Sasol Financial Analysis

OVERVIEW OF SASOL & ITS OPERATIONS

Sasol Limited is an innovative and competitive global energy company.

GROWTH STRATEGY

With a global growth strategy that has reached new dimensions and a work ethic rooted in loyalty to South Africa, Sasol looks to expand its platform in the worldwide markets as well as southern Africa where Sasol is a heavy investor.

Sasol's focus is on four growth drivers: growing chemicals portfolio, optimising the performance of existing businesses, exploiting upstream hydrocarbon opportunities, and commercialising and expanding gas to liquid technology.

A philosophy of continuous improvement and linked initiatives to increase plant outputs, contributes to running the business profitably.

Sasol has marketing offices and production facilities around the world as well as key joint ventures to explore and develop growth opportunities in Africa and increasingly in Europe, the Americas, Asia and Australasia.

SASOL HISTORY

The history of Sasol began in 1927 when a White Paper was tabled in Parliament

to investigate the establishment of a South African oil-from-coal industry.

It was realised then that, because South Africa did not have crude oil reserves, the country's balance of payments had to be protected against increasing crude oil imports. After many years of research and international negotiations, the South African Coal Oil and Gas Corporation was formed in 1950.

From its first eight drums of creosote to the acquisition of the German CONDEA Group in 2001, Sasol is a company whose success has been founded on innovative thinking. Major milestones include our first automotive fuel (1955), the construction of the National Petroleum Refiners of South Africa (1967) and the establishment in 1990 of our first international marketing company, Sasol Chemicals Europe, which paved the way for our globalisation programme.

The company has developed world-leading technology for the conversion of low-grade coal into value-added synfuels and chemicals. Today the operational footprint extends to more than 20 countries and exports to over 100. Sasol is one of the top five publicly listed companies in South Africa and is quoted on the JSE and the NYSE.

Headquartered in Johannesburg, South Africa, it is engaged in the commercial production and marketing of chemicals and liquid fuels; with a growing interest in oil and gas exploration.

Sasol was established in 1950 by the South African government to manufacture fuels and chemicals from indigenous raw materials. The company has developed world-leading technology for the commercial production of synthetic fuels and chemicals from low-grade coal as well as the conversion of natural gas to environment-friendly fuels and chemicals. It is committed to sustainable development and is a signatory of Responsible Care®, a worldwide initiative by the chemical industry that strives to improve performance in safety, health and environment.

A workforce of 30 000 strong deploy their skills and talents to drive the company forward in exploration, mining, science, technology R&D and business development. Sasol is listed on the Johannesburg Securities Exchange (JSE), symbol SOL and the New York Stock Exchange (NYSE), symbol SSL.

A family of diverse businesses with almost 50 entities in The Americas, Australasia, Europe and Africa, subscribes to a code of shared values that mould Sasol into one powerful global brand.

As the world seeks alternatives and better ways to meet the demands of cleaner and reliable energy supply, Sasol's acumen and commercial experience in coal-to-liquids and gas-to-liquids technology is increasingly being recognised and sought after worldwide. Sasol is a global player in chemicals and fuels.

Sasol Limited is the corporate holding company for the group's business activities. Sasol are active in six key areas. The key operating companies are:

* Sasol Chemical Industries Ltd

* Sasol Oil (Pty) Ltd

* Sasol Mining (Pty) Ltd

* Sasol Gas Holdings (Pty) Ltd

* Sasol Synfuels (Pty) Ltd

* Sasol Technology (Pty) Ltd

* Sasol Financing (Pty) Ltd

SASOL IN CHEMICALS

Sasol's chemical activities are structured around the global focus areas of Polymers, Solvents and Waxes. The South African based nitrogen cluster of businesses comprising Ammonia, Explosives and Fertilisers complement the international operations.

These are supplemented by the Merisol phenolics, African Amines and Polymer joint ventures, which further extend our activities into Australasia and North America.

The acquisition of the Condea Group has expanded our operational footprint globally in solvents and opened doors for geographic diversification.

All products are backed by world-leading technology and R&D resources.

Sustainable development is key to our entire operation. We are committed to Responsible Care®, a worldwide initiative by the chemical industry that strives to improve performance in safety, health and environment.

SASOL IN FUELS

Our focus is on the manufacturing, refining and marketing of automotive and industrial fuels and oils, with a growing interest in gas.

Unique Fischer-Tropsch technologies backed by world leading R&D are fundamental to the invention of our processes and their development.

We operate the world's only coal based synthetic fuels facility, producing liquefied petroleum gas from low grade coal.

Our automotive fuels which are marketed in South Africa are designed to advance performance. Both Sasol dualfuel™ and Sasol turbodiesel™ are breakthrough products in this country.

In industry, we provide premium fuels and lubricants that meet or exceed stringent specifications. We also produce jet fuel, fuel alcohol and illuminating kerosene.

Our entry into hydrogen and methane rich gas production and exploration has extended activity into southern and West Africa.

Sustainable development is not only key, but a priority. Sasol is also a signatory of Responsible Care®, a worldwide initiative that strives to improve