SASOL INZALO PUBLIC LIMITED (RF) GROUP

SASOL INZALO PUBLIC LIMITED (RF) GROUP

Annual Financial Statements30 June 2016

Contents

01 OVERVIEW 03 INFORMATION

1 Financial overview 27 Contact information

02 CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

3 Report of the Audit Committee 5 Statement by the Directors 5 Approval of the financial statements 5 Certificate of the Company Secretary 6 Directors’ report 7 Shareholders’ information 7 Share ownership 8 Independent auditor’s report

9 Accounting policies and financial

reporting terms 12 Statements of financial position 12 Income statements 13 Statements of comprehensive income 13 Statements of changes in equity 14 Statements of cash flows 15 Notes to the financial statements 25 Interest in subsidiary 25 Investment in security 26 Long-term debt

The Annual Financial Statements of Sasol Inzalo Public Limited (RF) have been audited in compliance with section 30 of the Companies Act. Dashni Sinivasan CA(SA), Senior Manager Finance: Reporting at Sasol South Africa (Pty) Ltd, is responsible for this set of Annual Financial Statements and has supervised the preparation thereof in conjunction with Loyd Matsilele CA(SA), Senior Accountant: Reporting at Sasol South Africa (Pty) Ltd.

Our Annual Financial Statements accompanies our Integrated Report (including Notice of Annual General Meeting).

The Integrated Report (including Notice of Annual General Meeting) is our primary annual report to shareholders. It contains sufficient material information and conforms to local statutory reporting frameworks.

IR

Sasol Inzalo Public Limited (RF) and Sasol Inzalo Public Funding (Pty) Ltd (RF) (the group) recorded a net loss for the year ended 30 June 2016 of R95 million (2015: R84 million). The increased loss was mainly due to R9 million costs incurred in respect of listing on the JSE Limited’s Empowerment Segment (JSE) on 1 December 2015. Finance income remained flat at R497 million while finance costs were slightly higher than the previous year by R4 million. The group generated sufficient cash from dividends received from the investment in Sasol Limited to fund operating activities, finance costs and to repay short-term debt during the year. Cash generated by operating activities for the year ended 30 June 2016 amounted to R260 million (2015: R256 million). Our investment in Sasol Limited was revalued at the closing market price of R397,17 (2015: R450,00) per Sasol Limited ordinary share as at 30 June 2016, to a value of R6 388 million (2015: R7 238 million) in line with the group's accounting policy for investments classified as available-for-sale financial assets. Refer to Table 2 for historical listed prices per share of Sasol Limited ordinary shares at 30 June. Even though the group reflects a negative net asset value of R955 million (2015: (R150 million)), we expect that sufficient cash will be generated out of dividends received from Sasol Limited to pay for the operating expenses, finance costs and capital repayments due in the short-term and the group is therefore regarded as a going concern.

Key financial highlightsCash generated from operating activities (R million)

0

50

100

150

200

250

300

256 260

Jun 15 Jun 16

Basic loss per share (Rand per share)

(6)

(5)

(4)

(3)

(2)

(1)

0

(5,22)

Jun 15 Jun 16

(5,91)

Investment in security (R billion)

0

2

4

6

8

10

12

7,2 6,4

Jun 15 Jun 16

Net asset value (R million)

(1 000)

(800)

(600)

(400)

(200)

0

Jun 16Jun 15

(150)

(955)

Financial overview

Repayment of capital and finance costs (A preference shares): R213 million - 43%

Repayment of finance costs (B preference shares): R101 million - 20%

Repayment of finance costs (C preference shares): R193 million - 39%

Operating activities - 4%

Sasol Limited loan funding - (2%)

Utilised from cash brought forward - (4%)

%

How we used our cash

2016 2015 Rm Rm

Dividend received 495 495

Operating activities 17 8Repayment of capital and finance costs 507 507Sasol Limited loan funding (9) –Taxation paid 1 4Utilised from cash brought forward (21) (24)

495 495

Sasol Inzalo Public Annual Financial Statements 2016 1

Sasol Inzalo Public Limited (RF) Group Financial overview(continued)

Listing of Sasol Inzalo ordinary sharesOn 1 December 2015 Sasol Inzalo Public Limited (RF) was listed on the JSE Limited’s Empowerment Segment.

The listing provides existing and prospective shareholders with access to a licensed trading platform and the flexibility of transacting on a world-class stock exchange. This listing continues to ensure that Sasol Inzalo Public ordinary shares are traded exclusively amongst BEE compliant persons, as defined in the JSE Listings Requirements. Refer to Table 1 for historical listed prices per share of Sasol Inzalo Public Limited (RF) ordinary shares at 30 June:

Table 1: Sasol Inzalo Public Limited (RF) ordinary shares

Listed price per share 2009* 2010* 2011* 2012** 2013** 2014** 2015** 2016***

year end n/a n/a n/a 40,00 51,06 138,00 70,11 39,70year high – – – 50,00 100,00 160,00 153,00 51,90year low – – – 25,00 30,02 45,10 60,00 21,60

Table 2: Sasol Limited ordinary shares

Listed price per share 2009 2010 2011 2012 2013 2014 2015 2016

year end 269,98 274,60 355,98 342,40 431,54 632,36 450,00 397,17year high 454,00 318,00 403,55 409,99 452,96 645,10 642,72 492,50year low 221,00 255,56 270,03 303,45 336,00 420,00 365,10 358,79

* Not applicable as prior to 8 September 2011, the shares were not yet traded. ** Sasol Inzalo Public Limited (RF)'s shares started trading over-the-counter through Computershare from 8 September 2011. *** Sasol Inzalo Public Limited (RF)'s shares were listed on the JSE Limited’s Empowerment Segment on 1 December 2015.

2 Sasol Inzalo Public Annual Financial Statements 2016

Report of the Audit Committee

Dear shareholder,

The Audit Committee (the Committee) presents this report in respect of the 2016 financial year.

This report has been prepared based on the requirements of the Companies Act, 71 of 2008 as amended (the Companies Act), the King Code of Governance Principles for South Africa 2009 (King III), the Johannesburg Stock Exchange (JSE) Listings Requirements and other applicable regulatory requirements.

Composition and meetings In compliance with the JSE Listings Requirements and South African legislation, all the members of the Audit Committee are independent Non-executive Directors. Members are elected by shareholders at the annual general meeting.

