a profit realised of R60 million on the farm-down of a 10% equity share in the PPL-285 licence in Papua New Guinea.

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Chemical Cluster

Sasol Polymers—results of operations

Results of operations 2014 compared to 2013

        Total turnover increased by 19% from R17 759 million in 2013 to R21 145 million in 2014, which was mainly due to higher dollar-based prices and a weaker exchange rate. Production volumes were 12% higher than in 2013, mainly due to improved plant efficiencies as well as plant stability benefits derived from the commissioning of Ethylene Purification Unit 5 (EPU5) in October 2013. Total sales volumes increased by 5%. Sales volumes from our South African polymers business increased from 1 317 Mt in 2013 to 1 431 Mt in 2014.

        An operating loss of R767 million was recorded in 2014, an improvement from the operating loss of R1 506 million in 2013. The operating loss includes penalties of R534 million relating to the South African Competition Tribunal fine, as well as a final loss on disposal of our Arya Sasol Polymers Company (ASPC) business in Iran of R198 million. Excluding these once off items of R732 million, the Polymers business was close to break even.

Results of operations 2013 compared to 2012

        Total turnover increased by 12% from R15 922 million in 2012 to R17 759 million in 2013, mainly due to the weakening of the rand against the US dollar and an increase in sales volumes in our South African polymers business despite the slow recovery in the polymers market.

        The South African polymers business recorded an operating loss of R1 506 million (2012—R1 020 million). The increase in sales volumes from 1 256 Mt in 2012 to 1 317 Mt in 2013 in the South African polymers business was negated by the slowing of the international polymers market, coupled with the continued margin squeeze experienced in the South African polymers business, where feedstock price increases outweighed the increases in selling prices.

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        The main factors contributing to the decrease/increase in operating loss were:

Remeasurement items

        Operating costs and expenses include the effect of the following remeasurement items:

        The loss on disposal of investments was R122 million for 2014 and includes a loss on de-recognition of an investment of R34 million, a loss on disposal of our investment in ASPC of R198 million and a fair value gain of R110 million on the acquisition of the remaining shares in Wesco China Limited.

        Numerous assets with small carrying values were written off to the value of R6 million.

        In 2013, numerous assets with small carrying values were retired from use and the remaining carrying values attributable to these assets were written off to the value of R5 million.

        Scrapping of assets under construction in 2013 includes the scrapping of the close lid technology project of R12 million. Other assets with small carrying values were retired from use and the remaining carrying values attributable to these assets were written off to the value of R5 million.

        In 2012, various projects and assets were retired from use and disposed of realising a profit of R1 million and numerous assets with small carrying values were retired from use and the remaining carrying values attributable to these assets were written off to the value of R2 million.

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Sasol Solvents—results of operations

Results of operations 2014 compared to 2013

        Total turnover decreased by 12% from R20 728 million in 2013 to R18 306 million in 2014. Sales volumes decreased by 21% from 1,61 Mt sold in 2013 to 1,27 Mt sold in 2014. The co-monomers product portfolio was transferred into Sasol O&S from Sasol Solvents, effective 1 July 2013, and therefore the results of this product portfolio were excluded from this date.

        Operating profit, decreased by 76% to R200 million compared to 2013. The financial performance was negatively impacted by the partial impairment of R466 million (EUR32 million) of our Solvents Germany operations as well as a loss on disposal of these operations of R966 million (EUR67 million). After adjusting for the sale of the Solvents Germany operations, operating profit increased by 54%, mainly as a result of an increase in margins due to the weaker rand against the US dollar exchange rate.

Results of operations 2013 compared to 2012

        Total turnover increased by 12% from R18 504 million in 2012 to R20 728 million in 2013 mainly due to an increase in sales volumes and the positive impact of a weaker rand/US dollar exchange rate. This benefit was partially offset by declining US dollar selling prices and contracting margins, resulting from continued high feedstock prices during the year.

        Sales volumes increased by 6% from 1,56 Mt sold in 2012 to 1,66 Mt sold in 2013. Production volumes were comparable with the prior year.

        Operating costs and expenses increased by 16% due to a partial impairment of R242 million related to our German operations and the increased cost of feedstock coupled with the impact of a weaker rand/US dollar exchange rate.

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        The main factors contributing to the decrease in operating profit were:

Remeasurement items

        Operating costs and expenses include the effect of the following remeasurement items:

        The remeasurement items in 2014 include the following:

•

Impairment of Solvents Germany assets amounting to R466 million (EUR32 million).



•

A loss on disposal of the Solvents Germany assets of R966 million (EUR67 million).



•

The scrapping of property, plant and equipment of R63 million, which relates to the scrapping of the rhodium catalyst.

        The remeasurement items in 2013 include the following:

•

An impairment on property, plant and equipment amounting to R165 million was recognised in respect of the Methyl Ethyl Ketone Moers site in Germany as a result of recurring losses.



•

Further impairments amounting to R9 million were recognised in respect of the Herne site in Germany. This cash generating unit was fully impaired in 2008. Expenditure relating to compliance with legal and safety obligations was capitalised to the asset during the year and subsequently impaired.

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•

An impairment of R15 million was recognised in respect of intangible assets due to the decrease in the market price of emission rights during the year. The impairment of other intangible assets relates mainly to the customer lists (R30 million) and REACH costs (R15 million) in Solvents Germany as the cash generating unit was fully impaired.



•

The impairment of investments of R8 million relates to the write-off of the German Pipeline Development Company GmbH. The results of the impairment review indicated that the value in use was R8 million lower than the carrying amount of the investment and accordingly an impairment was recognised.



•

The scrapping of property, plant and equipment of R97 million relates to the scrapping of the rhodium catalyst.



•

Various projects and assets were retired from use and disposed of realising a loss of R2 million.

        The remeasurement items in 2012 include the following:

•

Further impairments amounting to R12 million were recognised in respect of the Herne site in Germany. This cash generating unit was fully impaired in 2008. Expenditure relating to compliance with legal and safety obligations was capitalised to the asset during the year and subsequently impaired.



•

An impairment of R25 million was recognised in respect of intangible assets due to the decrease in the market price of emission rights during the year.



•

The scrapping of property, plant and equipment relates to in process consumption of rhodium catalyst amounting to R42 million. The remaining scrapping of R2 million relates to other smaller assets.



•

Various projects and assets were retired from use and disposed of realising a loss of R2 million.

Sasol Olefins & Surfactants (Sasol O&S)—results of operations

Results of operations 2014 compared to 2013

        Total turnover increased by 36% from R41 278 million in 2013 to R56 071 million in 2014, mainly due to an increase in sales volumes and the weaker rand/euro dollar exchange rate.

        Total sales volumes increased by 14% from 2,00 Mt in 2013 to 2,29 Mt in 2014. The co-monomers business was transferred from Solvents to O&S effective 1 July 2013 and their results are included from this effective date.

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        Operating profit increased in 2014 by 49% to R5 336 million compared to R3 580 million in 2013. Our US operations continue to benefit from the low US ethane price, and whilst our European operations had some year-on-year improvement in results, they remained under pressure due to softer demand, coupled with continued high petrochemical feedstock prices and the slower than expected economic recovery in Europe.

Results of operations 2013 compared to 2012

        Total turnover increased by 9% from R37 698 million in 2012 to R41 278 million in 2013 mainly due to an increase in sales volumes and the positive impact of a weaker rand/US dollar exchange rate.

        Total sales volumes increased by 4% from 1,95 Mt in 2012 to 2,00 Mt in 2013 due to higher demand.

        Operating costs and expenses increased by 9% mainly due to the impact of a weaker rand/US dollar exchange rate. The prior year included a profit of R285 million recognised on the sale of the Witten site in Germany.

        The main factors contributing to the increase/decrease in operating profit were:

Remeasurement items

        Operating costs and expenses include the effect of the following remeasurement items:

        The remeasurement items in 2014 include the following:

•

The reversal of impairment of intangible assets of R21 million relating to emission rights of Sasol Italy during the year.

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•

The scrapping of the asset under construction relating to the write-down of the Tetramisation plant, phase 2 of R86 million, as the project was no longer considered viable.



•

Scrapping of property, plant and equipment is mainly due to the scrapping of rhodium catalyst of R32 million, and various other assets with small carrying values were written off.



•

A number of assets were retired from use realising a loss of R3 million.

        The remeasurement items in 2013 include the following:

•

An impairment of R61 million was recognised in respect of intangible assets due to the decrease in the market price of emission rights during the year.



•

A few assets with small carrying values were retired from use and the remaining carrying values attributable to these assets were written off to the value of R5 million.



•

A number of projects and assets were retired from use and disposed of realising a loss of R12 million.



•

Profit on disposal of business relates to the profit on disposal of Sasol Gulf of R13 million and of Sasol Benelux of R1 million.

        The remeasurement items in 2012 include the following:

•

An impairment of R85 million was recognised in respect of intangible assets due to the decrease in the market price of emission rights during the year.



•

A few assets with small carrying values were retired from use and the remaining carrying values attributable to these assets were written off to the value of R9 million.



•

A number of projects and assets were retired from use and disposed of realising a loss of R12 million.



•

Profit on disposal of business—we disposed of the Witten plant in Germany. The conditions precedent were met on 29 February 2012 and a profit on the disposal of R285 million was recognised.

Other Chemicals—results of operations

        Other chemical business includes Sasol Nitro, Sasol Wax, Sasol Phenolics (Merisol), Sasol Infrachem and various smaller chemical businesses.

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Results of operations 2014 compared to 2013

        Turnover increased by 28% from R 19 178 million in 2013 to R24 475 million in 2014.

        Our other chemical businesses recorded an operating profit of R3 638 million in 2014 compared to an operating profit of R123 million in 2013. The operating profit of the Sasol Wax business increased by R1 410 million from R1 413 million in 2013 to R 2 823 million in 2014. This includes a payment of R2,5 billion (EUR168,2 million) received from the European Commission, based on a favourable judgement for Sasol by the European General Court by which the Court has reduced a fine paid by Sasol in 2009 from EUR318,2 million to EUR149,98 million.

        Sasol Infrachem's operating profit of R1 165 million was negatively affected by softer global ammonia prices, coupled with lower production volumes.

        The Sasol Nitro business incurred an operating loss of R332 million for the year. While sales volumes increased slightly, the explosives and fertiliser businesses faced challenging trading and market conditions, characterised by the prolonged industrial action in the platinum mining sector and depressed nitrogen fertiliser business.

        Sasol Phenolics contributed R2 447 million to the group's external turnover in 2014 mainly due to increased sales volumes.

Results of operations 2013 compared to 2012

        Our other chemical businesses recorded an operating profit of R123 million in 2013 compared to an operating profit of R968 million in 2012.

        Sasol Wax's operating profit was negatively impacted by a partial impairment on the FT wax expansion project amounting to R2 033 million. This impact was partially negated by the weakening of the rand against the US dollar.

        The Sasol Nitro business incurred an operating loss of R124 million for the year. This was due to the negative effects of labour unrest in the mining sector during the first half of the year, lower customer demand and significantly higher feedstock costs in the fertiliser business.

        Sasol Infrachem's operating profit was positively impacted by an increase in turnover due to higher ammonia product prices and the weakening of the rand against the US dollar.

        In December 2012, Sasol acquired the remaining 50% shareholding in Sasol Phenolics for a purchase consideration of R730 million (US$85 million). Sasol Phenolics contributed R1 037 million to the group's external turnover in 2013 mainly due to increased sales volumes.

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Remeasurement items

        Operating costs and expenses includes the effect of the following remeasurement items:

        The remeasurement items in 2014 include the following:

•

Impairment of property, plant and equipment—Sasol Wax recognised an impairment on property, plant and equipment of R6 million relating to Prices Candles.



•

Impairment of assets under construction—Sasol Nitro impaired assets under construction to the value of R3 million.



•

Impairment of intangible assets—Sasol Phenolics impaired emission rights to the value of R57 million, due to the decrease in the market price of emission rights during the year.



•

Impairment of goodwill—Sasol Wax recognised an impairment of goodwill of R3 million relating to Prices Candles.



•

Impairment of investment—Sasol Phenolics impaired an investment of R1 million.



•

Scrapping of property, plant and equipment—Sasol Nitro scrapped property, plant and equipment of R12 million relating to assets in the fertiliser business.



•

Scrapping of assets under construction—Numerous assets with small carrying values were retired from use and the remaining carrying values attributable to these assets were written off to the value of R4 million.



•

Various projects and assets were retired from use and disposed of realising a profit of R4 million.

        The remeasurement items in 2013 include the following:

•

Impairment of property, plant and equipment—An impairment of R57 million was recognised at 30 June 2013 in respect of the Nitro bagging and blending unit in Secunda and R7 million was written off on the Nitro liquids unit. A reversal of impairment of R23 million was recognised on the Nitro Amsul cash generating unit resulting from an improvement in the overall project economics.



•

Impairment of assets under construction and goodwill—An impairment of R2 033 million was recognised at 30 June 2013 in respect of the Fischer Tropsch Wax Expansion Project (FTWEP) which is part of Sasol Wax. Due to the volatile macroeconomic environment and increased costs relating primarily to construction delays and poor labour productivity, an impairment review was

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performed. After a robust reassessment of the FTWEP project economics, Sasol Wax South Africa was impaired by R2 033 million at 30 June 2013 based on the value in use being lower than the carrying value. The impairment was allocated to assets under construction (R2 030 million) and goodwill (R3 million). Refer to Note 38 to "Item 18—Financial statements" for more detail.

•

Reversal of impairment of intangible assets—Reversal of impairment of intangible assets related to Sasol Phenolics amounting to R25 million due to the increase in the market price of emission rights during the year.



•

Scrapping of property, plant and equipment—Numerous assets with small carrying values were retired from use and the remaining carrying values attributable to these assets were written off to the value of R5 million.



•

Scrapping of assets under construction—Numerous assets with small carrying values were retired from use and the remaining carrying values attributable to these assets were written off to the value of R2 million.



•

Various projects and assets were retired from use and disposed of realising a profit of R1 million.



•

Loss on disposal of intangible assets of R4 million relates to the loss recognised on the sale of emission rights in the Nitro explosive and fertiliser businesses.



•

The fair value gain of R233 million on the acquisition of businesses relates to the remeasurement to fair value of our existing shareholding in the Sasol Phenolics business, which arose from the acquisition of the remaining 50% of Sasol Phenolics.

        The remeasurement items in 2012 include the following:

•

Impairment of property, plant and equipment—An impairment of R25 million was recognised at 30 June 2012 in respect of the ammonium sulphate plant. An additional impairment of R9 million relating to the Sasol Nitro's Secunda liquids and Secunda granular blending and bagging plant was also recognised.



•

Impairment of intangible and other assets—An impairment of R1 million related to Sasol Wax was recognised in respect of intangible assets due to the decrease in the market price of emission rights during the year.



•

Scrapping of property, plant and equipment—Numerous assets with small carrying values were retired from use and the remaining carrying values attributable to these assets were written off to the value of R30 million.



•

Scrapping of assets under construction—Numerous assets with small carrying values were retired from use and the remaining carrying values attributable to these assets were written off to the value of R7 million.



•

Profit on disposal of property, plant and equipment—In June 2009, a decision was taken to exit the phosphoric acid business and the Phalaborwa site was closed. As a result, the Phalaborwa business was disposed of, resulting in a profit on disposal of property, plant and equipment of R120 million being recognised. Various projects and assets were retired from use and disposed of realising a profit of R4 million.