The Committee is required to meet at least twice per year. The Committee met three times during the financial year. Attendance was as follows:

Member16 Sep

201510 March

201617 March

2016

TP Zondi (Chairman)1 – n/a n/aMT Maake (Chairman)2 P – P

Z Malinga (Chairman)3 n/a – P

S Koyana P P P

N Manyika P P P

CK Mokoena4 – n/a n/aZ Monnakgotla5 P P P

P Indicates attendance.n/a Indicates not a member at the time.– Indicates absence with apology.1 TP Zondi resigned as a member and chairman on 21 November 2015.2 MT Maake was appointed as a member on 16 September 2015

and as chairman on 21 November 2015. She resigned as a member and chairman on 31 March 2016.

3 Z Malinga was appointed as a member on 1 December 2015 and as chairman on 11 May 2016.

4 CK Mokoena resigned as a member on 16 September 2015.5 Z Monnakgotla was appointed as a member on 16 September 2015.

Statutory duties and functionsThe Committee is constituted as a statutory committee of Sasol Inzalo Public Limited (RF) in line with the Companies Act and accountable in this regard to both the Board and Sasol Inzalo Public Limited (RF)’s shareholders. It is a committee of the Board in respect of all other duties assigned to it by the Board and the Governing Agreement entered into between Sasol Limited, Sasol Inzalo Public Limited (RF), Sasol Inzalo Public Funding (Pty) Ltd (RF) and The Sasol Inzalo Public Facilitation Trust on 15 May 2008. In terms of the Governing Agreement Sasol South Africa (Pty) Ltd (the administrative agent) provides Sasol Inzalo Public

Limited (RF) and Sasol Inzalo Public Funding (Pty) Ltd (RF) with all necessary services, such as financial, information and risk management, company secretarial, legal compliance and internal audit services.

The Committee obtains assurance from the administrative agent in respect of the functions specifically performed by the Committee in terms of section 94(7) of the Companies Act.

The Committee also acts as the Audit Committee for Sasol Inzalo Public Funding (Pty) Ltd (RF). The Board annually reviews and approves the Committee’s terms of reference in terms of which responsibilities of the Committee include assisting the Board in overseeing the:

ƫ quality and integrity of Sasol Inzalo Public Limited (RF)’s financial statements including the consolidated group financial statements;

ƫ the qualification and independence of the external auditors for Sasol Inzalo Public Limited (RF) and its subsidiary, Sasol Inzalo Public Funding (Pty) Ltd (RF);

ƫ the scope and effectiveness of the external audit function for Sasol Inzalo Public Limited (RF) and its subsidiary, Sasol Inzalo Public Funding (Pty) Ltd (RF);

ƫ the effectiveness of the group’s internal controls and internal audit function; and

ƫ compliance with legal and regulatory requirements to the extent that they might have an impact on financial statements.

A copy of the Committee’s terms of reference is available on the Sasol Inzalo website (www.sasolinzalo.com).

Executing on our statutory duties and other areas of responsibilitiesIn satisfying its duties, the Committee in particular:

ƫ considered compliance (legal and regulatory) requirements and reviewed the internal control environment;

ƫ nominated for appointment PricewaterhouseCoopers Inc. (PwC) as auditor of the company for the financial year ended 30 June 2016;

ƫ reviewed and assessed the independence of the auditor in accordance with the provisions of the Companies Act and is satisfied that PwC and the designated auditor is independent of the company and the Sasol group;

ƫ determined the fees to be paid to PwC as well as PwC’s terms of engagement;

ƫ ensured that the appointment of the auditor complies with the provisions of the Companies Act and any other legislation relating to the appointment of auditors;


ƫ determined, subject to the provisions of the Companies Act, the nature and extent of any non-audit services which PwC may provide to the group and pre-approved all proposed contracts with PwC for the provision of non-audit services to the company and its subsidiary;

ƫ reviewed the company’s risk management plan and processes which includes information technology management; and

ƫ reviewed the internal audit plan and considered internal audit reports.

Conclusion The Audit Committee is satisfied that it has complied with all its statutory and other duties assigned to it.

Having had regard to all material factors and risks that may impact on the integrity of the Integrated Report (including Notice of Annual General Meeting) and the Annual Financial Statements and following appropriate review, the Committee recommended the Annual Financial Statements of Sasol Inzalo Public Limited (RF) and its subsidiary for the year ended 30 June 2016 for approval to the Board.

On behalf of the Audit Committee

Zola MalingaChairman of the Audit Committee16 September 2016

Sasol Inzalo Public Limited (RF) Group Report of the Audit Committee(continued)


Certificate of the Company Secretary

In my capacity as the Company Secretary, I hereby confirm, in terms of the Companies Act 71 of 2008, that for the year ended 30 June 2016, Sasol Inzalo Public Limited (RF) has lodged with the Companies and Intellectual Property Commission, all such returns as are required of a public company in terms of the Companies Act 71 of 2008, and that all such returns are, to the best of my knowledge and belief, true, correct and up-to-date.

Michelle du Toitfor Sasol South Africa (Pty) Ltd16 September 2016

The directors' responsibility also includes maintaining adequate accounting records and an effective system of risk management. The directors have made an assessment of the group's ability to continue as a going concern and there is no reason to believe the business will not be a going concern in the year ahead.

The auditor is responsible for reporting on whether the annual financial statements are fairly presented in accordance with the applicable financial reporting framework.

Statement by the Directors

The directors are responsible for the preparation and fair presentation of the group annual financial statements and the annual financial statements of Sasol Inzalo Public Limited (RF), comprising the statements of financial position at 30 June 2016, income statements, statements of comprehensive income, statements of changes in equity and statements of cash flows for the year then ended, and the notes to the financial statements, which include a summary of significant accounting policies and other explanatory notes, in accordance with International Financial Reporting Standards and the requirements of the Companies Act of South Africa. In addition, the directors are responsible for preparing the Directors’ report. The directors are responsible for designing, implementing and maintaining internal control relevant to the preparation and fair presentation of these financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Approval of the financial statements

The annual financial statements for the year ended 30 June 2016 as identified in the first paragraph and set out on pages 9 to 26 were approved by the Board of Directors on 16 September 2016 and are signed on its behalf by:

Khungeka Njobe Zola MalingaChairman of the Board Chairman of the Audit Committee16 September 2016


Sasol Inzalo Public Limited (RF) Group

Directors’ report

Dear shareholder,

The directors have pleasure in presenting their report for the year ended 30 June 2016.

Nature of businessDuring May 2008, the shareholders of Sasol Limited approved the Sasol Inzalo share transaction, a broad-based black economic empowerment (BEE) transaction, which resulted in the transfer of beneficial ownership of 10% of Sasol Limited's issued share capital, before the implementation of this transaction, to its employees and a wide spread of BEE participants. Sasol Inzalo Public Limited (RF) and Sasol Inzalo Public Funding (Pty) Ltd (RF) own approximately 2,37% of Sasol Limited’s issued share capital.

The main business of the group (Sasol Inzalo Public Limited (RF) and its subsidiary, Sasol Inzalo Public Funding (Pty) Ltd (RF)) is to acquire and hold shares in Sasol Limited on behalf of the members of the black public. The principal activities of the company remained unchanged during the year.

Share capitalThe authorised and issued share capital of the group remained unchanged during the year. This is consistent with the previous year.

Listing of Sasol Inzalo ordinary shares

On 1 December 2015 Sasol Inzalo Public Limited (RF) listed on the JSE Limited's Empowerment Segment (JSE). The listing provides existing and prospective shareholders with access to a licensed trading platform and the flexibility of transacting on a world-class stock exchange. This listing continues to ensure that Sasol Inzalo Public ordinary shares are traded exclusively amongst BEE compliant persons, as defined in the JSE Listings Requirements.

Going concern

The group incurred a net loss of R95 million for the year ended 30 June 2016 and, as of that date, the group’s total liabilities exceeded its total assets by R955 million. Due to the structure of the BEE transaction, the group is regarded as a going concern despite the negative equity position. Sufficient cash will be generated out of dividends received from Sasol Limited to pay for the operating expenses as well as preference dividends and capital repayments on the preference shares which are due in the short-term. The A preference shares are secured by a first right over the Sasol preferred ordinary shares and the B preference shares are secured by a second right over the Sasol preferred ordinary shares. The C preference shares are guaranteed by Sasol Limited. At the end of the empowerment period in 2018, the Sasol ordinary shares remaining after redeeming the preference shares and paying costs may then be distributed to the black public in proportion to their shareholding. Any shortfall between the value of the investment in Sasol Limited and the outstanding C preference shares at the end of the transaction will be settled directly by Sasol Limited in terms of the guarantee issued to the lenders. The directors have made an assessment of the group's ability to continue as a going concern and there is no reason to believe the business will not be a going concern in the year ahead.

Declaration of cash dividendTaking into account the continued decline in the value of the investment in Sasol Limited due to the low oil price and the volatile macro-economic environment, the Board of Directors has seen it prudent to conserve cash and have concluded that no cash dividend be declared for the year ended 30 June 2016 (2015: Rnil).

DirectorsThe composition of the Board of Directors is set out in the section "Our Board of Directors" of the Integrated Report (including Notice of Annual General Meeting). Ms Z Malinga (nee Ntwasa) was appointed as an independent Non-executive Director with effect from 1 December 2015. Ms L Mogudi and TP Zondi resigned as independent Non-executive Directors with effect from 21 November 2015. Ms V Doo and MT Maake resigned as independent Non-executive Directors with effect from 15 March 2016 and 31 March 2016 respectively. AuditorsPricewaterhouseCoopers Inc. was the external auditor of Sasol Inzalo Public Limited (RF) and its subsidiary, Sasol Inzalo Public Funding (Pty) Ltd (RF) for the financial year ended 30 June 2016. At the annual general meeting of 12 November 2016, shareholders will be requested to reappoint PricewaterhouseCoopers Inc. as auditor of Sasol Inzalo Public Limited (RF) and to note that Mr M Naidoo will be the individual responsible for performing the functions of the auditor, following the Audit Committee's decision to nominate the firm PricewaterhouseCoopers Inc. as its independent auditor for the financial year commencing 1 July 2016.

Subsequent eventsThere were no events subsequent to 30 June 2016 requiring disclosure.

Company secretary

Sasol South Africa (Pty) Ltd is the company secretary of Sasol Inzalo Public Limited (RF) and its subsidiary and its addresses are:

Postal address Physical addressPO Box 5486 1 Sturdee AvenueJohannesburg Rosebank2000 2196Republic of South Africa Republic of South Africa Registered office

The registered addresses of the company are:

Postal address Physical addressPO Box 5486 1 Sturdee AvenueJohannesburg Rosebank2000 2196Republic of South Africa Republic of South Africa


Shareholders’ information

Shareholders’ diaryFinancial year-end 30 June 2016

Annual general meeting 12 November 2016

Dividends

No ordinary dividends were declared for the year ended 30 June 2016

Share ownershipat 30 June 2016

Public and non-public shareholding of Sasol Inzalo ordinary shares

Number of shareholders

% of shareholders

Number of shares

% of ordinary

shares

Public 204 411 99,99 16 029 087 99,65Non-public 3 0,01 56 112 0,35

– Directors and their associates 2 300 – Sasol Inzalo Public Facilitation Trust 1 55 812

204 414 100 16 085 199 100

Major shareholdersNo individual shareholder’s beneficial shareholding in the Sasol Inzalo ordinary shares is equal to or exceeds 5%.



OpinionIn our opinion, the consolidated and separate financial statements present fairly, in all material respects, the financial position of Sasol Inzalo Public Limited (RF) as at 30 June 2016, and financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards and the requirements of the Companies Act of South Africa.

Emphasis of Matter Without qualifying our opinion, we draw attention to note 18 to the financial statements which indicates that the group incurred a net loss of R95 million for the year ended 30 June 2016 and, as at that date, the group’s total liabilities exceeded its total assets by R955 million, rendering the company technically insolvent. Note 18 also details plans in place by management to ensure that the company is able to continue as a going concern in the year ahead.

Other reports required by the Companies ActAs part of our audit of the consolidated and separate financial statements for the year ended 30 June 2016, we have read the Directors’ report, the Audit Committee’s report and the Certificate of the Company Secretary for the purpose of identifying whether there are material inconsistencies between these reports and the audited financial statements. These reports are the responsibility of the respective preparers. Based on reading these reports we have not identified material inconsistencies between these reports and the audited financial statements. However, we have not audited these reports and accordingly do not express an opinion on these reports.

Report on other Legal and Regulatory RequirementsIn terms of the IRBA Rule published in Government Gazette 39475 dated 4 December 2015, we report that PricewaterhouseCoopers Inc. has been the auditors of Sasol Inzalo Public Limited (RF) for 3 years.

PricewaterhouseCoopers Inc. Director: Megandra Naidoo Registered Auditor Sunninghill

16 September 2016

Independent auditor’s report

To the shareholders of Sasol Inzalo Public Limited (RF)Report on the Financial StatementsWe have audited the consolidated and separate financial statements of Sasol Inzalo Public Limited (RF) set out on pages 9 to 26, which comprise the statements of financial position as at 30 June 2016, and the income statements, statements of comprehensive income, statements of changes in equity and statements of cash flows for the year then ended, and the notes, comprising a summary of significant accounting policies and other explanatory information.