•

Profit on disposal of associate—On 10 July 2007, Sasol Wax disposed of its 31% investment in Paramelt RMC BV, operating in the Netherlands, for a consideration of R251 million, realising a profit of R129 million. During 2012, the additional conditions precedent were met resulting in

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the receipt of additional consideration of R7 million and thus realising a profit on disposal of the associate of R7 million.

Other businesses—results of operations

        Other businesses include Sasol Financing, Sasol Technology, the group's central administration activities and alternative energy businesses.

Results of operations 2014 compared to 2013

        Operating loss for 2014 was negatively impacted by higher share-based payment expenses due to the increase in the Sasol share price.

Results of operations 2013 compared to 2012

        Operating profit for 2013 was positively impacted by net gains realised on hedging activities.

Remeasurement items

        Operating costs and expenses include the effect of the following remeasurement items:

        The remeasurement items in 2014 include the following:

•

An impairment of assets under construction of R3 million was recognised due to development costs of land that was impaired.



•

Numerous assets with small carrying values were retired from use and the remaining carrying values attributable to these assets were written off to the value of R43 million.

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•

Scrapping of intangible assets of R23 million relates to an in-house software programme that was no longer in use by Sasol Technology.



•

Profit on disposal of property, plant and equipment of R12 million relates to numerous assets that were disposed of during the year.

        The remeasurement items in 2013 include the following:

•

An impairment of intangible assets of R11 million was due to the decrease in the market price of emission rights during the year.



•

An impairment of assets under construction of R42 million relating a software project that was no longer economically viable.



•

Numerous assets with small carrying values were retired from use and the remaining carrying values attributable to these assets were written off to the value of R33 million.

        The remeasurement items in 2012 include the following:

•

An impairment of intangible assets of R16 million was due to the decrease in the market price of emission rights during the year.



•

An impairment of R3 million relates to the 40% investment in Thin Film Solar Technologies (Pty) Ltd which was subsequently sold for a consideration equal to its carrying value.



•

Numerous assets with small carrying values were retired from use and the remaining carrying values attributable to these assets were written off to the value of R16 million.



•

Profit on disposal of property, plant and equipment of R14 million mainly relates to the disposal of an accommodation facility owned by Sasol in the Secunda area.

RECENT ACCOUNTING PRONOUNCEMENTS

Recent accounting pronouncements: See "Item 18—Financial Statements—Accounting policies and financial reporting terms"

5.B    Liquidity and capital resources

Liquidity

        Management believes that cash on hand and funds from operations, together with our existing borrowing facilities, will be sufficient to cover our reasonably foreseeable working capital and debt service requirements. We finance our capital expenditure from funds generated out of our business operations, existing borrowing facilities and, in some cases, additional borrowings to fund specific projects.

        In 2014, we continued with our cash conservation approach, which included our cost containment strategy and the suspension of our share repurchase programme. This enhanced the group's strong cash position. In addition, our cash conservation approach also included the prioritisation of our capital expenditure programme. In the short term, our capital expenditure was prioritised to that which can be funded through cash generated from operating activities.

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        The following table provides a summary of our cash flows for each of the three years ended 30 June 2014, 2013 and 2012:

        The cash generated by our operating activities is applied first to pay our debt and tax commitments and then to provide a return in the form of a dividend to our shareholders. The net cash retained is applied primarily to invest in our capital investment programme.

Operating activities

        Net cash retained from operating activities has increased over the past three years to R43 975 million in 2014 from R36 292 million in 2013 and R26 741 million in 2012 as a result of improved operational performance and the weakening of the average rand/US dollar exchange rate. Cash flows retained from operating activities include the following significant cash flows:

        In 2014, the average rand/US dollar exchange rate weakened by 17% to R10,39/US$ at 30 June 2014 compared with R8,85/US$ at 30 June 2013. The impact of the weaker average rand/US dollar exchange rate, improved operational performance, and a progressive improvement in chemical prices has had a positive impact on our operations in 2014. Cash generated by operating activities has increased by 26% to R65 449 million in 2014 and by 27% to R51 906 million in 2013. In line with operating profit generated by our businesses, the most significant contributor to our cash generated by operations is Sasol Synfuels.

        The increase in income tax paid resulted primarily from the increase in taxable profit of the group during 2014. The decrease in tax paid in 2013 was due to the replacement of Secondary Tax on Companies (STC) with a dividend withholding tax. STC paid in 2012 amounted to R1 011 million.

        Dividends paid amounted to R13 248 million in 2014 compared to R10 787 million in 2013 and R9 600 million in 2012. We have a progressive dividend policy to distribute dividends on a regular basis, to maintain and/or grow dividends in line with the anticipated sustainable growth in earnings, barring significant economic variables such as fluctuations in the oil price and exchange rates. The prevailing circumstances of the company, future investment plans, financial performance and the trading and macroeconomic environments are considered when we make decisions on dividends. The average rate of earnings to dividend distributions in the past five years was approximately 2,4 times. Our dividend cover is 2,3 times for 2014.

Investing activities

        Net cash utilised in investing activities has increased from R26 523 million in 2012 to R30 833 million in 2013 and to R37 813 million in 2014.

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        Cash flows utilised in investing activities include the following significant cash flows:

Additions to non-current assets

        In 2014, we invested approximately R39 billion, compared with R30 billion in 2013 and R29 billion in 2012, in capital expenditure (on a cash flow basis excluding capitalised borrowing costs and including projects entered into by our joint ventures) to sustain and enhance our existing facilities and to expand operations.

        The additions to non-current assets is primarily due to capital expenditure on projects to expand our operations, which includes the following key projects:

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        In addition, we invested R19 959 million, R14 987 million and R11 238 million on non-current assets in 2014, 2013 and 2012, respectively, to sustain existing operations.

        Included in the above capital expenditure, we invested approximately R81 million in intangible assets (including investments made by joint ventures), mainly in respect of software, patents and trademarks during the year. For a discussion of the method of financing capital expenditure, refer to "Item 5.B—Liquidity and capital resources—liquidity".

        As at 30 June 2014, we had authorised approximately R111 billion of group capital expenditure in respect of projects in progress, of which we had spent approximately R52 billion by 30 June 2014. Of the unspent capital commitments of R59 billion, we expect to spend R39 billion in 2015 and R20 billion between 2016 and 2020. For more information regarding our capital commitments refer to "Item 5.F—Capital and contractual commitments".

Acquisition of interests in associates

        In September 2013, Sasol acquired the remaining 60% shareholding in Wesco China, Limited for a purchase consideration of R519 million (US$52 million), resulting in a fair value gain of R110 million on the acquisition.

Acquisition of interests in joint ventures

        In 2013, we acquired the remaining 50% shareholding in Merisol for a purchase consideration of R730 million (US$85 million).

        In 2012, we acquired an additional 11,2% interest in the Uzbekistan GTL project for a purchase consideration of R24 million, increasing our total participating interest in this project to 44,5%.

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Disposals

        During 2014, we disposed of businesses for a net consideration of R1 353 million (2013—net consideration of R167 million and 2012—net consideration of R713 million). The disposals during 2014 include the following:

•

In July 2013, Sasol Gas disposed of its 49% share in Spring Lights Gas for a purchase consideration of R474 million, realising a profit on disposal of R453 million;



•

In August 2013, Sasol disposed of its 50% interest in ASPC for a purchase consideration of R3 606 million (US$365 million). The purchase consideration was settled through dividends, shareholder loans and cash. The cash consideration transferred in 2014 was R 1 845 million. A final loss of R198 million was recognised on the disposal of the investment; and



•

In May 2014, Sasol Solvents disposed of its Solvents Germany GmbH assets when merger control approval was obtained for the transaction. As part of the disposal, Sasol contributed R966 million (EUR67 million) for the transfer of the disposal group.

        The 2013 disposals include the following:

•

In April 2013, Sasol Oil disposed of its bitumen business, operated by Tosas, for a consideration of R116 million; and



•

Sasol Olefins & Surfactants disposed of its Sasol Gulf business for a total consideration of R51 million.

        The 2012 disposals include the following:

•

Sasol Olefins & Surfactants disposed of the Witten plant in Germany for a total consideration of R550 million as part of the restructuring programme announced in 2007;



•

Sasol Nitro divested from its regional blending facilities in Bellville, Endicott and Kimberley, South Africa for a total consideration of R31 million. This divestiture is in accordance with a settlement agreement concluded with the South African Competition Commission;



•

Sasol Wax disposed of its 31% investment in Paramelt RMC BV in 2007. In 2012, the remaining conditions precedent were met resulting in the receipt of an additional consideration of R7 million; and



•

Sasol disposed of its 40% investment in Thin Film Solar Technologies (Pty) Ltd for a consideration of R29 million.

Financing activities

        The group's operations are financed primarily by means of its operating cash flows. Cash shortfalls are usually short-term in nature and are met primarily from short-term banking facilities.

        Long-term capital expansion projects and acquisitions of businesses are financed by a combination of internally generated cash flow and variable and fixed rate debt.

        Our long-term capital investments in the US will constitute a significant portion of total capital expenditure over the next 10 years coupled with other projects to expand and sustain existing business. These projects will be financed by a combination of internally generated cash flow and variable and fixed-rate long-term debt. The group's gearing currently remains low (gearing of negative 6,3%), and we have sufficient headroom to fund our near-term growth opportunities, grow dividends and provide a buffer against volatilities. We expect the low level of gearing to be maintained in the short term. However, over the medium term, in anticipation of our large capital investment programme, we expect our gearing level to move within our targeted range of 20% to 40%.

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        Following the successful issuance of the US dollar bond in November 2012, flexibility has been introduced into the group's funding plan. This provides the opportunity to approach international bond markets on a regular basis to fund growth projects in the US. We continue to maintain this flexible approach to our capital expenditure programme, taking into account all available funding options in order to ensure that our pipeline of growth projects is not affected.

        Net cash retained from financing activities was R909 million in 2014, compared with net cash retained of R8 516 million in 2013 and net cash utilised of R1 221 million in 2012. The following significant cash flows are included in financing activities:

        At the annual general meeting held on 25 November 2011, shareholders granted the authority to the Sasol directors to repurchase up to 10% of Sasol's issued share capital (excluding the preferred ordinary and Sasol BEE shares) for a further maximum of 15 months. On 30 November 2012, shareholders renewed the authority to the Sasol directors to repurchase up to 10% of Sasol's issued securities. At the annual general meeting held on 22 November 2013, shareholders granted the authority to the Sasol directors to approve the repurchase up to 10% of each of Sasol's ordinary shares and Sasol BEE ordinary shares. No shares were repurchased during 2012, 2013 and 2014.

        As at 30 June 2014, through our subsidiary, Sasol Investment Company (Pty) Ltd, we held 8 809 886 ordinary shares, representing 1,43% of the issued share capital of the company, excluding the Sasol Inzalo share transaction, for an amount of R2 641 million at a cumulative average price of R299,77 per share.

        In 2014, proceeds from long-term debt primarily related to the Sasol Mining mine replacement programme funding of R2,5 billion.

        In 2013, proceeds from long-term debt included the US$1 billion bond issued by Sasol Financing International Plc, an indirect 100% owned finance subsidiary of Sasol Limited, and various other facilities raised across the group. Sasol Limited has fully and unconditionally guaranteed the US$1 billion bond. There are no restrictions on the ability of Sasol Limited to obtain funds from the finance subsidiary by dividend or loan.

Capital resources

        Sasol Financing and Sasol Financing International act as our group's financing vehicles. All our group treasury, cash management and borrowing activities are facilitated through Sasol Financing and Sasol Financing International. The group executive committee (GEC) and senior management meet regularly, to review and, if appropriate, approve the implementation of optimal strategies for the effective management of the group's financial risk. Our cash requirements for working capital, share repurchases, capital expenditures, debt service and acquisitions, over the past three years have been primarily financed through a combination of funds generated from operations and borrowings. In our opinion, our working capital is sufficient for present requirements.

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        As at 30 June 2014, we have authorised capital expenditure of R111 billion, of which R52,4 billion has already been spent. See "Item 5.F—Tabular disclosure of contractual obligation—Capital commitments". Our long-term capital expansion projects including the US projects will be financed by means of a combination of internally generated cash flow and variable and fixed-rate long-term debt. This debt is normally raised in the same currency as the underlying project and repayment terms are designed to match the expected cash flows to be generated by that project.

        Our debt as at 30 June comprises the following:

        Our debt profile has a longer-term bias which is a reflection of both our capital investment programme and the favourable results generated by operating activities over the last three years.

        The group has borrowing facilities with major financial institutions of R44 451 million (2013—R42 395 million). Of these facilities, R26 435 million (2013—R24 211 million) has been utilised at year end.

        There were no events of default for the years ended 30 June 2014 and 30 June 2013.

        Besides our normal commercial borrowing facilities, the majority of which is in South Africa, an additional facility to fund short-term funding requirements in South Africa is our commercial paper programme of R8 billion, normally at fixed interest rates. There were no amounts outstanding under the commercial paper programme at 30 June 2014.

        Refer to "Item 11—Quantitative and qualitative disclosures about market risk" for a breakdown of our liabilities summarised by fixed and floating interest rates.

Debt profile

        We actively monitor and manage our cash flow requirements and to the extent that core long-term financing requirements are identified, we will finance these with longer-term debt issues.

        We endeavour to match the tenure of our debt with the nature of the asset or project being financed.

Covenants

        The group is subject to certain covenants on its debt facilities relating to earnings, debt cover, and net asset value, amongst others. There were no events of default in the year ended 30 June 2014.

        The covenant terms above are defined contractually in each of the agreements for the above facilities using definitions agreed to between the parties derived from amounts published in the

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consolidated annual financial statements of Sasol prepared in accordance with IFRS for any year and adjusted in terms of the agreed definitions.

        For information regarding our material commitments for capital expenditure refer to "Item 5.F—Capital and contractual commitments".

5.C    Research and development, patents and licenses

Research and development

        Our research and development function consists of a central research and development division in South Africa, which focuses on fundamental research while our decentralised divisions focus on applications. The central research function has a full suite of state-of-the-art pilot plants to support both current and future technology being developed.

        Our application research and development capabilities are focused around four areas:

•

technical service;



•

analytical service;



•

plant support; and



•

new applications, products and processes.

        Total expenditure on research in years 2014, 2013 and 2012 was R1 469 million, R1 356 million and R1 244 million, respectively. Development costs capitalised in 2014, 2013 and 2012 amounted to R81 million, R77 million and R107 million, respectively. For further information regarding our research and development activities, see "Item 4.B—Business overview—Sasol Technology".

5.D    Trend information

        Our financial results since the end of 2014 have been principally affected by fluctuations in dated Brent crude oil prices and a weakening of the rand to US dollar.

        In recent months, the derived European Brent crude oil spot price increased from the year end level as at 30 June 2014 of US$111,02/b to US$96,65/b on 19 September 2014 with a high of US$110,46/b and a low of US$96,29/b during that period. Given the current global economic conditions and the uncertain political environment in certain major oil producing countries, the oil price has been volatile and this volatility is expected to continue in the foreseeable future. As discussed above, a high oil price generally results in increased profitability for our group.