Directors’ Responsibility for the Financial StatementsThe group’s directors are responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards and the requirements of the Companies Act of South Africa, and for such internal control as the directors determine is necessary to enable the preparation of consolidated and separate financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s ResponsibilityOur responsibility is to express an opinion on these consolidated and separate financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated and separate financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.


Accounting policies and financial reporting terms

Sasol Inzalo Public Limited (RF) is the holding company of the Sasol Inzalo Public Limited (RF) group (the group) and is domiciled in the Republic of South Africa. The following principal accounting policies were applied by the group for the financial year ended 30 June 2016. Except as otherwise disclosed, these policies are consistent in all material respects with those applied in previous years.

Financial reporting termsThese definitions of financial reporting terms are provided to ensure clarity of meaning as certain terms may not always have the same meaning or interpretation in all countries.

Group structuresCompany A legal business entity registered in terms of the applicable legislation of that country.Entity Sasol Inzalo Public Limited (RF) or a subsidiary of Sasol Inzalo Public Limited (RF).Group The group comprises Sasol Inzalo Public Limited (RF) and its subsidiary, Sasol Inzalo Public Funding

(Pty) Ltd (RF).Subsidiary Any entity over which the group exercises control.

General accounting terms

Consolidated group financial statements

The financial results of the group which comprise the financial results of Sasol Inzalo Public Limited (RF) and its subsidiary.

Functional currency The currency of the primary economic environment in which the entity operates, which is the South African rand.

Presentation currency The currency in which financial results of an entity is presented, which is the South African rand.

Related party Parties are considered to be related if one party directly or indirectly has the ability to control or jointly control the reporting entity (Sasol Inzalo Public Limited (RF)) or exercise significant influence over the reporting entity or is a member of the key management of the reporting entity.

Statement of complianceThe consolidated and separate financial statements are prepared in compliance with International Financial Reporting Standards (IFRS) and Interpretations of those standards, as issued by the International Accounting Standards Board, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council and the South African Companies Act, 2008. The consolidated financial statements were approved for issue by the Board of Directors on 16 September 2016 and will be presented for approval at the annual general meeting of shareholders on 12 November 2016.

The following accounting standards, interpretations and amendments to published accounting standards which are relevant to the group but not yet effective, have not been adopted in the current year:

Standard Date published Effective date* Anticipated impact on the group

IFRS 9, Financial Instruments (Amended)

24 July 2014 1 January 2018 IFRS 9 introduced new requirements for classifying and measuring financial assets and liabilities by introducing a fair value through other comprehensive income category for certain debt instruments. It also contains a new impairment model which will result in earlier recognition of losses and new hedging guidance which will require the implementation of new models, systems and processes.

We do not expect the adoption of IFRS 9 to have significant impact on total assets, total liabilities, equity, earnings and earnings per share.

IFRS 15, Revenue from contracts with customers

28 May 2014 1 January 2018 IFRS 15 contains principles that an entity will apply to determine the measurement of revenue and timing of when it is recognised. The underlying principle is that an entity will recognise revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. We are currently reviewing the effects of the standard and will consider adoption when appropriate.

IFRS 16, Leases 13 January 2016 1 January 2019 IFRS 16 contains principles that an entity will apply in the recognition and measurement of contracts containing a lease. We do not expect the adoption of IFRS 16 to have any impact on the group.

* The amendments apply for annual periods commencing on or after the date noted and early adoption is permitted unless otherwise indicated.


Principal accounting policiesBasis of preparation of financial resultsThe consolidated and separate financial statements are prepared using the historic cost convention except that, as set out in the accounting policies below, certain items, including available-for-sale financial assets, are stated at fair value.

The consolidated and separate financial statements are prepared on the going concern basis.

Basis of consolidation of financial results The consolidated financial statements reflect the financial results of the group. All financial results are consolidated with similar items on a line by line basis except for the investment in subsidiary, which is included in the company’s results.

Investment in subsidiaryInvestment in subsidiary is stated at cost less impairment losses.

Financial assetsThe group classifies its financial assets into the following categories:

ƫ available-for-sale financial assets; and

ƫ loans and receivables.

The classification is dependent on the purpose for which the financial asset is acquired. Management determines the classification of its financial assets at the time of the initial recognition and re-evaluates such designation at least at each reporting date.

Financial assets are recognised on transaction date when the group becomes a party to the contracts and thus obtains rights to receive economic benefits and are derecognised when these rights expire or are transferred.

Financial assets are stated initially on transaction date at fair value including transaction costs. Available-for-sale financial assets are subsequently stated at fair value at the reporting date.

Unrealised gains and losses arising from revaluation of available-for-sale financial assets are recognised as other comprehensive income and included in the investment fair value reserve. On disposal or impairment of available-for-sale financial assets, cumulative unrealised gains and losses previously recognised in other comprehensive income are included respectively in determining the profit or loss on disposal of, or impairment charge relating to, that financial asset, which is recognised in the income statement.

The fair values of financial assets are based on quoted market prices.

An assessment is performed at each reporting date to determine whether objective evidence exists that a financial asset is impaired. In the case of available-for-sale financial assets, a significant or prolonged decline in the fair value of the asset below its cost is considered an indicator of impairment. If any such evidence exists, the cumulative loss is removed as other comprehensive income from the investment fair value reserve and recognised in the income statement. Impairment losses charged to the income statement on available-for-sale financial assets are not reversed.

Financial liabilities Financial liabilities are recognised on the transaction date when the group becomes a party to a contract and thus has a contractual obligation and are derecognised when these contractual obligations are discharged, cancelled or expired.

Financial liabilities are stated initially on the transaction date at fair value including transaction costs. Subsequently, they are stated at amortised cost using the effective interest method.

Cash and cash equivalentsCash and cash equivalents are stated at carrying value which is deemed to be fair value. Bank overdrafts are offset against cash and cash equivalents in the statement of cash flows.

Share capitalIssued share capital is stated in the statement of changes in equity at the amount of the proceeds received less directly attributable issue costs.

Preference sharesPreference shares are classified as liabilities if they are redeemable on a specific date or at the option of the shareholders, and in the case of the A and B preference shares, dividend payments are not discretionary. Dividends thereon are charged to the income statement as a finance expense based on the effective interest method.

DebtDebt, which constitutes a financial liability, includes short-term and long-term debt. Debt is initially recognised at fair value, net of transaction costs incurred and is subsequently stated at amortised cost. Debt is classified as short-term unless the borrowing entity has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Debt is derecognised when the obligation in the contract is discharged, cancelled or has expired. Premiums or discounts arising from the difference between the fair value of debt raised and the amount repayable at maturity date are charged to the income statement as finance expenses based on the effective interest method.