        The rand to US dollar exchange rate was R10,64 at 30 June 2014. The rand weakened subsequent to 30 June 2014 reaching R11,08 per US dollar at 19 September 2014 with a high of R11,08 per US dollar and a low of R10,68 per US dollar during the period 1 July 2014 to 19 September 2014. While the exchange rate during the current year has been relatively more volatile than in previous years due to the current global economic conditions, we are unable to accurately forecast whether this will continue in the foreseeable future.

5.E    Off-balance sheet arrangements

        We do not engage in off-balance sheet financing activities and do not have any off-balance sheet debt obligations, off-balance sheet structured entities or unconsolidated affiliates.

Guarantees

        As at 30 June 2014, the group has recognised amounts in respect of certain guarantees and indemnities. Refer to "Item 18—Financial Statements—note 58" for further information.

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        As at 30 June 2014, the group has issued the following guarantees for which the liabilities have not been included in the statement of financial position.

Product warranties

        The group provides product warranties with respect to certain products sold to customers in the ordinary course of business. These warranties typically provide that products sold will conform to specifications. The group generally does not establish a liability for product warranty based on a

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percentage of turnover or other formula. The group accrues a warranty liability on a transaction-specific basis depending on the individual facts and circumstances related to each sale. Both the liability and the annual expense related to product warranties are immaterial to the consolidated financial statements.

5.F    Tabular disclosure of contractual obligations

        Contractual obligations/commitments.    The following significant contractual obligations existed at 30 June 2014:

        Purchase commitments, including take or pay arrangements, have decreased from R45 885 million in 2013 to R35 357 million in 2014 due to renegotiated contracts relating to our shale gas assets, with our new partner, Progress Energy Inc., in Canada.

        Capital commitments.    The following table sets forth our authorised capital expenditure as of 30 June:

        The above amounts are as reported to our board. They exclude capitalised finance expenses but include business development costs and our group's share of capital expenditure of joint operations.

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        We expect to spend approximately R29 billion of our capital commitments on projects in South Africa, R5 billion in other African countries, R23 billion in North America, R2 billion in Europe and the remainder on projects in other regions.

        The following table reflects capital commitments on key projects approved by the Sasol Limited board and which were not yet completed at 30 June 2014:

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ITEM 6.    DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

6.A    Directors and senior management

The board of directors

        Our board currently comprises the following:

        Colin Beggs has been our Director since 1 July 2009. Mr Beggs was the Chief Executive Officer of PricewaterhouseCoopers until the end of June 2009. He joined Price Waterhouse in 1970 and qualified as a chartered accountant in 1971 and obtained a Bachelor of Commerce (Honours) from the University of Port Elizabeth in 1971. He became a Partner in 1979 and was elected Senior Partner in 1992. In January 2001, he became Chief Executive Officer of PricewaterhouseCoopers. He is also a former Chairman of the Board of the South African Institute of Chartered Accountants. He served as

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Chairman of the Accounting Practices Committee and is currently a member of the Accounting Practices Board and a Director of the Ethics Institute of South Africa. He is also a Director and Audit Committee member of Absa Bank Limited, Barclays Africa Group Limited and SAB Zenezele Holdings Limited.

        David Constable has been our Director, and President and Chief Executive Officer since 1 July 2011. Mr Constable was the Group President, Operations of Fluor Corporation from March 2009 to 31 May 2011, responsible for project execution services, project management, global procurement and construction, risk management, information technology, and sustainability across all Fluor's core business groups. During his 29 years at Flour, he also served in various international sales, operations and group president positions in the oil, gas, petrochemicals, mining and power industries. Prior to joining Sasol, he also sat on the board of the US-China Business Council. He received a Bachelor of Science—Engineering degree from the University of Alberta, Canada in 1982 and attended the International Management Programme at Thunderbird University in the United States in 1997 and the Advanced Management Programme at Wharton Business School in the United States in 2000.

        Henk Dijkgraaf has been our Director since 2006. He is the former Chief Executive Officer of the Dutch natural gas companies, GasTerra, Gasunie and Nederlandse Aardolie Maatschappij. He held various positions in the Royal Dutch Shell group in a number of countries between 1972 and 2003, including the positions of President, Shell Nederland BV, Director, Shell Exploration and Production and Chief Executive, Gas, Power and Coal. He is a member of the Board and of the Audit Committee of Eneco Holding NV, a major sustainable energy company in Western Europe, a member of the Board of the Southern African-Netherlands Chamber of Commerce and Deputy Chairman and Treasurer of the Netherlands Institute for the Near East. He obtained a Master of Science (Mining Engineering) from Delft University in 1972 and attended the Senior Executive Programme at the Massachusetts Institute of Technology in the United States in 1987.

        Nolitha Fakude has been our Director since 2005. She was appointed Executive Vice President on 1 July 2014. She has been responsible for sustainability and business transformation since 1 July 2011. Her portfolio includes group strategy and public policy and regulatory affairs, group human resources, shared services and group stakeholder relations. She also has strategic oversight of group communications, brand and marketing, sponsorships and government relations as well as enterprise development through Sasol ChemCity. She is Chairman of Sasol Mining and Non-Executive Director of Sasol Oil and Sasol Synfuels, among others; Chairman of Datacentrix Holdings Limited, council member and second Deputy Chairman of the Human Resources Development Council of South Africa and Chairman of the CHIETA-SETA. Before joining Sasol, she was a member of the Group Executive Committee at Nedbank Group Limited. She was also a Director of Harmony Gold Mining Company Limited, BMF Investment Limited and Woolworths Holdings Limited. She has a Bachelor of Arts (Honours) degree in Psychology from the University of Fort Hare and attended the Senior Executive Programme at Harvard Business School in the United States in 1999.

        Mandla Gantsho has been our Director since 2003 and was appointed Chairman with effect from 22 November 2013. He is the Chief Executive Officer of Africa Rising Capital. Prior to that, he was the Vice President Operations: Infrastructure, Private Sector & Regional Integration of the African Development Bank from 2006 to 2009, and before that, the Chief Executive Officer and Managing Director of the Development Bank of Southern Africa. He is the Chairman and a member of the audit committee of Ithala Development Finance Corporation and a Director of Impala Platinum Holdings Limited. He served as a Director of the South African Reserve Bank from 2011 to 2013. In 1997, he was appointed as a Commissioner of the Finance and Fiscal Commission, a body set up in terms of the South African Constitution to advise the South African parliament on intergovernmental fiscal transfers. In 2002, he was appointed as a member of the Myburgh Commission of Enquiry into the rapid depreciation of the rand in 2001. He obtained a Certificate in Accountancy Theory and a Bachelor of Commerce (Honours) in Financial Management from the University of Cape Town, South

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Africa in 1985 and 1986, respectively. He also obtained a Masters in Science from The George Washington University in 2002 and a Masters and Doctorate in Philosophy from the University of Pretoria, South Africa in 2006. He qualified as a chartered accountant in 1987.

        Nomgando Matyumza became our director on 8 September 2014. Ms Matyumza is the Lead Independent Director of Cadiz Holdings Limited and Wilson Bayly Holmes-Ovcon Limited and a Non-Executive Director of Hulamin Limited and Ithala Development Finance Corporation Limited. She was a Director of and Transnet SOC Limited, and served in its audit, risk and nominations and governance committees. Between 1994 and 2008, she held senior financial management and executive positions in Transnet SOC Limited and Eskom SOC Limited. Ms Matyumza obtained a Bachelor Computationis (Honours) degree from the University of Transkei, South Africa in 1991 and a Bachelor of Laws degree from the University of KwaZulu-Natal, South Africa in 2002. She qualified as a chartered accountant in 1993. Ms Matyumza attended the University of Cape Town Graduate School of Business Executive Management Programme in 2000.

        Imogen Mkhize has been our Director since 2005. She is the former Chairman of The Richards Bay Coal Terminal Company (Pty) Ltd and a Director of Mondi plc, Mondi Limited, NPC-Cimphor and Imbewu Capital Partners. Her previous directorships include MTN SA, Murray and Roberts, Illovo, Alan Gray, Datacentrix and the Council for Scientific and Industrial Research in South Africa. She was the Managing Director of Lucent Technologies South Africa. She is also a former member of the Financial Markets Advisory Board. Ms Mkhize is the Chairman of the Rhodes Business School and an emeritus member of the Harvard Business School Global Alumni Board. She is also a member of the Accenture South Africa Advisory Board and the Ethics Institute of South Africa. In 2001, the World Economic Forum recognised her as a Global Leader for Tomorrow. In May 2013, she was one of 18 Directors awarded the Chartered Director designation by the Institute of Directors of South Africa at the launch of the profession. She obtained a Bachelor of Science in Information Systems from Rhodes University in 1984 and a Masters in Business Administration from Harvard Business School in 1995.

        Moses Mkhize has been our Director since 2011. Mr Mkhize is Executive Director: Manufacturing, Rolled Products of Hulamin Limited and also serves as Director of a number of subsidiaries of Hulamin. He holds a Higher Diploma in Electrical Engineering from the Durban University of Technology and a Bachelor of Commerce (Honours) from the University of South Africa.

        JJ Njeke has been our Director since 2009. Mr Njeke is a past Chairman of the South African Institute of Chartered Accountants. He was the Managing Director of Kagiso Trust Investments from 1 June 1994 to 30 June 2010. He serves on the boards of Adcorp Holdings Limited, MMI Holdings Limited, Resilient Property Income Fund, MTN Group Limited, the Council of the University of Johannesburg and the South African Qualifications Authority. He previously served as a member of the Katz Commission of Inquiry into Taxation in South Africa, the General Committee of the JSE Securities Exchange, the Audit Commission—Supervisory Body of the Office of Auditor General and the Audit Committee of the National Treasury. Mr Njeke obtained a Bachelor of Commerce degree from the University of Fort Hare and a Bachelor Computationis (Honours) degree from the University of South Africa. He qualified as a chartered accountant in 1986. He also holds a Higher Diploma in Tax from the University of Johannesburg, South Africa.

        Bongani Nqwaqbaba was appointed as our Director on 5 December 2013. He has been the Finance Director of Anglo American Platinum Limited since January 2009. He is a former Finance Director of Eskom Holdings Limited. Prior to joining Eskom, he served as Treasurer and Chief Financial Officer of Shell Southern Africa. Mr Nqwababa is the Chairman of the South African Revenue Services Audit Committee. He previously served as a Non-Executive Director and member of the Nomination, Audit and Remuneration Committees of Old Mutual plc. He trained as an accountant with PricewaterhouseCoopers Inc. Mr Nqwababa obtained a Bachelor Accounting (Honours) degree from

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the University of Zimbabwe in 1998 and qualified as a chartered accountant with the Institute of Chartered Accountants in Zimbabwe in 1991. He obtained a Masters in Business Administration from the Universities of Manchester and Wales, Bangor in the United United Kingdom in 1999.

        Peter Robertson has been our Director since 2012. Mr Robertson is an Independent Senior Advisor, Oil and Gas, with Deloitte LLP in Houston, the United States. He held various positions ranging from management to executive leadership for Chevron Corporation in the United Kingdom and the United States between 1973 and 2009. These executive positions include Vice-President: Finance, Chevron USA, President: Exploration And Production Company and President: ChevronTexaco Overseas Petroleum. Mr Robertson is a former Chairman of the US Energy Association. He is also a Director and member of the Audit Committee of Jacobs Engineering Group Inc. Mr Robertson obtained a Bachelor of Science (Mechanical Engineering) from the University of Edinburgh in Scotland in 1969 and a Masters in Business Administration from the University of Pennsylvania in the United States in 1971.

        Jürgen Schrempp has been our Director since 1997 and became our Lead Independent Director on 28 November 2008. He is a Director of Compagnie Financière Richemont SA and Iron Mineral Beneficiation Services (Pty) Ltd. He is a former Chairman of the management board of Daimler AG and the board of directors of Mercedes-Benz South Africa (Pty) Ltd. Prof Schrempp is the Chief Executive Officer and sole shareholder of Katleho Capital GmbH and a member of the supervisory board of Merkur Bank KGaA. He is founding Chairman of the Southern Africa Initiative of German Business (SAFRI), a member of the President's Council of Togo and a former member of the South African President's International Investment Council. He is Chairman emeritus of the Global Business Coalition on HIV/AIDS and honorary Consul-General in Germany of the Republic of South Africa. He has received numerous national and international awards, including the Order of Good Hope, South Africa's highest civilian award. Prof Schrempp obtained a Bachelor of Science (Mechanical Engineering) from the Fachhochschule Offenburg, Germany in 1967. He holds a Professorship of the Federal State of Baden-Württemberg, Germany and Honorary Doctorates from the University of Graz, Austria and the University of Stellenbosch, South Africa.

        Paul Victor was appointed our Executive Director and Acting Chief Financial Officer with effect from 10 September 2013. He joined the Sasol group in 2000 and first served as a Financial Manager and later as the Chief Financial Officer of Sasol Synfuels, a position he held until 2011. In 2011 he became the Group Executive, Finance: Sasol Group Finance, reporting to Sasol Limited's Chief Financial Officer, with responsibility for the Sasol group's financial reporting function. Mr Victor obtained a Bachelors Computationis (Accounting) from the University of the Orange Free State, South Africa in 1992, and a Bachelors (Honours) and Certificate in Theory of Accountancy from the University of the Orange Free State, South Africa in 1993. He qualified as a chartered accountant in 1995.

        Stephen Westwell has been our Director since 2012. Mr Westwell has been the Chief Executive Officer of Silver Ridge Power Inc since 2013. He retired from BP plc in 2011, where he had served in multiple of roles since 1988. From 2008 to 2011, he was the Group Chief of Staff and a member of the executive management team and, before that, he was the Chief Executive Officer of the alternative energy division of BP. He was a member of the advisory board of the Stanford University's Graduate School of Business, United States from 2007 to 2013. He received a Bachelor of Science (Mechanical Engineering) from the University of Natal in South Africa in 1982 and a Masters in Business Administration from the University of Cape Town in South Africa in 1987. He also received a Masters in Science (Management) at Stanford University in the United States in 2003.

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Senior management

        The following is a list of our senior executive officers, constituting the group executive committee, whose age and current areas of responsibility we set out below:

        Steve Cornell became our Executive Vice President, International Operations on 1 February 2014. He is responsible for our global operations outside Southern Africa, particularly our mega-projects in Lake Charles, Louisiana in the United States. He was the Chief Operating Officer of US Fuels and Global Head of major downstream projects at BP, near Chicago, Illinois until January 2014. Before that he was the US Vice President for refining at BP. Before he joined BP, Mr Cornell served in a number of capacities at Total and heritage Total companies from 1988 to 2007. He obtained a Bachelor of Science—Chemical Engineering degree from Purdue University in the United States in 1979.

        Fleetwood Grobler became our Group Executive Global Chemicals and North American Operations on 1 December 2013 and our Executive Vice President, Chemicals Business on 1 July 2014. He is responsible for our global chemicals business, excluding the North American operations. Prior to that, he was the Managing Director of Sasol Olefins & Surfactants. Mr Grobler joined Sasol in 1984 and has served in most of our South African operating facilities and also has extensive experience in our international businesses. He obtained a Bachelor of Mechanical Engineering degree from the University of Pretoria, South Africa in 1984 and completed the Advanced Executive Program at the University of South Africa in 1994.

        Vuyo Kahla has been our Group Executive Advisory and Assurance since 1 January 2011 and became our Executive Vice President, Advisory and Assurance on 1 July 2014. He was appointed

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Company Secretary on 14 March 2011. He is responsible for the governance and ethics, legal and intellectual property, risk management and internal audit and forensic services functions. From June 2004 to December 2006, he was Group Executive, Legal and Risk at Transnet SOC Limited and from January 2007 to November 2010, he was Group Executive, Office of the Group Chief Executive, with executive responsibility for legal services, risk management, compliance, company secretarial services, strategy and business modelling, corporate and public affairs and public policy and regulation. The World Economic Forum has recognised him as a Young Global Leader and he is an alumnus of the Prince of Wales University of Cambridge Programme on Sustainability Leadership. He is a member of the Audit Committee of the South African Revenue Service. In March 2014, Mr Kahla was elected Chairman of the Council of Rhodes University. He obtained a Bachelor of Arts (Law) degree and a postgraduate Bachelor of Law degree from Rhodes University, South Africa in 1994 and 1996, respectively.

        Bernard Klingenberg has been our Group Executive, South African Energy since 1 April 2011 and became our Executive Vice President, Southern African Operations on 1 July 2014. Prior to that, he was responsible for group human resources for a period of two years. Since joining the Sasol group in 1986, he has held various positions in maintenance, technical and general management fields in some of the South African Energy and the global Chemicals businesses of the group. He was the Managing Director of Sasol Polymers from April 2007 to March 2009 and before that the Managing Director of Sasol Nitro. He obtained a Master of Science (Mechanical Engineering) from the University of Cape Town, South Africa in 1986.

        Ernst Oberholster was appointed as our Group Executive, International Energy Business, New Business Development and Technology with effect from 1 October 2013 and became our Executive Vice President, Strategy, Development and Planning on 1 July 2014. He joined the Sasol group in 1990 and has held various positions in Sasol. He was the Managing Director of Sasol New Business Development between 2010 and 2013. Prior to that, he held positions as the Managing Director of Sasol Synfuels International and the Managing Director of Sasol Oil. He obtained an Honours degree in industrial psychology from the University of Stellenbosch, South Africa in 1984. He completed the Executive Programme on the Petroleum Industry in Geneva, Switzerland in 1991 and the Executive Development Program at Cornell University in the United States in 1995.

        Maurice Radebe became our Executive Vice President responsible for our Energy Business on 1 July 2014. Prior to that, he was our Group Executive responsible for global corporate affairs, government relations and enterprise development. He joined Sasol Oil in January 2004, when Sasol Oil purchased Exel Petroleum, where he was the Managing Director. He served as the Managing Director of Sasol Oil from December 2006 until October 2010. He obtained a Bachelor of Science (Applied Mathematics and Physics) from the University of the North (now known as the University of Limpopo), Polokwane, South Africa in 1983 and a Higher Diploma for Educators of Adults from the University of Witwatersrand, Johannesburg, South Africa in 1988. He attended the Management Advancement Programme at the Wits Business School in Johannesburg, South Africa in 1991 and obtained a Masters in Business Administration from Wits Business School in 1997. He attended the General Management Programme at Harvard Business School in the United States in 2007.

        Riaan Rademan became our Executive Vice President, Upstream and Business Enablement on 1 July 2014. Prior to that, he was our Group Executive responsible for Sasol Mining, safety, health and environment, supply chain and information management. He was the Group General Manager responsible for shared services, group information management and procurement and supply chain from 1 May 2009. He previously served as Managing Director of Sasol Nitro and Sasol Mining. Mr Rademan obtained a Bachelor of Mechanical Engineering degree from the University of Pretoria, South Africa in 1980 and a Master of Business Leadership from the University of South Africa in 1987. He attended the Advanced Management Programme at the University of Pennsylvania, Wharton School in the United States of America in 1995.

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        Stephan Schoeman became our Executive Vice President, Technology on 1 May 2014. He was the Managing Director of Sasol Synfuels from May 2011 to March 2014. Prior to that, he was the Managing Director of Sasol Infrachem. Mr Schoeman has worked at most of Sasol's South African operating facilities and has extensive international experience. He obtained a Bachelor of Chemical Engineering degree from the University of Pretoria, South Africa in 1986.

        See above for biographies of our Executive Directors.

6.B Compensation

        For details on the group remuneration philosophy and policy, refer to the Remuneration Report filed as Exhibit 99.3.

        For details of the shares held by our directors and prescribed officers/GEC named in Item 6.A see "Item 6.E—Share ownership".

        The following tables summarise the compensation received by our executive and non-executive directors in 2014:

Compensation

        Remuneration and benefits paid and short-term incentives approved in respect of 2014 for executive directors were as follows:

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        Benefits and payments made in 2014 disclosed in the table above as "other benefits" include:

Prescribed officers

        Remuneration and benefits paid and short-term incentives approved in respect of 2014 for prescribed officers were as follows:

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        Benefits and payments made in 2014 disclosed in the table above as "other benefits" include the following:

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        Non-executive directors' remuneration for the year was as follows:

Medium-term incentive schemes applicable to executive directors and senior management

        For details regarding our medium-term incentive schemes applicable to executive directors named in Item 6.A. see "Item 6.E.—Share ownership".

Long-term incentive schemes applicable to executive directors and senior management

        For details regarding our long-term incentive schemes applicable to executive directors named in Item 6.A. see "Item 6.E.—Share ownership".

6.C Board practices

        Refer to "Item 6.A—Directors and senior management" for our board of directors (the board) and information with respect to their terms of office.

        Refer to our remuneration report filed as Exhibit 99.3 for details of our directors' service contracts and benefits upon termination of employment.

        Refer to our corporate governance report filed as Exhibit 99.3 for details of our board practices, including details relating to our audit committee and remuneration committee, as well as the names of committee members and summaries of the terms of reference under which the committees operate.

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6.D    Employees

        We have developed and implemented six values group-wide in order to support our vision, culture and strategic goals. The six Sasol values—safety, people, integrity, accountability, stakeholder focus and excellence in what we do, have been rolled out to all of our employees. We continue to focus to fully integrate behaviour in accordance with our values in our performance management system.

        Our workforce composition at 30 June is presented below:

 

Positive labour relations

        We enjoy constructive relationships with representative trade unions throughout the group. The majority of our employees worldwide belong to trade unions and are covered by collective agreements entered into with trade unions within the various jurisdictions in which Sasol operates. Joint forums between trade unions and management remain active as part of our willingness to sustain constructive dialogue. These forums discuss wages, conditions of employment, health and safety, training and development, community care, restructuring, transformation and HIV/AIDS, among other important issues. All representative unions and pensioners are represented on our medical scheme board and retirement funds.

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6.E.    Share ownership

Shareholdings of directors and officers

        The aggregate beneficial shareholding at 30 September 2014 by the directors of the company and the prescribed officers, including those that resigned during the year, and their associates in the issued share capital of the company is detailed below.

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        Beneficial shareholding for 2014 disclosed in the table above, includes shares held by the following black directors, prescribed officers and their associates as a result of their participation in the Sasol Inzalo share transaction on 8 September 2008:

        The Sasol BEE ordinary shares rank pari passu with Sasol ordinary shares in all respects except that they have limited trading rights until 7 September 2018. Sasol Inzalo Public Limited (Sasol Inzalo) indirectly held 2,4% of the issued capital of Sasol on 30 June 2014 in the form of unlisted Sasol preferred ordinary shares. The Sasol Inzalo ordinary shares have limited trading rights until 7 September 2018.

Long-term and medium-term incentive schemes applicable to executive directors and senior management

        See the Remuneration Report filed as Exhibit 99.3.

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ITEM 7.    MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

7.A    Major shareholders

        Refer to Note 44 to "Item 18—Financial Statements" for the authorised and issued share capital of Sasol Limited.

        To the best of our knowledge, Sasol Limited is not directly or indirectly owned or controlled by another corporation or the government of South Africa or any other government. We believe that no single person or entity holds a controlling interest in our share capital.

        In accordance with the requirements of the Companies Act of South Africa, the following beneficial shareholdings equal to or exceeding 5% of the total issued share capital during the last three years were disclosed or established from inquiries as of 30 June 2014:

        The voting rights of major shareholders do not differ from the voting rights of other shareholders.

        As of 31 August 2014, 29,6 million Sasol ordinary shares, or approximately 4,37% of our total issued share capital, were held in the form of American Depositary Receipts (ADRs). As of 31 August 2014, 403 record holders in the United States held approximately 15,65% of our issued share capital in the form of either Sasol ordinary shares or ADRs.

7.B    Related party transactions

        There have been no material transactions during the most recent three years, other than as described below, nor are there proposed to be any material transactions at present to which we or any of our subsidiaries are or were a party and in which any senior executive or director, or 10% shareholder, or any relative or spouse thereof or any relative of such spouse, who shared a home with this person, or who is a director or executive officer of any parent or subsidiary of ours, had or is to have a direct or indirect material interest. Furthermore, during our three most recent years, there has been no, and at 30 June 2014 there was no, outstanding indebtedness to us or any of our subsidiaries owed by any of our executive or independent directors or any associate thereof.

        In a transaction aimed at obtaining compliance with the Liquid Fuels Charter's requirements on black economic empowerment, we entered into an agreement with effect from 1 July 2006 with Tshwarisano LFB Investment (Pty) Ltd (Tshwarisano), in terms of which Tshwarisano acquired 25% of our subsidiary, Sasol Oil (Pty) Ltd (Sasol Oil) for a purchase consideration of R1 450 million. Our previous non-executive chairman, Mrs TH Nyasulu, was also a director of Sasol Oil and Tshwarisano, and indirectly held 1 275% of the shares of Sasol Oil through her 5,1% holding in Tshwarisano. Mrs Nyasulu resigned as our chairman on 22 November 2013.

        During the year, group companies, in the ordinary course of business, entered into various purchases and sale transactions with associates, joint ventures and certain other related parties. The effect of these transactions is included in the financial performance and results of the group. Terms and conditions are determined on an arm's length basis.

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        Material related party transactions were as follows:

        Amounts due to and from related parties are disclosed in the respective notes to the financial statements for the respective statement of financial position line items. Refer to Note 58 to "Item 18—Financial Statements" for further details.

7.C    Interests of experts and counsel

        Not applicable.

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ITEM 8.    FINANCIAL INFORMATION

8.A    Consolidated statements and other financial information

        See "Item—18. Financial Statements" for our financial statements, related notes and other financial information filed with this annual report on Form 20-F.

Dividend policy

        Our dividend distribution policy is a progressive dividend policy to maintain and/or grow dividends in line with the anticipated sustainable growth in earnings, barring significant economic variables such as fluctuations in the oil price and exchange rates. The prevailing circumstances of the company, future investment plans, financial performance and the trading and macroeconomic environments will be considered when we make decisions on dividends. The average rate of earnings to dividend distributions in the past five years was approximately 2,4 times. Our dividend cover for 2014 was 2,3 times. We distribute dividends twice a year.

        With effect from 1 April 2012, secondary tax on companies (STC) of 10% levied on dividends declared was replaced by a dividend withholding tax on shareholders of 15%. The withholding tax of 15% on dividends declared is excluded in the company's computation of the income tax expense for the corresponding period as it is a tax on shareholders.

        Refer to "Item 10.B—Memorandum and articles of association—Rights of holders of our securities".

Legal proceedings

        For information regarding our legal proceedings refer to "Item 4.B—Business overview—Legal proceedings".

8.B    Significant changes

        Refer to "Item 18—Financial statements".

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ITEM 9.    THE OFFER AND LISTING

9.A    Offer and listing details

        The following table sets forth, for the years indicated, the reported high and low quoted prices for the ordinary shares on the Johannesburg Stock Exchange (JSE) and for our American Depositary Receipts (ADRs) on the New York Stock Exchange.

9.B    Plan of distribution

        Not applicable.

9.C    Markets

        The principal trading market for our shares is currently the JSE. Our American Depositary Shares (ADS) have been listed on the New York Stock Exchange since 9 April 2003, each representing one common ordinary share of no par value, under the symbol "SSL". The Bank of New York Mellon is acting as the Depositary for our ADSs and issues our ADRs in respect of our ADSs.

9.D    Selling shareholders

        Not applicable.

9.E    Dilution

        Not applicable.

9.F    Expenses of the issue

        Not applicable.

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ITEM 10.    ADDITIONAL INFORMATION

10.A    Share capital

        Not applicable.

10.B    Memorandum and articles of association

        The South African Companies Act, 61 of 1973 (old Companies Act) was replaced with the Companies Act, 71 of 2008 (Companies Act) with effect from 1 May 2011 (the effective date). In terms of the Companies Act, the memorandum of association and articles of association of any company incorporated under the old Companies Act became its memorandum of incorporation (MOI) on the effective date. In November 2012, shareholders adopted a special resolution in terms of which our MOI was abrogated in its entirety and replaced with a new MOI aligned with the provisions of the Companies Act.

1.     Registration number, and object and purpose

        Registration number:    Sasol Limited was incorporated in South Africa as a public company under the old Companies Act and continues to exist under the Companies Act as a pre-existing company. We are entered into the register of the Companies and Intellectual Property Commission under registration number 1979/003231/06. Our corporate seat is in Johannesburg, South Africa.

Object and purpose:

        In terms of the Companies Act, Sasol's main business is not required to be specified in its MOI.

        Our company's main business remains to act as an investment holding company, and investment company and a management company and, either on its own and/or in collaboration with other agencies:

•

to prospect for coal, oil, petroleum and related substances;



•

to acquire mineral and other rights;



•

to acquire, exploit and mine coal, oil, petroleum and related substances and beneficiate and refine them into gaseous, liquid and solid fuels, petrochemicals and other products;



•

to convert, process and beneficiate any product with or without the addition of other products in any other way whatsoever; and



•

to market these products.

        Sasol's main object is to:

•

conduct the business of an investment holding company, an investment company and a management company;



•

prospect for minerals and to acquire mineral rights as well as oil, petroleum and related substances;



•

carry on mining;



•

conduct beneficiation and refining;



•

carry on petrochemical trading; and



•

market the products produced and/or acquired by the company.

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2.     Our board of directors

        (a)   Power to vote in respect of matters in which a director has a material interest.    In terms of our MOI and section 75 of the Companies Act a director who has a personal financial interest in respect of a matter to be considered at a meeting, or knows that a related person has a personal financial interest in the matter, may not vote on the matter. In terms of our board charter, directors are appointed on the express understanding and agreement that they may be removed by the board if and when they develop an actual or prospective material, enduring conflict of interest with Sasol or a group company.

        (b)   Power to vote on remuneration.    A distinction must be drawn between remuneration of directors as employees (executive directors) of the company and remuneration of directors for their services as directors. With regard to remuneration of directors for their services as directors, our MOI requires shareholder approval by way of a special resolution obtained in the previous two years for the payment of remuneration to directors for their service as directors, and the basis of payment thereof. Our MOI also provides for reimbursement by the company of reasonable expenses incurred in travelling to and from meetings of the directors, committees and shareholders.