Sasol Inzalo Public Limited (RF) Group Accounting policies and financial reporting terms(continued)


TaxationThe income tax charge is determined based on net income before tax for the year and includes deferred tax and dividend withholding tax.

Current tax The current tax charge is the calculated tax payable on the taxable income for the year using enacted or substantively enacted tax rates and any adjustments to tax payable in respect of prior years.

Deferred tax Deferred tax is provided for using the liability method, on all temporary differences between the carrying amount of assets and liabilities for accounting purposes and the amounts used for tax purposes and on any tax losses.

The provision for deferred tax is calculated using enacted or substantively enacted tax rates at the reporting date that are expected to apply when the asset is realised or liability settled.

The provision of deferred tax assets and liabilities reflects the tax consequences that would follow from the expected recovery or settlement of the carrying amount of its assets and liabilities.

Dividend withholding tax Dividend withholding tax is payable at a rate of 15% on dividends distributed to shareholders. This tax is not attributable to the company paying the dividend but is collected by the company and paid to the tax authorities on behalf of the shareholder.

On receipt of a dividend, the dividend withholding tax is recognised as part of the current tax charge in the income statement in the period in which the dividend is received.

Other payables Other payables are initially recognised at fair value and subsequently stated at amortised cost.

Finance incomeFinance income consists primarily of dividends received and interest received.

The timing of finance income recognition is as follows:

ƫ Dividends received is recognised when the right to receive payment is established; and

ƫ Interest received is recognised on a time proportion basis using the effective interest method.

Finance costsFinance costs, including dividends on preference shares classified as liabilities, are charged to the income statement using the effective interest method.

Dividends payable Dividends payable and the related taxation thereon are recognised as a liability in the period in which they are declared.



Statements of financial positionat 30 June

Group Company

2016 2015 2016 2015 Note Rm Rm Rm Rm

Assets

Investment in subsidiary 1 - - 371 371Investment in security 2 6 388 7 238 - -

Non-current assets 6 388 7 238 371 371

Cash 3 20 39 15 21

Current asset 20 39 15 21

Total assets 6 408 7 277 386 392

Equity and liabilities Shareholders' (deficit)/equity (955) (150) 372 387

Long-term debt 4 7 101 7 022 9 –Deferred tax liability 5 112 252 – –

Non-current liabilities 7 213 7 274 9 –

Short-term debt 4 145 148 – –

Other payables 6 5 5 5 5

Current liabilities 150 153 5 5

Total equity and liabilities 6 408 7 277 386 392

Income statementsfor the year ended 30 June 2016

Group Company

2016 2015 2016 2015 Note Rm Rm Rm Rm

Other expenses 7 (17) (7) (16) (6)

Operating loss (17) (7) (16) (6)Net finance (costs)/income (77) (73) 1 16

finance income 8 497 497 1 16finance costs 9 (574) (570) – –

(Loss)/profit before tax (94) (80) (15) 10Taxation 10 (1) (4) – –

(Loss)/profit for year (95) (84) (15) 10

Rand Rand Rand Rand

Per share information Basic (loss)/earnings per share 11 (5,91) (5,22) (0,93) 0,62Diluted (loss)/earnings per share 11 (5,91) (5,22) (0,93) 0,62


Statements of comprehensive incomefor the year ended 30 June 2016

Group Company

2016 2015 2016 2015 Rm Rm Rm Rm

(Loss)/profit for year (95) (84) (15) 10Other comprehensive loss, net of tax Items that can be subsequently reclassified to the income statement (710) (2 387) - -

Fair value of investment available-for-sale (850) (2 934) - -Tax on items that can be subsequently reclassified to the income statement 140 547 - -

Total comprehensive (loss)/income for year (805) (2 471) (15) 10

Statements of changes in equityfor the year ended 30 June 2016

Group Company

Share capital and

share premium

Investment fair value

reserveAccumulated

loss

Total shareholders'

equity/(deficit)

Share capital and

share premium

Accumulated profit

Total shareholders'

equity (Note 12) (Note 12) Rm Rm Rm Rm Rm Rm Rm

Balance at 30 June 2014 371 3 486 (1 536) 2 321 371 6 377Total comprehensive (loss)/income for year – (2 387) (84) (2 471) – 10 10

Balance at 30 June 2015 371 1 099 (1 620) (150) 371 16 387Total comprehensive loss for year – (710) (95) (805) – (15) (15)

Balance at 30 June 2016 371 389 (1 715) (955) 371 1 372




Statements of cash flows

for the year ended 30 June 2016

Group Company

2016 2015 2016 2015 Note Rm Rm Rm Rm

Cash utilised in operating activities 13 (17) (8) (16) (6)Finance income received 8 497 497 1 16Finance costs paid 9 (219) (229) - -Tax paid 10 (1) (4) - -

Cash generated by/(utilised in) operating activities 260 256 (15) 10

Repayment of capital 4 (95) (1 455) - -Repayment of finance costs 4 (193) (1 000) - -Loan raised 4 9 2 177 9 -

Cash effect of financing activities (279) (278) 9 -

(Decrease)/increase in cash (19) (22) (6) 10Cash at beginning of year 39 61 21 11

Cash at end of year 20 39 15 21


Notes to the financial statements

Group Company

2016 2015 2016 2015 for the year ended 30 June Rm Rm Rm Rm

1 Investment in subsidiary Reflected as non-current asset Shares at cost – – 371 371

For further details of interest in subsidiary, refer to page 25.

2 Investment in security Investment available-for-sale long-term investment 6 388 7 238 – –

Reconciliation Balance at beginning of year 7 238 10 172 – – Revaluation to fair value (850) (2 934) – –

Balance at end of year 6 388 7 238 – –

Fair value of investment available-for-sale

The fair value of the investment available-for-sale is based on a quoted market price of the Sasol ordinary share of R397,17 per share (2015: R450,00 per share) as listed on the Johannesburg Stock Exchange at 30 June. This is a level one fair value measurement.

For further details of the investment in security, refer to page 25.

3 Cash Cash – per the statements of cash flows 20 39 15 21

Fair value of cash

The carrying value of cash approximates fair value due to the short-term maturity of these instruments.


4 Long-term debt Total long-term debt 7 246 7 170 9 –

Short-term portion (145) (148) – –

7 101 7 022 9 –

Analysis of long-term debt

At amortised cost

Secured debt 7 244 7 180 – –

Unsecured debt1 9 – 9 –

Unamortised loan costs (7) (10) – –

7 246 7 170 9 -

Reconciliation

Balance at beginning of year 7 170 7 107 – –

Interest accrued 352 338 – –

Loans repaid2,3 (288) (2 455) – –

Loans raised2 9 2 177 9 –

Amortisation of loan costs 3 3 – –

Balance at end of year 7 246 7 170 9 –

Interest-bearing status

Interest-bearing debt 7 237 7 170 – –

Non-interest-bearing debt 9 – 9 –

7 246 7 170 9 –

Maturity profile

Within one year 145 148 – –

One to five years 7 101 7 022 9 –

7 246 7 170 9 –

1 An unsecured interest-free loan was obtained from Sasol Limited for the purpose of paying for costs associated with the listing of the BEE shares of the company on the Johannesburg Stock Exchange on 1 December 2015.

2 In 2015, additional C preference shares were issued to the current holders of the C preference shares. The D preference shares were redeemed from the proceeds received for the additional C preference shares.

3 Loan repaid of R288 million (2015: R2 455 million) comprises capital repayment on the A preference debt of R95 million (2015: R95 million), payment of finance costs on the C preference shares of R193 million (2015: R183 million) and refinancing of the D preference shares of R2 177 million in 2015 (capital repayment of R1 360 million and payment of finance costs of R817 mllion).

At the end of the transaction any shortfall between the value of the investment in Sasol Limited and the outstanding C preference debt value will be settled directly by Sasol Limited in terms of the guarantee issued to the lenders.

Group Company

2016 2015 2016 2015 Rm Rm Rm Rm

Fair value of long-term debt 7 228 7 349 9 –

Fair value of long-term debt

The fair value of long-term debt is based on the quoted market price for the same or similar instruments or on the current rates available for debt with the same maturity profile and effective interest rate with similar cash flows. Market-related rates ranging between 7,14% and 10,61% per annum (2015: 6,29% and 10,57% per annum) were used to discount estimated cash flows based on the underlying currency of the debt. This is a level two fair value measurement.

Group Company

2016 2015 2016 2015for the year ended 30 June Rm Rm Rm Rm

Sasol Inzalo Public Limited (RF) Group Notes to the financial statements(continued)


5 Deferred tax liability

Reconciliation Balance at beginning of year 252 799 – – Current year charge per the statements of comprehensive income (140) (547) – –

Balance at end of year 112 252 – –

Comprising Deferred tax liability 112 252 – –

The deferred tax liability is determined based on the tax status and rates of the company.

Deferred tax is attributable to the following temporary difference

Investment in security 112 252 – –

6 Other payables

Other payables1 5 5 5 5

Fair value of other payable

The carrying value approximates fair value because of the short period to maturity of these payables.

7 Other expenses Audit remuneration * * – – Professional fees 2 * 2 – Other administrative costs 15 7 14 6

17 7 16 6

8 Finance income Dividends received from investment available-for-sale 495 495 – 16 Interest received on cash and cash equivalents 2 2 1 –

Per the statement of cash flows 497 497 1 16

1 Other payable relates to unclaimed dividends for dividends paid during financial year 2014

* Less than R500 000.

Financial covenants

There were no events of default during the current year. The group is in compliance with its debt covenants, none of which are expected to represent material restrictions on funding or investment policies in the foreseeable future.

For further details of long-term debt, refer to page 26.

Borrowing powers The group's borrowing powers are restricted by its memorandum of incorporation.

Group Company


4. Long-term debt continued


9 Finance costs Debt 571 567 – – Amortisation of loan costs 3 3 – –

Income statement charge 574 570 – –

Total finance costs before amortisation of loan costs 571 567 – – Less interest accrued on long-term debt (352) (338) – –

Per the statement of cash flows 219 229 – –

10 Taxation South African normal tax current year 1 1 – – Securities transfer tax1 * 3 – –

1 4 – –

Reconciliation of effective tax rate

2016%

2015%

2016%

2016%

The table below shows the difference between the South African enacted tax rate (28%) compared to the tax rate in the income statement.Total income tax expense differs from the amount computed by applying the South African normal tax rate to loss before tax. The reasons for these differences are:

South African normal tax rate 28,0 28,0 28,0 28,0

other disallowed expenditure (177,1) (202,0) (28,0) 17,0 securities transfer tax1 - (4,0) – –

exempt other income 148,0 173,0 – (45,0)

Effective tax rate (1,1) (5,0) – –

1 This relates to 0,25% Securities transfer tax paid on the capital repayment of the A preference shares. * Less than R500 000.

11 Basic (loss)/earnings per share Basic (loss)/earnings per share is derived by dividing loss for the year by the weighted average number of shares.

Number of

sharesNumber of

sharesNumber of

sharesNumber of

shares

Weighted average number of shares 16 085 199 16 085 199 16 085 199 16 085 199

Rm Rm Rm Rm

Basic (loss)/earnings for the year (95) (84) (15) 10

Rands per

shareRands per

shareRands per

shareRands per

share

Basic (loss)/earnings per share (5,91) (5,22) (0,93) 0,62

Due to the nature of the business, no potential dilution of shares exist and no headline earnings adjustments have arisen over the last two years.

Group Company




Group Company

for the year ended 30 June 2016 2015 2016 2015

12 Share capital and share premium

Number of

sharesNumber of

sharesNumber of

sharesNumber of

shares

Authorised Ordinary par value shares of R0,01 each 19 000 000 19 000 000 19 000 000 19 000 000

Non-participating preference share of R0,01 each 1 1 1 1

Issued

Ordinary shares issued at beginning and end of year 16 085 199 16 085 199 16 085 199 16 085 199

Non-participating preference share issued at beginning and end of year 1 1 1 1

Rm Rm Rm Rm

Share capital * * * *

Share premium 371 371 371 371


Capital management

In terms of the memorandum of incorporation of the company and governing agreement entered into between Sasol Limited, Sasol Inzalo Public Limited (RF), Sasol Inzalo Public Funding (Pty) Ltd (RF) and The Sasol Inzalo Public Facilitation Trust on 15 May 2008, the company may not issue any unissued shares until the end of the empowerment period in September 2018. The company’s capital structure is managed in accordance with the terms, conditions and restrictions of the memorandum of incorporation and governing agreement.

13 Cash utilised in operating activities

Cash flow from operations (refer note 14) (17) (7) (16) (6) Increase in working capital (refer note 15) – (1) – –

(17) (8) (16) (6)

14 Cash flow from operations

Operating loss (17) (7) (16) (6)

15 Increase in working capital

Decrease in other payable – (1) – –

Rm Rm Rm Rm


16 Related party transactions

During the year, the group, in the ordinary course of business, entered into certain transactions with Sasol Limited. The effect of these transactions is included in the financial performance and results of the group. Amounts owing to related parties are disclosed in the respective notes to the financial statements for those statement of financial position items.