        The remuneration of executive directors is determined by a disinterested quorum of directors. No powers are conferred on the directors who are employees of the company, to vote on their own remuneration in the absence of a disinterested quorum of directors. A disinterested quorum of directors determines the remuneration of the executive directors on recommendation of the remuneration committee. Our MOI does not confer any powers on the executive directors to vote on their own remuneration in the absence of a disinterested quorum of directors. Remuneration of executive directors is determined in accordance with the group's remuneration philosophy put to shareholders' for a non-binding advisory vote at the annual general meeting as required by the King Code of Governance Principles for South Africa 2009 (King III Code).

        (c)   Borrowing powers exercisable by directors.    Clause 26.2 of our MOI provides that the directors, acting of behalf of subsidiaries, may borrow money and secure the payment or repayment thereof upon terms and conditions which they may deem fit in all respects and, in particular, through the issue of debentures which bind as security all or any part of the property of the Company, both current and future.

        (d)   Retirement.    In terms of clause 23.1.12 of our MOI, any director reaching 70 years of age shall retire at the end of that year, provided that the board may, by unanimous resolution on a year-to-year basis, extend a director's term of office but not beyond the end of the year in which the director turns 73.

        (e)   Qualification shares.    The MOI does not require a director to hold shares in the capital of the company.

3.     Rights and privileges of holders of our securities

        Classes of shares.    We have three classes of shares in issue, namely:

•

Sasol ordinary shares;



•

Sasol preferred ordinary shares; and



•

Sasol BEE ordinary shares,

        which have the rights and privileges more fully set out in our MOI and which are briefly described herein.

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(a)

Dividend rights attaching to the various classes of shares



•

Sasol ordinary shares:    In terms of our MOI, the company may, make distributions as defined in the Companies Act, save however that no dividend may be declared and paid unless the company has first declared and paid in full the dividends due to the holders of the Sasol preferred ordinary shares, (the details of which are set out more fully below). If a dividend is declared by the board, only then does a shareholder have a right to receive a dividend which may be enforced against the company.



•

Dividends are declared payable to shareholders registered at a date subsequent to the date of the declaration of the dividend as determined by the rules of the local stock exchange operated by the JSE Limited (the JSE). The dates applicable to the dividend payment are determined in accordance with the listings requirements of the JSE.



•

In terms of our MOI, any dividends which remain unclaimed after a period of 12 years may be declared forfeited by the board and revert to our company. All unclaimed dividends may be invested or otherwise utilised by the directors for the benefit of the company after the expiry of three years until claimed.



•

Holders of American Depositary Receipts (ADRs) on the relevant record date will be entitled to receive any dividends payable in respect of the Sasol ordinary shares underlying the ADRs, subject to the terms of the Deposit Agreement. Cash dividends will be paid by the Depositary to holders of ADRs in accordance with the Deposit Agreement.



•

Sasol BEE ordinary shares:    the Sasol BEE ordinary shares rank pari passu with Sasol ordinary shares as regards to dividends.



•

Sasol preferred ordinary shares:    carry a cumulative preferred ordinary dividend right for a period of ten years from the date of issue. These preferred dividend rights rank ahead of the dividend rights of the holders of any other shares in the company, including the Sasol BEE ordinary shares (but excluding any preference shares). The holders thereof have the right to receive and be paid a preferred ordinary dividend, as follows:



•

R24,20 per annum until 30 June 2014; and thereafter



•

R30,80 per annum until 30 June 2018.

Any payments made to holders of Sasol preferred ordinary shares must be made without deduction, set-off or withholding.

Dividends payable on the Sasol preferred ordinary shares are adjusted to neutralise the impact of the dividend withholding tax, which replaced secondary tax on companies (STC) with effect from 1 April 2012.

In terms of our MOI no dividend may be paid unless it reasonably appears that the company will satisfy the solvency and liquidity test as defined in the Companies Act immediately after completing the proposed distribution; and the board, by resolution, has acknowledged that it has applied the solvency and liquidity test and has reasonably concluded that the company's assets equal or exceed the liabilities of the company and that the company will be able to pay its debts as they become due in the ordinary course of business for a period of 12 months following the payment of the dividend.

It is our policy to declare dividends in rand and the board may, in terms of our MOI, at the time of declaring a dividend make such determinations as they may deem appropriate with regard to the payment in any currency and the rate of exchange, subject to the approval of the

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South African Reserve Bank (SARB). For further information on our dividend policy, see "Item 8.A—Consolidated Statements and Other Financial Information".

(b)

Voting rights.    The Sasol BEE ordinary shares and the Sasol preferred ordinary shares rank pari passu with Sasol ordinary shares in relation to the right to vote at general meetings of the company.

In terms of our MOI every shareholder, or representative of a shareholder, who is present at a shareholders' meeting has one vote on a show of hands, regardless of the number of shares he holds or represents. On a poll, a shareholder has one vote for every share held by him. If the rights of any class of shareholders will be affected, then provision is made in the Companies Act for a separate class meeting.

(c)

Appointment and re-election of directors.    The directors shall, within the minimum and maximum limits stipulated in the MOI, determine the number of directors from time to time. Our directors are elected by our shareholders at the annual general meeting. The board may appoint any person qualifying as a director in terms of the Companies Act, either to fill a vacancy or as an addition to the board, provided that the total number of directors does not at any time exceed the maximum of number stipulated in the MOI. Directors appointed by the board in this manner are required to retire at the next annual general meeting following their appointment, but are eligible for re-election. If so approved by the board, directors may also appoint alternate directors in their stead. At the annual general meeting of Sasol, one-third of the serving directors shall retire or if the total number of serving directors who shall retire does not constitute a multiple of three, the number of directors who shall retire shall be the number, adjusted upwards, that is the closest to one-third. The directors who retire every year shall be the longest serving since their last election, but will be eligible for re-election. As between directors of equal seniority, the directors to retire, in the absence of agreement, will be selected from among them in alphabetical order.

If at the date of the annual general meeting a director has held office for a period of five years since his last election or appointment, he shall retire at such meeting, if not included as one of the directors to retire by rotation.

(d)

Right to share in profits.    This is not relevant under South African law. In terms of South African law, dividends are declared subject to the directors being satisfied as to the solvency and liquidity of a company.



(e)

Rights to surplus in the event of liquidation.

Sasol preferred ordinary shares:    on the winding up of the company all dividends that should have been declared and paid to the holders of Sasol preferred ordinary shares at that point in time will automatically be declared and paid in priority to shareholders of any other class of shares other than preference shares. Thereafter, each Sasol preferred ordinary share shall participate pari passu with each Sasol ordinary share in the remaining assets of the company and the assets remaining after payment of the debts and liabilities of the company, the costs of liquidation and the payment of all dividends that should have been declared and paid to the holders of Sasol preferred ordinary shares (as set out above), shall be distributed among the shareholders in proportion to the number of shares respectively held by each of them.

(f)

Redemption provisions.    There are no redemption provisions relating to the Sasol ordinary shares and the Sasol BEE ordinary shares.

Sasol preferred ordinary shares:    the restrictions on and entitlements in relation to the Sasol preferred ordinary shares will lapse on the earlier of the tenth anniversary of the date of issue of the first Sasol preferred ordinary shares or on the date of receipt by the company of a

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notice that a redemption event has occurred, in accordance with the terms of various agreements entered into by inter alia Sasol and the company Sasol Inzalo Groups Funding (Pty) Ltd, and the company Sasol Inzalo Public Funding (Pty) Ltd, (the redesignation date). On the redesignation date, the Sasol preferred ordinary shares will be redesignated as Sasol ordinary shares and will rank pari passu in all respects with the Sasol ordinary shares.

(g)

Sinking funds.    There are no sinking funds.



(h)

Liability for further capital calls.    Under the old Companies Act, shares could only be issued if they were fully paid. Accordingly, no shares were issued which were subject to any capital calls. Under the Companies Act however, partly paid shares may be issued under certain circumstances. The company has not yet made use of these provisions.



(i)

Discriminatory provisions against majority shareholders.    There are no discriminatory provisions in our MOI against any holder of securities as a result of such holder owning a substantial number of shares in the company.

4.     Changing rights of holders of securities

        In terms of our MOI, we may only by way of special resolution amend the rights attached to any shares or convert any of our shares (whether issued or not) into shares of another class. A special resolution is also required for the company to convert shares into stock and to reconvert stock into shares. If the rights of any class of shareholders will be affected, then provision is made in the Companies Act for a separate class meeting of the holders of such shares. In addition to the above, shareholders have appraisal rights under the Companies Act, and accordingly, if we amend our MOI by altering the preferences, rights, limitations or other terms of any class of our shares in a manner that is materially adverse to the rights or interests of holders of that class of shares, every holder of that class of shares that was present at the meeting at which the resolution to amend our MOI was passed and voted against such resolution, will be entitled, on notice to the company to seek court relief upon establishing that they have been unfairly prejudiced by the company. For a special resolution to be approved by shareholders, it must be supported by at least 75% of the voting rights exercised on the resolution.

5.     General meeting of shareholders

        In terms of the Companies Act, the board or any other person specified in the company's MOI may call a shareholders' meeting at any time. In terms of our MOI, the board (or any other person which may be specified in the MOI) must call a shareholders' meeting:

•

at any time that the board is required in terms of the Companies Act, or our MOI to refer a matter to shareholders for decision;



•

whenever required in terms of the Companies Act to fill a vacancy on the board;



•

whenever required in terms of our MOI to call a meeting; and



•

if one or more demands for a meeting with substantially the same purpose are delivered to the company by persons holding in aggregate at least 10% of the voting rights entitled to be exercised in relation to the matter proposed.

        One or more shareholders holding not less than 10% of the voting rights may convene a shareholders' meeting.

        If a company is unable to convene a meeting because it has no directors, then in terms of our MOI, any single shareholder entitled to vote may convene a meeting. In accordance with our MOI, our annual general meeting is required to be held each year within six months from the end of our

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financial year, and within 15 months after the date of our last preceding annual general meeting. The following business must at a minimum be transacted at an annual general meeting:

•

presentation of directors' reports, audited financial statements and the audit committee report;



•

election of directors (to the extent required by the Companies Act or our MOI);



•

appointment of an auditor and the election of an audit committee; and



•

any matter raised by a shareholder.

        If the company fails to convene a meeting in accordance with its MOI, or as required by the shareholders holding in the aggregate at least 10% of the voting rights as set out above, or within the time periods specified above for an annual general meeting, any shareholder may apply to court for an order to convene a shareholders' meeting on a date and subject to such terms as a court considers appropriate.

        Notices.    In terms of our MOI we are required to deliver written notice of shareholders' meetings to each shareholder and each beneficial shareholder at least 15 business days before a meeting. The Companies Act also stipulates that delivery of a notice will be deemed to have taken place on the seventh calendar day following the day on which the notice was posted by way of registered post. The notice of meeting must include inter alia the date, time and place of the meeting, the general purpose of the meeting and a copy of any proposed resolution. In the case of the annual general meeting the notice must include a summarised form of the annual financial statements to be presented and directions for obtaining a copy of such complete annual financial statements.

        Attendance at meetings.    Before a person will be allowed to attend or participate at shareholder meetings, that person must present reasonably satisfactory identification and the person presiding at the meeting must reasonably satisfy himself that the right of the person to attend as shareholder or proxy has been reasonably verified. Meetings of shareholders may be attended by any person who holds shares in the company and whose name has been entered into our securities register and includes any person who is entitled to exercise any voting rights in relation to the company. Any person entitled to attend and to vote at any meeting may appoint a proxy/ies in writing to attend and to vote at such meeting on his/her/its behalf. In respect of shares which are not subject to the rules of a central securities depository, and in respect of which a person holds a beneficial interest which includes the right to vote on a matter, that beneficial holder may attend and vote on a matter at a meeting of shareholders, but only if that person's name has been entered in our register of disclosures as the holder of that beneficial interest. Beneficial shareholders whose shares are not registered in their own name or (in the case of certificated shares in the company's register of disclosure), or beneficial owners who have dematerialised their shares, are required to contact the registered shareholder or their Central Securities Depository Participant, as the case may be, for assistance to attend and vote at meetings.

        Quorum.    In terms of our MOI, the quorum necessary for the commencement of a shareholders meeting shall be sufficient persons present at the meeting to exercise, in aggregate, at least 25% of all the voting rights that are entitled to be exercised in respect of at least one matter to be decided at the shareholders meeting but the shareholders meeting may not begin unless at least 3 persons entitled to vote are present. In terms of our MOI, if the required quorum of shareholders is not present within 30 minutes from the time appointed for the meeting to begin, the meeting will be postponed to the next business day and if at such adjourned shareholders meeting a quorum is not present within 15 minutes from the time appointed for the shareholders meeting, then the persons entitled to vote present shall be deemed to be the requisite quorum. In terms of the Companies Act, no further notice is required of a postponed or adjourned meeting unless the location is different from that of the postponed or adjourned meeting, or is different from a location announced at the time of an adjourned meeting.

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        Manner of voting.    At a general meeting, a resolution put to vote will be decided by a show of hands, unless a poll is demanded by:

•

at least five shareholders having the right to vote on that matter either as shareholder or proxy;



•

a shareholder or shareholders, or their proxies, representing at least one-tenth of the total voting rights of all shareholders having the right to vote on that matter;



•

a shareholder or shareholders holding in total not less than one-tenth of the issued share capital of the company having the right to vote on that matter; or



•

the chairman.

        In terms of the Companies Act, a special resolution is required to:

•

amend our MOI;



•

ratify consolidated versions of our MOI;



•

ratify actions by the company or directors in excess of their authority under the MOI;



•

approve an issue of shares or grant of rights to directors, prescribed officers or persons related to them;



•

approve an issue of shares or securities which will result in the voting power of the class of shares being issued (as a result of a transaction or a series of transactions), being equal to or exceeding 30% of the voting powers of all the shares of that class immediately before the transaction or series of transactions;



•

authorise the board to grant financial assistance to directors, prescribed officers or related or inter-related parties;



•

authorise the board to grant financial assistance to any person for the purpose of the subscription or purchase of securities issued by the company or by a related or inter-related company;



•

approve a decision of the board for re-acquisition of shares if acquired from a director or prescribed officer, or persons related to them;



•

approve a decision of the board for re-acquisition of shares if it involves the acquisition, whether alone or as part of a series of transaction, of more than 5% of the issued shares in any class;



•

authorise the basis for compensation to directors for their services as directors;



•

approve the voluntary winding up of the company;



•

approve the winding up of the company by court order;



•

approve an application to transfer the company to a foreign jurisdiction;



•

approve any proposed fundamental transaction, as defined in the Companies Act; or



•

revoke a resolution giving rise to shareholders' appraisal rights.

        In addition to the above, our MOI provides for further matters that must be decided by way of a special resolution.

        For a special resolution to be approved by shareholders, it must be supported by at least 75% of the voting rights exercised on the resolution.

        For an ordinary resolution to be approved by shareholders, it must be supported by at least 50% of the voting rights exercised on the resolution.

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6.     Rights of non-South African shareholders

        The Sasol BEE ordinary shares may only be owned by persons who meet certain broad-based black economic empowerment credentials. In order to meet such credentials such person must, inter alia, be a South African citizen.

        There are no limitations imposed by South African law or the MOI on the rights of non-South African shareholders to hold or vote shares in the company (other than the Sasol BEE ordinary shares). Acquisitions of shares in South African companies are not generally subject to review by the SARB. However, its approval may be required in certain cases where such share acquisition is financed by South African lenders.