Group Company

2016 2015 2016 2015Rm Rm Rm Rm


Material related party transactions were as follows:

Income statement items Finance costs Sasol Limited – 46 – –

Finance income Sasol Limited (refer note 8) 495 495 – – Sasol Inzalo Public Funding (Pty) Ltd (RF) (refer note 8) – – – 16

495 495 – 16

Amounts reflected as non-current assets Investment in subsidiary Sasol Inzalo Public Funding (Pty) Ltd (RF) (refer note 1) – – 371 371

Investment in security Sasol Limited (refer note 2) 6 388 7 238 – –

Amount reflected as non-current liability Long-term debt Sasol Limited (refer note 4) 9 – 9 –

Amounts paid by Sasol Limited

During the year, Sasol Limited paid directors' fees amounting to R1 355 500 (2015: R1 132 875) to the following directors of the company for services rendered as directors of the company and of Sasol Inzalo Public Funding (Pty) Ltd (RF): 1 1 1 1

Rand Rand Rand Rand

A Haroon 108 500 111 300 73 500 79 500 CK Mokoena 113 500 86 125 81 000 70 225 K Njobe 226 500 174 900 170 250 127 200 L Mogudi* 98 500 112 625 73 500 80 825 M Matlwa – 79 500 – 63 600 N Manyika 103 250 116 600 68 250 84 800 S Koyana 135 500 116 600 98 000 84 800 TB Boikhutso 142 500 116 600 105 000 84 800 TP Zondi* 90 000 106 000 72 500 74 200 V Doo* 36 750 112 625 26 750 80 825 MT Maake* 135 500 – 98 000 – Z Monnakgotla 137 250 – 99 750 –

Z Malinga 27 750 – 15 250 –

1 355 500 1 132 875 981 750 830 775

* Directors resigned in 2016 financial year.


17 Subsequent events

There were no events subsequent to 30 June 2016 requiring disclosure.

18 Going concern

The group incurred a net loss of R95 million for the year ended 30 June 2016 and, as of that date, the group’s total liabilities exceeded its total assets by R955 million. Due to the structure of the BEE transaction, the group is regarded as a going concern despite the negative equity position. Sufficient cash will be generated out of dividends received from Sasol Limited to pay for the operating expenses as well as preference dividends and capital repayments on the preference shares which are due in the short term. The A preference shares are secured by a first right over the Sasol preferred ordinary shares and the B preference shares are secured by a second right over the Sasol preferred ordinary shares. The C preference shares are guaranteed by Sasol Limited. At the end of the empowerment period in 2018, the Sasol ordinary shares remaining after redeeming the preference shares and paying costs may then be distributed to the black public in proportion to their shareholding. Any shortfall between the value of the investment in Sasol Limited and the outstanding C preference shares at the end of the transaction will be settled directly by Sasol Limited in terms of the guarantee issued to the lenders. The directors have made an assessment of the group’s ability to continue as a going concern and there is no reason to believe the business will not be a going concern in the year ahead.

19 Financial risk management and financial instruments Introduction

The group is exposed in varying degrees to a variety of financial instrument related risks. The Sasol Inzalo Public Limited (RF) Board of directors (the Board) has the overall responsibility for the establishment and oversight of the group's risk management framework. These risks are continuously monitored and managed. The group's financial risks relating to its operations are managed by the Board. A comprehensive risk management process has been developed to continuously monitor and control risks.

Financing risk

Financing risk refers to the risk that refinancing of existing borrowings could become more difficult or more costly in the future.

Risk profile

Risk management and measurement relating to each of these risks is discussed under the headings below (subcategorised into credit risk, liquidity risk, and market risk) which entails an analysis of the types of risk exposure, the way in which such exposure is managed and quantification of the level of exposure in the statement of financial position.

Credit risk The group has potential credit risk exposure on cash investments, although these cash investments are not material.

The significant financial asset of the group is the available-for-sale investment in Sasol Limited which is listed on the Johannesburg Stock Exchange and therefore fully recoverable.

Liquidity risk

Liquidity risk is the risk that an entity will be unable to meet its obligations as they become due. The group manages liquidity risk by effectively managing its working capital and cash flows. The group finances its operations primarily with dividend income from Sasol Limited and with interest received on cash investments. The group is in compliance with all of the financial covenants per its loan agreements.

The Inzalo scheme is structured such that the recoverable amount of the Sasol Limited shares will be used to settle the outstanding preference debt. Any shortfall remaining thereafter on the C preference debt will be settled directly by Sasol Limited in terms of the guarantee issued to the lenders.


Company Financial assets Loans and receivables Cash 3 15 15 – – Investment available for sale

Investment in subsidiary 1 371 – – 371

Non-derivative instruments 386 15 – 371

Financial liabilities

Long-term debt 4 (9) – – (9) Other payables 6 (5) (5) – –

Non-derivative instruments (14) (5) – (9)

* The amount disclosed is the contractual cash flows including finance expenses.

The maturity profile of the contractual cash flows of financial instruments at 30 June were as follows:

Contractual cash flows*

Within one year

One to two years

Two to three years

Note Rm Rm Rm Rm

2016

Group Financial assets Loans and receivables Cash 3 20 20 – – Investment available-for-sale Investment in security 2 6 388 – – 6 388

Non-derivative instruments 6 408 20 – 6 388


Long-term debt (8 626) (304) (292) (8 030) Other payables 6 (5) (5) – –

Non-derivative instruments (8 631) (309) (292) (8 030)

19 Financial risk management and financial instruments continued



Contractual

cash flows*Within one

yearOne to two

yearsTwo to three

yearsThree to

four years Note Rm Rm Rm Rm Rm

2015 Group Financial assets Loans and receivable Cash 3 39 39 – – – Investment available-for-sale Investment in security 2 7 238 – – – 7 238

Non-derivative instruments 7 277 39 – – 7 238


Long-term debt (9 219) (314) (304) (292) (8 309) Other payables 6 (5) (5) – – –

Non-derivative instruments (9 224) (319) (304) (292) (8 309)

Company Financial assets Loans and receivables Cash 3 21 21 – – – Investment available-for-sale Investment in subsidiary 1 371 – – – 371

Non-derivative instruments 392 21 – – 371

Financial liabilities Other payables 6 (5) (5) – – –

Non-derivative instruments (5) (5) – – –

* The amount disclosed is the contractual cash flows including finance expenses.

Market risk

Market risk is the risk arising from possible market price movements and their impact on the future cash flows of the group. The market price movement that the group is exposed to includes interest rates and Sasol Limited's listed share price. The group has developed policies aimed at managing the volatility inherent in this exposure which is discussed below.

Interest rate risk

Fluctuations in interest rates impact on the value of short-term investments and financing activities, giving rise to interest rate risk. Exposure to interest rate risk is particularly with reference to changes in South African interest rates. The debt of the group is structured on a combination of floating and fixed interest rates. For further details on long-term debt refer to page 26.


19 Financial risk management and financial instruments continued At the reporting date, the interest rate profile of the group’s interest-bearing financial instruments was:

Carrying value

Group Company

2016 2015 2016 2015 Rm Rm Rm Rm

Variable rate instruments Financial assets 20 39 15 21 Financial liabilities (5 426) (5 262) – –

(5 406) (5 223) 15 21

Fixed rate instruments

Financial liabilities (1 811) (1 908) – –

Interest profile (variable: fixed rate as a percentage of total interest-bearing) 75:25 74:26 100:0 100:0

Cash flow sensitivity for variable rate instruments

Financial instruments affected by interest rate risk include borrowings and deposits. A change of one percent in the prevailing interest rate at the reporting date would have increased/(decreased) earnings by the amounts shown below before the effect of tax. The sensitivity analysis has been prepared on the basis that all other variables remain constant and has been performed on the same basis for 2015.

Income statement

1% increase

Group Company

Rm Rm

30 June 2016 (54) –

30 June 2015 (52) –

A one percent decrease in the interest rate at 30 June would have the equal but opposite effect to the amounts shown above, on the basis that all other variables remain constant.



Interest in subsidiary

Nominal issued share

capital

Investment at cost

InterestGroup

Investment at cost

2008 2016 2015Name Nature of business R % Rm Rm Rm

Operating subsidiary Direct Sasol Inzalo Public Funding (Pty) Ltd (RF)

Investment holding company incorporated to hold shares in Sasol Limited 1 100 – 371 371

The entity is incorporated and domiciled in the Republic of South Africa.The company’s interest in the aggregate losses of the subsidiary amounts to R80 million (2015: R78 million).

0

Investment in security

Group

Fair value Cost Fair value Cost

Country of Nature Interest 2016 2016 2015 2015

Name incorporation of business % Rm Rm Rm Rm

Sasol Limited South Africa Holding company of the Sasol group 2,37 6 388 5 887 7 238 5 887

The details of the investment are as follows:

The group subscribed for 16 085 199 Sasol preferred ordinary shares. The Sasol preferred ordinary shares have voting rights attached to them and will automatically be Sasol ordinary shares at the end of the empowerment period in 2018. The Sasol preferred ordinary shares rank pari passu with the Sasol ordinary shares and differ only in the fact that they are not listed and trading is restricted. At the end of the empowerment period in 2018, the Sasol ordinary shares remaining after redeeming the preference share debt and paying costs may then be distributed to the black public in proportion to their shareholding.

With effect from 1 April 2012, the Sasol preferred ordinary share dividend was grossed up by 10% in accordance with contractual obligations. The revised dividend is R30,80 per annum for each year until 8 September 2018.

The Sasol preferred ordinary shares are pledged as security for the A and B preference shares and may not be disposed of or encumbered in any way.



Long-term debt

The group's borrowing powers are restricted by its memorandum of incorporation.

Interest rate at 30 June 2016

Group Company

Terms of repayment

Security/Guarantee Currency

2016Rm

2015Rm

2016Rm

2015Rm

Secured debt

A preference shares repayable in semi-annual instalments by September 2018

Secured by Sasol preferred ordinary shares held by the company Rand Fixed 11,1% 1 024 1 123 – –

B preference shares repayable in September 2018

Secured by Sasol preferred ordinary shares held by the company Rand Fixed 13,3% 791 792 – –

C preference shares repayable in September 2018

Guarantee by Sasol Limited Rand

Variable 68% of prime 5 429 5 265 – –

Unsecured debt

Sasol Limited interest-free loan repayable in September 2018 1 Rand – 9 – 9 –

Non-participating preference share 2 Rand – * * – –

7 253 7 180 9 –

Unamortised loan costs (amortised over period of debt using the effective interest rate method) Rand (7) (10) – –

7 246 7 170 9

Repayable within one year included in short-term debt Rand (145) (148) – –

7 101 7 022 9 –


1 An unsecured interest-free loan was obtained from Sasol Limited for the purpose of paying for costs associated with the listing of the BEE shares of the company on the JSE Limited's Empowerment Segment on 1 December 2015.

2 One ‘A’ ordinary share of R0,01 was issued to Sasol Limited during the period ended 30 June 2008. The rights to this share provide that immediately when any ordinary share is issued, it is converted to a preference share. As a result of the ordinary shares issued during the year ended 30 June 2009, the share was converted to a preference share. The preference share will be entitled in the aggregate to a dividend of R1,00 immediately prior to redemption, on 8 September 2018, and to redemption proceeds of R0,01.


Shareholder helplineAssistance with Shareholder and AGM queriesCall Centre: 0800 000 222Telephone: +27(0) 11 370 5000Telefax: +27(0) 11 688 5238Email: [email protected]

Assistance with proxy formsCall Centre: 0800 000 222Telephone: +27(0) 11 370 5000Email: [email protected]

Share registrarsComputershare Investor Services (Pty) Ltd70 Marshall StreetJohannesburg 2001Republic of South Africa PO Box 61051Marshalltown 2107 Republic of South Africa Telephone: +27(0) 11 370 5000Email: [email protected]

JSE SponsorDeutsche Securities (SA) Proprietary Limited Directors (independent Non-executive)Ms K Njobe (Chairman)Ms TB BoikhutsoMs A HaroonDr S KoyanaMs Z MalingaMs N ManyikaMs CK MokoenaMs Z Monnakgotla

Company SecretarySasol South Africa (Pty) Ltd

Company registration number2007/030646/06, incorporated in the Republic of South Africa Income tax reference number9261678164 Sasol Inzalo ordinary sharesShare code: SIPBEEISIN: ZAE000210050 Sasol contactsBusiness address and registered office1 Sturdee Avenue Rosebank Johannesburg 2196Republic of South Africa Postal and electronic addresses and telecommunication numbersPO Box 5486Johannesburg 2000Republic of South Africa Telephone: +27(0) 11 441 3111Telefax: +27(0) 11 788 5092Website: www.sasolinzalo.com

Contact information


Documents

SASOL INZALO PUBLIC LIMITED (RF) GROUP