7.     Provisions that would have the effect of delaying a change of control or merger

        The Companies Act and the regulations to the Companies Act deal extensively with the requirements that must be met by a company with respect to a merger, an acquisition or a corporate restructure.

8.     Disclosure of ownership threshold

        Pursuant to section 122(1)(a) and (b) of the Companies Act, a person must notify the company within three business days after acquiring or disposing of a beneficial interest in sufficient securities of a class issued by that company such that, as a result of the acquisition or disposal, the person holds or no longer holds as the case may be, a beneficial interest in securities amounting to any multiple of 5% of the issued securities of that class. The Takeover Regulation Panel has interpreted this to mean an acquisition or disposal of shares in any 5% increment.

        The JSE Listings Requirements require a listed company to disclose in its annual financial statements the interest of any shareholder, other than a director, who, insofar as it is known to the company, is directly or indirectly beneficially interested in 5% or more of any class of the company's capital.

9.     Changes in share capital

        In terms of the Companies Act, the board may (save to the extent that a company's MOI provides otherwise), increase or decrease the number of authorised shares in any class of shares. In addition, the board may (save to the extent that the company's MOI provides otherwise), classify any unclassified shares, or determine any preference rights, limitations or other terms in respect of a class of shares which have been provided for in a company's MOI and for which the board is required to determine the associated preference rights, limitations or other terms of shares.

        In terms of our MOI and the JSE Listings Requirements, we are required to obtain the consent of shareholders, by special resolution in general meeting, to increase the number of authorised shares in the share capital of the company, or to consolidate or to subdivide all or any shares or to amend the rights and privileges of any class of shares.

        Issued shares placed under the control of directors.    See section 4 above.

        Unissued shares placed under the control of directors.    The Companies Act generally allows the board to issue authorised shares without shareholder approval. However, in terms of our MOI, and subject the listings requirements of the JSE, the company may, in a general meeting, place the balance of the ordinary shares not allotted under the control of the directors with general authorisation to allot, and issue such shares at such prices and upon such terms and conditions and with the rights and privileges attached thereto, as may be determined in general meeting. A special resolution is required to place the preference shares under the control of the directors. Further, in terms of our MOI, a

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special resolution is required to amend the rights attached to any unissued shares or convert any of our unissued shares into shares of another class. A special resolution, is also required for the company to cancel, vary or amend shares or any rights attached to shares which, at the time of the passing of the relevant resolution, have not been taken up by any person or which no person has agreed to take up, and we may reduce our share capital by the amount of the shares so cancelled.

        In terms of the Companies Act, a special resolution is required to approve an issue of shares or securities convertible into shares, or the issue of options for the allotment or subscription of authorised shares or other securities of the company, or a grant of any other rights exercisable for securities, if the shares, securities, options or rights are issued to a director, future director, prescribed officer, or future prescribed officer of the company, or their related parties or nominees. In addition, a special resolution is required to approve an issue of shares or securities which will, as a result of a transaction or a series of transactions, result in the voting power of the class of shares being issued being equal to or exceeding 30% of the voting powers of all the shares of that class immediately before the transaction or series of transactions.

10.C    Material contracts

        We do not have any material contracts, other than contracts entered into in the ordinary course of business.

10.D    Exchange controls

        South African exchange control regulations are administered by the Financial Surveillance Department of the South African Reserve Bank (FSD) and are applied throughout the Common Monetary Area (CMA) (South Africa, the Kingdoms of Lesotho and Swaziland and the Republic of Namibia) and regulate transactions involving South African residents, as defined in the Exchange Control Rulings, including natural persons and legal entities.

        Day to day interaction with the FSD on exchange control matters is facilitated through Authorised Dealers who are persons authorised by National Treasury to deal in foreign exchange, in so far as transactions in respect of foreign exchange are concerned.

        The South African government (the Government) has from time to time stated its intention to relax South Africa's exchange control regulations when economic conditions permit such action. In recent years, the Government has incrementally relaxed aspects of exchange control.

        The following is a general outline of South African exchange controls. The comments below relate to exchange controls in force at the date of this annual report. These controls are subject to change at any time without notice. Investors should consult a professional advisor as to the exchange control implications of their particular investments.

Foreign financing and investments

        Foreign debt.    We, and our South African subsidiaries, require approval by the FSD to obtain foreign loans.

        Funds raised outside the CMA by our non-resident subsidiaries, ie a non-resident for exchange control purposes, are not restricted under South African exchange control regulations and may be used for any purpose including foreign investment, as long as such use is without recourse to South Africa. We, and our South African subsidiaries, would, however, require approval by the FSD in order to provide guarantees for the obligations of any of our subsidiaries with regard to funds obtained from non-residents of the CMA.

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        Debt raised outside the CMA by our non-resident subsidiaries must be repaid or serviced by those foreign subsidiaries. Without approval by the FSD, we can neither use cash we earn in South Africa to repay or service such foreign debts nor can we provide security on behalf of our non-resident subsidiaries.

        We may retain dividends declared by our foreign subsidiaries offshore which we may use for any purpose, without any recourse to South Africa. These funds may, subject to certain conditions, also be invested back into the CMA in the form of equity investments or loans.

        Raising capital overseas.    A listing by a South African company on any stock exchange requires prior approval by the FSD. Similarly, the listing of a non-South African company on the JSE requires prior approval by the FSD.

        Under South African exchange control regulations, we must obtain approval from the FSD regarding any capital raising activity involving a currency other than the rand. In granting its approval, the FSD may impose conditions on our use of the proceeds of the capital raising activity outside South Africa, including limits on our ability to retain the proceeds of this capital raising activity outside South Africa or a requirement that we seek further approval by the FSD prior to applying any of these funds to any specific use. Any limitations imposed by the FSD on our use of the proceeds of a capital raising activity could adversely affect our flexibility in financing our investments.

        Foreign investments.    Under current exchange control regulations we, and our South African subsidiaries, can invest overseas without prior approval by the FSD, where the investment is below R500 million per calendar year per company provided that the proposed investment meets certain criteria. Although no prior approval by the FSD is required for these investments, prior approval from the relevant Authorised Dealer, who will evaluate the investment on the same principles applied by the FSD, is required. Where the investment does not meet certain criteria, the Authorised Dealer will refer the matter to the FSD for consideration.

        Should the foreign investment be more than R500 million per calendar year per company, or where the Authorised Dealer refers the matter to the FSD in the circumstances described above, prior approval by the FSD is required and such foreign investments will only be allowed if the investment meets certain criteria including one of national interest, as determined by the FSD. There is no limitation placed on us with regard to the amount of funds that we can transfer from South Africa for an approved foreign investment. The FSD may, however, request us to stagger the capital outflows relating to large foreign investments in order to limit the impact of such outflows on the South African economy and the foreign exchange market.

        The FSD also requires us to provide them with an annual report, which will include the results, of all our foreign subsidiaries.

Investment in South African companies

        Inward investment.    As a general rule, a foreign investor may invest freely in shares in a South African company. Foreign investors may also sell shares in a South African company and transfer the proceeds out of South Africa without restriction. Acquisitions of shares or assets of South African companies by non-South African purchasers are not generally subject to review by the FSD when the consideration is in cash, but may require review by the FSD in certain circumstances, including when the consideration is equity in a non-South African company or when the acquisition is financed by a loan from a South African lender.

        Dividends.    There are no exchange control restrictions on the remittance of dividends declared out of trading profits to non-residents of the CMA. However, residents of the CMA may under no circumstances have dividends paid outside the CMA without specific approval from the FSD.

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        Transfer of shares and ADSs.    Under South African exchange control regulations, our shares and ADSs are freely transferable outside South Africa among persons who are not residents of the CMA. Additionally, where shares are sold on the JSE on behalf of our shareholders who are not residents of the CMA, the proceeds of such sales will be freely exchangeable into foreign currency and remittable to them. The FSD may also require a review to establish that the shares have been sold at market value and at arm's length. While share certificates held by non-resident shareholders will be endorsed with the words "non-resident", such endorsement will, however, not be applicable to ADSs held by non-resident shareholders.

10.E    Taxation

South African taxation

        The following discussion summarises the South African tax consequences of the ownership and disposition of shares or ADSs by a US holder (as defined below). This summary is based upon current South African tax law and the convention between the governments of the United States and the Republic of South Africa for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains, signed on 17 February 1997 (the Treaty). In addition, this summary is based in part upon representations of the Depositary (The Bank of New York Mellon, as Depositary for our ADSs), and assumes that each obligation provided for in, or otherwise contemplated by the Deposit Agreement and any related agreement, will be performed in accordance with its respective terms.

        The summary of the South African tax considerations does not address the tax consequences to a US holder that is resident in South Africa for South African tax purposes or whose holding of shares or ADSs is effectively connected with a permanent establishment in South Africa through which such US holder carries on business activities. It equally does not address the scenario where the US holder is not the beneficial recipient of the dividends or returns or, in the case of an individual who performs independent personal services, who has a fixed base situated in South Africa or the source of the transaction is deemed to be in South Africa, or who is otherwise not entitled to full benefits under the Treaty.

        The statements of law set forth below are subject to any changes (which may be applied retroactively) in South African law or in the interpretation thereof by the South African tax authorities, or in the Treaty, occurring after the date hereof. For the purposes of the Treaty and South African tax law, a US resident that owns Sasol ADSs will be treated as the owner of Sasol shares represented by such ADSs. Holders are strongly urged to consult their own tax advisors as to the consequences under South African, US federal, state and local, and other applicable laws, of the ownership and disposition of shares or ADSs.

Taxation of dividends

        A dividends tax was introduced in South Africa with effect from 1 April 2012. In terms of these provisions, a dividends tax at the rate of 15% is levied on any dividend declared by a company to a shareholder. The liability to pay such dividends tax is on the shareholder, even though the company generally acts as a withholding agent.

        In the absence of any renegotiation of the Treaty, the tax on the dividends paid to a US holder with respect to shares or ADSs, is limited to 5% of the gross amount of the dividends where a US corporate holder holds directly at least 10% of the voting stock of Sasol. The maximum dividends tax rate will be 15% of the gross amount of the dividends in all other cases.

        The definition of a dividend currently means any amount transferred or applied by a company that is a resident (including Sasol) for the benefit or on behalf of any person in respect of any share in that

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company, whether that amount is transferred or applied by way of a distribution made by the company, or as consideration for the acquisition of any share in that company. It specifically excludes any amount transferred or applied by the company that results in a reduction of so-called contributed tax capital (CTC) or constitutes shares in the company or constitutes an acquisition by the company of its own securities by way of a general repurchase of securities in terms of the JSE Listings Requirements.

        The concept of CTC effectively means the sum of the stated capital or share capital and share premium of a company that existed on 1 January 2011, excluding any transfers from reserves to the share premium account or stated capital account. Any application of CTC is limited to the holders of a class of shares and specifically that a distribution of CTC attributable to a specific class of shares must be made proportionately to the number of shares held by a shareholder in a specific class of shares. In other words, CTC can only be used proportionately by a company and cannot be applied by a company for the benefit of only one specific shareholder. The CTC of the company cannot therefore also be used in respect of different classes of shares and the CTC of a specific class is ring-fenced.

Taxation of gains on sale or other disposition

        With effect from 1 October 2001, South Africa introduced a tax on capital gains, which only applies to South African residents and to non-residents if the sale is attributable to a permanent establishment of the non-resident or if it relates to an interest in immovable property in South Africa. With effect from 1 October 2007, gains realised on the sale of ordinary shares are automatically deemed to be on capital account, and therefore, subject to capital gains tax, if the shares have been held for a continuous period of at least three years by the holder thereof. This deeming provision is limited to ordinary shares and does not extend to preference shares or ADSs. The meaning of the word "resident" is different for individuals and corporations and is governed by the South African Income Tax Act of 1962 (the Act) and by the Treaty. In the event of conflict, the Treaty, which contains a tie breaker clause or mechanism to determine residency if a holder is resident in both countries, will prevail. In terms of the Act and the Treaty, a US resident holder of shares or ADSs will not be subject to capital gains tax on the disposal of securities held as capital assets unless the securities are linked to a permanent establishment conducted in South Africa. In contrast, gains on the disposal of securities which are not capital in nature are usually subject to income tax. However, even in the latter case, a US resident holder will not be subject to income tax unless the US resident holder carries on business in South Africa through a permanent establishment situated therein. In such a case, this gain may be subject to tax in South Africa, but only so much as is attributable generally to that permanent establishment for so long as it does not constitute a repurchase of shares. If the repurchase of shares constitutes a general repurchase of securities (as opposed to a specific repurchase of securities) in terms of the JSE Listings Requirements, the repurchase will not deemed to be a dividend.

Securities transfer tax

        With effect from 1 July 2008, a single security transfer tax of 0,25% was introduced and is applicable to all secondary transfers of shares. No securities transfer tax (STT) is payable on the issue of securities, even though it is payable on the redemption of securities. STT is payable in South Africa regardless of whether the transfer is executed within or outside South Africa. A transfer of a dematerialised share can only occur in South Africa.

        A security is also defined as a depository receipt in a company. Accordingly, STT is payable on the transfer of a depository receipt issued by a company. Generally, the central securities depository that has been accepted as a participant in terms of the Financial Markets Act, No. 19 of 2012 (that commenced on 3 June 2013) is liable for the payment of the STT, on the basis that the STT is recoverable from the person to whom the security is transferred.

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United States federal income taxation

        The following is a general summary of the material US federal income tax consequences of the ownership and disposition of shares or ADSs to a US holder (as defined below) that holds its shares or ADSs as capital assets. This summary is based on US tax laws, including the Internal Revenue Code of 1986, as amended (the Code), Treasury regulations, rulings, judicial decisions, administrative pronouncements, all as of the date of this annual report, and all of which are subject to change or changes in interpretation, possibly with retroactive effect. In addition, this summary is based in part upon the representations of the Depositary and the assumption that each obligation in the Deposit Agreement relating to the ADSs and any related agreement will be performed in accordance with its terms.

        This summary does not address all aspects of US federal income taxation that may apply to holders that are subject to special tax rules, including US expatriates, insurance companies, tax-exempt organisations, banks, financial institutions, regulated investment companies, persons subject to the alternative minimum tax, securities broker-dealers, traders in securities who elect to apply a mark-to-market method of accounting, persons holding their shares or ADSs as part of a straddle, hedging transaction or conversion transaction, persons who acquired their shares or ADSs pursuant to the exercise of employee stock options or similar derivative securities or otherwise as compensation, persons who directly or indirectly hold more than 10% of the total combined voting power of Sasol's shares or persons whose functional currency is not the US dollar. Such holders may be subject to US federal income tax consequences different from those set forth below.

        As used herein, the term "US holder" means a beneficial owner of shares or ADSs that is:

(a)

a citizen or individual resident of the US for US federal income tax purposes;



(b)

a corporation (or other entity taxable as a corporation for US federal income tax purposes) created or organised in or under the laws of the US, any state thereof or the District of Columbia;



(c)

an estate whose income is subject to US federal income taxation regardless of its source; or



(d)

a trust if a court within the US can exercise primary supervision over the administration of the trust and one or more US persons are authorised to control all substantial decisions of the trust.

        If a partnership (or other entity or arrangement treated as a partnership for US federal income tax purposes) holds shares or ADSs, the tax treatment of a partner generally will depend upon the status of the partner and the activities of the partnership. A partner in a partnership that holds shares or ADSs is urged to consult its own tax advisor regarding the specific tax consequences of the ownership and disposition of the shares or ADSs.

        US holders should consult their own tax advisors regarding the specific South African and US federal, state and local tax consequences of owning and disposing of shares or ADSs in light of their particular circumstances as well as any consequences arising under the laws of any other taxing jurisdiction. In particular, US holders are urged to consult their own tax advisors regarding whether they are eligible for benefits under the Treaty.

        For US federal income tax purposes, a US holder of ADSs should be treated as owning the underlying shares represented by those ADSs. The following discussion (except where otherwise expressly noted) applies equally to US holders of shares and US holders of ADSs. Furthermore, deposits or withdrawals of shares by a US holder for ADSs or ADSs for shares will not be subject to US federal income tax.

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Taxation of distributions

        Distributions (without reduction of South African withholding taxes, if any) made with respect to shares or ADSs (other than certain pro rata distributions of Sasol's capital stock or rights to subscribe for shares of Sasol's capital stock) are includible in the gross income of a US holder as foreign source dividend income on the date such distributions are received by the US holder, in the case of shares, or by the Depositary, in the case of ADSs, to the extent paid out of Sasol's current or accumulated earnings and profits, if any, as determined for US federal income tax purposes ("earnings and profits"). Any distribution that exceeds Sasol's earnings and profits will be treated first as a nontaxable return of capital to the extent of the US holder's tax basis in the shares or ADSs (thereby reducing a US holder's tax basis in such shares or ADSs) and thereafter as either long-term or short-term capital gain (depending on whether the US holder has held shares or ADSs, as applicable, for more than one year as of the time such distribution is actually or constructively received).

        The amount of any distribution paid in foreign currency, including the amount of any South African withholding tax thereon, will be included in the gross income of a US holder in an amount equal to the US dollar value of the foreign currency calculated by reference to the spot rate in effect on the date the dividend is actually or constructively received by the US holder, in the case of shares, or by the Depositary, in the case of ADSs, regardless of whether the foreign currency is converted into US dollars at such time. If the foreign currency is converted into US dollars on the date of receipt, a US holder of shares generally should not be required to recognise foreign currency gain or loss in respect of the dividend. If the foreign currency received in the distribution is not converted into US dollars on the date of receipt, a US holder of shares will have a basis in the foreign currency equal to its US dollar value on the date of receipt.

        Any gain or loss recognised upon a subsequent conversion or other disposition of the foreign currency will be treated as US source ordinary income or loss. In the case of a US holder of ADSs, the amount of any distribution paid in a foreign currency ordinarily will be converted into US dollars by the Depositary upon its receipt. Accordingly, a US holder of ADSs generally will not be required to recognise foreign currency gain or loss in respect of the distribution. Special rules govern and specific elections are available to accrual method taxpayers to determine the US dollar amount includable in income in the case of taxes withheld in a foreign currency. Accrual basis taxpayers therefore are urged to consult their own tax advisors regarding the requirements and elections applicable in this regard.

        Subject to certain limitations (including a minimum holding period requirement), South African dividend withholding taxes (as discussed above under "Taxation—South African taxation—Taxation of dividends") will be treated as foreign taxes eligible for credit against a US holder's US federal income tax liability. For this purpose, dividends distributed by Sasol with respect to shares or ADSs generally will constitute foreign source "passive category income" for most US holders. The use of foreign tax credits is subject to complex conditions and limitations. In lieu of a credit, a US holder may instead elect to deduct any such foreign income taxes paid or accrued in the taxable year, provided that the US holder elects to deduct (rather than credit) all foreign income taxes paid or accrued for the taxable year. A deduction for foreign taxes is not subject to the same limitations applicable to foreign tax credits. US holders are urged to consult their own tax advisors regarding the availability of foreign tax credits.

        Dividends paid by Sasol will not be eligible for the dividends-received deduction generally allowed to US corporations in respect of dividends received from other US corporations. Certain non-corporate US holders are eligible for preferential rates of US federal income tax in respect of "qualified dividend income". For this purpose, qualified dividend income generally includes dividends paid by a non-US

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corporation if, among other things, the US holders meet certain minimum holding periods and the non-US corporation satisfies certain requirements, including that either:

(i)

the shares or the ADSs with respect to which the dividend has been paid are readily tradable on an established securities market in the United States; or



(ii)

the non-US corporation is eligible for the benefits of a comprehensive US income tax treaty (such as the Treaty) which provides for the exchange of information.

        Sasol currently believes that dividends paid with respect to its shares and ADSs should constitute qualified dividend income for US federal income tax purposes (and Sasol anticipates that such dividends will be reported as qualified dividends on Form 1099-DIV delivered to US holders) if Sasol was not, in the year prior to the year in which the dividend was paid, and is not, in the year in which the dividend is paid, a Passive Foreign Investment Company (PFIC) for US federal income tax purposes In computing foreign tax credit limitations, non-corporate US holders may take into account only a portion of a qualified dividend to reflect the reduced US tax rate applicable to such dividend. Each individual US holder of shares or ADSs is urged to consult his own tax advisor regarding the availability to him of the preferential dividend tax rate in light of his own particular situation and regarding the computations of his foreign tax credit limitations with respect to any qualified dividend income paid by Sasol to him, as applicable.

        The US Treasury has expressed concern that parties to whom ADSs are released may be taking actions that are inconsistent with the claiming of creditability of withholding taxes or the preferential tax rates in respect of qualified dividends by US holders of ADSs. Accordingly, the analysis of the foreign tax credits or availability of qualified dividend treatment could be affected by future actions that may be taken by the US Treasury with respect to ADSs.

Sale, exchange or other taxable disposition of shares or ADSs

        Upon a sale, exchange or other taxable disposition of shares or ADSs, a US holder generally will recognise capital gain or loss for US federal income tax purposes in an amount equal to the difference between the US dollar value of the amount realised on the disposition and the US holder's adjusted tax basis, determined in US dollars, in the shares or ADSs. Such gain or loss generally will be US source gain or loss, and generally will be treated as a long-term capital gain or loss if the holder's holding period in the shares or ADSs exceeds one year at the time of disposition if Sasol was not, at any time during the holder's holding period, a PFIC for US federal income tax purposes. The deductibility of capital losses is subject to significant limitations. If the US holder is an individual, long term capital gain generally is subject to US federal income tax at preferential rates.

        The tax basis of shares purchased with foreign currency will generally be the US dollar value of the purchase price on the date of purchase, or the settlement date for the purchase, in the case of shares traded on an established securities market that are purchased by a cash basis US holder (or an accrual basis US holder that so elects). The amount realised on a sale or other disposition of shares for an amount in foreign currency will be the US dollar value of this amount on the date of sale or disposition (in the case of an accrual basis US holder or) the date payment is received (in the case of a cash basis US holder). On the settlement date, the US holder will recognise the US source foreign currency gain or loss (taxable as ordinary income or loss) equal to the difference (if any) between the US dollar value of the amount received based in the exchange rates in effect on the date of sale or other disposition and the settlement date. However, in the case of shares traded on an established securities market that are sold by a cash basis US holder (or an accrual basis US holder that so elects), the amount realised will be based on the exchange rate in effect on the settlement date for the sale, and no exchange gain or loss will be recognised at that time. If an accrual basis US holder makes an election described above, it must be applied consistently from year to year and cannot be revoked without the consent of the Internal Revenue Service (IRS).

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        If any South African income tax is withheld on the sale, exchange or other taxable disposition of shares or ADSs, the amount realised by a US holder will include the gross amount of the proceeds of that sale, exchange or other taxable disposition before deduction of the South African income tax withheld. Any gain and loss recognised by a US holder in respect of the sale, exchange or other taxable disposition of shares or ADSs generally will be treated as derived from US sources for foreign tax credit purposes. Consequently, in the case of a gain from the disposition of shares or ADSs that is subject to South African income tax (see "Taxation—South African taxation—Taxation of gains on sale or other disposition" above), the US holder may not be able to benefit from the foreign tax credit for that South African income tax (i.e., because the gain from the disposition would be US source), unless the US holder can apply the credit against US federal income tax payable on other income from foreign sources. Alternatively, the US holder may take a deduction for the South African income tax, provided that the US holder elects to deduct all foreign income taxes paid or accrued for the taxable year.

Passive foreign investment company considerations

        Sasol believes that it should not be classified as a PFIC for US federal income tax purposes for the taxable year ended 30 June 2014. US holders are advised, however, that this conclusion is a factual determination that must be made annually and thus may be subject to change. If Sasol were to be classified as a PFIC, the tax on distributions on its shares or ADSs and on any gains realised upon the disposition of its shares or ADSs may be less favourable than as described herein. Furthermore, dividends paid by a PFIC are not "qualified dividend income" and are not eligible for the reduced rates of taxation for certain dividends. In addition, each US person that is a shareholder of a PFIC, may be required to file an annual report disclosing its ownership of shares in a PFIC and certain other information. US holders should consult their own tax advisors regarding the application of the PFIC rules (including applicable reporting requirements) to their ownership of the shares or ADSs.

US information reporting and backup withholding

        Dividend payments made to a holder and proceeds paid from the sale, exchange, or other disposition of shares or ADSs may be subject to information reporting to the IRS. US federal backup withholding generally is imposed on specified payments to persons who fail to furnish required information. Backup withholding will not apply to a holder who furnishes a correct taxpayer identification number or certificate of foreign status and makes any other required certification, or who is otherwise exempt from backup withholding. US persons who are required to establish their exempt status generally must provide IRS Form W-9 (Request for Taxpayer Identification Number and Certification) or applicable substitute form. Non-US holders generally will not be subject to US information reporting or backup withholding. However, these holders may be required to provide certification of non-US status (generally on IRS Form W-8BEN or applicable substitute form) in connection with payments received in the United States or through certain US-related financial intermediaries.

        Backup withholding is not an additional tax. Amounts withheld as backup withholding may be credited against a holder's US federal income tax liability. A holder may obtain a refund of any excess amounts withheld under the backup withholding rules by timely filing the appropriate claim for refund with the IRS and furnishing any required information.

Additional reporting requirements

        Under recently enacted legislation and Treasury regulations, US holders who are individuals may be required to report to the IRS on Form 8938 information relating to their ownership of shares or ADSs, subject to certain exceptions (including an exception for shares or ADSs held in accounts maintained by certain US financial institutions). US holders should consult their tax advisors regarding

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the effect, if any, of this legislation and these regulations on their obligations to file information reports with respect to the shares or ADSs.

10.F    Dividends and paying agents

        Not applicable.

10.G    Statement by experts

        Not applicable.

10.H    Documents on display

        All reports and other information that we file with the SEC may be obtained, upon written request, from the Bank of New York Mellon, as Depositary for our ADSs at its Corporate Trust office, located at 101 Barclay Street, New York, New York 10286. These reports and other information can also be inspected without charge and copied at prescribed rates at the public reference facilities maintained by the SEC at 100 F Street, N.E., Washington, D.C. 20549. These reports may also be accessed via the SEC's website (www.sec.gov). Also, certain reports and other information concerning us will be available for inspection at the offices of the NYSE. In addition, all the statutory records of the company and its subsidiaries may be viewed at the registered address of the company in South Africa.

10.I    Subsidiary information

        Not applicable. For a list of our subsidiaries see Exhibit 8.1 to this annual report on Form 20-F.

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ITEM 11.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

        As a group, we are exposed to various market risks associated with our underlying assets, liabilities and anticipated transactions. We continuously monitor these exposures and enter into derivative financial instruments to reduce these risks. We do not enter into derivative transactions on a speculative basis. All fair values have been determined using current market pricing models.

        The principal market risks (i.e. the risk of losses arising from adverse movements in market rates and prices) to which we are exposed are:

•

foreign exchange rates applicable on conversion of foreign currency transactions as well as on conversion of assets and liabilities to rand;



•

commodity prices, mainly crude oil prices; and



•

interest rates on debt and cash deposits.

        Refer to Note 64 to "Item 18—Financial statements" for a qualitative and quantitative discussion of the group's exposure to these market risks.

        The following is a breakdown of our debt arrangements and a summary of fixed versus floating interest rate exposures for operations.

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ITEM 12.    DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

12.A Debt securities

        Not applicable.

12.B Warrants and rights

        Not applicable.

12.C Other securities

        Not applicable.

12.D American depositary shares

12.D.1 Depositary name and address

        Not applicable.

12.D.2 Description of American depositary shares

        Not applicable.

12.D.3 Depositary fees and charges

        The Bank of New York Mellon serves as the depositary for Sasol's American Depositary Shares (ADSs). Sasol's ADSs, each representing one Sasol ordinary share, are traded on the New York Stock Exchange under the symbol "SSL". The ADSs are evidenced by American Depositary Receipts, or ADRs, issued by The Bank of New York Mellon, as Depositary, under the Deposit Agreement (dated as of 14 July 1994, as amended and restated as of 6 March 2003), among The Bank of New York Mellon, Sasol Limited and its registered ADR holders. ADR holders are required to pay the following service fees to the Depositary:

        In addition, all non-standard out-of-pocket administration and maintenance expenses, including but not limited to, any and all reasonable legal fees and disbursements incurred by the Depositary (including legal opinions, and any fees and expenses incurred by or waived to third-parties) will be paid by the company. Fees and out-of-pocket expenses for the servicing of non-registered ADR holders and for any special service(s) performed by the Depositary will be paid for by the company.

12.D.4 Depositary payments for 2014

        In terms of the Amended and Restated Deposit Letter Agreement dated as of 5 May 2011 (the Letter Agreement), the Depositary will reimburse the company up to US$250 000 for expenses related to the ADR programme including, but not limited to, investor relations expenses and listing fees or any other program related expenses on the anniversary date of the company's listing on the New York Stock Exchange. In the event that the number of American depository shares outstanding increases by 10 million from the number outstanding on the effective date of the Letter Agreement, the reimbursement amount for that year increases by US$100 000. On 27 May 2014, the Depositary reimbursed the company an amount of US$350 000 for expenses relating to the depository receipt facility for the period up to 9 April 2014.

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PART II

ITEM 13.    DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

        Not applicable.

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ITEM 14.    MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS

        Not applicable.

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ITEM 15.    CONTROLS AND PROCEDURES

(a)

Disclosure controls and procedures

        The company's President and Chief Executive Officer and Acting Chief Financial Officer, based on their evaluation of the effectiveness of the group's disclosure controls and procedures (required by paragraph (b) of 17 CFR 240.13a-15) as of the end of the period covered by this annual report of Form 20-F, have concluded that, as of such date, the company's disclosure controls and procedures were effective.

(b)

Management's annual report on internal control over financial reporting

        Management of Sasol is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended. Under Section 404 of the Sarbanes-Oxley Act of 2002, management is required to assess the effectiveness of Sasol's internal control over financial reporting as of the end of each financial year and report, based on that assessment, whether the Company's internal control over financial reporting is effective.

        Sasol's internal control over financial reporting is a process designed under the supervision of the President and Chief Executive Officer and Acting Chief Financial Officer to provide reasonable assurance as to the reliability of Sasol's financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

        Internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorisations of our management and directors; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use or disposition of assets that could have a material effect on the financial statements.

        Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

        Management assessed the effectiveness of Sasol's internal control over financial reporting as of 30 June 2014. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organisations of the Treadway Commission (COSO) in "Internal Control—Integrated Framework (1992)". Based on this assessment, our management has determined that, as of 30 June 2014, Sasol's internal control over financial reporting was effective.

(c)

The effectiveness of internal control over financial reporting as of 30 June 2014 was audited by PricewaterhouseCoopers Inc., independent registered public accounting firm, as stated in their report on page F-1 of this Form 20-F.

(d)

Changes in internal control over financial reporting

        There were no changes in our internal control over financial reporting that occurred during the year ended 30 June 2014 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting as at 30 June 2014.

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Item 16.A    AUDIT COMMITTEE FINANCIAL EXPERT

        Mr. Colin Beggs, an independent member of the audit committee and its chairman since 1 January 2011, was determined by our board to be the audit committee's financial expert within the meaning of the Sarbanes-Oxley Act, in accordance with the Rules of the NYSE and the SEC.

Item 16.B    CODE OF ETHICS

        Sasol has adopted a code of ethics that applies to all of our directors, officers and employees, including the President and Chief Executive Officer, our Acting Chief Financial Officer and our Controller. Our code of ethics consists of four fundamental ethical principles—responsibility, honesty, fairness and respect. The code is supported by a "guide to the application of the Sasol's code of ethics" document which provides details on 15 ethical standards. These ethical standards cover issues such as bribery and corruption, fraud, insider trading, legal compliance, conflicts of interests, human rights and discrimination. They include a commitment to conducting our business with due regard to the interests of all our stakeholders and the environment. The code embodies a requirement of compliance with all applicable laws and regulations as a minimum standard.

        Employee performance compared against our values, which incorporate the code of ethics, is assessed as part of our performance appraisal system. Any amendment or waiver of the code as it relates to our President and Chief Executive Officer or Acting Chief Financial Officer will be posted on our website within five business days following such amendment or waiver. No such amendments or waivers are anticipated.

        The code of ethics has been communicated to employees, suppliers, service providers and customers and is available on our internet and intranet websites. Our ethics website address is http://www.sasol.com/sustainability/ethics. This website is not incorporated by reference in this annual report. A copy of the Code of Ethics can also be specifically requested by sending an email to groupethicsoffice@sasol.com with your postal details and a copy will be posted to you, without charge.

        We have been operating an independent ethics reporting telephone line through external advisors since 2002. This confidential and anonymous ethics hotline provides an impartial facility for all stakeholders to report deviations from ethical behaviour, including fraud and unsafe behaviour or environment. These calls are monitored and the progress on their resolution is reported to the audit committee and the nomination, governance, social and ethics committee on a regular basis. We view the following hotlines as an essential mechanism for maintaining the highest levels of ethical behaviour: South Africa: 0800016017; Canada: 18554218968; China: 4001203284; Germany: 08001825967; Italy: 800786522; Singapore: 1800-2163302; United Kingdom: 08000324498; United States of America: 18004891727.

        The ethics hotline continues to be well utilised and 583 calls were received whereas 638 calls were investigated and resolved during 2014, reducing the total number of open calls from 182 to 126. The 583 calls represent a 17% decrease in calls received through the EthicsLine from the previous year. This is can be attributed to mainly management actions, to make people aware of the correct use of the EthicsLine. Our code of ethics guides our interactions with all government representatives. Our policy prohibits contributions to political parties or government officials since they may be interpreted as an inducement for future beneficial treatment, and as interference in the democratic process.

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Item 16.C    PRINCIPAL ACCOUNTANT FEES AND SERVICES

        The following table sets forth the aggregate audit and audit-related fees, tax fees and all other fees billed by our principal accountants (PricewaterhouseCoopers Inc.) for each of the 2014 and 2013 years:

        Audit fees consist of fees billed for the annual audit of the company's consolidated financial statements, review of the group's internal controls over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act and the audit of statutory financial statements of the company's subsidiaries, including fees billed for assurance and related services that are reasonably related to the performance of the audit or reviews of the company's financial statements that are services that only an external auditor can reasonably provide.

        Audit-related fees consist of the review of documents filed with regulatory authorities, consultations concerning financial accounting and reporting standards, review of security controls and operational effectiveness of systems, due diligence related to acquisitions and employee benefit plan audits.

        Tax fees include fees billed for tax compliance services, including assistance in the preparation of original and amended tax returns; tax consultations, such as assistance in connection with tax audits and appeals; tax advice relating to acquisitions, transfer pricing, and requests for rulings or technical advice from tax authorities; and tax planning services and expatriate tax compliance, consultation and planning services.

        All other fees consist of fees billed which are not included under audit fees, audit related fees or tax fees.

Audit committee approval policy

        In accordance with our audit committee pre-approval policy, all audit and non-audit services performed for us by our independent accountants were approved by the audit committee of our board of directors, which concluded that the provision of such services by the independent accountants was compatible with the maintenance of that firm's independence in the conduct of its auditing functions.

        In terms of our policy, non-audit services not exceeding R500 000 that fall into the categories set out in the pre-approval policy, do not require pre-approval by the audit committee, but are pre-approved by the chief financial officer. The audit committee is notified of each such service at its first meeting following the rendering of such service. All non-audit services exceeding R500 000 but not exceeding R2 million, are pre-approved by the audit committee chairman, and the audit committee is notified at the first meeting following the granting of such approval. Fees in respect of non-audit services exceeding R2 million, require pre-approval by the audit committee, prior to engagement.

        The total aggregate amount of non-audit fees in any one financial year must be less than 20% of the total audit fees for Sasol's annual audit engagement, unless otherwise directed by the audit committee. In addition, services to be provided by the independent accountants that are not within the

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category of approved services must be approved by the audit committee prior to engagement, regardless of the service being requested and the amount, but subject to the restriction above.

        Requests or applications for services that require specific separate approval by the audit committee are required to be submitted to the audit committee by both management and the independent accountants, and must include a detailed description of the services to be provided and a joint statement confirming that the provision of the proposed services does not impair the independence of the independent accountants.

        No work was performed by persons other than the principal accountant's employees on the principal accountant's engagement to audit Sasol Limited's financial statements for 2014.

Item 16.D    EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES

        Not applicable.

Item 16.E    PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS

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Item 16.F    CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT

        Not applicable.

Item 16.G    Corporate Governance

        Sasol maintains a primary listing of its ordinary shares and Sasol BEE ordinary shares on the Johannesburg Stock Exchange operated by the JSE Limited (JSE) and a listing of American Depositary Shares on the New York Stock Exchange (NYSE). Accordingly, the company is subject to the on-going disclosure, corporate governance and other requirements imposed by legislation in both jurisdictions, the JSE, the United States Securities and Exchange Commission (SEC) and the NYSE. We have implemented controls to provide reasonable assurance of our compliance with all relevant requirements in respect of our listings. These include the South African Companies Act, 71 of 2008, (the Companies Act), the South African Financial Markets Act, 19 of 2012, the JSE Listings Requirements, and the SEC, the NYSE and US legislation such as the Sarbanes-Oxley Act of 2002 (SOX), insofar as it applies to foreign companies listed on the NYSE. We apply all 75 principles of the King III Code of Governance for South Africa (King III Code). In a few areas we are of the view that, while we are applying the recommended practice, additional enhancements can be adopted over time in line with our objective to continuously improve our corporate governance practices. A comprehensive statement outlining our application of each of the 75 principles is available on our website at www.sasol.com. This website is not incorporated by reference in this annual report.

        We have compared our corporate governance practices to those for domestic US companies listed on the NYSE and confirm that we comply substantially with such NYSE corporate governance standards and there were no significant differences at 30 June 2014.

        Refer to our corporate governance report filed as Exhibit 99.2 for details of our corporate governance practices.

Item 16.H    Mine Safety Disclosure

        Not applicable.

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PART III

ITEM 17.    FINANCIAL STATEMENTS

        Sasol is furnishing financial statements pursuant to the instructions of Item 18 of Form 20-F.

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Item 18.    FINANCIAL STATEMENTS

        The following consolidated financial statements, together with the auditors' report of PricewaterhouseCoopers Inc. (PwC) and KPMG Inc. are filed as part of this annual report on Form 20-F:

Index to Consolidated Financial Statements for the years ended 30 June 2014, 2013 and 2012

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Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of Sasol Limited

        In our opinion, the accompanying consolidated statement of financial position and the related consolidated statements of income, comprehensive income, changes in equity and cash flows present fairly, in all material respects, the financial position of Sasol Limited and its subsidiaries at 30 June 2014, and the results of their operations and their cash flows for the year ended 30 June 2014 in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of 30 June 2014, based on criteria established in Internal Control—Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Company's management is responsible for these financial statements, for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Annual Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on these financial statements and on the Company's internal control over financial reporting based on our integrated audit. We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audit of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provide a reasonable basis for our opinion.

        As discussed in Note 1 to the consolidated financial statements, the Company adopted the new accounting guidance related to consolidated financial statements and joint arrangements in 2014.

        A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

        Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ PricewaterhouseCoopers Inc.

Johannesburg, Republic of South Africa
29 September 2014

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Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders of Sasol Limited

        We have audited the accompanying consolidated statement of financial position of Sasol Limited and its subsidiaries as of 30 June 2013 and the related consolidated income statements, statements of comprehensive income, changes in equity and cash flows for each of the years in the two year period then ended. These consolidated financial statements are the responsibility of Sasol Limited management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

        We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provides a reasonable basis for our opinion.

        In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Sasol Limited and its subsidiaries as of 30 June 2013 and the results of their operations and their cash flows for each of the years in the two year period then ended, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board ('IFRS').

        As discussed in Note 1 to the consolidated financial statements, Sasol Limited has changed its method of accounting for consolidations and joint arrangements as well as updating changes in disclosures in the financial statements for interests in other entities as of 30 June 2013 and for each of the years in the two year period then ended due to the adoption of IFRS 10: Consolidated Financial Statements (as amended), IFRS 11: Joint Arrangements (as amended) and IFRS 12: Disclosure of Interests in Other Entities (as amended).

/s/ KPMG Inc.

Registered Auditors
Johannesburg, South Africa

9 October 2013 (except as to Notes 1, 7, 39, 62 and 63, which are as of 5 September 2014)

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SUPPLEMENTAL OIL AND GAS INFORMATION (Unaudited)

        In accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Section 932, "Extractive Industries—Oil and Gas", and regulations of the US Securities and Exchange Commission, this section provides supplemental information about natural oil and gas exploration and production operations that are managed by Sasol Petroleum International (SPI). Supplemental information is also provided about our coal mining operations and the conversion of coal reserves to synthetic oil, as managed by Sasol Mining and Sasol Synfuels, respectively.

        Tables 1 through to 3 provide historical information pertaining to costs incurred for property acquisitions, exploration and development; capitalised costs and results of operations. Tables 4 through to 6 present information on the estimated net proved reserve quantities; standardised measure of estimated discounted future net cash flows related to proved reserves and changes therein.

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TABLE 1—COSTS INCURRED IN OIL AND GAS PROPERTY ACQUISITION,
EXPLORATION, AND DEVELOPMENT ACTIVITIES

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TABLE 2—CAPITALISED COSTS RELATING TO OIL AND GAS PRODUCING ACTIVITIES

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TABLE 3—RESULTS OF OPERATIONS FOR OIL AND GAS PRODUCING ACTIVITIES

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TABLE 4—PROVED RESERVE QUANTITY INFORMATION

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TABLE 4 NOTES AND DEFINITIONS

        The definitions of categories of reserves used in this disclosure are consistent with those set forth in the regulations of the Securities and Exchange Commission:

        Proved Reserves of oil and gas—Those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be recoverable commercially and be economically producible—from a given date forward, from known reservoirs under existing economic conditions, operating methods, and government regulations—prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. The project to extract hydrocarbons must be approved and must have commenced or the operator must be reasonably certain that it will commence the project within a reasonable time. Additionally Sasol requires that natural oil and gas Reserves will be produced by a "project sanctioned by all internal and external parties".

        Existing economic conditions define prices and costs at which economic producibility is to be determined. The price is the average sales price during the 12-month period prior to the ending date of the period covered by the report, determined as an un-weighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices are defined by contractual arrangements. Future price changes are limited to those provided by contractual arrangements in existence at year-end. At the reporting date, product sales prices were determined by existing contracts for the majority of Sasol's natural oil and gas reserves. Costs comprise development and production expenditure, assessed in real terms, applicable to the reserves class being estimated.

        Depending upon the status of development Proved Reserves of oil and gas are subdivided into "Proved Developed Reserves" and "Proved Undeveloped Reserves".

        Proved Developed Reserves—Those Proved Reserves that can be expected to be recovered through existing wells with existing equipment and operating methods (or in which the cost of the required equipment is relatively minor compared to the cost of a new well) and through installed extraction equipment and infrastructure operational at the time of the reserves estimate if the extraction is by means not involving a well.

        Proved Undeveloped Reserves—Those Proved Reserves that are expected to be recovered from new wells on undrilled acreage or from existing wells where a relatively major expenditure is required before production can commence.

        The definitions of the changes to Proved Reserves estimates used in this disclosure are consistent with FASB ASC 932-235-50-5. Also included, where material, are changes resulting from Commercial Arrangements or Operational Factors as defined below.

        Commercial Arrangements—The Reserves change category used to describe changes in reserves estimates resulting from new or amendments to existing petroleum licensing agreements (granting instrument); venture operating agreements, unit and pre-unit agreements; transportation, processing and operating services agreements; product sale or supply agreements; lifting and off-take agreements.

        Operational Factors—The Reserves change category used to describe changes in reserves estimates resulting from a change in production operations or maintenance philosophies and practices that change the cost of operations.

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TABLE 5—STANDARDISED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS

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NOTES AND DEFINITIONS

        The standardised measure of discounted future net cash flows, relating to the Proved Reserves in Table 4, is calculated in accordance with the regulations of the Securities and Exchange Commission and the requirements of FASB ASC Section 932-235.

        Future cash inflows are computed by applying the prices used in estimating Proved Reserves to the year-end quantities of those Reserves (see the Table 4 Notes and Definitions above). Future development and production costs are computed by applying the costs used in estimating Proved Reserves.

        Future income taxes are computed by applying the appropriate year-end statutory tax rates, with consideration of future tax rates already legislated, to the future pre-tax net cash flows relating to the

        Reserves, less the tax basis of the properties involved. The future income tax expenses therefore give effect to the tax deductions, tax credits and allowance relating to the Reserves.

        Discounted future net cash flows are the result of subtracting future development and production costs and future income taxes from the cash inflows. A discount rate of 10 percent a year is applied to reflect the timing of the future net cash flows relating to the Reserves.

        The information provided here does not represent management's estimate of the expected future cash flows or value of the properties. Estimates of Reserves are imprecise and will change over time as new information becomes available. Moreover, probable and possible Reserves along with other classes of resources, which may become Proved Reserves in the future, are excluded from the calculations. The valuation prescribed under FASB ASC Section 932 requires assumptions as to the timing and amount of future development and production costs. The calculations are made as of 30 June each year and should not be relied upon as an indication of the companies' future cash flows or value of synthetic oil and natural oil and gas Reserves.

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TABLE 6—CHANGES IN THE STANDARDISED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS

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ITEM 19.    EXHIBITS

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SIGNATURES

        The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorised the undersigned to sign this annual report on its behalf.

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